Senate Bill sb2566e1
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1 A bill to be entitled
2 An act relating to local government
3 accountability; amending s. 11.40, F.S.;
4 revising duties of the Legislative Auditing
5 Committee; amending s. 11.45, F.S.; revising
6 reporting requirements of the Auditor General;
7 amending s. 61.181, F.S.; correcting a
8 cross-reference; amending s. 75.05, F.S.;
9 deleting a requirement for an independent
10 special district to submit a copy of a
11 complaint to the Division of Bond Finance of
12 the State Board of Administration; amending s.
13 112.08, F.S.; clarifying that local governments
14 are authorized to provide health insurance;
15 amending s. 112.625, F.S.; revising the
16 definition of "governmental entity" to include
17 counties and district school boards; amending
18 s. 112.63, F.S.; providing for additional
19 information to be provided to the Department of
20 Management Services in actuarial reports with
21 regard to retirement systems and plans and
22 providing procedures therefor; providing for
23 notification of the Department of Revenue and
24 the Department of Financial Services in cases
25 of noncompliance and authorizing the
26 withholding of certain funds; requiring the
27 Department of Management Services to notify the
28 Department of Community Affairs in the case of
29 affected special districts; amending s.
30 191.005, F.S.; exempting a candidate from
31 campaign requirements under specified
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1 conditions; providing for the removal of a
2 board member upon becoming unqualified;
3 amending s. 130.04, F.S.; revising provisions
4 governing notice of bids and disposition of
5 bonds; amending s. 132.02, F.S.; revising
6 provisions relating to the authorization to
7 issue refund bonds; amending s. 132.09, F.S.;
8 revising provisions relating to the notice of
9 sale, bids, and awards and private sale of
10 bonds; amending s. 163.05, F.S.; revising
11 provisions governing the Small County Technical
12 Assistance Program; amending s. 166.121, F.S.;
13 revising provisions governing the issuance of
14 bonds by a municipality; amending s. 166.241,
15 F.S.; providing a municipal budget amendment
16 process and requirements; amending s. 189.4044,
17 F.S.; revising special procedures for
18 determination of inactive special districts;
19 amending s. 189.412, F.S.; revising duties of
20 the Special District Information Program of the
21 Department of Community Affairs; amending s.
22 189.418, F.S.; revising reporting requirements
23 of newly created special districts; authorizing
24 the governing body of a special district to
25 amend its budget; amending s. 189.419, F.S.;
26 revising provisions relating to the failure of
27 special districts to file required reports;
28 amending s. 189.421, F.S.; revising provisions
29 governing the failure of special districts to
30 disclose financial reports; providing for
31 extension of time for the filing of said
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1 reports; providing remedies for noncompliance;
2 providing for attorney's fees and costs;
3 amending s. 189.428, F.S.; revising provisions
4 governing the special district oversight review
5 process; amending s. 189.439, F.S.; revising
6 provisions governing the issuance of bonds by
7 special districts; amending s. 191.005, F.S.;
8 exempting a candidate from campaign
9 requirements under specified conditions;
10 providing for the removal of a board member
11 upon becoming unqualified; amending s. 218.075,
12 F.S.; revising provisions governing the
13 reduction or waiver of permit processing fees
14 for certain counties; amending s. 218.32, F.S.,
15 relating to annual financial reports; requiring
16 the Department of Financial Services to notify
17 the Speaker of the House of Representatives and
18 the President of the Senate of any municipality
19 that has not had financial activity for a
20 specified period of time; providing that such
21 notice is sufficient to initiate dissolution
22 procedures; repealing s. 218.321, F.S.,
23 relating to annual financial statements of
24 local governmental entities; amending s.
25 218.39, F.S.; providing reporting requirements
26 for certain special districts; amending s.
27 218.36, F.S.; revising reporting requirements
28 for boards of county commissioners relating to
29 the failure of a county officer to comply with
30 the provisions of the section; amending s.
31 218.369, F.S.; revising the definition of "unit
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1 of local government" to include district school
2 boards; renaming pt. V of ch. 218, F.S., as
3 "Local Governmental Entity and District School
4 Board Financial Emergencies"; amending s.
5 218.50, F.S.; renaming ss. 218.50-218.504,
6 F.S., as the "Local Governmental Entity and
7 District School Board Act"; amending s.
8 218.501, F.S.; revising the stated purposes of
9 pt. V of ch. 218, F.S.; amending s. 218.502,
10 F.S.; revising the definition of "local
11 governmental entity"; amending s. 218.503,
12 F.S.; revising provisions governing the
13 determination of financial emergency for local
14 governments and district school boards;
15 amending s. 218.504, F.S.; revising provisions
16 relating to the authority of the Governor and
17 authorizing the Commissioner of Education to
18 terminate all state actions pursuant to ss.
19 218.50-218.504, F.S.; repealing ch. 131, F.S.,
20 consisting of ss. 131.01, 131.02, 131.03,
21 131.04, 131.05, and 131.06, F.S., relating to
22 refunding bonds of counties, municipalities,
23 and special districts; repealing s. 132.10,
24 F.S., relating to minimum sale price of bonds;
25 repealing s. 165.052, F.S., relating to special
26 dissolution procedures for municipalities;
27 repealing s. 189.409, F.S., relating to
28 determination of financial emergencies of
29 special districts; repealing s. 189.422, F.S.,
30 relating to actions of the Department of
31 Community Affairs and special districts;
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1 repealing s. 200.0684, F.S., relating to an
2 annual compliance report of the Department of
3 Community Affairs regarding special districts;
4 repealing s. 218.37(1)(h), F.S., relating to
5 the requirement that the Division of Bond
6 Finance use a served copy of the complaint for
7 bond validation to verify compliance by special
8 districts with the requirements in s. 218.38,
9 F.S.; amending s. 1010.47, F.S.; providing that
10 school districts must sell bonds; deleting
11 obsolete provisions relating to the sale of
12 bonds by a school district; transferring a
13 position from the Executive Office of the
14 Governor to the Department of Financial
15 Services; providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
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19 Section 1. Paragraphs (a) and (b) of subsection (5) of
20 section 11.40, Florida Statutes, are amended to read:
21 11.40 Legislative Auditing Committee.--
22 (5) Following notification by the Auditor General, the
23 Department of Financial Services Banking and Finance, or the
24 Division of Bond Finance of the State Board of Administration
25 of the failure of a local governmental entity, district school
26 board, charter school, or charter technical career center to
27 comply with the applicable provisions within s. 11.45(5)-(7),
28 s. 218.32(1), or s. 218.38, the Legislative Auditing Committee
29 may schedule a hearing. If a hearing is scheduled, the
30 committee shall determine if the entity should be subject to
31 further state action. If the committee determines that the
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1 entity should be subject to further state action, the
2 committee shall:
3 (a) In the case of a local governmental entity or
4 district school board, direct request the Department of
5 Revenue and the Department of Financial Services Banking and
6 Finance to withhold any funds not pledged for bond debt
7 service satisfaction which are payable to such entity until
8 the entity complies with the law. The committee, in its
9 request, shall specify the date such action shall begin, and
10 the directive request must be received by the Department of
11 Revenue and the Department of Financial Services Banking and
12 Finance 30 days before the date of the distribution mandated
13 by law. The Department of Revenue and the Department of
14 Financial Services Banking and Finance are authorized to
15 implement the provisions of this paragraph.
16 (b) In the case of a special district, notify the
17 Department of Community Affairs that the special district has
18 failed to comply with the law. Upon receipt of notification,
19 the Department of Community Affairs shall proceed pursuant to
20 the provisions specified in s. ss. 189.421 and 189.422.
21 Section 2. Subsection (5), paragraph (e) of subsection
22 (7), and subsection (8) of section 11.45, Florida Statutes,
23 are amended to read:
24 11.45 Definitions; duties; authorities; reports;
25 rules.--
26 (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.--The
27 Legislative Auditing Committee shall direct the Auditor
28 General to make an a financial audit of any municipality
29 whenever petitioned to do so by at least 20 percent of the
30 electors of that municipality. The supervisor of elections of
31 the county in which the municipality is located shall certify
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1 whether or not the petition contains the signatures of at
2 least 20 percent of the electors of the municipality. After
3 the completion of the audit, the Auditor General shall
4 determine whether the municipality has the fiscal resources
5 necessary to pay the cost of the audit. The municipality shall
6 pay the cost of the audit within 90 days after the Auditor
7 General's determination that the municipality has the
8 available resources. If the municipality fails to pay the cost
9 of the audit, the Department of Revenue shall, upon
10 certification of the Auditor General, withhold from that
11 portion of the distribution pursuant to s. 212.20(6)(d)6.
12 which is distributable to such municipality, a sum sufficient
13 to pay the cost of the audit and shall deposit that sum into
14 the General Revenue Fund of the state.
15 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.--
16 (e) The Auditor General shall notify the Governor or
17 the Commissioner of Education, as appropriate, and the
18 Legislative Auditing Committee of any audit report reviewed by
19 the Auditor General pursuant to paragraph (b) that which
20 contains a statement that a the local governmental entity or
21 district school board has met one or more of the conditions
22 specified is in a state of financial emergency as provided in
23 s. 218.503. If the Auditor General requests a clarification
24 regarding information included in an audit report to determine
25 whether a local governmental entity or district school board
26 has met one or more of the conditions specified in s. 218.503
27 is in a state of financial emergency, the requested
28 clarification must be provided within 45 days after the date
29 of the request. If the local governmental entity or district
30 school board does not comply with the Auditor General's
31 request, the Auditor General shall notify the Legislative
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1 Auditing Committee. If, after obtaining the requested
2 clarification, the Auditor General determines that the local
3 governmental entity or district school board has met one or
4 more of the conditions specified in s. 218.503 is in a state
5 of financial emergency, he or she shall notify the Governor or
6 the Commissioner of Education, as appropriate, and the
7 Legislative Auditing Committee.
8 (8) RULES OF THE AUDITOR GENERAL.--The Auditor
9 General, in consultation with the Board of Accountancy, shall
10 adopt rules for the form and conduct of all financial audits
11 performed by independent certified public accountants pursuant
12 to ss. 215.981, 218.39, 1001.453, 1004.28, and 1004.70. The
13 rules for audits of local governmental entities and district
14 school boards must include, but are not limited to,
15 requirements for the reporting of information necessary to
16 carry out the purposes of the Local Governmental Entity and
17 District School Board Government Financial Emergencies Act as
18 stated in s. 218.501.
19 Section 3. Subsection (10) of section 61.181, Florida
20 Statutes, is amended to read:
21 61.181 Depository for alimony transactions, support,
22 maintenance, and support payments; fees.--
23 (10) Compliance with the requirements of this section
24 shall be included as part of the annual county audit required
25 pursuant to s. 218.39 11.45.
