Florida Senate - 2011 SB 90
By Senator Gaetz
4-00006-11 201190__
1 A bill to be entitled
2 An act relating to financial emergencies; amending s.
3 163.07, F.S.; requiring a plan of a county or
4 municipality to improve the efficiency,
5 accountability, and coordination of the delivery of
6 local government services to include a structural and
7 services consolidation plan if the county or
8 municipality is subject to review and oversight by the
9 Governor; amending s. 218.503, F.S.; authorizing a
10 financial emergency review board for a local
11 governmental entity or district school board to
12 consult with other governmental entities for the
13 consolidation of all administrative direction and
14 support services; authorizing the Governor or
15 Commissioner of Education to require a local
16 governmental entity or district school board to
17 develop a plan for the consolidation, sourcing, or
18 discontinuance of all administrative direction and
19 support services; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Section 163.07, Florida Statutes, is amended to
24 read:
25 163.07 Efficiency and accountability in local government
26 services.—
27 (1) The intent of this section is to provide and encourage
28 a process that will:
29 (a) Allow municipalities and counties to resolve conflicts
30 among local jurisdictions regarding the delivery and financing
31 of local services.
32 (b) Increase local government efficiency and
33 accountability.
34 (c) Provide greater flexibility in the use of local revenue
35 sources for local governments involved in the process.
36 (2) Any county or combination of counties, and the
37 municipalities therein, may use the procedures provided by this
38 section to develop and adopt a plan to improve the efficiency,
39 accountability, and coordination of the delivery of local
40 government services. The development of such a plan may be
41 initiated by a resolution adopted by a majority vote of the
42 governing body of each of the counties involved, by resolutions
43 adopted by a majority vote of the governing bodies of a majority
44 of the municipalities within each county, or by resolutions
45 adopted by a majority vote of the governing bodies of the
46 municipality or combination of municipalities representing a
47 majority of the municipal population of each county. The
48 resolution shall create a commission which will be responsible
49 for developing the plan. The resolution shall specify the
50 composition of the commission, which shall include
51 representatives of county and municipal governments, of any
52 affected special districts, and of any other relevant local
53 government entities or agencies. The resolution must include a
54 proposed timetable for development of the plan and must specify
55 the local government support and personnel services that will be
56 made available to the representatives developing the plan.
57 (3) Upon adoption of a resolution or resolutions as
58 provided in subsection (2), the designated representatives shall
59 develop a plan for delivery of local government services. The
60 plan must:
61 (a) Designate the areawide and local government services
62 that are the subject of the plan.
63 (b) Describe the existing organization of such services and
64 the means of financing the services, and create a reorganization
65 of such services and the financing thereof that will meet the
66 goals of this section.
67 (c) Designate the local agency that should be responsible
68 for the delivery of each service.
69 (d) Designate those services that should be delivered
70 regionally or countywide. No provision of the plan shall operate
71 to restrict the power of a municipality to finance and deliver
72 services in addition to, or at a higher level than, the services
73 designated for regional or countywide delivery under this
74 paragraph.
75 (e) Provide means to reduce the cost of providing local
76 services and enhance the accountability of service providers.
77 (f) Include a multiyear capital outlay plan for
78 infrastructure.
79 (g) Specifically describe any expansion of municipal
80 boundaries that would further the goals of this section. Any
81 area proposed to be annexed must meet the standards for
82 annexation provided in chapter 171. The plan shall not contain
83 any provision for contraction of municipal boundaries or
84 elimination of any municipality.
85 (h) Provide specific procedures for modification or
86 termination of the plan.
87 (i) Specify any special act modifications which must be
88 made to effectuate the plan.
89 (j) Specify the effective date of the plan.
90 (4)(a) A plan developed pursuant to this section must
91 conform to all comprehensive plans that have been found to be in
92 compliance under part II of this chapter, for the local
93 governments participating in the plan.
94 (b) No provision of a plan developed pursuant to this
95 section shall restrict the authority of any state or regional
96 governmental agency to perform any duty required to be performed
97 by that agency by law.
98 (5)(a) A plan developed pursuant to this section must be
99 approved by a majority vote of the governing body of each county
100 involved in the plan, and by a majority vote of the governing
101 bodies of a majority of municipalities in each county, and by a
102 majority vote of the governing bodies of the municipality or
103 municipalities that represent a majority of the municipal
104 population of each county.
105 (b) After approval by the county and municipal governing
106 bodies as required by paragraph (a), the plan shall be submitted
107 for referendum approval in a countywide election in each county
108 involved. The plan shall not take effect unless approved by a
109 majority of the electors of each county who vote in the
110 referendum, and also by a majority of the electors of the
111 municipalities that represent a majority of the municipal
112 population of each county who vote in the referendum. If
113 approved by the electors as required by this paragraph, the plan
114 shall take effect on the date specified in the plan.
