The Florida Senate

218.01  Authority to accept benefits of bankruptcy acts.

218.02  Disposition of unused funds relating to the refunding of bonds.

218.03  Creation of political subdivisions validated.

218.04  Proceedings relating to certain bonds sold, etc., to Federal Government validated.

218.05  Certain bonds sold to Federal Government, etc., validated.

218.06  Transfer of funds by county commissioners with relation to public works grants.

218.075  Reduction or waiver of permit processing fees.

218.076  Reduction or waiver of certain permit processing fees.

218.01  Authority to accept benefits of bankruptcy acts.--For the purpose of rendering effective the privilege and benefits of any amendments to the bankruptcy laws of the United States that may be enacted for the relief of municipalities, taxing districts and political subdivisions, the state represented by its legislative body gives its assent to, and accepts the provisions of any such bankruptcy laws that may be enacted by the Congress of the United States for the benefit and relief of municipalities, taxing districts and political subdivisions and its several municipalities, taxing districts and political subdivisions, at the discretion of the governing authorities thereof, may institute and conduct and carry out, by any appropriate bankruptcy procedure that may be enacted into the laws of the United States for the purpose of conferring upon municipalities, taxing districts and political subdivisions, relief by proceedings in bankruptcy in the federal courts.

History.--s. 1, ch. 15878, 1933; CGL 1936 Supp. 1365(2).

218.02  Disposition of unused funds relating to the refunding of bonds.--

(1)  All funds heretofore or hereafter raised or created by any county or taxing district for the purpose of applying toward the payment of interest or principal of refunding bonds of such county or taxing district, when such refunding bonds are not issued and such funds not otherwise lawfully disposed of, shall revert back to the county or special taxing district to be used by the governing body or board of such county or taxing district for such general and lawful purposes of the county or taxing district raising such funds as in the judgment and discretion of such governing body or board shall seem to the best interest of the county or taxing district.

(2)  For the purpose of carrying out the intent of this section, every officer or board, now or hereafter having the custody of any of the said funds shall transmit and return the same to the governing body or board of the county or taxing district, taking receipt therefor from such governing body or board.

History.--ss. 1, 2, ch. 15907, 1933; CGL 1936 Supp. 1365(4).

218.03  Creation of political subdivisions validated.--The creation, organization and existence of all cities, towns, counties, special tax school districts, special road and bridge districts, bridge districts and all other districts in this state which have heretofore issued or taken proceedings toward the issuance of any bonds for the purpose of financing or aiding in financing any work, undertaking or project financed or to be financed in whole or in part by a loan or grant heretofore made or agreed to be made to such public body by the United States acting through the Federal Emergency Administrator of Public Works are validated, ratified, approved and confirmed.

History.--s. 2, ch. 17750, 1937; CGL 1940 Supp. 1365(44).

218.04  Proceedings relating to certain bonds sold, etc., to Federal Government validated.--All proceedings heretofore taken in connection with the authorization or issuance of any issue of bonds, all or a part of which have heretofore been purchased by the United States through the Federal Emergency Administrator of Public Works, or an agreement for the purchase of all or a part of which has heretofore been entered into by the United States through the Federal Emergency Administrator of Public Works, issued or to be issued for the purpose of financing or aiding in the financing of any work, undertaking or project by any public body are validated, ratified, approved and confirmed notwithstanding any lack of power of such public body, or the governing board, council, commission or officers thereof, to authorize such bonds, or to execute the same, and notwithstanding any defects or irregularities in such proceedings or in such sale, execution or delivery, and all bonds heretofore or hereafter issued pursuant to such proceedings shall constitute binding, legal, valid, and enforceable obligations of such public body.

History.--s. 3, ch. 17750, 1937; CGL 1940 Supp. 1365(45).

218.05  Certain bonds sold to Federal Government, etc., validated.--

(1)  All bonds heretofore issued for the purpose of financing or aiding in financing any work, undertaking or project by any public body to which any loan or grant has heretofore been made or agreed to be made by the United States through the Federal Emergency Administrator of Public Works for the purpose of financing or aiding in financing of such work, undertaking or project, including all proceedings for the authorization and issuance of such bonds and the sale, execution and delivery thereof, are validated, ratified, approved and confirmed, notwithstanding any lack of power of such public body or the governing board, council or commission or officers thereof, to authorize and issue such bonds, or to sell, execute or deliver the same, and notwithstanding any defects or irregularities in such proceedings, or in such sale, execution or delivery; and such bonds are and shall be binding, legal, valid and enforceable obligations of such public body.

(2)  The term "bonds" includes bonds, notes, warrants, debentures, certificates of indebtedness, revenue certificates and all instruments or obligations evidencing or representing indebtedness, or evidencing or representing the borrowing of money or evidencing or representing a charge, lien, or encumbrance on specific revenues, income or property of a public body, including all instruments or obligations payable from a special fund.

History.--ss. 1, 4, ch. 17750, 1937; CGL 1940 Supp. 1365(43),(45).

218.06  Transfer of funds by county commissioners with relation to public works grants.--

(1)  Boards of county commissioners of the several counties of the state, whenever it may be necessary to meet the requirements of the United States Government with reference to obtaining grants of federal funds in connection with the program of the Public Works Administration, may by resolution of such board, transfer and expend such sums of money as may be necessary to obtain said grant, from any fund to such other fund as may be necessary to meet said requirements and carry out the intent and purposes of the said transfer; provided, however, that no such transfer may be made by any county of the state without first having obtained the approval of the Department of Banking and Finance thereto, and in the counties of the state where there is provision for a budget commission, without first having also obtained the approval of said budget commission to said transfer.

(2)  The Department of Banking and Finance and the budget commissions of the several counties of the state in which there are provisions for such budget commissions, may approve such transfers whenever in their opinion such transfers are necessary and proper.

History.--s. 1, ch. 18023, 1937; CGL 1940 Supp. 1373(73); ss. 12, 35, ch. 69-106.

218.075  Reduction or waiver of permit processing fees.--Notwithstanding any other provision of law, the Department of Environmental Protection and the water management districts shall reduce or waive permit processing fees for counties with a population of 50,000 or less on April 1, 1994, until such counties exceed a population of 75,000 and municipalities with a population of 25,000 or less, or any county or municipality not included within a metropolitan statistical area. Fee reductions or waivers shall be approved on the basis of fiscal hardship or environmental need for a particular project or activity. The governing body must certify that the cost of the permit processing fee is a fiscal hardship due to one of the following factors:

(1)  Per capita taxable value is less than the statewide average for the current fiscal year;

(2)  Percentage of assessed property value that is exempt from ad valorem taxation is higher than the statewide average for the current fiscal year;

(3)  Any condition specified in s. 218.503, that determines a state of financial emergency;

(4)  Ad valorem operating millage rate for the current fiscal year is greater than 8 mills; or

(5)  A financial condition that is documented in annual financial statements at the end of the current fiscal year and indicates an inability to pay the permit processing fee during that fiscal year.

The permit applicant must be the governing body of a county or municipality or a third party under contract with a county or municipality and the project for which the fee reduction or waiver is sought must serve a public purpose. If a permit processing fee is reduced, the total fee shall not exceed $100.

History.--s. 1, ch. 94-278; s. 8, ch. 98-258.

218.076  Reduction or waiver of certain permit processing fees.--Notwithstanding any other provision of law, the Department of Environmental Protection shall waive processing fees for renewals of exemptions from the Class G-II ground water standards for sodium, odor, chloride, color, and total dissolved solids issued to any county, municipality, or independent special district, with reclaimed water land application facilities for wastewater effluent disposal when such exemptions were granted by the department by final agency action based upon findings that:

(1)  The public will benefit from the land application due to the augmentation of the shallow water aquifer for irrigation use; and

(2)  Compliance with the Class G-II ground water standard for sodium, chloride, color, and total dissolved solids is unnecessary for the protection of present and future potable water supplied; and

(3)  The receiving water for the discharge is the local surficial aquifer used only for irrigation and allowed discharge will not impair such use; and

(4)  The constituents for which the exemptions are granted are not expected to cause health-related problems at the projected discharge concentrations; and

(5)  There is no reasonable relationship between economic, social, and environmental cost of compliance with the Class G-II ground water standards for sodium, chloride, odor, color, and total dissolved solids, and the economic, social, and environmental benefits of compliance; and

(6)  The State of Florida provided the majority of the funds required to construct the wastewater treatment facility creating the discharge effluent; and

(7)  The potential benefit of compliance is minor; and

(8)  The applicant for the permit renewal has complied with all of the terms and conditions of the exemptions previously approved and which is (are) the subject of the renewal application.

History.--s. 9, ch. 98-258.

218.20  Short title.

218.21  Definitions.

218.215  Revenue sharing trust funds; creation and distribution.

218.23  Revenue sharing with units of local government.

218.245  Revenue sharing; apportionment.

218.25  Limitation of shared funds; holders of bonds protected; limitation on use of second guaranteed entitlement for counties.

218.26  Administration; distribution schedule.

218.20  Short title.--This part shall be known, and may be cited, as the "Florida Revenue Sharing Act of 1972."

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194.