26 Section 4. Subsection (3) of section 75.05, Florida
27 Statutes, is amended to read:
28 75.05 Order and service.--
29 (3) In the case of independent special districts as
30 defined in s. 218.31(7), a copy of the complaint shall be
31 served on the Division of Bond Finance of the State Board of
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1 Administration. Notwithstanding any other provision of law,
2 whether a general law or special act, validation of bonds to
3 be issued by a special district, other than a community
4 development district established pursuant to chapter 190, as
5 provided in s. 190.016(12), is not mandatory, but is at the
6 option of the issuer. However, the validation of bonds issued
7 by such community development districts shall not be required
8 on refunding issues.
9 Section 5. Paragraph (a) of subsection (2) of section
10 112.08, Florida Statutes, is amended to read:
11 112.08 Group insurance for public officers, employees,
12 and certain volunteers; physical examinations.--
13 (2)(a) Notwithstanding any general law or special act
14 to the contrary, every local governmental unit is authorized
15 to provide and pay out of its available funds for all or part
16 of the premium for life, health, accident, hospitalization,
17 legal expense, or annuity insurance, or all or any kinds of
18 such insurance, for the officers and employees of the local
19 governmental unit and for health, accident, hospitalization,
20 and legal expense insurance for the dependents of such
21 officers and employees upon a group insurance plan and, to
22 that end, to enter into contracts with insurance companies or
23 professional administrators to provide such insurance. Before
24 entering any contract for insurance, the local governmental
25 unit shall advertise for competitive bids; and such contract
26 shall be let upon the basis of such bids. If a contracting
27 health insurance provider becomes financially impaired as
28 determined by the Department of Insurance or otherwise fails
29 or refuses to provide the contracted-for coverage or
30 coverages, the local government may purchase insurance, enter
31 into risk management programs, or contract with third-party
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1 administrators and may make such acquisitions by advertising
2 for competitive bids or by direct negotiations and contract.
3 The local governmental unit may undertake simultaneous
4 negotiations with those companies which have submitted
5 reasonable and timely bids and are found by the local
6 governmental unit to be fully qualified and capable of meeting
7 all servicing requirements. Each local governmental unit may
8 self-insure any plan for health, accident, and hospitalization
9 coverage or enter into a risk management consortium to provide
10 such coverage, subject to approval based on actuarial
11 soundness by the Department of Insurance; and each shall
12 contract with an insurance company or professional
13 administrator qualified and approved by the Department of
14 Insurance to administer such a plan.
15 Section 6. Subsection (5) of section 112.625, Florida
16 Statutes, is amended to read:
17 112.625 Definitions.--As used in this act:
18 (5) "Governmental entity" means the state, for the
19 Florida Retirement System, and the county, municipality, or
20 special district, or district school board which is the
21 employer of the member of a local retirement system or plan.
22 Section 7. Subsection (4) of section 112.63, Florida
23 Statutes, is amended to read:
24 112.63 Actuarial reports and statements of actuarial
25 impact; review.--
26 (4) Upon receipt, pursuant to subsection (2), of an
27 actuarial report, or upon receipt, pursuant to subsection (3),
28 of a statement of actuarial impact, the Department of
29 Management Services shall acknowledge such receipt, but shall
30 only review and comment on each retirement system's or plan's
31 actuarial valuations at least on a triennial basis. If the
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1 department finds that the actuarial valuation is not complete,
2 accurate, or based on reasonable assumptions or otherwise
3 fails to satisfy the requirements of this part, the department
4 requires additional information necessary to complete its
5 review of the actuarial valuation of a system or plan or
6 information necessary to satisfy the duties of the department
7 pursuant to s. 112.665(1), or if the department does not
8 receive the actuarial report or statement of actuarial impact,
9 the department shall notify the administrator of the affected
10 retirement system or plan and the affected governmental entity
11 local government and request appropriate adjustment, the
12 additional information, or the required report or statement.
13 The notification shall inform the administrator of the
14 affected retirement system or plan and the affected
15 governmental entity of the consequences for failure to comply
16 with the requirements of this subsection. If, after a
17 reasonable period of time, a satisfactory adjustment is not
18 made or the report, statement, or additional information is
19 not provided, the department may notify the Department of
20 Revenue and the Department of Financial Services of such
21 noncompliance, in which case the Department of Revenue and the
22 Department of Financial Services shall withhold any funds not
23 pledged for bond debt service satisfaction that are payable to
24 the affected governmental entity until the adjustment is made
25 or the report, statement, or additional information is
26 provided to the department. The department shall specify the
27 date such action is to begin and notification by the
28 department must be received by the Department of Revenue, the
29 Department of Financial Services, and the affected
30 governmental entity 30 days before the date the action is to
31 begin.
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1 (a) Within 21 days after receipt of the notice, the
2 affected governmental entity local government or the
3 department may petition for a hearing under the provisions of
4 ss. 120.569 and 120.57 with the Department of Management
5 Services. The Department of Revenue and the Department of
6 Financial Services shall not be parties to any such hearing
7 but may request to intervene if requested by the Department of
8 Management Services or if either the Department of Revenue or
9 the Department of Financial Services determines its interests
10 may be adversely affected by the hearing. If the
11 administrative law judge recommends in favor of the
12 department, the department shall perform an actuarial review
13 or prepare the statement of actuarial impact, or collect the
14 requested information. The cost to the department of
15 performing such actuarial review, or preparing such statement,
16 or collecting the requested information shall be charged to
17 the affected governmental entity of which the employees are
18 covered by the retirement system or plan. If payment of such
19 costs is not received by the department within 60 days after
20 receipt by the affected governmental entity of the request for
21 payment, the department shall certify to the Department of
22 Revenue and the Department of Financial Services Comptroller
23 the amount due, and the Department of Revenue and the
24 Department of Financial Services Comptroller shall pay such
25 amount to the Department of Management Services from any funds
26 not pledged for bond debt service satisfaction that are
27 payable to the affected governmental entity of which the
28 employees are covered by the retirement system or plan. If the
29 administrative law judge recommends in favor of the affected
30 governmental entity local retirement system and the department
31 performs an actuarial review, prepares the statement of
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1 actuarial impact, or collects the requested information, the
2 cost to the department of performing the actuarial review,
3 preparing the statement, or collecting the requested
4 information shall be paid by the Department of Management
5 Services.
6 (b) In the case of an affected special district, the
7 Department of Management Services shall also notify the
8 Department of Community Affairs. Upon receipt of notification,
9 the Department of Community Affairs shall proceed pursuant to
10 the provisions of s. 189.421 with regard to the special
11 district.
12 Section 8. Section 130.04, Florida Statutes, is
13 amended to read:
14 130.04 Sale Notice for bids and disposition of
15 bonds.--In case the issuing of bonds shall be authorized by
16 the result of such election, the county commissioners shall
17 sell the bonds in the manner provided in s. 218.385 cause
18 notice to be given by publication in a newspaper published in
19 the county, or in some newspaper published in the same
20 judicial circuit, if there be none published in the county,
21 that they will receive bids for the purchase of county bonds
22 at the clerk's office, on a date not less than 10 days nor
23 more than 60 days from the first publication of such notice.
24 The notice shall specify the amount of bonds offered for sale,
25 the rate of interest, and the time when principal and
26 installments of interest shall be due and payable. Any and all
27 bids shall be rejected if the commissioners shall deem it to
28 the best interest for the county so to do, and they may cause
29 a new notice to be given in like manner inviting other bids
30 for said bonds; provided, that when the rate of interest on
31 said bonds exceeds 5 percent per annum, said bonds shall not
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1 be sold for less than 95 cents on the dollar, but when any
2 bonds have heretofore been provided for by election, and the
3 rate of interest is 5 percent per annum, or less, that in such
4 cases the county commissioners may accept less than 95 cents
5 upon the dollar, in the sale of said bonds, or for any portion
6 of said bonds not already sold; provided, however, no bonds
7 shall be sold for less than 90 cents on the dollar.
8 Section 9. Subsection (1) of section 132.02, Florida
9 Statutes, is amended to read:
10 132.02 Taxing units may refund obligations.--
11 (1) Each county, municipality, city, town, special
12 road and bridge district, special tax school district, or and
13 other taxing district districts in this state, herein
14 sometimes called a unit, may issue, pursuant to a resolution
15 or resolutions of the governing body thereof (meaning thereby
16 the board or body vested with the power of determining the
17 amount of tax levies required for taxing the taxable property
18 of such unit for the purpose of such unit) and either with or
19 without the approval of such bonds at an election, except as
20 may be required by the Constitution of the state, bonds of
21 such unit for the purpose of refunding any or all bonds,
22 coupons, or interest on any such bonds, or coupons or paving
23 certificates of indebtedness or interest on any such paving
24 certificates of indebtedness, now or hereafter outstanding, or
25 any other funded debt, all of which are herein referred to as
26 bonds, whether such unit created such indebtedness or has
27 assumed, or may become liable therefor, and whether
28 indebtedness to be refunded has matured or to thereafter
29 become matured.
30 Section 10. Section 132.09, Florida Statutes, is
31 amended to read:
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1 132.09 Sale of bonds Notice of sale; bids and award;
2 private sale.--When sold, the refunding bonds (except as
3 otherwise expressly provided) shall be sold in the manner
4 provided in s. 218.385 pursuant to the terms of a notice of
5 sale which shall be published at least twice. The first
6 publication to be not less than 7 days before the date fixed
7 for the sale and to be published in a newspaper published in
8 the unit, or if no newspaper is published in the unit, then in
9 a newspaper published in the county, or if no newspaper is
10 published in the county, then in a newspaper published in
11 Tallahassee, and in the discretion of the governing body of
12 the unit may be published in a financial newspaper in the City
13 of New York. Such notices shall state the time and place and
14 when and where sealed bids will be received, shall state the
15 amount of bonds, their dates, maturities, denominations and
16 interest rate or rates (which may be a maximum rate), interest
17 payment dates, an outline of the terms, if any, on which they
18 are redeemable or become payable before maturity, the amount
19 which must be deposited with the bid to secure its performance
20 if accepted, and such other pertinent information as the
21 governing body of the unit may determine. The notice of sale
22 may require the bidders to fix the interest rate or rates that
23 the bonds are to bear subject to the terms of the notice and
24 the maximum rate permitted by this chapter. The award of the
25 bonds shall be made by the governing body of the unit to the
26 bidder making the most advantageous bid which shall be
27 determined by the governing body in its absolute and
28 uncontrolled discretion. The right to reject all bids shall
29 be reserved to the governing body of the unit. If no bids are
30 received at such public sale, or if all bids are rejected, the
31 bonds may be sold without notice at private sale at any time
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1 within one year thereafter, but such bonds shall not be sold
2 at private sale on terms less favorable to the unit than were
3 contained in the best bid at the prior public sale.
