Florida Senate - 2017                                    SB 1770
       By Senator Lee
       20-00956A-17                                          20171770__
    1                        A bill to be entitled                      
    2         An act relating to community redevelopment agencies;
    3         amending s. 163.356, F.S.; providing reporting
    4         requirements; deleting provisions requiring certain
    5         annual reports; amending s. 163.367, F.S.; requiring
    6         ethics training for community redevelopment agency
    7         commissioners; amending s. 163.370, F.S.; establishing
    8         procurement procedures; creating s. 163.371, F.S.;
    9         providing annual reporting requirements; requiring a
   10         community redevelopment agency to publish annual
   11         reports and boundary maps on its website; creating s.
   12         163.3755, F.S.; providing a phase-out period for
   13         existing community redevelopment agencies; providing a
   14         limited exception for community redevelopment agencies
   15         with certain outstanding bond obligations; providing
   16         that a governing body of a county or municipality may
   17         create a community redevelopment agency only by a
   18         super majority vote on or after a specified date;
   19         creating s. 163.3756, F.S.; providing legislative
   20         findings; requiring the Department of Economic
   21         Opportunity to declare inactive community
   22         redevelopment agencies that have reported no financial
   23         activity for a specified number of years; providing
   24         hearing procedures; authorizing certain financial
   25         activity by a community redevelopment agency that is
   26         declared inactive; requiring the department to
   27         maintain a website identifying all inactive community
   28         redevelopment agencies; amending s. 163.387, F.S.;
   29         revising requirements for the use of the redevelopment
   30         trust fund proceeds; limiting allowed expenditures;
   31         revising requirements for the annual budget of a
   32         community redevelopment agency; requiring municipal
   33         community redevelopment agencies to provide an annual
   34         budget to the county commission; revising requirements
   35         for the annual audit; requiring the audit to be
   36         included with the financial report of the county or
   37         municipality that created the community redevelopment
   38         agency; amending s. 218.32, F.S.; requiring county and
   39         municipal governments to report community
   40         redevelopment agency annual audit reports as part of
   41         the county or municipal annual report; revising
   42         criteria for finding that a county or municipality
   43         failed to file a report; requiring the Department of
   44         Financial Services to provide a report to the
   45         Department of Economic Opportunity concerning
   46         community redevelopment agencies with no revenues,
   47         expenditures, or debts; providing an effective date.
   49  Be It Enacted by the Legislature of the State of Florida:
   51         Section 1. Paragraphs (c) and (d) of subsection (3) of
   52  section 163.356, Florida Statutes, are amended to read:
   53         163.356 Creation of community redevelopment agency.—
   54         (3)(c) The governing body of the county or municipality
   55  shall designate a chair and vice chair from among the
   56  commissioners. An agency may employ an executive director,
   57  technical experts, and such other agents and employees,
   58  permanent and temporary, as it requires, and determine their
   59  qualifications, duties, and compensation. For such legal service
   60  as it requires, an agency may employ or retain its own counsel
   61  and legal staff.
   62         (d) An agency authorized to transact business and exercise
   63  powers under this part shall file with the governing body the
   64  report required pursuant to s. 163.371(1), on or before March 31
   65  of each year, a report of its activities for the preceding
   66  fiscal year, which report shall include a complete financial
   67  statement setting forth its assets, liabilities, income, and
   68  operating expenses as of the end of such fiscal year. At the
   69  time of filing the report, the agency shall publish in a
   70  newspaper of general circulation in the community a notice to
   71  the effect that such report has been filed with the county or
   72  municipality and that the report is available for inspection
   73  during business hours in the office of the clerk of the city or
   74  county commission and in the office of the agency.
   75         (e)(d) At any time after the creation of a community
   76  redevelopment agency, the governing body of the county or
   77  municipality may appropriate to the agency such amounts as the
   78  governing body deems necessary for the administrative expenses
   79  and overhead of the agency, including the development and
   80  implementation of community policing innovations.
   81         Section 2. Subsection (1) of section 163.367, Florida
   82  Statutes, is amended to read:
   83         163.367 Public officials, commissioners, and employees
   84  subject to code of ethics.—
   85         (1)(a) The officers, commissioners, and employees of a
   86  community redevelopment agency created by, or designated
   87  pursuant to, s. 163.356 or s. 163.357 are shall be subject to
   88  the provisions and requirements of part III of chapter 112.
   89         (b)Commissioners of a community redevelopment agency must
   90  comply with the ethics training requirements in s. 112.3142.
   91         Section 3. Subsection (5) is added to section 163.370,
   92  Florida Statutes, to read:
   93         163.370 Powers; counties and municipalities; community
   94  redevelopment agencies.—
   95         (5)A community redevelopment agency shall procure all
   96  commodities and services under the same purchasing processes and
   97  requirements that apply to the county or municipality that
   98  created the agency.