218.21  Definitions.--As used in this part, the following words and terms shall have the meanings ascribed them in this section, except where the context clearly indicates a different meaning:

(1)  "Unit of local government" means a county or municipal government and shall not include any special district as defined in part III.

(2)  "County" means a political subdivision of the state as established pursuant to s. 1, Art. VIII of the State Constitution.

(3)  "Municipality" means a municipality created pursuant to general or special law and metropolitan and consolidated governments as provided in s. 6(e) and (f), Art. VIII of the State Constitution. Such municipality must have held an election for its legislative body pursuant to law and established such a legislative body which meets pursuant to law.

(4)  "Department" means the Department of Revenue.

(5)  "Entitlement" means the amount of revenue which would be shared with an eligible unit of local government if the distribution from trust funds were based solely on the formula computation.

(6)  "Guaranteed entitlement" means the amount of revenue which must be shared with an eligible unit of local government so that:

(a)  No eligible county shall receive less funds from the Revenue Sharing Trust Fund for Counties in any fiscal year than the amount received in the aggregate from the state in fiscal year 1971-1972 under the provisions of the then-existing s. 210.20(2)(c), tax on cigarettes; ¹s. 323.16(4), road tax; and ²s. 199.292(4), tax on intangible personal property.

(b)  No eligible municipality shall receive less funds from the Revenue Sharing Trust Fund for Municipalities in any fiscal year than the aggregate amount it received from the state in fiscal year 1971-1972 under the provisions of the then-existing s. 210.20(2)(a), tax on cigarettes; ¹s. 323.16(3), road tax; and s. 206.605, tax on motor fuel. Any government exercising municipal powers under s. 6(f), Art. VIII of the State Constitution may not receive less than the aggregate amount it received from the Revenue Sharing Trust Fund for Municipalities in the preceding fiscal year, plus a percentage increase in such amount equal to the percentage increase of the Revenue Sharing Trust Fund for Municipalities for the preceding fiscal year.

(7)  "Minimum entitlement" means the amount of revenue, as certified by a unit of local government and determined by the department, which must be shared with a unit of local government so that such unit will receive the amount of revenue necessary to meet its obligations as a result of pledges or assignments or trusts entered into which obligated funds received from revenue sources or proceeds which by terms of this act shall henceforth be distributed out of revenue sharing trust funds.

(8)  "Population" means the latest official state estimate of population certified pursuant to s. 186.901 or, if there is no independent annual certification of population for any urban service district necessary to the requirements of this part, the population of such district shall be determined by applying the latest available percentage distribution to the population of the area affected.

(9)  "All receipts available" means the amount estimated to be available for distribution during the fiscal year as determined, and as amended from time to time, by the department.

(10)  "Second guaranteed entitlement for counties" means the amount of revenue received in the aggregate by an eligible county in fiscal year 1981-1982 under the provisions of the then-existing s. 210.20(2)(a), tax on cigarettes, and ²s. 199.292(4), tax on intangible personal property, less the guaranteed entitlement. For any fiscal year, each eligible county shall be entitled to receive the second guaranteed entitlement for counties from the Revenue Sharing Trust Fund for Counties. The second guaranteed entitlement for counties shall be deemed separate and apart from the guaranteed entitlement and shall not be deemed to be a part of the guaranteed entitlement for purposes of any indenture, contract, or pledge to holders of obligations issued by any county.

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194; s. 1, ch. 77-174; s. 59, ch. 87-224; s. 7, ch. 87-237; s. 26, ch. 93-233; s. 92, ch. 99-2.

¹Note.--Repealed by s. 2, ch. 83-84.

²Note.--Redesignated as s. 199.292(3) by s. 27, ch. 85-342.

218.215  Revenue sharing trust funds; creation and distribution.--

(1)  The Revenue Sharing Trust Fund for Counties is hereby created. All revenue designated for deposit in such fund shall be deposited by the appropriate agency. The distribution to the several counties shall be made monthly as provided in ss. 218.23 and 218.26.

(2)  The Revenue Sharing Trust Fund for Municipalities is hereby created. All revenue designated for deposit in such fund shall be deposited by the appropriate agency. The distribution to the several municipalities shall be made monthly as provided in ss. 218.23 and 218.26.

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194.

Note.--Former s. 218.24.

218.23  Revenue sharing with units of local government.--

(1)  To be eligible to participate in revenue sharing beyond the minimum entitlement in any fiscal year, a unit of local government is required to have:

(a)  Reported its finances for its most recently completed fiscal year to the Department of Banking and Finance, pursuant to s. 218.32.

(b)  Made provisions for annual postaudits of its financial accounts in accordance with provisions of law.

(c)  Levied, as shown on its most recent financial report pursuant to s. 218.32, ad valorem taxes, exclusive of taxes levied for debt service or other special millages authorized by the voters, to produce the revenue equivalent to a millage rate of 3 mills on the dollar based on the 1973 taxable values as certified by the property appraiser pursuant to s. 193.122(2) or, in order to produce revenue equivalent to that which would otherwise be produced by such 3-mill ad valorem tax, to have received a remittance from the county pursuant to s. 125.01(6)(a), collected an occupational license tax or a utility tax, levied an ad valorem tax, or received revenue from any combination of these four sources. If a new municipality is incorporated, the provisions of this paragraph shall apply to the taxable values for the year of incorporation as certified by the property appraiser. This paragraph requires only a minimum amount of revenue to be raised from the ad valorem tax, the occupational license tax, and the utility tax. It does not require a minimum millage rate.

(d)  Certified that persons in its employ as law enforcement officers, as defined in s. 943.10(1), meet the qualifications for employment as established by the Criminal Justice Standards and Training Commission; that its salary structure and salary plans meet the provisions of chapter 943; and that no law enforcement officer is compensated for his or her services at an annual salary rate of less than $6,000. However, the department may waive the minimum law enforcement officer salary requirement if a city or county certifies that it is levying ad valorem taxes at 10 mills.

(e)  Certified that persons in its employ as firefighters, as defined in s. 633.30(1), meet the qualification for employment as established by the Division of State Fire Marshal pursuant to the provisions of ss. 633.34 and 633.35 and that the provisions of s. 633.382 have been met.

(f)  Certified that each dependent special district that is budgeted separately from the general budget of the local governing authority has met the provisions for annual postaudit of its financial accounts in accordance with the provisions of law.

Additionally, to receive its share of revenue sharing funds, a unit of local government shall certify to the Department of Revenue that the requirements of s. 200.065, if applicable, were met. The certification shall be made annually within 30 days of adoption of an ordinance or resolution establishing a final property tax levy or, if no property tax is levied, not later than November 1. The portion of revenue sharing funds which, pursuant to this part, would otherwise be distributed to a unit of local government which has not certified compliance or has otherwise failed to meet the requirements of s. 200.065 shall be deposited in the General Revenue Fund for the 12 months following a determination of noncompliance by the department.

(2)  Any unit of local government which is consolidated as provided by s. 9, Art. VIII of the State Constitution of 1885, as preserved by s. 6(e), Art. VIII, 1968 revised constitution, shall receive an annual distribution from the Revenue Sharing Trust Fund for Counties equal to $6.24 times its population.

(3)  The distribution to a unit of local government under this part is determined by the following formula:

(a)  First, the entitlement of an eligible unit of local government shall be computed on the basis of the apportionment factor provided in s. 218.245, which shall be applied for all eligible units of local government to all receipts available for distribution in the respective revenue sharing trust fund.

(b)  Second, revenue shared with eligible units of local government for any fiscal year shall be adjusted so that no eligible unit of local government receives less funds than its guaranteed entitlement.

(c)  Third, revenues shared with counties for any fiscal year shall be adjusted so that no county receives less funds than its guaranteed entitlement plus the second guaranteed entitlement for counties.

(d)  Fourth, revenue shared with units of local government for any fiscal year shall be adjusted so that no unit of local government receives less funds than its minimum entitlement.

(e)  Fifth, after the adjustments provided in paragraphs (b), (c), and (d), and after deducting the amount committed to all the units of local government, the funds remaining in the respective trust funds shall be distributed to those eligible units of local government which qualify to receive additional moneys beyond the guaranteed entitlement, on the basis of the additional money of each qualified unit of local government in proportion to the total additional money of all qualified units of local government.

(4)  Notwithstanding the provisions of paragraph (1)(c), no unit of local government which was eligible to participate in revenue sharing in the 3 years prior to initially participating in the local government half-cent sales tax shall be ineligible to participate in revenue sharing solely due to a millage or utility tax reduction afforded by the local government half-cent sales tax.

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194; s. 1, ch. 74-628; s. 1, ch. 77-102; s. 65, ch. 77-104; s. 2, ch. 80-53; s. 17, ch. 80-71; s. 39, ch. 80-274; s. 124, ch. 81-259; s. 22, ch. 82-154; s. 6, ch. 83-115; s. 7, ch. 83-167; s. 8, ch. 87-237; s. 7, ch. 87-239; s. 52, ch. 89-169; s. 1175, ch. 95-147; s. 10, ch. 2000-173.

Note.--Former s. 218.22.