4 Section 11. Paragraph (a) of subsection (2) of section
5 163.05, Florida Statutes, is amended to read:
6 163.05 Small County Technical Assistance Program.--
7 (2) Recognizing the findings in subsection (1), the
8 Legislature declares that:
9 (a) The financial difficulties fiscal emergencies
10 confronting small counties require an investment that will
11 facilitate efforts to improve the productivity and efficiency
12 of small counties' structures and operating procedures.
13 Section 12. Subsection (2) of section 166.121, Florida
14 Statutes, is amended to read:
15 166.121 Issuance of bonds.--
16 (2) The governing body of a municipality shall
17 determine the terms and manner of sale and distribution or
18 other disposition of any and all bonds it may issue,
19 consistent with the provisions of s. 218.385, and shall have
20 any and all powers necessary or convenient to such
21 disposition.
22 Section 13. Section 166.241, Florida Statutes, is
23 amended to read:
24 166.241 Fiscal years, financial reports,
25 appropriations, and budgets, and budget amendments.--
26 (1) Each municipality shall report its finances
27 annually as provided by general law.
28 (1)(2) Each municipality shall make provision for
29 establishing a fiscal year beginning October 1 of each year
30 and ending September 30 of the following year.
31
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1 (2)(3) The governing body of each municipality shall
2 adopt a budget each fiscal year. The budget must be adopted by
3 ordinance or resolution unless otherwise specified in the
4 respective municipality's charter. The amount available from
5 taxation and other sources, including amounts carried over
6 from prior fiscal years, must equal the total appropriations
7 for expenditures and reserves. The budget must regulate
8 expenditures of the municipality, and it is unlawful for any
9 officer of a municipal government to expend or contract for
10 expenditures in any fiscal year except in pursuance of
11 budgeted appropriations.
12 (3) The governing body of each municipality at any
13 time within a fiscal year or within up to 60 days following
14 the end of the fiscal year may amend a budget for that year as
15 follows:
16 (a) Appropriations for expenditures within a fund may
17 be decreased or increased by motion recorded in the minutes,
18 provided that the total of the appropriations of the fund is
19 not changed.
20 (b) The governing body may establish procedures by
21 which the designated budget officer may authorize certain
22 budget amendments within a department, provided that the total
23 of the appropriations of the department is not changed.
24 (c) If a budget amendment is required for a purpose
25 not specifically authorized in paragraph (a) or paragraph (b),
26 the budget amendment must be adopted in the same manner as the
27 original budget unless otherwise specified in the charter of
28 the respective municipality.
29 Section 14. Section 189.4044, Florida Statutes, is
30 amended to read:
31 189.4044 Special procedures for inactive districts.--
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1 (1) The department shall declare inactive any special
2 district in this state by documenting the following filing a
3 report with the Speaker of the House of Representatives and
4 the President of the Senate which shows that such special
5 district is no longer active. The inactive status of the
6 special district must be based upon a finding:
7 (a) That The special district meets one of the
8 following criteria:
9 1. The registered agent of the district, the chair of
10 the governing body of the district, or the governing body of
11 the appropriate local general-purpose government notifies the
12 department in writing that the district has taken no action
13 for 2 or more calendar years;
14 2. Following an inquiry from the department, the
15 registered agent of the district, the chair of the governing
16 body of the district, or the governing body of the appropriate
17 local general-purpose government notifies the department in
18 writing that the district has not had a governing board or a
19 sufficient number of governing board members to constitute a
20 quorum for 2 or more years or the registered agent of the
21 district, the chair of the governing body of the district, or
22 the governing body of the appropriate local general-purpose
23 government fails to respond to the department's inquiry within
24 21 days; or 18 or more months;
25 3. The department determines, pursuant to s. 189.421,
26 that the district has failed to file or make a good faith
27 effort to file any of the reports listed in s. 189.419.; or
28 4. The district has failed, for 2 consecutive fiscal
29 years, to pay fees assessed by the Special District
30 Information Program pursuant to this chapter.
31
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1 (b) The department, special district, or local
2 general-purpose government published That a notice of the
3 proposed declaration of inactive status has been published
4 once a week for 2 weeks in a newspaper of general circulation
5 in within the county or municipality in which wherein the
6 territory of the special district is located and sent a copy
7 of such notice by certified mail to the registered agent or
8 chair of the board, if any. Such notice shall include, stating
9 the name of said special district, the law under which it was
10 organized and operating, a general description of the
11 territory included in said special district, and a statement
12 stating that any objections must be filed pursuant to chapter
13 120 within 21 days after the publication date to the proposed
14 declaration or to any claims against the assets of said
15 special district shall be filed not later than 60 days
16 following the date of last publication with the department;
17 and
18 (c) Twenty-one That 60 days have elapsed from the last
19 publication date of the notice of proposed declaration of
20 inactive status and no administrative appeals were sustained
21 objections have been filed.
22 (2) If any special district is declared inactive
23 pursuant to this section, the property or assets of the
24 special district are subject to legal process for payment of
25 any debts of the district. After the payment of all the debts
26 of said inactive special district, the remainder of its
27 property or assets shall escheat to the county or municipality
28 wherein located. If, however, it shall be necessary, in order
29 to pay any such debt, to levy any tax or taxes on the property
30 in the territory or limits of the inactive special district,
31 the same may be assessed and levied by order of the local
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1 general-purpose government wherein the same is situated and
2 shall be assessed by the county property appraiser and
3 collected by the county tax collector.
4 (3) In the case of a district created by special act
5 of the Legislature, the department shall send a notice of
6 declaration of inactive status to notify the Speaker of the
7 House of Representatives and the President of the Senate. The
8 notice of declaration of inactive status shall reference of
9 each known special act creating or amending the charter of any
10 special district declared to be inactive under this
11 section. The declaration of inactive status shall be
12 sufficient notice as required by s. 10, Art. III of the State
13 Constitution to authorize the Legislature to repeal any
14 special laws so reported. In the case of a district created by
15 one or more local general-purpose governments, the department
16 shall send a notice of declaration of inactive status to the
17 chair of the governing body of each local general-purpose
18 government that created the district. In the case of a
19 district created by interlocal agreement, the department shall
20 send a notice of declaration of inactive status to the chair
21 of the governing body of each local general-purpose government
22 that entered into the interlocal agreement.
23 (4) The entity that created a special district
24 declared inactive under this section must dissolve the special
25 district be dissolved by repealing repeal of its enabling laws
26 or by other appropriate means.
27 Section 15. Subsection (1) of section 189.412, Florida
28 Statutes, is amended, and subsection (8) is added to that
29 section, to read:
30 189.412 Special District Information Program; duties
31 and responsibilities.--The Special District Information
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1 Program of the Department of Community Affairs is created and
2 has the following special duties:
3 (1) The collection and maintenance of special district
4 noncompliance compliance status reports from the Department of
5 Management Services Auditor General, the Department of
6 Financial Services Banking and Finance, the Division of Bond
7 Finance of the State Board of Administration, and the Auditor
8 General the Department of Management Services, the Department
9 of Revenue, and the Commission on Ethics for the reporting
10 required in ss. 112.3144, 112.3145, 112.3148, 112.3149,
11 112.63, 200.068, 218.32, 218.38, and 218.39, and 280.17 and
12 chapter 121 and from state agencies administering programs
13 that distribute money to special districts. The noncompliance
14 special district compliance status reports must list those
15 consist of a list of special districts used in that state
16 agency and a list of which special districts that did not
17 comply with the statutory reporting requirements statutorily
18 required by that agency.
19 (8) Providing assistance to local general-purpose
20 governments and certain state agencies in collecting
21 delinquent reports or information, helping special districts
22 comply with reporting requirements, declaring special
23 districts inactive when appropriate, and, when directed by the
24 Legislative Auditing Committee, initiating enforcement
25 provisions as provided in ss. 189.4044, 189.419, and 189.421.
26 Section 16. Subsections (1) and (2) of section
27 189.418, Florida Statutes, are amended, subsection (5) is
28 renumbered as subsection (6), present subsection (6) is
29 renumbered as subsection (7) and amended, and a new subsection
30 (5) is added to that section, to read:
31 189.418 Reports; budgets; audits.--
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1 (1) When a new special district is created, the
2 district must forward to the department, within 30 days after
3 the adoption of the special act, rule, ordinance, resolution,
4 or other document that provides for the creation of the
5 district, a copy of the document and a written statement that
6 includes a reference to the status of the special district as
7 dependent or independent and the basis for such
8 classification. In addition to the document or documents that
9 create the district, the district must also submit a map of
10 the district, showing any municipal boundaries that cross the
11 district's boundaries, and any county lines if the district is
12 located in more than one county. The department must notify
13 the local government or other entity and the district within
14 30 days after receipt of the document or documents that create
15 the district as to whether the district has been determined to
16 be dependent or independent.
17 (2) Any amendment, modification, or update of the
18 document by which the district was created, including changes
19 in boundaries, must be filed with the department within 30
20 days after adoption. The department may initiate proceedings
21 against special districts as provided in s. ss. 189.421 and
22 189.422 for failure to file the information required by this
23 subsection.
24 (5) The governing body of each special district at any
25 time within a fiscal year or within up to 60 days following
26 the end of the fiscal year may amend a budget for that
27 year. The budget amendment must be adopted by resolution.
28 (7)(6) All reports or information required to be filed
29 with a local governing authority under ss. 189.415, 189.416,
30 and 189.417, 218.32, and 218.39 and this section shall:
31
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1 (a) When the local governing authority is a county, be
2 filed with the clerk of the board of county commissioners.
3 (b) When the district is a multicounty district, be
4 filed with the clerk of the county commission in each county.
5 (c) When the local governing authority is a
6 municipality, be filed at the place designated by the
7 municipal governing body.
8 Section 17. Section 189.419, Florida Statutes, is
9 amended to read:
10 189.419 Effect of failure to file certain reports or
11 information.--
12 (1) If a special district fails to file the reports or
13 information required under s. 189.415, s. 189.416, or s.
14 189.417, s. 189.418, s. 218.32, or s. 218.39 and a description
15 of all new bonds as provided in s. 218.38(1) with the local
16 governing authority, the person authorized to receive and read
17 the reports or information shall notify the district's
18 registered agent and the appropriate local governing authority
19 or authorities. If requested by the district At any time, the
20 governing authority shall may grant an extension of time of up
21 to 30 days for filing the required reports or information,
22 except that an extension may not exceed 30 days.
23 (2) If at any time the local governing authority or
24 authorities or the board of county commissioners determines
25 that there has been an unjustified failure to file the reports
26 or information described in subsection (1), it may notify
27 petition the department and the department may proceed
28 pursuant to initiate proceedings against the special district
29 in the manner provided in s. 189.421.
30 (3) If a special district fails to file the reports or
31 information required under s. 112.63, s. 218.32, s. 218.38, or
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1 s. 218.39 with the appropriate state agency, the agency shall
2 notify the department, and the department shall proceed
3 pursuant to s. 189.421 may initiate proceedings against the
4 special district in the manner provided in s. 189.421 or
5 assess fines of not more than $25, with an aggregate total not
6 to exceed $50, when formal inquiries do not resolve the
7 noncompliance.
