Florida Senate - 2011 CS for SB 90
By the Committee on Education Pre-K - 12; and Senator Gaetz
581-01994-11 201190c1
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 plan for the
7 consolidation of all administrative direction and
8 support services if the county or municipality is
9 subject to review and oversight by the Governor;
10 amending s. 218.503, F.S.; authorizing a financial
11 emergency review board for a local governmental entity
12 or district school board to consult with other
13 governmental entities for the consolidation of all
14 administrative direction and support services;
15 authorizing the Governor or Commissioner of Education
16 to require a local governmental entity or district
17 school board to develop a plan implementing the
18 consolidation, sourcing, or discontinuance of all
19 administrative direction and support services;
20 providing that the members of the governing body of a
21 local governmental entity or the members of a district
22 school board who fail to resolve a state of financial
23 emergency are subject to suspension or removal from
24 office; providing an effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Section 163.07, Florida Statutes, is amended to
29 read:
30 163.07 Efficiency and accountability in local government
31 services.—
32 (1) The intent of this section is to provide and encourage
33 a process that will:
34 (a) Allow municipalities and counties to resolve conflicts
35 among local jurisdictions regarding the delivery and financing
36 of local services.
37 (b) Increase local government efficiency and
38 accountability.
39 (c) Provide greater flexibility in the use of local revenue
40 sources for local governments involved in the process.
41 (2) Any county or combination of counties, and the
42 municipalities therein, may use the procedures provided by this
43 section to develop and adopt a plan to improve the efficiency,
44 accountability, and coordination of the delivery of local
45 government services. The development of such a plan may be
46 initiated by a resolution adopted by a majority vote of the
47 governing body of each of the counties involved, by resolutions
48 adopted by a majority vote of the governing bodies of a majority
49 of the municipalities within each county, or by resolutions
50 adopted by a majority vote of the governing bodies of the
51 municipality or combination of municipalities representing a
52 majority of the municipal population of each county. The
53 resolution shall create a commission which will be responsible
54 for developing the plan. The resolution shall specify the
55 composition of the commission, which shall include
56 representatives of county and municipal governments, of any
57 affected special districts, and of any other relevant local
58 government entities or agencies. The resolution must include a
59 proposed timetable for development of the plan and must specify
60 the local government support and personnel services that will be
61 made available to the representatives developing the plan.
62 (3) Upon adoption of a resolution or resolutions as
63 provided in subsection (2), the designated representatives shall
64 develop a plan for delivery of local government services. The
65 plan must:
66 (a) Designate the areawide and local government services
67 that are the subject of the plan.
68 (b) Describe the existing organization of such services and
69 the means of financing the services, and create a reorganization
70 of such services and the financing thereof that will meet the
71 goals of this section.
72 (c) Designate the local agency that should be responsible
73 for the delivery of each service.
74 (d) Designate those services that should be delivered
75 regionally or countywide. No provision of the plan shall operate
76 to restrict the power of a municipality to finance and deliver
77 services in addition to, or at a higher level than, the services
78 designated for regional or countywide delivery under this
79 paragraph.
80 (e) Provide means to reduce the cost of providing local
81 services and enhance the accountability of service providers.
82 (f) Include a multiyear capital outlay plan for
83 infrastructure.
84 (g) Specifically describe any expansion of municipal
85 boundaries that would further the goals of this section. Any
86 area proposed to be annexed must meet the standards for
87 annexation provided in chapter 171. The plan shall not contain
88 any provision for contraction of municipal boundaries or
89 elimination of any municipality.
90 (h) Provide specific procedures for modification or
91 termination of the plan.
92 (i) Specify any special act modifications which must be
93 made to effectuate the plan.
94 (j) Specify the effective date of the plan.
95 (4)(a) A plan developed pursuant to this section must
96 conform to all comprehensive plans that have been found to be in
97 compliance under part II of this chapter, for the local
98 governments participating in the plan.
99 (b) No provision of a plan developed pursuant to this
100 section shall restrict the authority of any state or regional
101 governmental agency to perform any duty required to be performed
102 by that agency by law.
103 (5)(a) A plan developed pursuant to this section must be
104 approved by a majority vote of the governing body of each county
105 involved in the plan, and by a majority vote of the governing
106 bodies of a majority of municipalities in each county, and by a
107 majority vote of the governing bodies of the municipality or
108 municipalities that represent a majority of the municipal
109 population of each county.
110 (b) After approval by the county and municipal governing
111 bodies as required by paragraph (a), the plan shall be submitted
112 for referendum approval in a countywide election in each county
113 involved. The plan shall not take effect unless approved by a
114 majority of the electors of each county who vote in the
115 referendum, and also by a majority of the electors of the
116 municipalities that represent a majority of the municipal
117 population of each county who vote in the referendum. If
118 approved by the electors as required by this paragraph, the plan
119 shall take effect on the date specified in the plan.