218.245  Revenue sharing; apportionment.--

(1)  The apportionment factor for all eligible counties shall be composed of three equally weighted portions as follows:

(a)  Each eligible county's percentage of the total population of all eligible counties in the state.

(b)  Each eligible county's percentage of the total population of the state residing in unincorporated areas of all eligible counties.

(c)  Each eligible county's percentage of total sales tax collections in all eligible counties during the preceding year.

(2)  The apportionment factor for all eligible municipalities shall be composed of three equally weighted portions as follows:

(a)  The proportion of the population of a given municipality to the total population of all the eligible municipalities in the state, as adjusted by the following factors:

1.  For a municipality with a population in excess of 50,000, the population shall be adjusted by multiplying its population by a factor of 1.791.

2.  For a municipality with a population in excess of 20,000, but less than 50,001, the population shall be adjusted by multiplying its population by a factor of 1.709.

3.  For a municipality with a population in excess of 5,000, but less than 20,001, the population shall be adjusted by multiplying its population by a factor of 1.425.

4.  For a municipality with a population in excess of 2,000, but less than 5,001, the population shall be adjusted by multiplying its population by a factor of 1.135.

(b)  The proportion of the sales tax collected within a given municipality to the total sales tax collected within all the eligible municipalities in the state. The sales tax collected within a given municipality shall be derived by allocating the amount of sales tax collections for the county in which the municipality is located to each municipality in the county on the basis of the proportion of each municipality's population to the total population of the county.

(c)  The ratio of the relative local ability to raise revenue, to be determined:

1.  By dividing the per capita nonexempt assessed real and personal property valuation of all eligible municipalities by the per capita nonexempt real and personal property valuation of each eligible municipality.

2.  By multiplying the population of an eligible municipality by the percentage applicable to that municipality as established under subparagraph 1.

3.  By dividing the population, as recalculated to reflect the relative local ability, by the total recalculated population of all eligible municipalities in the state.

(d)  For a metropolitan or consolidated government, as provided by s. 3, s. 6(e), or s. 6(f), Art. VIII of the State Constitution, the population or sales tax collections of the unincorporated area or areas outside of urban service districts, if such have been established, as determined in paragraphs (a)-(c) above and after adjustments made as provided therein, shall be further adjusted by multiplying the adjusted or recalculated population or sales tax collections, as the case may be, by a percentage which is derived by dividing:

1.  The total amount of ad valorem taxes levied by the county government on real and personal property in the area of the county outside of municipal limits, as created pursuant to general or special law, or outside of urban service district limits, where such are established; by

2.  The total amount of ad valorem taxes levied on real and personal property by the county and municipal governments.

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194.

Note.--Former ss. 218.22 and 218.23.

218.25  Limitation of shared funds; holders of bonds protected; limitation on use of second guaranteed entitlement for counties.--

(1)  Except as provided in subsection (2) with respect to the second guaranteed entitlement for counties, local governments shall not use any portion of the moneys received in excess of the guaranteed entitlement from the revenue sharing trust funds created by this part to assign, pledge, or set aside as a trust for the payment of principal or interest on bonds, tax anticipation certificates, or any other form of indebtedness, and there shall be no other use restriction on revenues shared pursuant to this part. The state does hereby covenant with holders of bonds or other instruments of indebtedness issued by local governments prior to July 1, 1972, that it is not the intent of this part to affect adversely the rights of said holders or to relieve local governments of the duty to meet their obligations as a result of previous pledges or assignments or trusts entered into which obligated funds received from revenue sources which by terms of this part shall henceforth be distributed out of the revenue sharing trust funds.

(2)  The second guaranteed entitlement for counties may be assigned, pledged, or set aside as a trust for the payment of principal or interest on bonds, tax anticipation certificates, or any other form of indebtedness, including obligations issued to acquire an insurance contract or contracts from a local government liability pool and including payments required pursuant to any loan agreement entered into to provide funds to acquire an insurance contract or contracts from a local government liability pool.

(3)  As an additional assurance to holders of bonds issued before April 18, 2000, which are secured by the guaranteed entitlement or second guaranteed entitlement for counties, or bonds issued to refund such bonds which mature no later than the bonds that they refunded and which result in a reduction of debt service payable in each fiscal year, it is the intent of the Legislature that, to the extent the elimination of tax sources dedicated to funding the guaranteed entitlement or the second guaranteed entitlement for counties or a reduction in the rate of assessment of such taxes results in an inability of a county to pay debt service on such bonds, the Legislature will provide alternative funding sources in an amount sufficient to pay any deficit in the amount required for such debt service. This commitment of the Legislature is contingent on the county first using any funds available under this part for the payment of such debt service.

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194; s. 9, ch. 87-237; s. 11, ch. 2000-173.

218.26  Administration; distribution schedule.--

(1)  The department is empowered to promulgate rules and regulations and to issue special instructions to local governments as required to carry out the provisions of this part.

(2)  The department shall, for all taxes collected and received into the revenue sharing trust funds, establish a schedule of equal monthly distribution for any computation period. The department is authorized to receive funds pursuant to s. 215.18 at any time in order to make such monthly payments by the 25th day of the month.

(3)(a)  The department shall compute the apportionment factors once each fiscal year for use during the fiscal year. The computation shall be made prior to July 25 of each fiscal year and shall be based upon information submitted and certified to the department prior to June 1 of each year.

(b)  The apportionment factors shall, except in the case of error, remain in effect for the fiscal year.

(4)  It shall be the duty of each agency and unit of local government required to submit certified information to the department pursuant to the administration of this part to file timely information. Any unit of local government failing to provide timely information required pursuant to the administration of this part shall, by such action, authorize the department to utilize the best information available or, if no such information is available, to take any necessary action, including disqualification, either partial or entire, and shall further, by such action, waive any right to challenge the determination of the department as to its share, if any, pursuant to the privilege of receiving shared revenues under this part.

History.--s. 1, ch. 72-360; s. 1, ch. 73-349; s. 1, ch. 74-194.

218.30  Short title.

218.31  Definitions.

218.32  Annual financial reports; local governmental entities.

218.321  Annual financial statements; local governmental entities.

218.322  County and municipal transportation program data.

218.325  Uniform chart of accounts and financial reporting for court and justice system costs and revenues.

218.33  Local governmental entities; establishment of uniform fiscal years and accounting practices and procedures.

218.335  Local governmental entity; authority to charge interest on overdue payments.

218.34  Special districts; financial matters.

218.35  County fee officers; financial matters.

218.36  County officers; record and report of fees and disposition of same.

218.369  Definitions applicable to ss. 218.37-218.386.

218.37  Powers and duties of Division of Bond Finance; advisory council.

218.38  Notice of bond issues required; verification.

218.385  Local government bonds; sale.

218.386  Bonds; finder's fees prohibited.

218.30  Short title.--This part shall be known and may be cited as the "Uniform Local Government Financial Management and Reporting Act."

History.--s. 2, ch. 73-349.

218.31  Definitions.--As used in this part, except where the context clearly indicates a different meaning:

(1)  "Local governmental entity" means a county agency as defined in s. 11.45, a municipality, or a special district as defined in s. 189.403. For purposes of s. 218.32, the term also includes a housing authority created under chapter 421.

(2)  "Unit of local general-purpose government" means a county or a municipality established by general or special law.

(3)  "Local governing authority" means the governing body of a unit of local general-purpose government.

(4)  "Department" means the Department of Banking and Finance.

(5)  "Special district" means a special district as defined in s. 189.403(1).

(6)  "Dependent special district" means a dependent special district as defined in s. 189.403(2).

(7)  "Independent special district" means an independent special district as defined in s. 189.403(3).

(8)  "County fee officers" means those county officials who are assigned specialized functions within county government and whose budgets are established independently of the local governing body, even though said budgets may be reported to the local governing body or may be composed of funds either generally or specially available to a local governing authority involved.

(9)  "Verified report" means a report that has received such test or tests by the department so as to accurately and reliably present the data that have been submitted by the local governmental entities for inclusion in the report.

(10)  "Short-term debt" means any debt with a maturity of less than 1 year from the date of issuance.

(11)  "Revenue bonds" means any obligations issued by a unit to pay the cost of a project or improvement thereof, or combination of one or more projects or improvements thereof, and payable from the earnings of such project and any other special funds authorized to be pledged as additional security therefor.

(12)  "Limited revenue bonds" means any obligations issued by a unit to pay the cost of a project or improvement thereof, or combination of one or more projects or improvements thereof, and payable from funds, exclusive of ad valorem taxes, special assessments, or earnings from such projects or improvements.

(13)  "Industrial development bond" means any obligation the interest on which is exempt from income taxes under the provisions of s. 103(b) of the United States Internal Revenue Code and the payment of the principal or interest on which under the terms of such obligation or any underlying arrangement is, in whole or in major part:

(a)  Secured by any interest in property used or to be used in a trade or business or in payments in respect of such property.

(b)  To be derived from payments in respect of property, or borrowed money, used or to be used in a trade or business.

(14)  "Generally accepted accounting principles" means those accounting principles adopted by rule of the Board of Accountancy under chapter 473.