115 (6) A plan developed pursuant to this section by a county
116 or municipality that is subject to review and oversight by the
117 Governor pursuant to s. 218.503 must include a structural and
118 services consolidation plan.
119 (7)(6) If the plan calls for merger or dissolution of
120 special districts, such merger or dissolution shall comply with
121 the provisions of chapter 189.
122 (8)(7) If a plan developed pursuant to this section
123 includes areas proposed for municipal annexation which meet the
124 standards for annexation provided in chapter 171, such
125 annexation shall take effect upon approval of the plan as
126 provided in this section, notwithstanding the procedures for
127 approval of municipal annexation specified in chapter 171.
128 Section 2. Section 218.503, Florida Statutes, is amended to
129 read:
130 218.503 Determination of financial emergency.—
131 (1) Local governmental entities, charter schools, charter
132 technical career centers, and district school boards shall be
133 subject to review and oversight by the Governor, the charter
134 school sponsor, the charter technical career center sponsor, or
135 the Commissioner of Education, as appropriate, when any one of
136 the following conditions occurs:
137 (a) Failure within the same fiscal year in which due to pay
138 short-term loans or failure to make bond debt service or other
139 long-term debt payments when due, as a result of a lack of
140 funds.
141 (b) Failure to pay uncontested claims from creditors within
142 90 days after the claim is presented, as a result of a lack of
143 funds.
144 (c) Failure to transfer at the appropriate time, due to
145 lack of funds:
146 1. Taxes withheld on the income of employees; or
147 2. Employer and employee contributions for:
148 a. Federal social security; or
149 b. Any pension, retirement, or benefit plan of an employee.
150 (d) Failure for one pay period to pay, due to lack of
151 funds:
152 1. Wages and salaries owed to employees; or
153 2. Retirement benefits owed to former employees.
154 (e) An unreserved or total fund balance or retained
155 earnings deficit, or unrestricted or total net assets deficit,
156 as reported on the balance sheet or statement of net assets on
157 the general purpose or fund financial statements, for which
158 sufficient resources of the local governmental entity, charter
159 school, charter technical career center, or district school
160 board, as reported on the balance sheet or statement of net
161 assets on the general purpose or fund financial statements, are
162 not available to cover the deficit. Resources available to cover
163 reported deficits include net assets that are not otherwise
164 restricted by federal, state, or local laws, bond covenants,
165 contractual agreements, or other legal constraints. Fixed or
166 capital assets, the disposal of which would impair the ability
167 of a local governmental entity, charter school, charter
168 technical career center, or district school board to carry out
169 its functions, are not considered resources available to cover
170 reported deficits.
171 (2) A local governmental entity shall notify the Governor
172 and the Legislative Auditing Committee; a charter school shall
173 notify the charter school sponsor, the Commissioner of
174 Education, and the Legislative Auditing Committee; a charter
175 technical career center shall notify the charter technical
176 career center sponsor, the Commissioner of Education, and the
177 Legislative Auditing Committee; and a district school board
178 shall notify the Commissioner of Education and the Legislative
179 Auditing Committee, when one or more of the conditions specified
180 in subsection (1) have occurred or will occur if action is not
181 taken to assist the local governmental entity, charter school,
182 charter technical career center, or district school board. In
183 addition, any state agency must, within 30 days after a
184 determination that one or more of the conditions specified in
185 subsection (1) have occurred or will occur if action is not
186 taken to assist the local governmental entity, charter school,
187 charter technical career center, or district school board,
188 notify the Governor, charter school sponsor, charter technical
189 career center sponsor, or the Commissioner of Education, as
190 appropriate, and the Legislative Auditing Committee.
191 (3) Upon notification that one or more of the conditions in
192 subsection (1) have occurred or will occur if action is not
193 taken to assist the local governmental entity or district school
194 board, the Governor or his or her designee shall contact the
195 local governmental entity or the Commissioner of Education or
196 his or her designee shall contact the district school board to
197 determine what actions have been taken by the local governmental
198 entity or the district school board to resolve or prevent the
199 condition. The Governor or the Commissioner of Education, as
200 appropriate, shall determine whether the local governmental
201 entity or the district school board needs state assistance to
202 resolve or prevent the condition. If state assistance is needed,
203 the local governmental entity or district school board is
204 considered to be in a state of financial emergency. The Governor
205 or the Commissioner of Education, as appropriate, has the
206 authority to implement measures as set forth in ss. 218.50
207 218.504 to assist the local governmental entity or district
208 school board in resolving the financial emergency. Such measures
209 may include, but are not limited to:
210 (a) Requiring approval of the local governmental entity’s
211 budget by the Governor or approval of the district school
212 board’s budget by the Commissioner of Education.
213 (b) Authorizing a state loan to a local governmental entity
214 and providing for repayment of same.
