Florida Senate - 2017 SB 306
By Senator Clemens
31-00347-17 2017306__
1 A bill to be entitled
2 An act relating to ethics; amending s. 112.3143, F.S.;
3 deleting the definition of the term “special private
4 gain or loss”; prohibiting a public officer from
5 voting on a matter that would inure to any gain or
6 loss, rather than a special private gain or loss, of
7 the officer, or a principal, relative, or business
8 associate of the officer; providing an exception to
9 the abstention requirement under certain
10 circumstances; prohibiting an appointed public officer
11 from participating in any matter that would inure to
12 any gain or loss, rather than a special private gain
13 or loss, of the officer, or a principal, relative, or
14 business associate of the officer, without certain
15 disclosure; amending ss. 155.40, 310.151, 553.77, and
16 627.351, F.S.; revising terminology to conform to the
17 deletion of the term “special private gain or loss”;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (1), paragraph (a) of subsection (2),
23 paragraph (a) of subsection (3), and subsection (4) of section
24 112.3143, Florida Statutes, are amended to read:
25 112.3143 Voting conflicts.—
26 (1) As used in this section:
27 (a) “Principal by whom retained” means an individual or
28 entity, other than an agency as defined in s. 112.312(2), that
29 for compensation, salary, pay, consideration, or similar thing
30 of value, has permitted or directed another to act for the
31 individual or entity, and includes, but is not limited to, one’s
32 client, employer, or the parent, subsidiary, or sibling
33 organization of one’s client or employer.
34 (b) “Public officer” includes any person elected or
35 appointed to hold office in any agency, including any person
36 serving on an advisory body.
37 (c) “Relative” means any father, mother, son, daughter,
38 husband, wife, brother, sister, father-in-law, mother-in-law,
39 son-in-law, or daughter-in-law.
40 (d) “Special private gain or loss” means an economic
41 benefit or harm that would inure to the officer, his or her
42 relative, business associate, or principal, unless the measure
43 affects a class that includes the officer, his or her relative,
44 business associate, or principal, in which case, at least the
45 following factors must be considered when determining whether a
46 special private gain or loss exists:
47 1. The size of the class affected by the vote.
48 2. The nature of the interests involved.
49 3. The degree to which the interests of all members of the
50 class are affected by the vote.
51 4. The degree to which the officer, his or her relative,
52 business associate, or principal receives a greater benefit or
53 harm when compared to other members of the class.
54
55 The degree to which there is uncertainty at the time of the vote
56 as to whether there would be any economic benefit or harm to the
57 public officer, his or her relative, business associate, or
58 principal and, if so, the nature or degree of the economic
59 benefit or harm must also be considered.
60 (2)(a) A state public officer may not vote on any matter
61 that the officer knows would inure to his or her special private
62 gain or loss. However, a state public officer is not prohibited
63 from voting on a matter if the matter would result in an
64 economic benefit or harm to the public generally or to a broad
65 segment of the public. Any state public officer who abstains
66 from voting in an official capacity upon any measure that the
67 officer knows would inure to any the officer’s special private
68 gain or loss of the officer, or who votes in an official
69 capacity on a measure that he or she knows would inure to any
70 the special private gain or loss of any principal by whom the
71 officer is retained or to the parent organization or subsidiary
72 of a corporate principal by which the officer is retained other
73 than an agency as defined in s. 112.312(2); or which the officer
74 knows would inure to any the special private gain or loss of a
75 relative or business associate of the public officer, shall make
76 every reasonable effort to disclose the nature of his or her
77 interest as a public record in a memorandum filed with the
78 person responsible for recording the minutes of the meeting, who
79 shall incorporate the memorandum in the minutes. If it is not
80 possible for the state public officer to file a memorandum
81 before the vote, the memorandum must be filed with the person
82 responsible for recording the minutes of the meeting no later
83 than 15 days after the vote.
84 (3)(a) A No county, municipal, or other local public
85 officer may not shall vote in an official capacity upon any
86 measure which would inure to his or her special private gain or
87 loss; which he or she knows would inure to any the special
88 private gain or loss of any principal by whom he or she is
89 retained or to the parent organization or subsidiary of a
90 corporate principal by which he or she is retained, other than
91 an agency as defined in s. 112.312(2); or which he or she knows
92 would inure to any the special private gain or loss of a
93 relative or business associate of the public officer. Such
94 public officer shall, before prior to the vote is being taken,
95 publicly state to the assembly the nature of the officer’s
96 interest in the matter from which he or she is abstaining from
97 voting and, within 15 days after the vote occurs, disclose the
98 nature of his or her interest as a public record in a memorandum
99 filed with the person responsible for recording the minutes of
100 the meeting, who shall incorporate the memorandum in the
101 minutes. However, a county, municipal, or other local public
102 officer is not prohibited from voting on a measure if the matter
103 would result in an economic benefit or harm to the public
104 generally or to a broad segment of the public.