120 (6) A plan developed pursuant to this section by a county
121 or municipality that is subject to review and oversight by the
122 Governor pursuant to s. 218.503 must include a plan for the
123 consolidation of all administrative direction and support
124 services, including, but not limited to, services for asset
125 sales, economic and community development, building inspections,
126 parks and recreation, facilities management, engineering and
127 construction, insurance coverage, risk management, planning and
128 zoning, information systems, fleet management, and purchasing.
129 (7)(6) If the plan calls for merger or dissolution of
130 special districts, such merger or dissolution shall comply with
131 the provisions of chapter 189.
132 (8)(7) If a plan developed pursuant to this section
133 includes areas proposed for municipal annexation which meet the
134 standards for annexation provided in chapter 171, such
135 annexation shall take effect upon approval of the plan as
136 provided in this section, notwithstanding the procedures for
137 approval of municipal annexation specified in chapter 171.
138 Section 2. Section 218.503, Florida Statutes, is amended to
139 read:
140 218.503 Determination of financial emergency.—
141 (1) Local governmental entities, charter schools, charter
142 technical career centers, and district school boards shall be
143 subject to review and oversight by the Governor, the charter
144 school sponsor, the charter technical career center sponsor, or
145 the Commissioner of Education, as appropriate, when any one of
146 the following conditions occurs:
147 (a) Failure within the same fiscal year in which due to pay
148 short-term loans or failure to make bond debt service or other
149 long-term debt payments when due, as a result of a lack of
150 funds.
151 (b) Failure to pay uncontested claims from creditors within
152 90 days after the claim is presented, as a result of a lack of
153 funds.
154 (c) Failure to transfer at the appropriate time, due to
155 lack of funds:
156 1. Taxes withheld on the income of employees; or
157 2. Employer and employee contributions for:
158 a. Federal social security; or
159 b. Any pension, retirement, or benefit plan of an employee.
160 (d) Failure for one pay period to pay, due to lack of
161 funds:
162 1. Wages and salaries owed to employees; or
163 2. Retirement benefits owed to former employees.
164 (e) An unreserved or total fund balance or retained
165 earnings deficit, or unrestricted or total net assets deficit,
166 as reported on the balance sheet or statement of net assets on
167 the general purpose or fund financial statements, for which
168 sufficient resources of the local governmental entity, charter
169 school, charter technical career center, or district school
170 board, as reported on the balance sheet or statement of net
171 assets on the general purpose or fund financial statements, are
172 not available to cover the deficit. Resources available to cover
173 reported deficits include net assets that are not otherwise
174 restricted by federal, state, or local laws, bond covenants,
175 contractual agreements, or other legal constraints. Fixed or
176 capital assets, the disposal of which would impair the ability
177 of a local governmental entity, charter school, charter
178 technical career center, or district school board to carry out
179 its functions, are not considered resources available to cover
180 reported deficits.
181 (2) A local governmental entity shall notify the Governor
182 and the Legislative Auditing Committee; a charter school shall
183 notify the charter school sponsor, the Commissioner of
184 Education, and the Legislative Auditing Committee; a charter
185 technical career center shall notify the charter technical
186 career center sponsor, the Commissioner of Education, and the
187 Legislative Auditing Committee; and a district school board
188 shall notify the Commissioner of Education and the Legislative
189 Auditing Committee, when one or more of the conditions specified
190 in subsection (1) have occurred or will occur if action is not
191 taken to assist the local governmental entity, charter school,
192 charter technical career center, or district school board. In
193 addition, any state agency must, within 30 days after a
194 determination that one or more of the conditions specified in
195 subsection (1) have occurred or will occur if action is not
196 taken to assist the local governmental entity, charter school,
197 charter technical career center, or district school board,
198 notify the Governor, charter school sponsor, charter technical
199 career center sponsor, or the Commissioner of Education, as
200 appropriate, and the Legislative Auditing Committee.
201 (3) Upon notification that one or more of the conditions in
202 subsection (1) have occurred or will occur if action is not
203 taken to assist the local governmental entity or district school
204 board, the Governor or his or her designee shall contact the
205 local governmental entity or the Commissioner of Education or
206 his or her designee shall contact the district school board to
207 determine what actions have been taken by the local governmental
208 entity or the district school board to resolve or prevent the
209 condition. The Governor or the Commissioner of Education, as
210 appropriate, shall determine whether the local governmental
211 entity or the district school board needs state assistance to
212 resolve or prevent the condition. If state assistance is needed,
213 the local governmental entity or district school board is
214 considered to be in a state of financial emergency. The Governor
215 or the Commissioner of Education, as appropriate, has the
216 authority to implement measures as set forth in ss. 218.50
217 218.504 to assist the local governmental entity or district
218 school board in resolving the financial emergency. Such measures
219 may include, but are not limited to:
220 (a) Requiring approval of the local governmental entity’s
221 budget by the Governor or approval of the district school
222 board’s budget by the Commissioner of Education.
223 (b) Authorizing a state loan to a local governmental entity
224 and providing for repayment of same.
225 (c) Prohibiting a local governmental entity or district
226 school board from issuing bonds, notes, certificates of
227 indebtedness, or any other form of debt until such time as it is
228 no longer subject to this section.