History.--s. 2, ch. 73-349; s. 4, ch. 79-183; s. 1, ch. 81-96; s. 83, ch. 83-217; s. 58, ch. 89-169; s. 2, ch. 92-300; s. 17, ch. 96-324.

218.32  Annual financial reports; local governmental entities.--

(1)(a)  Each local governmental entity that is determined to be a reporting entity, as defined by generally accepted accounting principles, and each independent special district as defined in s. 189.403, shall submit to the department a copy of its annual financial report for the previous fiscal year in a format prescribed by the department. The annual financial report must include a list of each local governmental entity included in the report and each local governmental entity that failed to provide financial information as required by paragraph (b). The county annual financial report must be a single document that covers each county agency.

(b)  Each component unit, as defined by generally accepted accounting principles, of a local governmental entity shall provide the local governmental entity, within a reasonable time period as established by the local governmental entity, with financial information necessary to comply with the reporting requirements contained in this section.

(c)  Each regional planning council created under s. 186.504, each local government finance commission, board, or council, and each municipal power corporation created as a separate legal or administrative entity by interlocal agreement under s. 163.01(7) shall submit to the department an annual financial report for the previous fiscal year in a format prescribed by the department.

(d)  Each local governmental entity that is required to provide for an audit report in accordance with s. 11.45(3)(a)5. must submit the annual financial report with the audit report. A copy of the audit report and annual financial report must be submitted to the department within 45 days after the completion of the audit report but no later than 12 months after the end of the fiscal year. All other reporting entities must submit the annual financial report to the department no later than April 30 of each year.

(e)  If the department does not receive a completed annual financial report from a local governmental entity within the required period, it shall notify the Legislative Auditing Committee of the failure to report. Following receipt of notification of failure to report, the committee shall schedule a hearing for the purpose of receiving additional testimony addressing the failure of local governmental entities to comply with the reporting requirements of this section. After the hearing, the committee shall determine which local governmental entities will be subjected to further state action. If it finds that one or more local governmental entities should be subjected to further state action, the committee shall:

1.  In the case of a county or municipality, request the Department of Revenue and the Department of Banking and Finance to withhold any funds not pledged for bond debt service satisfaction which are payable to the county or municipality until the required annual financial report is received by the department. The Department of Revenue and the Department of Banking and Finance are authorized to implement the provisions of this subparagraph. The committee, in its request, shall specify the date such action shall begin, and the request must be received by the Department of Revenue and the Department of Banking and Finance 30 days before the date of distribution mandated by law.

2.  In the case of a special district, notify the Department of Community Affairs that the special district has failed to provide the required annual financial report. Upon notification, the Department of Community Affairs shall proceed pursuant to ss. 189.421 and 189.422.

3.  In the case of a special district that is a component unit and that did not provide the financial information required by paragraph (b) to the applicable reporting entity, notify the Department of Community Affairs that the special district has failed to provide the required financial information. Upon notification, the Department of Community Affairs shall proceed pursuant to ss. 189.421 and 189.422.

(2)  The department shall annually by December 1 file a verified report with the Governor, the Legislature, the Auditor General, and the Special District Information Program of the Department of Community Affairs showing the revenues, both locally derived and derived from intergovernmental transfers, and the expenditures of each local governmental entity, regional planning council, local government finance commission, and municipal power corporation that is required to submit an annual financial report. The report must include, but is not limited to:

(a)  The total revenues and expenditures of each local governmental entity that is a component unit included in the annual financial report of the reporting entity.

(b)  The amount of outstanding long-term debt by each local governmental entity. For purposes of this paragraph, the term "long-term debt" means any agreement or series of agreements to pay money, which, at inception, contemplate terms of payment exceeding 1 year in duration.

History.--s. 2, ch. 73-349; s. 15, ch. 77-165; s. 46, ch. 79-164; s. 5, ch. 79-183; s. 4, ch. 79-589; s. 42, ch. 80-274; s. 18, ch. 81-167; s. 16, ch. 83-55; s. 2, ch. 83-106; s. 43, ch. 89-169; s. 55, ch. 91-45; s. 93, ch. 92-152; s. 90, ch. 92-279; s. 55, ch. 92-326; s. 36, ch. 94-249; s. 18, ch. 96-324; s. 8, ch. 2000-152; s. 5, ch. 2000-264.

218.321  Annual financial statements; local governmental entities.--

(1)  Each local governmental entity shall complete its financial statements for the previous fiscal year in compliance with generally accepted accounting principles and the uniform chart of accounts prescribed by the Department of Banking and Finance.

(2)  Each local governmental entity that is not required to provide for an audit report in accordance with s. 11.45(3)(a)5. must complete its financial statements no later than 12 months after the end of the fiscal year.

(3)  Each component unit, as defined by generally accepted accounting principles, of a local governmental entity, shall provide the local governmental entity, within a reasonable time period as established by the local governmental entity, with financial information necessary to comply with subsection (1). The failure of a component unit to provide this financial information must be noted in the annual financial statements for the local governmental entity.

(4)  The failure by any local governmental entity to complete its annual financial statements shall, in addition to any other penalties provided by law, authorize the department to employ personnel or send department personnel to such local governmental entity in order to complete such annual financial statements. The expenses related to the completion of the annual financial statements shall be charged to the local governmental entity. Upon failure by the local governmental entity to pay the charge within 15 days after billing, the department shall so certify to the Comptroller, who shall forward the amount so certified to the department from any funds due to the local governmental entity under any revenue-sharing or tax-sharing fund established by the state, except as otherwise provided by the State Constitution.

History.--s. 19, ch. 96-324; s. 9, ch. 2000-152.

218.322  County and municipal transportation program data.--Each county and municipality shall annually provide the Department of Transportation with uniform program data. The data must conform to the local governmental entity's fiscal year and must include, but need not be limited to, details on transportation receipts and expenditures and on the number of miles of road for which the local governmental entity is responsible. The Department of Transportation shall inform each local governmental entity of the method and format for submitting the data. The Department of Transportation shall compile the data and shall furnish the compilation of data to any interested person upon request.

History.--s. 29, ch. 96-324.

218.325  Uniform chart of accounts and financial reporting for court and justice system costs and revenues.--

(1)(a)  The Uniform Chart of Accounts Development Committee is hereby created to develop and implement a uniform chart of accounts. The committee shall work with the representatives of the designated end-user groups identified in subsection (3) in order to determine the specific financial data related to the operations of the circuit and county courts and justice-related agencies of the executive branch which must be accounted for and reported. The committee shall then work with the Department of Banking and Finance to develop the necessary rules required to implement the uniform chart of accounts. The committee shall include:

1.  The Comptroller or the Comptroller's designee.

2.  Three clerks of the circuit court or deputy clerks, appointed by the president of the Florida Association of Court Clerks.

3.  Three elected county commissioners or county finance staff, appointed by the Florida Association of Counties.

4.  Three elected sheriffs or their designees, appointed by the president of the Florida Sheriffs Association.

(b)  The Comptroller or the Comptroller's designee shall serve as chairperson of the committee. The committee shall use the staff of the Department of Banking and Finance for staff support and may also appoint technical support staff as designated by the Florida Association of Court Clerks, the Florida Association of Counties, and the Florida Sheriffs Association as needed for technical assistance and support. Members of the committee must be appointed within 30 days after June 18, 1995. Within 60 days after the appointment of the membership, the committee shall meet to establish procedures for the conduct of its business.

(c)  Members of the committee shall serve without compensation.

(2)  The Uniform Chart of Accounts Development Committee shall make an analysis of the requirements for implementing a detailed, uniform chart of accounts and financial reporting system for court and justice-related agency expenditures and revenues. The Comptroller shall make a report to the Chief Justice of the Florida Supreme Court, the Governor, the Speaker of the House of Representatives, and the President of the Senate on such requirements, including a timetable for implementation and an assessment of fiscal impact, by January 1, 1996. The proposed uniform chart of accounts and financial reporting system must provide that all revenues received and expenditures incurred by county governments, clerks of court, the courts or other judicial entities that are related to the operations of the circuit courts and county courts, and other components of the justice system can be accounted for in sufficient detail to permit reporting for both discrete functions and organizational units.

(3)  For purposes of this section, the collection of representatives of end-user groups, which shall assist the Uniform Chart of Accounts Development Committee on the process and procedures for implementing new accounting and reporting requirements and provide oversight and guidance for implementing activities, shall be formed by one representative each from the Office of the Governor, the Speaker of the House of Representatives, the President of the Senate, the Office of the Comptroller, the Office of the State Courts Administrator, the Florida Prosecuting Attorneys Association, the Florida Public Defenders Association, the Legislative Committee on Intergovernmental Relations, the Information Resource Committee, and The Florida Bar.

History.--s. 1, ch. 95-400; s. 6, ch. 96-311.

218.33  Local governmental entities; establishment of uniform fiscal years and accounting practices and procedures.--

(1)  Each local governmental entity shall begin its fiscal year on October 1 of each year and end it on September 30.

(2)  The department shall make such reasonable rules regarding uniform accounting practices and procedures by local governmental entities in this state, including a uniform classification of accounts, as it considers necessary to assure the use of proper accounting and fiscal management techniques by such units.