   99         Section 4. Section 163.371, Florida Statutes, is created to
  100  read:
  101         163.371Reporting requirements.—
  102         (1)Beginning March 31, 2018, and no later than March 31 of
  103  each year thereafter, a community redevelopment agency shall
  104  file an annual report with the county or municipality that
  105  created the agency and publish the information on the agency’s
  106  website. The report must include the following information:
  107         (a)A complete audit report of the redevelopment trust fund
  108  pursuant to s. 163.387(8).
  109         (b)The performance data for each plan authorized,
  110  administered, or overseen by the community redevelopment agency
  111  as of December 31 of the year being reported, including the:
  112         1.Total number of projects started and completed and the
  113  estimated project cost for each project.
  114         2.Total expenditures from the redevelopment trust fund.
  115         3.Number of jobs created within the community
  116  redevelopment agency’s area of authority.
  117         4.Sector of the economy to which the new jobs pertain.
  118         5.Number of jobs retained in the area within the community
  119  redevelopment agency’s authority.
  120         6.Original assessed real property values within the
  121  community redevelopment agency’s area of authority as of the day
  122  the agency was created.
  123         7.Total assessed real property values of property within
  124  the boundaries of the community redevelopment agency as of
  125  January 1 of the year being reported.
  126         8.Total amount expended for affordable housing for low
  127  income and middle-income residents.
  128         (2)By January 1, 2018, each community redevelopment agency
  129  shall publish on its website digital maps that depict the
  130  geographic boundaries and total acreage of the community
  131  redevelopment agency. If any change is made to the boundaries or
  132  total acreage, the agency shall post updated map files on its
  133  website within 60 days after the date such change takes effect.
  134         Section 5. Section 163.3755, Florida Statutes, is created
  135  to read:
  136         163.3755Termination of community redevelopment agencies;
  137  future creation.—
  138         (1)A community redevelopment agency in existence on July
  139  1, 2017, shall terminate on the expiration date provided in the
  140  community redevelopment agency’s charter as it exists on July 1,
  141  2017, or on September 30, 2037, whichever is earlier.
  142         (2)(a)Notwithstanding subsection (1), a community
  143  redevelopment agency with outstanding bonds as of July 1, 2017,
  144  which do not mature until after the earlier of the termination
  145  date of the agency or September 30, 2037, remains in existence
  146  until the date the bonds mature.
  147         (b)A community redevelopment agency operating under this
  148  subsection on or after September 30, 2037, may not extend the
  149  maturity date of any outstanding bonds.
  150         (c)The county or municipality that created the community
  151  redevelopment agency must issue a new finding of necessity
  152  limited to timely meeting the remaining bond obligations of the
  153  community redevelopment agency.
  154         (3)On or after July 1, 2017, the governing body of a
  155  county or municipality may create a community redevelopment
  156  agency only by a super majority vote of the members of the
  157  governing body of the county or municipality. A community
  158  redevelopment agency in existence before July 1, 2017, may
  159  continue to operate as provided in this part.
  160         Section 6. Section 163.3756, Florida Statutes, is created
  161  to read:
  162         163.3756Inactive community redevelopment agencies.—
  163         (1)The Legislature finds that a number of community
  164  redevelopment agencies continue to exist but report no revenues,
  165  no expenditures, and no outstanding debt in their annual report
  166  to the Department of Financial Services pursuant to s. 218.32.
  167         (2)(a)A community redevelopment agency that has reported
  168  no revenues, expenditures, or debt under s. 218.32 or s.
  169  189.016(9) for 3 consecutive fiscal years calculated from no
  170  earlier than October 1, 2014, shall be declared inactive by the
  171  Department of Economic Opportunity. The department shall notify
  172  the agency of the declaration of inactive status under this
  173  subsection. If the agency has no board members or no agent, the
  174  notice of inactive status must be delivered to the governing
  175  board or commission of the county or municipality which created
  176  the agency.
  177         (b)The governing board of a community redevelopment agency
  178  declared inactive under this subsection may seek to invalidate
  179  the declaration by initiating proceedings under s. 189.062(5)
  180  within 30 days after the date of the receipt of the notice from
  181  the department.
  182         (3)A community redevelopment agency declared inactive
  183  under this section is authorized only to expend funds from the
  184  redevelopment trust fund as necessary to service outstanding
  185  bond debt. The agency may not expend other funds without an
  186  ordinance of the governing body of the local government which
  187  created the agency consenting to the expenditure of funds.
  188         (4)The provisions of s. 189.062(2) and (4) do not apply to
  189  a community redevelopment agency that has been declared inactive
  190  under this section.
  191         (5)The provisions of this section are cumulative to the
  192  provisions of s. 189.062. To the extent the provisions of this
  193  section conflict with the provisions of s. 189.062, this section
  194  prevails.
  195         (6)The Department of Economic Opportunity shall maintain
  196  on its website a separate list of community redevelopment
  197  agencies declared inactive under this section.