215 (c) Prohibiting a local governmental entity or district
216 school board from issuing bonds, notes, certificates of
217 indebtedness, or any other form of debt until such time as it is
218 no longer subject to this section.
219 (d) Making such inspections and reviews of records,
220 information, reports, and assets of the local governmental
221 entity or district school board. The appropriate local officials
222 shall cooperate in such inspections and reviews.
223 (e) Consulting with officials and auditors of the local
224 governmental entity or the district school board and the
225 appropriate state officials regarding any steps necessary to
226 bring the books of account, accounting systems, financial
227 procedures, and reports into compliance with state requirements.
228 (f) Providing technical assistance to the local
229 governmental entity or the district school board.
230 (g)1. Establishing a financial emergency board to oversee
231 the activities of the local governmental entity or the district
232 school board. If a financial emergency board is established for
233 a local governmental entity, the Governor shall appoint board
234 members and select a chair. If a financial emergency board is
235 established for a district school board, the State Board of
236 Education shall appoint board members and select a chair. The
237 financial emergency board shall adopt such rules as are
238 necessary for conducting board business. The board may:
239 a. Make such reviews of records, reports, and assets of the
240 local governmental entity or the district school board as are
241 needed.
242 b. Consult with officials and auditors of the local
243 governmental entity or the district school board and the
244 appropriate state officials regarding any steps necessary to
245 bring the books of account, accounting systems, financial
246 procedures, and reports of the local governmental entity or the
247 district school board into compliance with state requirements.
248 c. Review the operations, management, efficiency,
249 productivity, and financing of functions and operations of the
250 local governmental entity or the district school board.
251 d. Consult with other governmental entities for the
252 consolidation of all administrative direction and support
253 services, including, but not limited to, services for asset
254 sales, economic and community development, building inspections,
255 parks and recreation, facilities management, engineering and
256 construction, insurance coverage, risk management, planning and
257 zoning, information systems, fleet management, and purchasing.
258 2. The recommendations and reports made by the financial
259 emergency board must be submitted to the Governor for local
260 governmental entities or to the Commissioner of Education and
261 the State Board of Education for district school boards for
262 appropriate action.
263 (h) Requiring and approving a plan, to be prepared by
264 officials of the local governmental entity or the district
265 school board in consultation with the appropriate state
266 officials, prescribing actions that will cause the local
267 governmental entity or district school board to no longer be
268 subject to this section. The plan must include, but need not be
269 limited to:
270 1. Provision for payment in full of obligations outlined in
271 subsection (1), designated as priority items, that are currently
272 due or will come due.
273 2. Establishment of priority budgeting or zero-based
274 budgeting in order to eliminate items that are not affordable.
275 3. The prohibition of a level of operations which can be
276 sustained only with nonrecurring revenues.
277 4. The consolidation, sourcing, or discontinuance of all
278 administrative direction and support services, including, but
279 not limited to, services for asset sales, economic and community
280 development, building inspections, parks and recreation,
281 facilities management, engineering and construction, insurance
282 coverage, risk management, planning and zoning, information
283 systems, fleet management, and purchasing.
284 (4)(a) Upon notification that one or more of the conditions
285 in subsection (1) have occurred or will occur if action is not
286 taken to assist the charter school, the charter school sponsor
287 or the sponsor’s designee and the Commissioner of Education
288 shall contact the charter school governing body to determine
289 what actions have been taken by the charter school governing
290 body to resolve or prevent the condition. The Commissioner of
291 Education has the authority to require and approve a financial
292 recovery plan, to be prepared by the charter school governing
293 body, prescribing actions that will resolve or prevent the
294 condition.
295 (b) Upon notification that one or more of the conditions in
296 subsection (1) have occurred or will occur if action is not
297 taken to assist the charter technical career center, the charter
298 technical career center sponsor or the sponsor’s designee and
299 the Commissioner of Education shall contact the charter
300 technical career center governing body to determine what actions
301 have been taken by the governing body to resolve or prevent the
302 condition. The Commissioner of Education may require and approve
303 a financial recovery plan, to be prepared by the charter
304 technical career center governing body, prescribing actions that
305 will resolve or prevent the condition.
306 (c) The Commissioner of Education shall determine if the
307 charter school or charter technical career center needs a
308 financial recovery plan to resolve the condition. If the
309 Commissioner of Education determines that a financial recovery
310 plan is needed, the charter school or charter technical career
311 center is considered to be in a state of financial emergency.
312
313 The Department of Education, with the involvement of sponsors,
314 charter schools, and charter technical career centers, shall
315 establish guidelines for developing a financial recovery plan.
316 (5) A local governmental entity or district school board
317 may not seek application of laws under the bankruptcy provisions
318 of the United States Constitution except with the prior approval
319 of the Governor for local governmental entities or the
320 Commissioner of Education for district school boards.
321 Section 3. This act shall take effect July 1, 2011.