(3)  Any word, sentence, phrase, or provision of any special act, municipal charter, or other law that prohibits or restricts a local governmental entity from complying with this section or any rules adopted under this section is nullified and repealed to the extent of the conflict.

History.--s. 2, ch. 73-349; s. 66, ch. 77-104; s. 20, ch. 96-324.

218.335  Local governmental entity; authority to charge interest on overdue payments.--A local governmental entity may impose an interest penalty on any amount due and owing to it from another local governmental entity if payment of the amount is not made within 10 working days after the required time authorized by interlocal agreement. The rate of interest that must be imposed is the rate established under s. 55.03. This section does not apply to payments due from the state or any of its agencies.

History.--s. 1, ch. 84-178; s. 34, ch. 85-80; s. 21, ch. 96-324.

218.34  Special districts; financial matters.--

(1)  The governing body of each special district shall adopt a budget by resolution each fiscal year. The total amount available from taxation and other sources, including amounts carried over from prior fiscal years, must equal the total of appropriations for expenditures and reserves. The adopted budget must regulate expenditures of the special district, and it is unlawful for any officer of a special district to expend or contract for expenditures in any fiscal year except in pursuance of budgeted appropriations.

(2)  The proposed budget of a dependent special district shall be presented in accordance with generally accepted accounting principles and as such either be:

(a)  Contained within the general budget of the local governing authority and be clearly stated as the budget of the dependent district; or

(b)  Budgeted separately in which case the governing authority shall certify to the department compliance with the auditing requirements of s. 11.45 for each dependent special district.

(3)  The proposed budget of an independent special district located solely within one county shall be filed with the clerk of the county governing authority by September 1 of each year.

(4)  The local governing authority may, in its discretion, review the budget or tax levy of any special district located solely within its boundaries.

History.--s. 2, ch. 73-349; s. 40, ch. 80-274; s. 4, ch. 83-106; s. 51, ch. 89-169; s. 22, ch. 96-324.

218.35  County fee officers; financial matters.--

(1)  Each county fee officer shall establish an annual budget for his or her office which shall clearly reflect the revenues available to said office and the functions for which money is to be expended. The budget shall be balanced; that is, the total of estimated receipts, including balances brought forward, shall equal the total of estimated expenditures and reserves. The budgeting of segregated funds shall be made in such manner that the relation between program and revenue source as provided by law is retained.

(2)  The clerk of the circuit court, functioning in his or her capacity as clerk of the circuit and county courts and as clerk of the board of county commissioners, shall prepare his or her budget in two parts:

(a)  The budget relating to the state courts system, including recording, which shall be filed with the State Courts Administrator as well as with the board of county commissioners; and

(b)  The budget relating to the requirements of the clerk as clerk of the board of county commissioners, county auditor, and custodian or treasurer of all county funds and other county-related duties.

(3)  Each county fee officer shall make provision for establishing a fiscal year beginning October 1 and ending September 30 of the following year, and shall report his or her finances annually upon the close of each fiscal year to the county fiscal officer for inclusion in the annual financial report by the county.

(4)  The proposed budget of a county fee officer shall be filed with the clerk of the county governing authority by September 1 preceding the fiscal year for the budget.

History.--s. 2, ch. 73-349; s. 1176, ch. 95-147.

218.36  County officers; record and report of fees and disposition of same.--

(1)  Each county officer who receives any expenses or compensation in fees, commissions, or other remuneration shall keep a complete record of all fees, commissions, or other remuneration collected by that county officer and shall make an annual report to the board of county commissioners within 31 days of the close of his or her fiscal year. Such report shall specify in detail the purposes, character, and amount of all official expenses and the amount of net income or unexpended budget balance as of the close of the fiscal year. All officers shall prepare such reports and subscribe under oath as to their accuracy and propriety.

(2)  On or before the date for filing the annual report, each county officer shall pay into the county general fund all money in excess of the sum to which he or she is entitled under the provisions of chapter 145. Whenever a tax collector has money in excess, he or she shall distribute the excess to each governmental unit in the same proportion as the fees paid by the governmental unit bear to the total fee income of his or her office. Any excess held by a property appraiser shall be divided into parts for each governmental unit which was billed and which paid for the operation of the property appraiser's office in the same proportion as the governmental units were originally billed. Such part shall be an advance on the current year's bill, if any.

(3)  The board of county commissioners shall, on the 32nd day following the close of the fiscal year, notify the Governor of the failure of any county officer to comply with the provisions of this section. Such notification shall specify the name of the officer and the office held by him or her at the time of such failure and shall subject said officer to suspension from office at the Governor's discretion.

(4)  Compliance by a county officer with the provisions of this section shall exempt said officer from making any report required pursuant to s. 116.03.

History.--s. 2, ch. 73-349; s. 17, ch. 74-234; s. 1, ch. 77-102; s. 5, ch. 88-175; s. 1177, ch. 95-147.

218.369  Definitions applicable to ss. 218.37-218.386.--As used in this section and in ss. 218.37, 218.38, 218.385, and 218.386, the term "unit of local government," except where exception is made, means a county, municipality, special district, local agency, authority, or consolidated city-county government or any other local governmental body or public body corporate and politic authorized or created by general or special law and granted the power to issue general obligation or revenue bonds; and the words "general obligation or revenue bonds" shall be interpreted to include within their scope general obligation bonds, revenue bonds, special assessment bonds, limited revenue bonds, special obligation bonds, debentures, and other similar instruments, but not bond anticipation notes.

History.--s. 1, ch. 82-195; s. 84, ch. 83-217.

218.37  Powers and duties of Division of Bond Finance; advisory council.--

(1)  The Division of Bond Finance of the State Board of Administration, with respect to both general obligation bonds and revenue bonds, shall:

(a)  Provide information, upon request of a unit of local government, on the preliminary planning of a new bond issue.

(b)  Collect, maintain, and make available information on new bonds of units of local government and of the state.

(c)  Serve as a clearinghouse for information on bond issues of units of local government and of the state.

(d)  Undertake or commission studies on methods to reduce the costs of local and state bond issues.

(e)  Recommend changes in law and in local practices to improve the sale and servicing of local bonds.

(f)  Issue a regular newsletter to issuers, underwriters, attorneys, investors, and other parties within the bond community and the general public containing information of interest relating to local and state bonds. The division may charge fees for subscriptions to the newsletter.

(g)  By January 1 each year, provide the Special District Information Program of the Department of Community Affairs with a list of special districts that are not in compliance with the requirements in s. 218.38.

(h)  Use the copy of the complaint for the bond validation, served pursuant to s. 75.05(3), to verify the compliance of that special district with the requirements in s. 218.38.

(2)  The Division of Bond Finance of the State Board of Administration shall also collect, maintain, and make available information from units of local government on lease-purchase agreements or certificates of participation, or other similar debt instruments, for which the total amount of principal payments under the agreement or series of agreements is $2 million or more.

(3)  The Division of Bond Finance of the State Board of Administration may adopt rules to implement this section and ss. 218.38 and 218.385.

(4)  The Division of Bond Finance of the State Board of Administration shall conduct a study of professional fees paid to fiscal advisers, bond counsel, and others and shall adopt a recommended fee schedule that is commensurate with fees typically paid in states similar to Florida in size and character. The schedule must be adopted by the division as the recommended fee schedule for all state and state agency financings.

History.--s. 6, ch. 79-183; s. 1, ch. 82-46; ss. 1, 9, ch. 82-195; s. 85, ch. 83-217; s. 2, ch. 88-318; s. 44, ch. 89-169; s. 15, ch. 92-173; s. 165, ch. 92-279; s. 55, ch. 92-326; s. 20, ch. 95-196; s. 23, ch. 96-324.

218.38  Notice of bond issues required; verification.--

(1)(a)  Each unit of local government shall furnish the Division of Bond Finance of the State Board of Administration a complete description of all of its new general obligation bonds and revenue bonds, shall also provide the division with advance notice of the impending sale of any new issue of bonds, and shall also provide the division with a copy of the final official statement, if any is published, all as required by rules of the division.

(b)1.  Excluding for the purposes of this paragraph those general obligation bonds and revenue bonds issued pursuant to the provisions of part III of chapter 154, parts II, III, and V of chapter 159, and part II of chapter 243, each unit of local government shall, within 120 days after the delivery of any general revenue or obligation bonds which were sold at public sale by competitive bids, file the following information with the division on forms prescribed by the division:

a.  The name and address of the managing underwriter, if any, connected with the bond issue;

b.  The name and address of any attorney or financial consultant who advised the unit of local government with respect to the bond issue;

c.  Any fee, bonus, or gratuity paid by any underwriter or financial consultant, in connection with the bond issue, to any person not regularly employed or engaged by such underwriter or consultant; and

d.  Any other fee paid by the unit of local government with respect to the bond issue, including any fee paid to attorneys or financial consultants.

2.  Within 90 days after the delivery of such bonds, the managing underwriter or financial consultant shall file with the unit of local government a statement containing the information required by sub-subparagraph 1.c.

3.  The information disclosed pursuant to this paragraph shall be maintained by the division and by the unit of local government as a public record.