8 Section 18. Section 189.421, Florida Statutes, is
9 amended to read:
10 (Substantial rewording of section. See
11 s. 189.421, F.S., for present text.)
12 189.421 Failure of district to disclose financial
13 reports.--
14 (1) When notified pursuant to s. 189.419, the
15 department shall attempt to assist a special district to
16 comply with its financial reporting requirements by sending a
17 certified letter to the special district, and a copy of the
18 letter to the chair of the governing body of the local
19 general-purpose government, which includes the following: a
20 description of the required report, including statutory
21 submission deadlines, a contact telephone number for technical
22 assistance to help the special district comply, a 60-day
23 extension of time for filing the required report with the
24 appropriate entity, the address where the report must be
25 filed, and an explanation of the penalties for
26 noncompliance. The department may grant an additional 30-day
27 extension of time if requested to do so in writing by the
28 special district. The department shall notify the appropriate
29 entity of the new extension of time. In the case of a special
30 district that did not timely file the reports or information
31 required by s. 218.38, the department shall send a certified
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1 technical assistance letter to the special district that
2 summarizes the requirements and encourages the special
3 district to take steps to prevent the noncompliance from
4 reoccurring.
5 (2) Failure of a special district to comply with the
6 financial reporting requirements after the procedures of
7 subsection (1) are exhausted shall be deemed final action of
8 the special district. The financial reporting requirements
9 are hereby declared to be essential requirements of
10 law. Remedy for noncompliance shall be by writ of certiorari
11 as set forth in subsection (3).
12 (3) Pursuant to s. 11.40(5)(b), the Legislative
13 Auditing Committee shall notify the department of those
14 districts that failed to file the required report. Within 30
15 days after receiving this notice or within 30 days after the
16 extension date provided in subsection (1), whichever occurs
17 later, the department shall proceed as follows:
18 notwithstanding the provisions of chapter 120, the department
19 shall file a petition for writ of certiorari with the circuit
20 court. Venue for all actions pursuant to this subsection shall
21 be in Leon County. The court shall award the prevailing party
22 attorney's fees and costs in all cases filed pursuant to this
23 section unless affirmatively waived by all parties. A writ of
24 certiorari shall be issued unless a respondent establishes
25 that the notification of the Legislative Auditing Committee
26 was issued as a result of material error. Proceedings under
27 this subsection shall otherwise be governed by the Rules of
28 Appellate Procedure.
29 Section 19. Subsection (5) of section 189.428, Florida
30 Statutes, is amended to read:
31 189.428 Special districts; oversight review process.--
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1 (5) Those conducting the oversight review process
2 shall, at a minimum, consider the listed criteria for
3 evaluating the special district, but may also consider any
4 additional factors relating to the district and its
5 performance. If any of the listed criteria does do not apply
6 to the special district being reviewed, it they need not be
7 considered. The criteria to be considered by the reviewer
8 include:
9 (a) The degree to which the service or services
10 offered by the special district are essential or contribute to
11 the well-being of the community.
12 (b) The extent of continuing need for the service or
13 services currently provided by the special district.
14 (c) The extent of municipal annexation or
15 incorporation activity occurring or likely to occur within the
16 boundaries of the special district and its impact on the
17 delivery of services by the special district.
18 (d) Whether there is a less costly alternative method
19 of delivering the service or services that would adequately
20 provide the district residents with the services provided by
21 the district.
22 (e) Whether transfer of the responsibility for
23 delivery of the service or services to an entity other than
24 the special district being reviewed could be accomplished
25 without jeopardizing the district's existing contracts, bonds,
26 or outstanding indebtedness.
27 (f) Whether the Auditor General has notified the
28 Legislative Auditing Committee that the special district's
29 audit report, reviewed pursuant to s. 11.45(7), indicates that
30 the district has met any of the conditions specified in s.
31 218.503(1) or that a deteriorating financial condition exists
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1 that may cause a condition described in s. 218.503(1) to occur
2 if actions are not taken to address such condition.
3 (g) Whether the Auditor General has determined that
4 the special district is in a state of financial emergency as
5 provided in s. 218.503(1), and has notified the Governor and
6 the Legislative Auditing Committee.
7 (g)(h) Whether the district is inactive according to
8 the official list of special districts, and whether the
9 district is meeting and discharging its responsibilities as
10 required by its charter, as well as projected increases or
11 decreases in district activity.
12 (h)(i) Whether the special district has failed to
13 comply with any of the reporting requirements in this chapter,
14 including preparation of the public facilities report.
15 (i)(j) Whether the special district has designated a
16 registered office and agent as required by s. 189.416, and has
17 complied with all open public records and meeting
18 requirements.
19 Section 20. Paragraph (a) of subsection (1) of section
20 189.439, Florida Statutes, is amended to read:
21 189.439 Bonds.--
22 (1) AUTHORIZATION AND FORM OF BONDS.--
23 (a) The authority may issue and sell bonds for any
24 purpose for which the authority has the power to expend money,
25 including, without limitation, the power to obtain working
26 capital loans to finance the costs of any project and to
27 refund any bonds or other indebtedness at the time outstanding
28 at or before maturity. Bonds may be sold in the manner
29 provided in s. 218.385 and by public or negotiated sale after
30 advertisement, if any, as the board considers
31
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1 advisable. Bonds may be authorized by resolution of the
2 board.
3 Section 21. Subsections (1) and (2) of section
4 191.005, Florida Statutes, is amended to read:
5 191.005 District boards of commissioners; membership,
6 officers, meetings.--
7 (1)(a) With the exception of districts whose governing
8 boards are appointed collectively by the Governor, the county
9 commission, and any cooperating city within the county, the
10 business affairs of each district shall be conducted and
11 administered by a five-member board. All three-member boards
12 existing on the effective date of this act shall be converted
13 to five-member boards, except those permitted to continue as a
14 three-member board by special act adopted in 1997 or
15 thereafter. The board shall be elected in nonpartisan
16 elections by the electors of the district. Except as provided
17 in this act, such elections shall be held at the time and in
18 the manner prescribed by law for holding general elections in
19 accordance with s. 189.405(2)(a) and (3), and each member
20 shall be elected for a term of 4 years and serve until the
21 member's successor assumes office. Candidates for the board of
22 a district shall qualify with the county supervisor of
23 elections in whose jurisdiction the district is located. If
24 the district is a multicounty district, candidates shall
25 qualify with the Department of State. All candidates may
26 qualify by paying a filing fee of $25 or by obtaining the
27 signatures of at least 25 registered electors of the district
28 on petition forms provided by the supervisor of elections
29 which petitions shall be submitted and checked in the same
30 manner as petitions filed by nonpartisan judicial candidates
31 pursuant to s. 105.035. Notwithstanding s. 106.021, a
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1 candidate who does not collect contributions and whose only
2 expense is the filing fee shall not be required to appoint a
3 campaign treasurer or designate a primary campaign depository.
4 (b)1. At the next general election following the
5 effective date of this act, or on or after the effective date
6 of a special act or general act of local application creating
7 a new district, the members of the board shall be elected by
8 the electors of the district in the manner provided in this
9 section. The office of each member of the board is designated
10 as being a seat on the board, distinguished from each of the
11 other seats by a numeral: 1, 2, 3, 4, or 5. The numerical
12 seat designation does not designate a geographical subdistrict
13 unless such subdistrict exists on the effective date of this
14 act, in which case the candidates must reside in the
15 subdistrict, and only electors of the subdistrict may vote in
16 the election for the member from that subdistrict. Each
17 candidate for a seat on the board shall designate, at the time
18 the candidate qualifies, the seat on the board for which the
19 candidate is qualifying. The name of each candidate who
20 qualifies for election to a seat on the board shall be
21 included on the ballot in a way that clearly indicates the
22 seat for which the candidate is a candidate. The candidate
23 for each seat who receives the most votes cast for a candidate
24 for the seat shall be elected to the board.
25 2. If, on the effective date of this act, a district
26 presently in existence elects members of its board, the next
27 election shall be conducted in accordance with this section,
28 but this section does not require the early expiration of any
29 member's term of office by more than 60 days.
30 3. If, on the effective date of this act, a district
31 does not elect the members of its board, the entire board
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1 shall be elected in accordance with this section. However, in
2 the first election following the effective date of this act,
3 seats 1, 3, and 5 shall be designated for 4-year terms and
4 seats 2 and 4 shall be designated for 2-year terms.
5 4. If, on the effective date of this act, the district
6 has an elected three-member board, one of the two seats added
7 by this act shall, for the first election following the
8 effective date of this act, be designated for a 4-year term
9 and the other for a 2-year term, unless the terms of the three
10 existing seats all expire within 6 months of the first
11 election following the effective date of this act, in which
12 case seats 1, 3, and 5 shall be designated for 4-year terms
13 and seats 2 and 4 shall be designated for 2-year terms.
14 5. If the district has an elected three-member board
15 designated to remain three members by special act adopted in
16 1997 or thereafter, the terms of the board members shall be
17 staggered. In the first election following the effective date
18 of this act, seats 1 and 3 shall be designated for 4-year
19 terms, and seat 2 for a 2-year term.
20 (c) The board of any district may request the local
21 legislative delegation that represents the area within the
22 district to create by special law geographical subdistricts
23 for board seats. Any board of five members or larger elected
24 on a subdistrict basis as of the effective date of this act
25 shall continue to elect board members from such previously
26 designated subdistricts, and this act shall not require the
27 elimination of board seats from such boards.
28 (2) Each member of the board must be a qualified
29 elector at the time he or she qualifies and continually
30 throughout his or her term. Any board members who ceases to be
31
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1 a qualified elector is automatically removed pursuant to this
2 act.
3 Section 22. Subsection (3) of section 218.075, Florida
4 Statutes, is amended to read:
5 218.075 Reduction or waiver of permit processing
6 fees.--Notwithstanding any other provision of law, the
7 Department of Environmental Protection and the water
8 management districts shall reduce or waive permit processing
9 fees for counties with a population of 50,000 or less on April
10 1, 1994, until such counties exceed a population of 75,000 and
11 municipalities with a population of 25,000 or less, or any
12 county or municipality not included within a metropolitan
13 statistical area. Fee reductions or waivers shall be approved
14 on the basis of fiscal hardship or environmental need for a
15 particular project or activity. The governing body must
16 certify that the cost of the permit processing fee is a fiscal
17 hardship due to one of the following factors:
18 (3) Any condition specified in s. 218.503(1), that
19 results in the county or municipality being in determines a
20 state of financial emergency;
21
22 The permit applicant must be the governing body of a county or
23 municipality or a third party under contract with a county or
24 municipality and the project for which the fee reduction or
25 waiver is sought must serve a public purpose. If a permit
26 processing fee is reduced, the total fee shall not exceed
27 $100.