105 (4) An No appointed public officer may not shall
106 participate in any matter which would inure to any the officer’s
107 special private gain or loss of the officer; which the officer
108 knows would inure to any the special private gain or loss of any
109 principal by whom he or she is retained or to the parent
110 organization or subsidiary of a corporate principal by which he
111 or she is retained; or which he or she knows would inure to any
112 the special private gain or loss of a relative or business
113 associate of the public officer, without first disclosing the
114 nature of his or her interest in the matter.
115 (a) Such disclosure, indicating the nature of the conflict,
116 shall be made in a written memorandum filed with the person
117 responsible for recording the minutes of the meeting, before
118 prior to the meeting in which consideration of the matter will
119 take place, and shall be incorporated into the minutes. Any such
120 memorandum shall become a public record upon filing, shall
121 immediately be provided to the other members of the agency, and
122 shall be read publicly at the next meeting held subsequent to
123 the filing of this written memorandum.
124 (b) In the event that disclosure has not been made before
125 prior to the meeting or that any conflict is unknown before
126 prior to the meeting, the disclosure shall be made orally at the
127 meeting when it becomes known that a conflict exists. A written
128 memorandum disclosing the nature of the conflict shall then be
129 filed within 15 days after the oral disclosure with the person
130 responsible for recording the minutes of the meeting and shall
131 be incorporated into the minutes of the meeting at which the
132 oral disclosure was made. Any such memorandum shall become a
133 public record upon filing, shall immediately be provided to the
134 other members of the agency, and shall be read publicly at the
135 next meeting held subsequent to the filing of this written
136 memorandum.
137 (c) For purposes of this subsection, the term “participate”
138 means any attempt to influence the decision by oral or written
139 communication, whether made by the officer or at the officer’s
140 direction.
141 Section 2. Paragraph (a) of subsection (7) and paragraph
142 (e) of subsection (11) of section 155.40, Florida Statutes, are
143 amended to read:
144 155.40 Sale or lease of county, district, or municipal
145 hospital; effect of sale.—
146 (7) A determination by the governing board to accept a
147 proposal for sale or lease shall be made after consideration of
148 all proposals received and negotiations with a qualified
149 purchaser or lessee. The governing board’s determination must
150 include, in writing, detailed findings of all reasons for
151 accepting the proposal.
152 (a) The governing board’s acceptance of a proposal for sale
153 or lease must include a description of how the sale or lease
154 satisfies each of the following requirements:
155 1. The sale or lease represents fair market value, as
156 determined by a certified public accounting firm or other
157 qualified firm pursuant to subsection (5). If leased at less
158 than fair market value, the governing board shall provide a
159 detailed explanation of how the best interests of the affected
160 community are served by the acceptance of less than fair market
161 value for the lease of the hospital.
162 2. Acceptance of the proposal will result in a reduction or
163 elimination of ad valorem or other taxes for taxpayers in the
164 district, if applicable.
165 3. The proposal includes an enforceable commitment that
166 programs and services and quality health care will continue to
167 be provided to all residents of the affected community,
168 particularly to the indigent, the uninsured, and the
169 underinsured.
170 4. Disclosure has been made of all conflicts of interest,
171 including, but not limited to, whether the sale or lease of the
172 hospital or health care system would result in any a special
173 private gain or loss to members of the governing board or key
174 management employees or members of the medical staff of the
175 county, district, or municipal hospital, or if governing board
176 members will be serving on the board of any successor private
177 corporation. Conflicts of interest, if any, with respect to
178 experts retained by the governing board shall also be disclosed.
179 5. Disclosure has been made by the seller or lessor of all
180 contracts with physicians or other entities providing health
181 care services through a contract with the seller or lessor,
182 including all agreements or contracts that would be void or
183 voidable upon the consummation of the sale or lease.
184 6. The proposal is in compliance with subsections (8) and
185 (9).
186 (11) Within 30 days after receiving the petition, the
187 Secretary of Health Care Administration or his or her designee
188 shall issue a final order approving or denying the proposed
189 transaction based solely upon consideration of whether the
190 procedures contained within this section have been followed by
191 the governing board of the county, district, or municipal
192 hospital or health care system. The order shall require the
193 governing board to accept or reject the proposal for the sale or
194 lease of the county, district, or municipal hospital or health
195 care system based upon a determination that:
196 (e) Any conflict of interest was disclosed, including, but
197 not limited to, how the proposed transaction could result in any
198 a special private gain or loss to members of the governing board
199 or key management employees of the county, district, or
200 municipal hospital, or if governing board members will be
201 serving on the board of any successor private corporation.
202 Conflicts of interest, if any, with respect to experts retained
203 by the governing board shall also be disclosed.