(c)1.  Excluding for the purposes of this paragraph those general obligation bonds and revenue bonds issued pursuant to the provisions of part III of chapter 154, parts II, III, and V of chapter 159, and part II of chapter 243, each unit of local government shall, within 120 days after the delivery of any general obligation or revenue bonds which were sold by negotiated bond sale authorized by s. 218.385, file the following information with the division on forms prescribed by the division:

a.  The name and address of the managing underwriter, if any, connected with the bond issue;

b.  The name and address of any attorney or financial consultant who advised the unit of local government with respect to the bond issue;

c.  Any management fee charged by the managing underwriter, if any;

d.  The underwriting spread which the managing underwriter, if any, expects to realize;

e.  Any fee, bonus, or gratuity paid by any underwriter or financial consultant, in connection with the bond issue, to any person not regularly employed or engaged by such underwriter or consultant; and

f.  Any other fee paid by the unit of local government with respect to the bond issue, including any fee paid to attorneys or financial consultants.

2.  Within 90 days after the delivery of such bonds, the managing underwriter or financial consultant shall file with the unit of local government a statement containing the information required by sub-subparagraphs 1.c., d., and e.

3.  The information disclosed pursuant to this paragraph shall be maintained by the division and by the unit of local government as a public record.

(2)  Each unit of local government shall, upon request of the division, verify the information held by the division relating to the bonded obligations of the unit of local government.

(3)  If a unit of local government fails to verify pursuant to subsection (2) the information held by the division, or fails to provide the information required by subsection (1), the division shall notify the Legislative Auditing Committee of such failure to comply. Following receipt of such notification of failure to comply with these provisions, a hearing shall be scheduled by the committee for the purpose of receiving testimony addressing the failure of units of local government to comply with the requirements of this section. After the hearing, the committee shall determine which units of local government will be subjected to further state action. If it finds that one or more units of local government should be subjected to further state action, the committee shall:

(a)  In the case of a unit of local government, request the Department of Revenue and the Department of Banking and Finance to withhold any funds not pledged for bond debt service satisfaction which are payable to such governmental entity. The Department of Revenue and the Department of Banking and Finance are authorized to implement the provisions of this paragraph. The committee, in its request, shall specify the date such action shall begin, and the request must be received by the Department of Revenue and the Department of Banking and Finance 30 days before the date of the distribution mandated by law.

(b)  In the case of a special district, notify the Department of Community Affairs that the special district has failed to comply. Upon notification, the Department of Community Affairs shall proceed pursuant to ss. 189.421 and 189.422.

History.--s. 7, ch. 79-183; s. 3, ch. 80-98; s. 19, ch. 81-167; s. 2, ch. 82-195; s. 17, ch. 83-55; s. 45, ch. 89-169; s. 166, ch. 92-279; s. 55, ch. 92-326; s. 24, ch. 96-324; s. 6, ch. 2000-264.

218.385  Local government bonds; sale.--

(1)  All general obligation bonds and revenue bonds sold by a unit of local government, as defined in s. 218.369, shall be sold at public sale by competitive bids at such place or places as the governing body shall determine to receive proposals for the purchase of such bonds. Notice of such sale shall be published one or more times at least 10 days prior to the date of sale in one or more newspapers or financial journals published within or without the state and shall contain such terms as the governing body shall deem advisable and proper under the circumstances. However, if the governing body shall by resolution adopted at a public meeting determine that a negotiated sale of such bonds is in the best interest of the issuer, the governing body may negotiate for sale of such bonds.

(a)  In the resolution authorizing the negotiated sale, the local governing body shall provide specific findings as to the reasons requiring the negotiated sale.

(b)  A resolution authorizing a negotiated bond sale may be the same resolution as that authorizing the issuance of such bonds.

(2)  Prior to the award of bonds, all proposals for the purchase of any bonds offered by a unit of local government as defined in s. 218.369 shall include a truth-in-bonding statement in substantially the following form:

The  (insert unit of local government)  is proposing to issue $ (insert principal)  of debt or obligation for the purpose of  (insert purpose) . This debt or obligation is expected to be repaid over a period of  (insert term of issue)  years. At a forecasted interest rate of  (insert rate of interest) , total interest paid over the life of the debt or obligation will be $ (insert sum of interest payments) .

(3)  Truth-in-bonding statements shall also include language in substantially the following form:

The source of repayment or security for this proposal is the  (insert the unit of local government)  existing  (insert fund) . Authorizing this debt or obligation will result in $ (insert the annual amount)  of  (insert unit of local government)   (insert fund)  moneys not being available to finance the other services of the  (insert unit of local government)  each year for  (insert the length of the debt or obligation) .

(4)  All proposals for the purchase of any bonds offered by a unit of local government shall be opened in public. Such bonds when competitively bid shall be awarded by resolution to the lowest bid consistent with the notice of sale.

(5)  No bid conforming to the notice of sale may be rejected unless all bids are rejected. If all bids are rejected, such bonds may be sold thereafter at public sale by competitive bids or by negotiated sale pursuant to this section.

(6)  In the event the local governing body decides to negotiate for a sale of bonds, the managing underwriter, or financial consultant or adviser if applicable, shall provide to the unit of local government, prior to the award of bonds to the managing underwriter, a disclosure statement containing the following information:

(a)  An itemized list setting forth the nature and estimated amounts of expenses to be incurred by the managing underwriter in connection with the issuance of such bonds. Notwithstanding the foregoing, any such list may include an item for miscellaneous expenses, provided it includes only minor items of expense which cannot be easily categorized elsewhere in the statement.

(b)  The names, addresses, and estimated amounts of compensation of any finders, as defined in s. 218.386, connected with the issuance of the bonds.

(c)  The amount of underwriting spread expected to be realized.

(d)  Any management fee charged by the managing underwriter.

(e)  Any other fee, bonus, and other compensation estimated to be paid by the managing underwriter in connection with the bond issue to any person not regularly employed or retained by it.

(f)  The name and address of the managing underwriter or underwriters, if any, connected with the bond issue.

(g)  Any other disclosure which the local governing body may require.

This subsection is not intended to restrict or prohibit the employment of professional services relating to local government bond issues.

(7)  The failure of a unit of local government to comply with one or more provisions of this section or s. 218.38 shall not affect the validity of the bond issue; however, upon such failure to comply, the unit of local government shall be subject to the sanctions provided in s. 218.38(3).

(8)  The truth-in-bonding statements prepared pursuant to this section are for informational purposes only and shall not affect or control the actual terms and conditions of the debt or obligations.

History.--s. 1, ch. 80-98; s. 125, ch. 81-259; s. 3, ch. 82-195; s. 84, ch. 92-142.

218.386  Bonds; finder's fees prohibited.--

(1)(a)  As used in this section, "finder" means a person who is not regularly employed by, or not a partner or officer of, an underwriter, bank, banker, or financial consultant or adviser and who enters into an understanding with either the issuer or the managing underwriter, or both, for any paid or promised compensation or valuable consideration directly or indirectly, expressly or impliedly, to act solely as an intermediary between such issuer and managing underwriter for the purpose of influencing any transaction in the purchase of such bonds.

(b)  No underwriter, commercial bank, investment banker, or financial consultant or adviser shall pay any finder any bonus, fee, or gratuity in connection with the sale of general obligation bonds or revenue bonds issued by any unit of local government, unless full disclosure is made to the unit of local government prior to or concurrently with the submission of a purchase proposal for bonds by the underwriter, commercial bank, investment banker, or financial consultant or adviser and subsequently in the official statement or offering circular, if any, detailing the name and address of any finder and the amount of bonus, fee, or gratuity paid to such finder.

(2)  The willful violation of this section is a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(3)  No violation of this section shall affect the validity of the bond issue.

History.--s. 2, ch. 80-98; s. 3, ch. 82-195.

218.40  Short title.

218.401  Purpose.

218.403  Definitions.

218.405  Local Government Surplus Funds Trust Fund; creation.

218.407  Local government investment authority.

218.409  Administration of the trust fund.

218.411  Authorization for state technical and advisory assistance.

218.412  Rulemaking authority.

218.415  Local government investment policies.

218.40  Short title.--This part shall be known, and may be cited, as the "Investment of Local Government Surplus Funds Act."

History.--s. 1, ch. 77-394.

218.401  Purpose.--It is the intent of this part to promote, through state assistance, the maximization of net interest earnings on invested surplus funds of local units of government, thereby reducing the need for imposing additional taxes.

History.--s. 1, ch. 77-394.

218.403  Definitions.--The following words or terms, when used in this part, shall have the following meanings:

(1)  "Chief financial officer" means the mayor, manager, administrator, clerk, comptroller, treasurer, director of finance, or other local government official, regardless of the title of his or her office, charged with administering the fiscal affairs of a unit of local government.

(2)  "Current expenses" means expenses to meet known cash needs and anticipated cash-flow requirements for the short term.

(3)  "Governing body" means the body or board in which the legislative power of a unit of local government is vested.

(4)  "Short term" means a maximum of 6 months of operation.

(5)  "Surplus funds" means any funds in any general or special account or fund of a unit of local government, or funds held by an independent trustee on behalf of a unit of local government, which in reasonable contemplation will not be immediately needed for the purposes intended.