28 Section 23. Subsection (3) is added to section 218.32,
29 Florida Statutes, to read:
30 218.32 Annual financial reports; local governmental
31 entities.--
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1 (3) The department shall notify the President of the
2 Senate and the Speaker of the House of Representatives of any
3 municipality that has not reported any financial activity for
4 the last 4 fiscal years. Such notice shall be sufficient to
5 initiate dissolution procedures described in s.
6 165.051(1)(a). Any special law authorizing the incorporation
7 or creation of said municipality shall be included within the
8 notification.
9 Section 24. Section 218.321, Florida Statutes, is
10 repealed.
11 Section 25. Subsection (3) of section 218.39, Florida
12 Statutes, is amended to read:
13 218.39 Annual financial audit reports.--
14 (3)(a) A dependent special district may make provision
15 for an annual financial audit by being included within the
16 audit of another local governmental entity upon which it is
17 dependent. An independent special district may not make
18 provision for an annual financial audit by being included
19 within the audit of another local governmental entity.
20 (b) A special district that is a component unit, as
21 defined by generally accepted accounting principles, of a
22 local government entity shall provide the local governmental
23 entity, within a reasonable time period as established by the
24 local governmental entity, with financial information
25 necessary to comply with this section. The failure of a
26 component unit to provide this financial information must be
27 noted in the annual financial audit report of the local
28 governmental entity.
29 Section 26. Subsection (3) of section 218.36, Florida
30 Statutes, is amended to read:
31
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1 218.36 County officers; record and report of fees and
2 disposition of same.--
3 (3) The board of county commissioners may shall, on
4 the 32nd day following the close of the fiscal year, notify
5 the Governor of the failure of any county officer to comply
6 with the provisions of this section. Such notification shall
7 specify the name of the officer and the office held by him or
8 her at the time of such failure and shall subject said officer
9 to suspension from office at the Governor's discretion.
10 Section 27. Section 218.369, Florida Statutes, is
11 amended to read:
12 218.369 Definitions applicable to ss.
13 218.37-218.386.--As used in this section and in ss. 218.37,
14 218.38, 218.385, and 218.386, the term "unit of local
15 government," except where exception is made, means a county,
16 municipality, special district, district school board, local
17 agency, authority, or consolidated city-county government or
18 any other local governmental body or public body corporate and
19 politic authorized or created by general or special law and
20 granted the power to issue general obligation or revenue
21 bonds; and the words "general obligation or revenue bonds"
22 shall be interpreted to include within their scope general
23 obligation bonds, revenue bonds, special assessment bonds,
24 limited revenue bonds, special obligation bonds, debentures,
25 and other similar instruments, but not bond anticipation
26 notes.
27 Section 28. Part V of chapter 218, Florida Statutes,
28 entitled "Financial Emergencies" is renamed "Local
29 Governmental Entity and District School Board Financial
30 Emergencies."
31
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1 Section 29. Section 218.50, Florida Statutes, is
2 amended to read:
3 218.50 Popular name Short title.--Sections
4 218.50-218.504 shall be known by the popular name as the
5 "Local Governmental Entity and District School Board
6 Government Financial Emergencies Act."
7 Section 30. Section 218.501, Florida Statutes, is
8 amended to read:
9 218.501 Purposes.--The purposes of ss. 218.50-218.504
10 are:
11 (1) To promote preserve and protect the fiscal
12 responsibility solvency of local governmental entities and
13 district school boards.
14 (2) To assist local governmental entities and district
15 school boards in providing essential services without
16 interruption and in meeting their financial obligations.
17 (3) To assist local governmental entities and district
18 school boards through the improvement of local financial
19 management procedures.
20 Section 31. Section 218.502, Florida Statutes, is
21 amended to read:
22 218.502 Definition.--As used in ss. 218.50-218.504,
23 the term "local governmental entity" means a county,
24 municipality, or special district, or district school board.
25 Section 32. Section 218.503, Florida Statutes, is
26 amended to read:
27 218.503 Determination of financial emergency.--
28 (1) A Local governmental entities and district school
29 boards shall be subject to review and oversight by the
30 Governor or the Commissioner of Education entity is in a state
31
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1 of financial emergency when any one of the following
2 conditions occurs:
3 (a) Failure within the same fiscal year in which due
4 to pay short-term loans from banks or failure to make bond
5 debt service or other long-term debt payments when due, as a
6 result of a lack of funds.
7 (b) Failure to pay uncontested claims from creditors
8 within 90 days after the claim is presented, as a result of a
9 lack of funds.
10 (c)(b) Failure to transfer at the appropriate time,
11 due to lack of funds:
12 1. Taxes withheld on the income of employees; or
13 2. Employer and employee contributions for:
14 a. Federal social security; or
15 b. Any pension, retirement, or benefit plan of an
16 employee.
17 (d)(c) Failure for one pay period to pay, due to lack
18 of funds:
19 1. Wages and salaries owed to employees; or
20 2. Retirement benefits owed to former employees.
21 (e)(d) An unreserved or total fund balance or retained
22 earnings deficit, or unrestricted or total net assets deficit,
23 as reported on the balance sheet or statement of net assets on
24 the general purpose or basic financial statements, for which
25 sufficient resources of the local governmental entity, as
26 reported on the balance sheet or statement of net assets on
27 the general purpose or basic financial statements, are not
28 available to cover the deficit for 2 successive years.
29 Resources available to cover reported deficits include net
30 assets that are not otherwise restricted by federal, state, or
31 local laws, bond covenants, contractual agreements, or other
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1 legal constraints. Fixed or capital assets the disposal of
2 which would impair the ability of a local governmental entity
3 to carry out its functions are not considered resources
4 available to cover reported deficits.
5 (e) Noncompliance of the local government retirement
6 system with actuarial conditions provided by law.
7 (2) A local governmental entity shall notify the
8 Governor and the Legislative Auditing Committee, and a
9 district school board shall notify the Commissioner of
10 Education and the Legislative Auditing Committee, when one or
11 more of the conditions specified in subsection (1) have
12 occurred or will occur if action is not taken to assist the
13 local governmental entity or district school board. In
14 addition, any state agency must, within 30 days after a
15 determination that one or more of the conditions specified in
16 subsection (1) have occurred or will occur if action is not
17 taken to assist the local governmental entity or district
18 school board the identification of the financial emergency,
19 notify the Governor or the Commissioner of Education, as
20 appropriate, and the Legislative Auditing Committee when one
21 or more of the conditions specified in subsection (1) have
22 occurred or will occur if action is not taken to assist a
23 local governmental entity.
24 (3) Upon notification that one or more of the
25 conditions in subsection (1) exist, the Governor or his or her
26 designee shall contact the local governmental entity or the
27 Commissioner of Education or his or her designee shall contact
28 the district school board to determine what actions have been
29 taken by the local governmental entity or the district school
30 board to resolve the condition financial emergency. The
31 Governor or the Commissioner of Education, as appropriate,
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1 shall determine whether the local governmental entity or the
2 district school board needs state assistance to resolve the
3 condition. If state assistance is needed, the local
4 governmental entity or district school board is considered to
5 be in a state of financial emergency. The Governor or the
6 Commissioner of Education, as appropriate, has the authority
7 to implement measures as set forth in ss. 218.50-218.504 to
8 assist the local governmental entity or district school board
9 in resolving resolve the financial emergency. Such measures
10 may include, but are not limited to:
11 (a) Requiring approval of the local governmental
12 entity's budget by the Governor or approval of the district
13 school board's budget by the Commissioner of Education.
14 (b) Authorizing a state loan to a the local
15 governmental entity and providing for repayment of same.
16 (c) Prohibiting a local governmental entity or
17 district school board from issuing bonds, notes, certificates
18 of indebtedness, or any other form of debt until such time as
19 it is no longer subject to this section.
20 (d) Making such inspections and reviews of records,
21 information, reports, and assets of the local governmental
22 entity or district school board. The appropriate local
23 officials shall cooperate in such, in which inspections and
24 reviews the appropriate local officials shall cooperate.
25 (e) Consulting with the officials and auditors of the
26 local governmental entity or the district school board and the
27 appropriate state officials agency regarding any steps
28 necessary to bring the books of account, accounting systems,
29 financial procedures, and reports into compliance with state
30 requirements.
31
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1 (f) Providing technical assistance to the local
2 governmental entity or the district school board.
3 (g)1. Establishing a financial emergency emergencies
4 board to oversee the activities of the local governmental
5 entity or the district school board. If a financial emergency
6 The board, if is established for a local governmental entity,
7 shall be appointed by the Governor shall appoint board members
8 and select a chair. If a financial emergency board is
9 established for a district school board, the State Board of
10 Education shall appoint board members and select a chair. The
11 Governor shall select a chair and such other officers as are
12 necessary. The financial emergency board shall adopt such
13 rules as are necessary for conducting board business. The
14 board may:
15 a. Make such reviews of records, reports, and assets
16 of the local governmental entity or the district school board
17 as are needed.
18 b. Consult with the officials and auditors of the
19 local governmental entity or the district school board and the
20 appropriate state officials regarding any steps necessary to
21 bring the books of account, accounting systems, financial
22 procedures, and reports of the local governmental entity or
23 the district school board into compliance with state
24 requirements.
25 c. Review the operations, management, efficiency,
26 productivity, and financing of functions and operations of the
27 local governmental entity or district school board.
28 2. The recommendations and reports made by the
29 financial emergency board must be submitted to the Governor
30 for local governmental entities or to the Commissioner of
31
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1 Education and the State Board of Education for district school
2 boards for appropriate action.
3 (h) Requiring and approving a plan, to be prepared by
4 officials of the appropriate state agency in conjunction with
5 the local governmental entity or the district school board in
6 consultation with the appropriate state officials, prescribing
7 actions that will cause the local governmental entity or
8 district school board to no longer be subject to this
9 section. The plan must include, but need not be limited to:
10 1. Provision for payment in full of obligations
11 outlined in subsection (1), designated as priority items, that
12 are currently all payments due or will to come due on debt
13 obligations, pension payments, and all payments and charges
14 imposed or mandated by federal or state law and for all
15 judgments and past due accounts, as priority items of
16 expenditures.
17 2. Establishment of a basis of priority budgeting or
18 zero-based budgeting in order, so as to eliminate low-priority
19 items that are not affordable.
20 3. The prohibition of a level of operations which can
21 be sustained only with nonrecurring revenues.
22 (4) A During the financial emergency period, the local
23 governmental entity or district school board may not seek
24 application of laws under the bankruptcy provisions of the
25 United States Constitution except with the prior approval of
26 the Governor for local governmental entities or the
27 Commissioner of Education for district school boards.
28 (5)(a) The governing authority of any municipality
29 having a resident population of 300,000 or more on or after
30 April 1, 1999, which has been declared in a state of financial
31 emergency pursuant to this section may impose a discretionary
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1 per-vehicle surcharge of up to 20 percent on the gross
2 revenues of the sale, lease, or rental of space at parking
3 facilities within the municipality which are open for use to
4 the general public.