  198         Section 7. Subsections (6) and (8) of section 163.387,
  199  Florida Statutes, are amended to read:
  200         163.387 Redevelopment trust fund.—
  201         (6) Beginning July 1, 2017, moneys in the redevelopment
  202  trust fund may be expended from time to time for undertakings of
  203  a community redevelopment agency as described in the community
  204  redevelopment plan only pursuant to an annual budget adopted by
  205  the board of commissioners of the community redevelopment agency
  206  and only for the following purposes stated in this subsection.,
  207  including, but not limited to:
  208         (a) Except as provided in this subsection, a community
  209  redevelopment agency shall comply with the requirements of s.
  210  189.016.
  211         (b)A community redevelopment agency created by a
  212  municipality shall:
  213         1.Adopt its proposed budget within 90 days before the
  214  beginning of its fiscal year.
  215         2.Submit its proposed budget and projections for the next
  216  fiscal year to the board of county commissioners for the county
  217  in which the community redevelopment agency is located within 60
  218  days before the start of the agency’s fiscal year.
  219         3.Submit amendments to its operating budget to the board
  220  of county commissioners of the county in which the community
  221  redevelopment agency is located within 10 days after the date of
  222  adoption of the amended budget Administrative and overhead
  223  expenses necessary or incidental to the implementation of a
  224  community redevelopment plan adopted by the agency.
  225         (c)The annual budget of a community redevelopment agency
  226  may provide for payment of the following expenses:
  227         1.Administrative and overhead expenses directly or
  228  indirectly necessary to implement a community redevelopment plan
  229  adopted by the agency.
  230         2.(b) Expenses of redevelopment planning, surveys, and
  231  financial analysis, including the reimbursement of the governing
  232  body or the community redevelopment agency for such expenses
  233  incurred before the redevelopment plan was approved and adopted.
  234         3.(c) The acquisition of real property in the redevelopment
  235  area.
  236         4.(d) The clearance and preparation of any redevelopment
  237  area for redevelopment and relocation of site occupants within
  238  or outside the community redevelopment area as provided in s.
  239  163.370.
  240         5.(e) The repayment of principal and interest or any
  241  redemption premium for loans, advances, bonds, bond anticipation
  242  notes, and any other form of indebtedness.
  243         6.(f) All expenses incidental to or connected with the
  244  issuance, sale, redemption, retirement, or purchase of bonds,
  245  bond anticipation notes, or other form of indebtedness,
  246  including funding of any reserve, redemption, or other fund or
  247  account provided for in the ordinance or resolution authorizing
  248  such bonds, notes, or other form of indebtedness.
  249         7.(g) The development of affordable housing within the
  250  community redevelopment area.
  251         8.(h) The development of community policing innovations.
  252         (8)(a) Each community redevelopment agency shall provide
  253  for an audit of the trust fund each fiscal year and a report of
  254  such audit to be prepared by an independent certified public
  255  accountant or firm.
  256         (b)The audit Such report shall:
  257         1. Describe the amount and source of deposits into, and the
  258  amount and purpose of withdrawals from, the trust fund during
  259  such fiscal year and the amount of principal and interest paid
  260  during such year on any indebtedness to which increment revenues
  261  are pledged and the remaining amount of such indebtedness.
  262         2.Include a complete financial statement identifying the
  263  assets, liabilities, income, and operating expenses of the
  264  community redevelopment agency as of the end of such fiscal
  265  year.
  266         3.Include a finding by the auditor determining whether the
  267  community redevelopment agency complies with the requirements of
  268  subsection (7).
  269         (c)The audit report for the community redevelopment agency
  270  shall be included with the annual financial report submitted by
  271  the county or municipality that created the agency to the
  272  Department of Financial Services as provided in s. 218.32,
  273  regardless of whether the agency reports separately under s.
  274  218.32.
  275         (d) The agency shall provide by registered mail a copy of
  276  the audit report to each taxing authority.
  277         Section 8. Subsection (3) of section 218.32, Florida
  278  Statutes, is amended to read:
  279         218.32 Annual financial reports; local governmental
  280  entities.—
  281         (3)(a) The department shall notify the President of the
  282  Senate and the Speaker of the House of Representatives of any
  283  municipality that has not reported any financial activity for
  284  the last 4 fiscal years. Such notice must be sufficient to
  285  initiate dissolution procedures as described in s.
  286  165.051(1)(a). Any special law authorizing the incorporation or
  287  creation of the municipality must be included within the
  288  notification.
  289         (b)Failure of a county or municipality to include in its
  290  annual report to the department the full audit required by s.
  291  163.387(8) for each community redevelopment agency created by
  292  that county or municipality constitutes a failure to report
  293  under this section.
  294         (c)By November 1 of each year, the department must provide
  295  the Special District Accountability Program of the Department of
  296  Economic Opportunity with a list of each community redevelopment
  297  agency reporting no revenues, expenditures, or debt for the
  298  community redevelopment agency’s previous fiscal year.
  299         Section 9. This act shall take effect July 1, 2017.