(6)  "Trust fund" means the pooled investment fund created by s. 218.405 and known as the Local Government Surplus Funds Trust Fund.

(7)  "Unit of local government" means any governmental entity within the state not part of state government and shall include, but not be limited to, the following and the officers thereof: any county, municipality, school district, special district, clerk of the circuit court, sheriff, property appraiser, tax collector, supervisor of elections, authority, board, public corporations, or any other political subdivision of the state.

History.--s. 1, ch. 77-394; s. 4, ch. 87-239; s. 1178, ch. 95-147; s. 5, ch. 95-194; s. 1, ch. 97-9.

218.405  Local Government Surplus Funds Trust Fund; creation.--There is hereby created a Local Government Surplus Funds Trust Fund to be administered by the State Board of Administration and to be composed of local government surplus funds deposited therein by units of local government under the procedures established in this part. The board may adopt rules to administer the provisions of this section.

History.--s. 1, ch. 77-394; s. 3, ch. 98-124.

218.407  Local government investment authority.--

(1)  Upon determination by the governing body that it is in the interest of the unit of local government to deposit surplus funds in the trust fund, a resolution by the governing body shall be filed with the State Board of Administration authorizing investment of its surplus funds in the trust fund established by this part. The resolution shall name:

(a)  The local government official, who may be the chief financial or administrative officer of the local government, or

(b)  An independent trustee holding funds on behalf of the unit of local government,

responsible for deposit and withdrawal of such funds.

(2)  The State Board of Administration shall, upon the filing of the resolution, invest the moneys in the trust fund in the same manner and subject to the same restrictions as are set forth in s. 215.47. Except when authorized by the board, all units of local government which qualify to be participants in the Local Government Surplus Funds Trust Fund after January 1, 1982, will normally have surplus funds deposited into a pooled investment account.

(3)  The provisions of this part shall not impair the power of a unit of local government to hold funds in deposit accounts with banking or savings institutions or to invest funds as otherwise authorized by law.

History.--s. 1, ch. 77-394; s. 6, ch. 82-45; s. 3, ch. 84-137; s. 5, ch. 87-239; s. 9, ch. 98-47; s. 4, ch. 98-124.

218.409  Administration of the trust fund.--

(1)  Upon receipt of the resolution from the local governing body, the State Board of Administration shall accept all wire transfers of funds into the trust fund. The State Board of Administration shall also wire-transfer invested local government funds to the local government upon request of the local government official named in the resolution.

(2)  The State Board of Administration shall administer the investment trust funds on behalf of the participants and shall have the power to invest such funds. A fee may be charged on any transaction that is not in accord with the close of business as set by the board.

(3)  The State Board of Administration may purchase such surety or other bonds as may be necessary for its officials in order to protect the fund. A reserve fund may be established to fulfill this purpose.

(4)  All investments may be purchased jointly for the participants in the trust fund. The board may also purchase investments for a pooled investment account in which all participants may share pro rata, as determined by rule of the board, in the capital gain, income, or losses, subject to any penalties for early withdrawal. The board shall determine the rate of return for the pooled investment account. A system may be developed by the board to keep current account balance information and to apportion pooled investment earnings back to individual accounts.

(5)  The State Board of Administration shall keep a separate account, designated by name and number of each participating local government. A maximum number of accounts allowed for each participant may be established by the board. Individual transactions and totals of all investments, or the share belonging to each participant, shall be recorded in the accounts.

(6)  The State Board of Administration shall report semiannually or upon request to every participant having a beneficial interest in the trust fund. The report shall show the changes in investments made during the preceding period. The report shall delineate, in a manner which is in accordance with generally accepted governmental accounting procedures, those funds on deposit, the manner in which the funds are invested, and the interest earnings thereon. The State Board of Administration shall furnish upon request the details of an investment transaction to any participant. Additional reporting may be made to pool participants.

(7)  Costs incurred in carrying out the provisions of this part shall be deducted from the interest earnings accruing to the trust fund. Such deductions shall be prorated among the participant local governments in the percentage that each participant's deposits bear to the total trust fund.

(8)(a)  The principal, and any part thereof, of each and every account constituting the trust fund shall be subject to payment at any time from the moneys in the fund or as otherwise provided by agreement between the State Board of Administration and the investing unit.

(b)  An order or warrant may not be issued upon any account for a larger amount than the share of the particular account to which it applies; and if such order or warrant is issued, the responsible official shall be personally liable under his or her bond for the entire overdraft resulting from the payment if made.

History.--s. 1, ch. 77-394; s. 4, ch. 84-137; s. 1179, ch. 95-147; s. 5, ch. 98-124.

218.411  Authorization for state technical and advisory assistance.--

(1)  The State Board of Administration is authorized, upon request, to assist local governments in investing funds that are temporarily in excess of operating needs by:

(a)  Explaining investment opportunities to such local governments through publication and other appropriate means.

(b)  Acquainting such local governments with the state's practice and experience in investing short-term funds.

(c)  Providing, in cooperation with the Department of Community Affairs, technical assistance to local governments in investment of surplus funds.

(2)  The State Board of Administration may establish fees to cover the cost of such services, which shall be paid by the unit of local government requesting such service. Such fees shall be deposited to the credit of the appropriation or appropriations from which the costs of providing the services have been paid or are to be charged.

History.--s. 1, ch. 77-394; s. 20, ch. 81-167; s. 18, ch. 83-55.

218.412  Rulemaking authority.--The State Board of Administration may adopt rules as it deems necessary to carry out the provisions of this part for the administration of the Local Government Surplus Funds Trust Fund.

History.--s. 12, ch. 98-47.

218.415  Local government investment policies.--Investment activity by a unit of local government must be consistent with a written investment plan adopted by the governing body, or in the absence of the existence of a governing body, the respective principal officer of the unit of local government and maintained by the unit of local government or, in the alternative, such activity must be conducted in accordance with subsection (17). Any such unit of local government shall have an investment policy for any public funds in excess of the amounts needed to meet current expenses as provided in subsections (1)-(16), or shall meet the alternative investment guidelines contained in subsection (17). Such policies shall be structured to place the highest priority on the safety of principal and liquidity of funds. The optimization of investment returns shall be secondary to the requirements for safety and liquidity. Each unit of local government shall adopt policies that are commensurate with the nature and size of the public funds within its custody.

(1)  SCOPE.--The investment policy shall apply to funds under the control of the unit of local government in excess of those required to meet current expenses. The investment policy shall not apply to pension funds, including those funds in chapters 175 and 185, or funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds.

(2)  INVESTMENT OBJECTIVES.--The investment policy shall describe the investment objectives of the unit of local government. Investment objectives shall include safety of capital, liquidity of funds, and investment income, in that order.

(3)  PERFORMANCE MEASUREMENT.--The investment policy shall specify performance measures as are appropriate for the nature and size of the public funds within the custody of the unit of local government.

(4)  PRUDENCE AND ETHICAL STANDARDS.--The investment policy shall describe the level of prudence and ethical standards to be followed by the unit of local government in carrying out its investment activities with respect to funds described in this section. The unit of local government shall adopt the Prudent Person Rule, which states that: "Investments should be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived from the investment."

(5)  LISTING OF AUTHORIZED INVESTMENTS.--The investment policy shall list investments authorized by the governing body of the unit of local government, subject to the provisions of subsection (16). Investments not listed in the investment policy are prohibited. If the policy authorizes investments in derivative products, the policy must require that the unit of local government's officials responsible for making investment decisions or chief financial officer have developed sufficient understanding of the derivative products and have the expertise to manage them. For purposes of this subsection, a "derivative" is defined as a financial instrument the value of which depends on, or is derived from, the value of one or more underlying assets or index or asset values. If the policy authorizes investments in reverse repurchase agreements or other forms of leverage, the policy must limit the investments to transactions in which the proceeds are intended to provide liquidity and for which the unit of local government has sufficient resources and expertise.

(6)  MATURITY AND LIQUIDITY REQUIREMENTS.--The investment policy shall require that the investment portfolio is structured in such manner as to provide sufficient liquidity to pay obligations as they come due. To that end, the investment policy should direct that, to the extent possible, an attempt will be made to match investment maturities with known cash needs and anticipated cash-flow requirements.

(7)  PORTFOLIO COMPOSITION.--The investment policy shall establish guidelines for investments and limits on security issues, issuers, and maturities. Such guidelines shall be commensurate with the nature and size of the public funds within the custody of the unit of local government.

(8)  RISK AND DIVERSIFICATION.--The investment policy shall provide for appropriate diversification of the investment portfolio. Investments held should be diversified to the extent practicable to control the risk of loss resulting from overconcentration of assets in a specific maturity, issuer, instrument, dealer, or bank through which financial instruments are bought and sold. Diversification strategies within the established guidelines shall be reviewed and revised periodically, as deemed necessary by the appropriate management staff.

(9)  AUTHORIZED INVESTMENT INSTITUTIONS AND DEALERS.--The investment policy should specify the authorized securities dealers, issuers, and banks from whom the unit of local government may purchase securities.