204 Section 3. Paragraph (c) of subsection (1) of section
205 310.151, Florida Statutes, is amended to read:
206 310.151 Rates of pilotage; Pilotage Rate Review Committee.—
207 (1)
208 (c) Committee members shall comply with the disclosure
209 requirements of s. 112.3143(4) if participating in any matter
210 that would result in any special private gain or loss as
211 described in that subsection.
212 Section 4. Subsection (6) of section 553.77, Florida
213 Statutes, is amended to read:
214 553.77 Specific powers of the commission.—
215 (6) A member of the Florida Building Commission may abstain
216 from voting in any matter before the commission which would
217 inure to any the commissioner’s special private gain or loss of
218 the commissioner, which the commissioner knows would inure to
219 any the special private gain or loss of any principal by whom he
220 or she is retained or to the parent organization or subsidiary
221 of a corporate principal by which he or she is retained, or
222 which he or she knows would inure to any the special private
223 gain or loss of a relative or business associate of the
224 commissioner. A commissioner shall abstain from voting under the
225 foregoing circumstances if the matter is before the commission
226 under ss. 120.569, 120.60, and 120.80. The commissioner shall,
227 before the vote is taken, publicly state to the assembly the
228 nature of the commissioner’s interest in the matter from which
229 he or she is abstaining from voting and, within 15 days after
230 the vote occurs, disclose the nature of his or her other
231 interest as a public record in a memorandum filed with the
232 person responsible for recording the minutes of the meeting, who
233 shall incorporate the memorandum in the minutes.
234 Section 5. Paragraph (d) of subsection (6) of section
235 627.351, Florida Statutes, is amended to read:
236 627.351 Insurance risk apportionment plans.—
237 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
238 (d)1. All prospective employees for senior management
239 positions, as defined by the plan of operation, are subject to
240 background checks as a prerequisite for employment. The office
241 shall conduct the background checks pursuant to ss. 624.34,
242 624.404(3), and 628.261.
243 2. On or before July 1 of each year, employees of the
244 corporation must sign and submit a statement attesting that they
245 do not have a conflict of interest, as defined in part III of
246 chapter 112. As a condition of employment, all prospective
247 employees must sign and submit to the corporation a conflict-of
248 interest statement.
249 3. The executive director, senior managers, and members of
250 the board of governors are subject to part III of chapter 112,
251 including, but not limited to, the code of ethics and public
252 disclosure and reporting of financial interests, pursuant to s.
253 112.3145. For purposes of applying part III of chapter 112 to
254 activities of the executive director, senior managers, and
255 members of the board of governors, those persons shall be
256 considered public officers or employees and the corporation
257 shall be considered their agency. Notwithstanding s.
258 112.3143(2), a board member may not vote on any measure that
259 would inure to any his or her special private gain or loss of
260 the board member; that he or she knows would inure to any the
261 special private gain or loss of any principal by whom he or she
262 is retained or to the parent organization or subsidiary of a
263 corporate principal by which he or she is retained, other than
264 an agency as defined in s. 112.312; or that he or she knows
265 would inure to any the special private gain or loss of a
266 relative or business associate of the public officer. Before the
267 vote is taken, such member shall publicly state to the assembly
268 the nature of his or her interest in the matter from which he or
269 she is abstaining from voting and, within 15 days after the vote
270 occurs, disclose the nature of his or her interest as a public
271 record in a memorandum filed with the person responsible for
272 recording the minutes of the meeting, who shall incorporate the
273 memorandum in the minutes. Senior managers and board members are
274 also required to file such disclosures with the Commission on
275 Ethics and the Office of Insurance Regulation. The executive
276 director of the corporation or his or her designee shall notify
277 each existing and newly appointed member of the board of
278 governors and senior managers of their duty to comply with the
279 reporting requirements of part III of chapter 112. At least
280 quarterly, the executive director or his or her designee shall
281 submit to the Commission on Ethics a list of names of the senior
282 managers and members of the board of governors who are subject
283 to the public disclosure requirements under s. 112.3145.
284 4. Notwithstanding s. 112.3148, s. 112.3149, or any other
285 provision of law, an employee or board member may not knowingly
286 accept, directly or indirectly, any gift or expenditure from a
287 person or entity, or an employee or representative of such
288 person or entity, which has a contractual relationship with the
289 corporation or who is under consideration for a contract. An
290 employee or board member who fails to comply with subparagraph
291 3. or this subparagraph is subject to penalties provided under
292 ss. 112.317 and 112.3173.
293 5. Any senior manager of the corporation who is employed on
294 or after January 1, 2007, regardless of the date of hire, who
295 subsequently retires or terminates employment is prohibited from
296 representing another person or entity before the corporation for
297 2 years after retirement or termination of employment from the
298 corporation.
299 6. The executive director, members of the board of
300 governors, and senior managers of the corporation are prohibited
301 from having any employment or contractual relationship for 2
302 years after retirement from or termination of service to the
303 corporation with an insurer that has entered into a take-out
304 bonus agreement with the corporation.
305 Section 6. This act shall take effect July 1, 2017.