5 (b) A municipal governing authority that imposes the
6 surcharge authorized by this subsection may use the proceeds
7 of such surcharge for the following purposes only:
8 1. No less than 60 percent and no more than 80 percent
9 of the surcharge proceeds shall be used by the governing
10 authority to reduce its ad valorem tax millage rate or to
11 reduce or eliminate non-ad valorem assessments.
12 2. A portion of the balance of the surcharge proceeds
13 shall be used by the governing authority to increase its
14 budget reserves; however, the governing authority shall not
15 reduce the amount it allocates for budget reserves from other
16 sources below the amount allocated for reserves in the fiscal
17 year prior to the year in which the surcharge is initially
18 imposed. When a 15-percent budget reserve is achieved, based
19 on the average gross revenue for the most recent 3 prior
20 fiscal years, the remaining proceeds from this subparagraph
21 shall be used for the payment of annual debt service related
22 to outstanding obligations backed or secured by a covenant to
23 budget and appropriate from non-ad valorem revenues.
24 (c) This subsection expires June 30, 2006.
25 Section 33. Section 218.504, Florida Statutes, is
26 amended to read:
27 218.504 Cessation of state action.--The Governor or
28 the Commissioner of Education, as appropriate, has the
29 authority to terminate all state actions pursuant to ss.
30 218.50-218.504. Cessation of state action must not occur
31
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1 until the Governor or the Commissioner of Education, as
2 appropriate, has determined that:
3 (1) The local governmental entity or district school
4 board:
5 (a) Has established and is operating an effective
6 financial accounting and reporting system.
7 (b) Has resolved corrected or eliminated the fiscal
8 emergency conditions outlined in s. 218.503(1).
9 (2) None of the No new fiscal emergency conditions
10 outlined in s. 218.503(1) exists exist.
11 Section 34. Chapter 131, Florida Statutes, consisting
12 of sections 131.01, 131.02, 131.03, 131.04, 131.05, and
13 131.06, Florida Statutes, is repealed.
14 Section 35. Section 132.10, Florida Statutes, is
15 repealed.
16 Section 36. Section 165.052, Florida Statutes, is
17 repealed.
18 Section 37. Section 189.409, Florida Statutes, is
19 repealed.
20 Section 38. Section 189.422, Florida Statutes, is
21 repealed.
22 Section 39. Section 200.0684, Florida Statutes, is
23 repealed.
24 Section 40. Paragraph (h) of subsection (1) of section
25 218.37, Florida Statutes, is repealed.
26 Section 41. Section 215.195, Florida Statutes, is
27 amended to read:
28 215.195 Agency deposits relating to the Statewide Cost
29 Allocation Plan.--
30 (1) APPLICATION FOR ALLOCABLE STATEWIDE
31 OVERHEAD.--Each state agency, and the judicial branch, making
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1 application for federal grant or contract funds shall, in
2 accordance with the Statewide Cost Allocation Plan (SWCAP),
3 include in its application a prorated share of the cost of
4 services provided by state central service agencies which are
5 reimbursable to the state pursuant to the provisions of Office
6 of Management and Budget Circular A-87. Preparation of the
7 Statewide Cost Allocation Plan and coordination thereof with
8 all applicable parties is the responsibility of the Department
9 of Financial Services. The Department of Financial Services
10 shall ensure that the SWCAP presents the most favorable
11 allocation of central services cost allowable to the state by
12 the Federal Government.
13 (2) DEPOSIT OF OVERHEAD IN THE GENERAL REVENUE
14 FUND.--If an application for federal grant or contract funds
15 is approved, the state agency or judicial branch receiving the
16 federal grant or contract shall identify that portion
17 representing reimbursement of allocable statewide overhead and
18 deposit that amount into the General Revenue Fund unallocated
19 as directed by the Department of Financial Services Executive
20 Office of the Governor. The Department of Financial Services
21 shall be responsible for monitoring agency compliance with
22 this section.
23 Section 42. Section 215.97, Florida Statutes, is
24 amended to read:
25 215.97 Florida Single Audit Act.--
26 (1) The purposes of the section are to:
27 (a) Establish uniform state audit requirements for
28 state financial assistance provided by state agencies to
29 nonstate entities to carry out state projects.
30
31
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1 (b) Promote sound financial management, including
2 effective internal controls, with respect to state financial
3 assistance administered by nonstate entities.
4 (c) Promote audit economy and efficiency by relying to
5 the extent possible on already required audits of federal
6 financial assistance provided to nonstate entities.
7 (d) Provide for identification of state financial
8 assistance transactions in the appropriations act, state
9 accounting records, and recipient organization records.
10 (e) Promote improved coordination and cooperation
11 within and between affected state agencies providing state
12 financial assistance and nonstate entities receiving state
13 assistance.
14 (f) Ensure, to the maximum extent possible, that state
15 agencies monitor, use, and followup on audits of state
16 financial assistance provided to nonstate entities.
17 (2) Definitions; as used in this section, the term:
18 (a) "Audit threshold" means the threshold amount used
19 to determine to use in determining when a state single audit
20 or project-specific audit of a nonstate entity shall be
21 conducted in accordance with this section. Each nonstate
22 entity that expends a total amount of state financial
23 assistance equal to or in excess of $300,000 in any fiscal
24 year of such nonstate entity shall be required to have a state
25 single audit, or a project-specific audit performed by an
26 independent auditor, for such fiscal year in accordance with
27 the requirements of this section. Every 2 years the Auditor
28 General, after consulting with the Executive Office of the
29 Governor, the Department of Financial Services Comptroller,
30 and all state awarding agencies that provide state financial
31 assistance to nonstate entities, shall review the threshold
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1 amount for requiring audits under this section and may adjust
2 such threshold dollar amount consistent with the purposes
3 purpose of this section.
4 (b) "Auditing standards" means the auditing standards
5 as stated in the rules of the Auditor General as applicable to
6 for-profit organizations, nonprofit organizations, or local
7 governmental entities.
8 (c) "Catalog of State Financial Assistance" means a
9 comprehensive listing of state projects. The Catalog of State
10 Financial Assistance shall be issued by the Department of
11 Financial Services Executive Office of the Governor after
12 conferring with the Comptroller and all state awarding
13 agencies that provide state financial assistance to nonstate
14 entities. The Catalog of State Financial Assistance shall
15 include for each listed state project: the responsible state
16 awarding agency; standard state project number identifier;
17 official title; legal authorization; and description of the
18 state project, including objectives, restrictions, application
19 and awarding procedures, and other relevant information
20 determined necessary.
21 (d) "Coordinating agency" means the state awarding
22 agency that provides the predominant amount of state financial
23 assistance expended by a recipient, as determined by the
24 recipient's Schedule of Expenditures of State Financial
25 Assistance. To provide continuity, the determination of the
26 predominant amount of state financial assistance shall be
27 based upon state financial assistance expended in the
28 recipient's fiscal years ending in 2003, 2006, and 2009, and
29 every third year thereafter.
30 (e)(d) "Financial reporting package" means the
31 nonstate entities' financial statements, Schedule of
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1 Expenditures of State Financial Assistance, auditor's reports,
2 management letter, auditee's written responses or corrective
3 action plan, correspondence on followup of prior years'
4 corrective actions taken, and such other information
5 determined by the Auditor General to be necessary and
6 consistent with the purposes of this section.
7 (f)(e) "Federal financial assistance" means financial
8 assistance from federal sources passed through the state and
9 provided to nonstate organizations entities to carry out a
10 federal program. "Federal financial assistance" includes all
11 types of federal assistance as defined in applicable United
12 States Office of Management and Budget circulars.
13 (g)(f) "For-profit organization" means any
14 organization or sole proprietor that but is not a local
15 governmental entity or a nonprofit organization.
16 (h)(g) "Independent auditor" means an independent
17 external state or local government auditor or a certified
18 public accountant licensed under chapter 473 who meets the
19 independence standards.
20 (i)(h) "Internal control over state projects" means a
21 process, effected by a nonstate an entity's management and
22 other personnel, designed to provide reasonable assurance
23 regarding the achievement of objectives in the following
24 categories:
25 1. Effectiveness and efficiency of operations.
26 2. Reliability of financial operations.
27 3. Compliance with applicable laws and regulations.
28 (j)(i) "Local governmental entity" means a county
29 agency, municipality, or special district or any other entity
30 (other than a district school board, charter school, or
31 community college, or public university), however styled,
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1 which independently exercises any type of governmental
2 function within the state.
3 (k)(j) "Major state project" means any state project
4 meeting the criteria as stated in the rules of the Department
5 of Financial Services Executive Office of the Governor. Such
6 criteria shall be established after consultation with all the
7 Comptroller and appropriate state awarding agencies that
8 provide state financial assistance and shall consider the
9 amount of state project expenditures and or expenses or
10 inherent risks. Each major state project shall be audited in
11 accordance with the requirements of this section.
12 (l)(k) "Nonprofit organization" means any corporation,
13 trust, association, cooperative, or other organization that:
14 1. Is operated primarily for scientific, educational
15 service, charitable, or similar purpose in the public
16 interest;
17 2. Is not organized primarily for profit;
18 3. Uses net proceeds to maintain, improve, or expand
19 the operations of the organization; and
20 4. Has no part of its income or profit distributable
21 to its members, directors, or officers.
22 (m)(l) "Nonstate entity" means a local governmental
23 entity, nonprofit organization, or for-profit organization
24 that receives state financial assistance resources.
25 (n) "Nonstate organization" means a local governmental
26 entity, nonprofit organization, or for-profit organization
27 that receives state resources.
28 (o)(m) "Recipient" means a nonstate entity that
29 receives state financial assistance directly from a state
30 awarding agency.
31
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1 (p)(n) "Schedule of Expenditures of State Financial
2 Assistance" means a document prepared in accordance with the
3 rules of the Department of Financial Services Comptroller and
4 included in each financial reporting package required by this
5 section.
6 (q)(o) "State awarding agency" means a the state
7 agency, as defined in s. 216.011, that provides provided state
8 financial assistance to a the nonstate entity.
9 (r)(p) "State financial assistance" means financial
10 assistance from state resources, not including federal
11 financial assistance and state matching on federal programs,
12 provided to a nonstate entity entities to carry out a state
13 project. "State financial assistance" shall include the
14 includes all types of state resources assistance as stated in
15 the rules of the Department of Financial Services Executive
16 Office of the Governor established in consultation with all
17 the Comptroller and appropriate state awarding agencies that
18 provide state financial assistance. It includes State
19 financial assistance may be provided directly by state
20 awarding agencies or indirectly by nonstate entities
21 recipients of state awards or subrecipients. State financial
22 assistance It does not include procurement contracts used to
23 buy goods or services from vendors and. Audits of such
24 procurement contracts with vendors are outside of the scope of
25 this section. Also, audits of contracts to operate state-owned
26 state-government-owned and contractor-operated facilities are
27 excluded from the audit requirements of this section.