229 (d) Making such inspections and reviews of records,
230 information, reports, and assets of the local governmental
231 entity or district school board. The appropriate local officials
232 shall cooperate in such inspections and reviews.
233 (e) Consulting with officials and auditors of the local
234 governmental entity or the district school board and the
235 appropriate state officials regarding any steps necessary to
236 bring the books of account, accounting systems, financial
237 procedures, and reports into compliance with state requirements.
238 (f) Providing technical assistance to the local
239 governmental entity or the district school board.
240 (g)1. Establishing a financial emergency board to oversee
241 the activities of the local governmental entity or the district
242 school board. If a financial emergency board is established for
243 a local governmental entity, the Governor shall appoint board
244 members and select a chair. If a financial emergency board is
245 established for a district school board, the State Board of
246 Education shall appoint board members and select a chair. The
247 financial emergency board shall adopt such rules as are
248 necessary for conducting board business. The board may:
249 a. Make such reviews of records, reports, and assets of the
250 local governmental entity or the district school board as are
251 needed.
252 b. Consult with officials and auditors of the local
253 governmental entity or the district school board and the
254 appropriate state officials regarding any steps necessary to
255 bring the books of account, accounting systems, financial
256 procedures, and reports of the local governmental entity or the
257 district school board into compliance with state requirements.
258 c. Review the operations, management, efficiency,
259 productivity, and financing of functions and operations of the
260 local governmental entity or the district school board.
261 d. Consult with other governmental entities for the
262 consolidation of all administrative direction and support
263 services, including, but not limited to, services for asset
264 sales, economic and community development, building inspections,
265 parks and recreation, facilities management, engineering and
266 construction, insurance coverage, risk management, planning and
267 zoning, information systems, fleet management, and purchasing.
268 2. The recommendations and reports made by the financial
269 emergency board must be submitted to the Governor for local
270 governmental entities or to the Commissioner of Education and
271 the State Board of Education for district school boards for
272 appropriate action.
273 (h) Requiring and approving a plan, to be prepared by
274 officials of the local governmental entity or the district
275 school board in consultation with the appropriate state
276 officials, prescribing actions that will cause the local
277 governmental entity or district school board to no longer be
278 subject to this section. The plan must include, but need not be
279 limited to:
280 1. Provision for payment in full of obligations outlined in
281 subsection (1), designated as priority items, that are currently
282 due or will come due.
283 2. Establishment of priority budgeting or zero-based
284 budgeting in order to eliminate items that are not affordable.
285 3. The prohibition of a level of operations which can be
286 sustained only with nonrecurring revenues.
287 4. Provisions implementing the consolidation, sourcing, or
288 discontinuance of all administrative direction and support
289 services, including, but not limited to, services for asset
290 sales, economic and community development, building inspections,
291 parks and recreation, facilities management, engineering and
292 construction, insurance coverage, risk management, planning and
293 zoning, information systems, fleet management, and purchasing.
294 (4)(a) Upon notification that one or more of the conditions
295 in subsection (1) have occurred or will occur if action is not
296 taken to assist the charter school, the charter school sponsor
297 or the sponsor’s designee and the Commissioner of Education
298 shall contact the charter school governing body to determine
299 what actions have been taken by the charter school governing
300 body to resolve or prevent the condition. The Commissioner of
301 Education has the authority to require and approve a financial
302 recovery plan, to be prepared by the charter school governing
303 body, prescribing actions that will resolve or prevent the
304 condition.
305 (b) Upon notification that one or more of the conditions in
306 subsection (1) have occurred or will occur if action is not
307 taken to assist the charter technical career center, the charter
308 technical career center sponsor or the sponsor’s designee and
309 the Commissioner of Education shall contact the charter
310 technical career center governing body to determine what actions
311 have been taken by the governing body to resolve or prevent the
312 condition. The Commissioner of Education may require and approve
313 a financial recovery plan, to be prepared by the charter
314 technical career center governing body, prescribing actions that
315 will resolve or prevent the condition.
316 (c) The Commissioner of Education shall determine if the
317 charter school or charter technical career center needs a
318 financial recovery plan to resolve the condition. If the
319 Commissioner of Education determines that a financial recovery
320 plan is needed, the charter school or charter technical career
321 center is considered to be in a state of financial emergency.
322
323 The Department of Education, with the involvement of sponsors,
324 charter schools, and charter technical career centers, shall
325 establish guidelines for developing a financial recovery plan.
326 (5) A local governmental entity or district school board
327 may not seek application of laws under the bankruptcy provisions
328 of the United States Constitution except with the prior approval
329 of the Governor for local governmental entities or the
330 Commissioner of Education for district school boards.
331 (6) The failure of the members of the governing body of a
332 local governmental entity or the failure of the members of a
333 district school board to resolve a state of financial emergency
334 constitutes malfeasance, misfeasance, and neglect of duty for
335 purposes of s. 7, Art. IV of the State Constitution.
336 Section 3. This act shall take effect July 1, 2011.