28 (s)(q) "State matching" means state resources provided
29 to a nonstate entity entities to be used to meet federal
30 financial participation matching requirements of federal
31 programs.
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1 (t) "State program" means a set of special purpose
2 activities undertaken to realize identifiable goals and
3 objectives in order to achieve a state agency's mission and
4 legislative intent requiring accountability for state
5 resources.
6 (u)(r) "State project" means a state program that
7 provides all state financial assistance to a nonstate
8 organization and that must be entity assigned a single state
9 project number identifier in the Catalog of State Financial
10 Assistance.
11 (v)(s) "State Projects Compliance Supplement" means a
12 document issued by the Department of Financial Services
13 Executive Office of the Governor, in consultation with the
14 Comptroller and all state awarding agencies that provide state
15 financial assistance. The State Projects Compliance Supplement
16 shall identify state projects, the significant compliance
17 requirements, eligibility requirements, matching requirements,
18 suggested audit procedures, and other relevant information
19 determined necessary.
20 (w)(t) "State project-specific audit" means an audit
21 of one state project performed in accordance with the
22 requirements of subsection (10) (9).
23 (x)(u) "State single audit" means an audit of a
24 nonstate entity's financial statements and state financial
25 assistance. Such audits shall be conducted in accordance with
26 the auditing standards as stated in the rules of the Auditor
27 General.
28 (y)(v) "Subrecipient" means a nonstate entity that
29 receives state financial assistance through another nonstate
30 entity.
31
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1 (z)(w) "Vendor" means a dealer, distributor, merchant,
2 or other seller providing goods or services that are required
3 for the conduct of a state project. These goods or services
4 may be for an organization's own use or for the use of
5 beneficiaries of the state project.
6 (3) The Executive Office of the Governor shall be
7 responsible for notifying the Department of Financial Services
8 of any actions during the budgetary process which impact the
9 Catalog of State Financial Assistance.:
10 (a) Upon conferring with the Comptroller and all state
11 awarding agencies, adopt rules necessary to provide
12 appropriate guidance to state awarding agencies, recipients
13 and subrecipients, and independent auditors of state financial
14 assistance relating to the requirements of this section,
15 including:
16 1. The types or classes of financial assistance
17 considered to be state financial assistance which would be
18 subject to the requirements of this section. This would
19 include guidance to assist in identifying when the state
20 agency or recipient has contracted with a vendor rather than
21 with a recipient or subrecipient.
22 2. The criteria for identifying a major state project.
23 3. The criteria for selecting state projects for
24 audits based on inherent risk.
25 (b) Be responsible for coordinating the initial
26 preparation and subsequent revisions of the Catalog of State
27 Financial Assistance after consultation with the Comptroller
28 and all state awarding agencies.
29 (c) Be responsible for coordinating the initial
30 preparation and subsequent revisions of the State Projects
31
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1 Compliance Supplement, after consultation with the Comptroller
2 and all state awarding agencies.
3 (4) The Department of Financial Services Comptroller
4 shall:
5 (a) Upon conferring with the Executive Office of the
6 Governor and all state awarding agencies, adopt rules
7 necessary to provide appropriate guidance to state awarding
8 agencies, nonstate entities, and independent auditors of state
9 financial assistance relating to the requirements of this
10 section, including:
11 1. The types or classes of state resources considered
12 to be state financial assistance that would be subject to the
13 requirements of this section. This would include guidance to
14 assist in identifying when the state awarding agency or a
15 nonstate entity has contracted with a vendor rather than with
16 a recipient or subrecipient.
17 2. The criteria for identifying a major state project.
18 3. The criteria for selecting state projects for
19 audits based on inherent risk.
20 (b) Be responsible for coordinating revisions to the
21 Catalog of State Financial Assistance after consultation with
22 the Executive Office of the Governor and all state awarding
23 agencies.
24 (c) Be responsible for coordinating with the Executive
25 Office of the Governor actions affecting the budgetary process
26 under paragraph (b).
27 (d) Be responsible for coordinating revisions to the
28 State Projects Compliance Supplement, after consultation with
29 the Executive Office of the Governor and all state awarding
30 agencies.
31
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1 (e)(a) Make enhancements to the state's accounting
2 system to provide for the:
3 1. Recording of state financial assistance and federal
4 financial assistance appropriations and expenditures within
5 the state awarding agencies' operating funds.
6 2. Recording of state project number identifiers, as
7 provided in the Catalog of State Financial Assistance, for
8 state financial assistance.
9 3. Establishment and recording of an identification
10 code for each financial transaction, including state awarding
11 agencies' disbursements of state financial assistance and
12 federal financial assistance, as to the corresponding type or
13 organization that is party to the transaction(e.g., other
14 governmental agencies, nonprofit organizations, and for-profit
15 organizations), and disbursements of federal financial
16 assistance, as to whether the party to the transaction is or
17 is not a nonstate entity recipient or subrecipient.
18 (f)(b) Upon conferring with the Executive Office of
19 the Governor and all state awarding agencies, adopt rules
20 necessary to provide appropriate guidance to state awarding
21 agencies, nonstate entities recipients and subrecipients, and
22 independent auditors of state financial assistance relating to
23 the format for the Schedule of Expenditures of State Financial
24 Assistance.
25 (g)(c) Perform any inspections, reviews,
26 investigations, or audits of state financial assistance
27 considered necessary in carrying out the Department of
28 Financial Services's Comptroller's legal responsibilities for
29 state financial assistance or to comply with the requirements
30 of this section.
31 (5) Each state awarding agency shall:
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1 (a) Provide to each a recipient information needed by
2 the recipient to comply with the requirements of this section,
3 including:
4 1. The audit and accountability requirements for state
5 projects as stated in this section and applicable rules of the
6 Executive Office of the Governor, rules of the Department of
7 Financial Services Comptroller, and rules of the Auditor
8 General.
9 2. Information from the Catalog of State Financial
10 Assistance, including the standard state project number
11 identifier; official title; legal authorization; and
12 description of the state project including objectives,
13 restrictions, and other relevant information determined
14 necessary.
15 3. Information from the State Projects Compliance
16 Supplement, including the significant compliance requirements,
17 eligibility requirements, matching requirements, suggested
18 audit procedures, and other relevant information determined
19 necessary.
20 (b) Require the recipient, as a condition of receiving
21 state financial assistance, to allow the state awarding
22 agency, the Department of Financial Services Comptroller, and
23 the Auditor General access to the recipient's records and the
24 recipient's independent auditor's working papers as necessary
25 for complying with the requirements of this section.
26 (c) Notify the recipient that this section does not
27 limit the authority of the state awarding agency to conduct or
28 arrange for the conduct of additional audits or evaluations of
29 state financial assistance or limit the authority of any state
30 awarding agency inspector general, the Auditor General, or any
31 other state official.
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1 (d) Be provided one copy of each financial reporting
2 package prepared in accordance with the requirement of this
3 section.
4 (e) Review the recipient's recipient financial
5 reporting package, including the management letters and
6 corrective action plans, to the extent necessary to determine
7 whether timely and appropriate corrective action has been
8 taken with respect to audit findings and recommendations
9 pertaining to state financial assistance that are specific to
10 provided by the state awarding agency.
11 (f) Designate within the state awarding agency a
12 division, bureau, or other organizational unit that will be
13 responsible for reviewing financial reporting packages
14 pursuant to paragraph (e).
15
16 If the state awarding agency is not the coordinating agency as
17 defined in paragraph (2)(d), the state awarding agency's
18 designated division, bureau, or other organizational unit
19 shall communicate to the coordinating agency the state
20 awarding agency's approval of the recipient's corrective
21 action plan with respect to findings and recommendations that
22 are not specific to the state awarding agency.
23 (6) Each coordinating agency shall:
24 (a) Review the recipient's financial reporting
25 package, including the management letter and corrective action
26 plan, to identify audit findings and recommendations that
27 affect state financial assistance which are not specific to a
28 particular state awarding agency.
29 (b) For any such findings and recommendations
30 determine:
31
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1 1. Whether timely and appropriate corrective action
2 has been taken.
3 2. Promptly inform the state awarding agency's
4 contact, as designated pursuant to paragraph (5)(f), of
5 actions taken by the recipient to comply with the approved
6 corrective action plan.
7 (c) Maintain records of followup actions taken for the
8 use of any succeeding coordinating agency.
9 (7)(6) As a condition of receiving state financial
10 assistance, each nonstate entity recipient that provides state
11 financial assistance to a subrecipient shall:
12 (a) Provide to each a subrecipient information needed
13 by the subrecipient to comply with the requirements of this
14 section, including:
15 1. Identification of the state awarding agency.
16 2. The audit and accountability requirements for state
17 projects as stated in this section and applicable rules of the
18 Executive Office of the Governor, rules of the Department of
19 Financial Services Comptroller, and rules of the Auditor
20 General.
21 3. Information from the Catalog of State Financial
22 Assistance, including the standard state project number
23 identifier; official title; legal authorization; and
24 description of the state project, including objectives,
25 restrictions, and other relevant information.
26 4. Information from the State Projects Compliance
27 Supplement including the significant compliance requirements,
28 eligibility requirements, matching requirements, and suggested
29 audit procedures, and other relevant information determined
30 necessary.
31
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1 (b) Review the financial reporting package of the
2 subrecipient audit reports, including the management letter
3 and corrective action plan letters, to the extent necessary to
4 determine whether timely and appropriate corrective action has
5 been taken with respect to audit findings and recommendations
6 pertaining to state financial assistance provided by a the
7 state awarding agency or nonstate entity.
8 (c) Perform such other procedures as specified in
9 terms and conditions of the written agreement with the state
10 awarding agency or nonstate entity including any required
11 monitoring of the subrecipient's use of state financial
12 assistance through onsite visits, limited scope audits, or
13 other specified procedures.
14 (d) Require subrecipients, as a condition of receiving
15 state financial assistance, to permit the independent auditor
16 of the nonstate entity recipient, the state awarding agency,
17 the Department of Financial Services Comptroller, and the
18 Auditor General access to the subrecipient's records and the
19 subrecipient's independent auditor's working papers as
20 necessary to comply with the requirements of this section.
21 (8)(7) Each recipient or subrecipient of state
22 financial assistance shall comply with the following:
23 (a) Each nonstate entity that receives state financial
24 assistance and meets the audit threshold requirements, in any
25 fiscal year of the nonstate entity, as stated in the rules of
26 the Auditor General, shall have a state single audit conducted
27 for such fiscal year in accordance with the requirements of
28 this act and with additional requirements established in rules
29 of the Executive Office of the Governor, rules of the
30 Department of Financial Services Comptroller, and rules of the
31 Auditor General. If only one state project is involved in a
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1 nonstate entity's fiscal year, the nonstate entity may elect
2 to have only a state project-specific audit of the state
3 project for that fiscal year.
4 (b) Each nonstate entity that receives state financial
5 assistance and does not meet the audit threshold requirements,
6 in any fiscal year of the nonstate entity, as stated in this
7 law or the rules of the Auditor General is exempt for such
8 fiscal year from the state single audit requirements of this
9 section. However, such nonstate entity must meet terms and
10 conditions specified in the written agreement with the state
11 awarding agency or nonstate entity.
12 (c) Regardless of the amount of the state financial
13 assistance, the provisions of this section do not exempt a
14 nonstate entity from compliance with provisions of law
15 relating to maintaining records concerning state financial
16 assistance to such nonstate entity or allowing access and
17 examination of those records by the state awarding agency,
18 nonstate entity, the Department of Financial Services
19 Comptroller, or the Auditor General.
20 (d) Audits conducted pursuant to this section shall be
21 performed annually.
22 (e) Audits conducted pursuant to this section shall be
23 conducted by independent auditors in accordance with auditing
24 standards as stated in rules of the Auditor General.
25 (f) Upon completion of the audit as required by this
26 section, a copy of the recipient's financial reporting package
27 shall be filed with the state awarding agency and the Auditor
28 General. Upon completion of the audit as required by this
29 section, a copy of the subrecipient's financial reporting
30 package shall be filed with the nonstate entity recipient that
31 provided the state financial assistance and the Auditor
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1 General. The financial reporting package shall be filed in
2 accordance with the rules of the Auditor General.
3 (g) All financial reporting packages prepared pursuant
4 to the requirements of this section shall be available for
5 public inspection.
6 (h) If an audit conducted pursuant to this section
7 discloses any significant audit findings relating to state
8 financial assistance, including material noncompliance with
9 individual state project compliance requirements or reportable
10 conditions in internal controls of the nonstate entity, the
11 nonstate entity shall submit as part of the financial
12 reporting audit package to the state awarding agency or
13 nonstate entity a plan for corrective action to eliminate such
14 audit findings or a statement describing the reasons that
15 corrective action is not necessary.
16 (i) An audit conducted in accordance with this section
17 is in addition to any audit of federal awards required by the
18 federal Single Audit Act and other federal laws and
19 regulations. To the extent that such federally required audits
20 provide the state awarding agency or nonstate entity with
21 information it requires to carry out its responsibilities
22 under state law or other guidance, the a state awarding agency
23 or nonstate entity shall rely upon and use that information.
24 (j) Unless prohibited by law, the costs cost of audits
25 pursuant to this section are is allowable charges to state
26 projects. However, any charges to state projects should be
27 limited to those incremental costs incurred as a result of the
28 audit requirements of this section in relation to other audit
29 requirements. The nonstate entity should allocate such
30 incremental costs to all state projects for which it expended
31 state financial assistance.
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1 (k) Audit costs may not be charged to state projects
2 when audits required by this section have not been made or
3 have been made but not in accordance with this section. If a
4 nonstate entity fails to have an audit conducted consistent
5 with this section, a state awarding agency or nonstate entity
6 agencies may take appropriate corrective action to enforce
7 compliance.
8 (l) This section does not prohibit the state awarding
9 agency or nonstate entity from including terms and conditions
10 in the written agreement which require additional assurances
11 that state financial assistance meets the applicable
12 requirements of laws, regulations, and other compliance rules.
13 (m) A state awarding agency or nonstate entity that
14 provides state financial assistance to nonstate entities and
15 conducts or arranges for audits of state financial assistance
16 that are in addition to the audits conducted under this act,
17 including audits of nonstate entities that do not meet the
18 audit threshold requirements, shall, consistent with other
19 applicable law, arrange for funding the full cost of such
20 additional audits.
21 (9)(8) The independent auditor when conducting a state
22 single audit of a nonstate entity recipients or subrecipients
23 shall:
24 (a) Determine whether the nonstate entity's financial
25 statements are presented fairly in all material respects in
26 conformity with generally accepted accounting principles.
27 (b) Determine whether state financial assistance shown
28 on the Schedule of Expenditures of State Financial Assistance
29 is presented fairly in all material respects in relation to
30 the nonstate entity's financial statements taken as a whole.
31
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1 (c) With respect to internal controls pertaining to
2 each major state project:
3 1. Obtain an understanding of internal controls;
4 2. Assess control risk;
5 3. Perform tests of controls unless the controls are
6 deemed to be ineffective; and
7 4. Determine whether the nonstate entity has internal
8 controls in place to provide reasonable assurance of
9 compliance with the provisions of laws and rules pertaining to
10 state financial assistance that have a material effect on each
11 major state project.
12 (d) Determine whether each major state project
13 complied with the provisions of laws, rules, and guidelines as
14 identified in the State Projects Compliance Supplement, or
15 otherwise identified by the state awarding agency, which have
16 a material effect on each major state project. When major
17 state projects are less than 50 percent of the nonstate
18 entity's total expenditures for all state financial
19 assistance, the auditor shall select and test additional state
20 projects as major state projects as necessary to achieve audit
21 coverage of at least 50 percent of the expenditures for all
22 state financial assistance provided to the nonstate entity.
23 Additional state projects needed to meet the 50-percent
24 requirement may be selected on an inherent risk basis as
25 stated in the rules of the Department of Financial Services
26 Executive Office of the Governor.
27 (e) Report on the results of any audit conducted
28 pursuant to this section in accordance with the rules of the
29 Executive Office of the Governor, rules of the Department of
30 Financial Services Comptroller, and rules of the Auditor
31 General. Financial reporting packages Audit reports shall
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1 include summaries of the auditor's results regarding the
2 nonstate entity's financial statements; Schedule of
3 Expenditures of State Financial Assistance; internal controls;
4 and compliance with laws, rules, and guidelines.
5 (f) Issue a management letter as prescribed in the
6 rules of the Auditor General.
7 (g) Upon notification by the nonstate entity, make
8 available the working papers relating to the audit conducted
9 pursuant to the requirements of this section to the state
10 awarding agency, the Department of Financial Services
11 Comptroller, or the Auditor General for review or copying.
12 (10)(9) The independent auditor, when conducting a
13 state project-specific audit of a nonstate entity recipients
14 or subrecipients, shall:
15 (a) Determine whether the nonstate entity's Schedule
16 of Expenditures of State Financial Assistance is presented
17 fairly in all material respects in conformity with stated
18 accounting policies.
19 (b) Obtain an understanding of internal controls
20 control and perform tests of internal controls control over
21 the state project consistent with the requirements of a major
22 state project.
23 (c) Determine whether or not the auditee has complied
24 with applicable provisions of laws, rules, and guidelines as
25 identified in the State Projects Compliance Supplement, or
26 otherwise identified by the state awarding agency, which could
27 have a direct and material effect on the state project.
28 (d) Report on the results of the a state
29 project-specific audit consistent with the requirements of the
30 state single audit and issue a management letter as prescribed
31 in the rules of the Auditor General.
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1 (e) Upon notification by the nonstate entity, make
2 available the working papers relating to the audit conducted
3 pursuant to the requirements of this section to the state
4 awarding agency, the Department of Financial Services
5 Comptroller, or the Auditor General for review or copying.
6 (11)(10) The Auditor General shall:
7 (a) Have the authority to audit state financial
8 assistance provided to any nonstate entity when determined
9 necessary by the Auditor General or when directed by the
10 Legislative Auditing Committee.
11 (b) Adopt rules that state the auditing standards that
12 independent auditors are to follow for audits of nonstate
13 entities required by this section.
14 (c) Adopt rules that describe the contents and the
15 filing deadlines for the financial reporting package.
16 (d) Provide technical advice upon request of the
17 Department of Financial Services Comptroller, Executive Office
18 of the Governor, and state awarding agencies relating to
19 financial reporting and audit responsibilities contained in
20 this section.
21 (e) Be provided one copy of each financial reporting
22 package prepared in accordance with the requirements of this
23 section.
24 (f) Perform ongoing reviews of a sample of financial
25 reporting packages filed pursuant to the requirements of this
26 section to determine compliance with the reporting
27 requirements of this section and applicable rules of the
28 Executive Office of the Governor, rules of the Department of
29 Financial Services Comptroller, and rules of the Auditor
30 General.
31
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1 Section 43. Section 1010.47, Florida Statutes, is
2 amended to read:
3 1010.47 Receiving bids and sale of bonds.--
4 (1) If the issuance of bonds is authorized at the
5 election, or if any bonds outstanding against the district are
6 being refunded, the district school board shall sell the bonds
7 in the manner provided in s. 218.385. cause notice to be given
8 by publication in some newspaper published in the district
9 that the board will receive bids for the purchase of the bonds
10 at the office of the district school superintendent. The
11 notice shall be published twice, and the first publication
12 shall be given not less than 30 days prior to the date set for
13 receiving the bids. The notice shall specify the amount of the
14 bonds offered for sale, shall state whether the bids shall be
15 sealed bids or whether the bonds are to be sold at auction,
16 and shall give the schedule of maturities of the proposed
17 bonds and such other pertinent information as may be
18 prescribed by rules of the State Board of Education. Bidders
19 may be invited to name the rate of interest that the bonds are
20 to bear or the district school board may name rates of
21 interest and invite bids thereon. In addition to publication
22 of notice of the proposed sale as set forth in this
23 subsection, the district school board shall notify in writing
24 at least three recognized bond dealers in the state, and, at
25 the same time, notify the Department of Education concerning
26 the proposed sale and enclose a copy of the advertisement.
27 (2) All bonds and refunding bonds issued as provided
28 by law shall be sold to the highest and best bidder at such
29 public sale unless sold at a better price or yield basis
30 within 30 days after failure to receive an acceptable bid at a
31 duly advertised public sale, provided that at no time shall
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1 bonds or refunding bonds be sold or exchanged at less than par
2 value except as specifically authorized by the Department of
3 Education; and provided, further, that the district school
4 board shall have the right to reject all bids and cause a new
5 notice to be given in like manner inviting other bids for such
6 bonds, or to sell all or any part of such bonds to the State
7 Board of Education at a price and yield basis that shall not
8 be less advantageous to the district school board than that
9 represented by the highest and best bid received. In the
10 marketing of the bonds, the district school board shall be
11 entitled to have such assistance as can be rendered by the
12 Division of Bond Finance, the Commissioner of Education, or
13 any other public state officer or agency. In determining the
14 highest and best bidder for bonds offered for sale, the net
15 interest cost to the school board as shown in standard bond
16 tables shall govern, provided that the determination of the
17 district school board as to the highest and best bidder shall
18 be final.
19 Section 44. Effective July 1, 2003, one full-time
20 equivalent position is transferred from the Executive Office
21 of the Governor to the Department of Financial Services.
22 Section 45. This act shall take effect upon becoming a
23 law.
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