(10)  THIRD-PARTY CUSTODIAL AGREEMENTS.--The investment policy shall provide appropriate arrangements for the holding of assets of the unit of local government. Securities should be held with a third party; and all securities purchased by, and all collateral obtained by, the unit of local government should be properly designated as an asset of the unit of local government. No withdrawal of securities, in whole or in part, shall be made from safekeeping, except by an authorized staff member of the unit of local government. Securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by transfer of money or securities must be made on a "delivery vs. payment" basis, if applicable, to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction.

(11)  MASTER REPURCHASE AGREEMENT.--The investment policy shall require all approved institutions and dealers transacting repurchase agreements to execute and perform as stated in the Master Repurchase Agreement. All repurchase agreement transactions shall adhere to the requirements of the Master Repurchase Agreement.

(12)  BID REQUIREMENT.--The investment policy shall require that the unit of local government's staff determine the approximate maturity date based on cash-flow needs and market conditions, analyze and select one or more optimal types of investment, and competitively bid the security in question when feasible and appropriate. Except as otherwise required by law, the bid deemed to best meet the investment objectives specified in subsection (2) must be selected.

(13)  INTERNAL CONTROLS.--The investment policy shall provide for a system of internal controls and operational procedures. The unit of local government's officials responsible for making investment decisions or chief financial officer shall establish a system of internal controls which shall be in writing and made a part of the governmental entity's operational procedures. The investment policy shall provide for review of such controls by independent auditors as part of any financial audit periodically required of the unit of local government. The internal controls should be designed to prevent losses of funds which might arise from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the unit of local government.

(14)  CONTINUING EDUCATION.--The investment policy shall provide for the continuing education of the unit of local government's officials responsible for making investment decisions or chief financial officer. Such officials must annually complete 8 hours of continuing education in subjects or courses of study related to investment practices and products.

(15)  REPORTING.--The investment policy shall provide for appropriate annual or more frequent reporting of investment activities. To that end, the governmental entity's officials responsible for making investment decisions or chief financial officer shall prepare periodic reports for submission to the legislative and governing body of the unit of local government, which shall include securities in the portfolio by class or type, book value, income earned, and market value as of the report date. Such reports shall be available to the public.

(16)  AUTHORIZED INVESTMENTS; WRITTEN INVESTMENT POLICIES.--Those units of local government electing to adopt a written investment policy as provided in subsections (1)-(15) may by resolution invest and reinvest any surplus public funds in their control or possession in:

(a)  The Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act as provided in s. 163.01.

(b)  Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

(c)  Interest-bearing time deposits or savings accounts in qualified public depositories as defined in s. 280.02.

(d)  Direct obligations of the United States Treasury.

(e)  Federal agencies and instrumentalities.

(f)  Securities of, or other interests in, any open-end or closed-end management-type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time, provided that the portfolio of such investment company or investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian.

(g)  Other investments authorized by law or by ordinance for a county or a municipality.

(h)  Other investments authorized by law or by resolution for a school district or a special district.

(17)  AUTHORIZED INVESTMENTS; NO WRITTEN INVESTMENT POLICY.--Those units of local government electing not to adopt a written investment policy in accordance with investment policies developed as provided in subsections (1)-(15) may invest or reinvest any surplus public funds in their control or possession in:

(a)  The Local Government Surplus Funds Trust Fund, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01.

(b)  Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

(c)  Interest-bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02.

(d)  Direct obligations of the U.S. Treasury.

The securities listed in paragraphs (c) and (d) shall be invested to provide sufficient liquidity to pay obligations as they come due.

(18)  SECURITIES; DISPOSITION.--

(a)  Every security purchased under this section on behalf of the governing body of a unit of local government must be properly earmarked and:

1.  If registered with the issuer or its agents, must be immediately placed for safekeeping in a location that protects the governing body's interest in the security;

2.  If in book entry form, must be held for the credit of the governing body by a depository chartered by the Federal Government, the state, or any other state or territory of the United States which has a branch or principal place of business in this state as defined in s. 658.12, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in this state, and must be kept by the depository in an account separate and apart from the assets of the financial institution; or

3.  If physically issued to the holder but not registered with the issuer or its agents, must be immediately placed for safekeeping in a secured vault.

(b)  The unit of local government's governing body may also receive bank trust receipts in return for investment of surplus funds in securities. Any trust receipts received must enumerate the various securities held, together with the specific number of each security held. The actual securities on which the trust receipts are issued may be held by any bank depository chartered by the Federal Government, this state, or any other state or territory of the United States which has a branch or principal place of business in this state as defined in s. 658.12, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in this state.

(19)  SALE OF SECURITIES.--When the invested funds are needed in whole or in part for the purposes originally intended or for more optimal investments, the unit of local government's governing body may sell such investments at the then-prevailing market price and place the proceeds into the proper account or fund of the unit of local government.

(20)  PREEXISTING CONTRACT.--Any public funds subject to a contract or agreement existing on October 1, 2000, may not be invested contrary to such contract or agreement.

(21)  PREEMPTION.--Any provision of any special act, municipal charter, or other law which prohibits or restricts a local governmental entity from complying with this section or any rules adopted under this section is void to the extent of the conflict.

(22)  AUDITS.--Certified public accountants conducting audits of units of local government pursuant to s. 11.45 shall report, as part of the audit, whether or not the unit of local government has complied with this section.

(23)  AUDITOR GENERAL; REVIEW.--During the Auditor General's review of audit reports of units of local government, the Auditor General shall contact those units of local government not in compliance with this section and request evidence of corrective action. If the unit of local government does not provide the Auditor General with evidence of corrective action within 45 days after the date it is requested, the Auditor General shall then notify the Joint Legislative Auditing Committee of any unit of local government not in compliance with this section. Following notification of failure by a local government to comply with this section, a hearing may be scheduled by the committee. If a hearing is scheduled, the committee shall determine which units of local government will be subjected to further state action. If the committee finds that one or more units of local government should be subjected to further state action, the committee shall:

(a)  In the case of a county, municipality, or district school board, request the Department of Revenue and the Department of Banking and Finance to withhold any funds not pledged for bond debt service satisfaction which are payable to such governmental entity. The Department of Revenue and the Department of Banking and Finance are authorized to implement the provisions of this paragraph. The committee, in its request, shall specify the date such action shall begin, and the request must be received by the Department of Revenue and the Department of Banking and Finance 30 days before the date of the distribution mandated by law.

(b)  In the case of a special district, notify the Department of Community Affairs that the special district has failed to comply with this section. Upon receipt of notification, the Department of Community Affairs shall proceed pursuant to the provisions specified in ss. 189.421 and 189.422.

History.--s. 1, ch. 95-194; s. 2, ch. 97-9; s. 3, ch. 2000-264.

218.50  Short title.

218.501  Purposes.

218.502  Definition.

218.503  Determination of financial emergency.

218.504  Cessation of state action.

218.50  Short title.--Sections 218.50-218.504 shall be known as the "Local Government Financial Emergencies Act."

History.--s. 8, ch. 79-183.

218.501  Purposes.--The purposes of ss. 218.50-218.504 are:

(1)  To preserve and protect the fiscal solvency of local governmental entities.

(2)  To assist local governmental entities in providing essential services without interruption and in meeting their financial obligations.

(3)  To assist local governmental entities through the improvement of local financial management procedures.

History.--s. 8, ch. 79-183; s. 25, ch. 96-324.

218.502  Definition.--As used in ss. 218.50-218.504, the term "local governmental entity" means a county, municipality, special district, or district school board.

History.--s. 8, ch. 79-183; s. 26, ch. 96-324; s. 24, ch. 99-333.

218.503  Determination of financial emergency.--

(1)  A local governmental entity is in a state of financial emergency when any of the following conditions occurs:

(a)  Failure within the same fiscal year in which due to pay short-term loans from banks or failure to make bond debt service payments when due.

(b)  Failure to transfer at the appropriate time, due to lack of funds:

1.  Taxes withheld on the income of employees; or

2.  Employer and employee contributions for:

a.  Federal social security; or

b.  Any pension, retirement, or benefit plan of an employee.

(c)  Failure for one pay period to pay, due to lack of funds:

1.  Wages and salaries owed to employees; or

2.  Retirement benefits owed to former employees.

(d)  An unreserved or total fund balance or retained earnings deficit for which sufficient resources of the local governmental entity are not available to cover the deficit for 2 successive years.

(e)  Noncompliance of the local government retirement system with actuarial conditions provided by law.

(2)  A local governmental entity shall notify the Governor and the Legislative Auditing Committee when one or more of the conditions specified in subsection (1) have occurred or will occur if action is not taken to assist the local governmental entity. In addition, any state agency must, within 30 days after the identification of the financial emergency, notify the Governor and the Legislative Auditing Committee when one or more of the conditions specified in subsection (1) have occurred or will occur if action is not taken to assist a local governmental entity.

(3)  Upon notification that one or more of the conditions in subsection (1) exist, the Governor or his or her designee shall contact the local governmental entity to determine what actions have been taken by the local governmental entity to resolve the financial emergency. The Governor has the authority to implement measures as set forth in ss. 218.50-218.504 to resolve the financial emergency. Such measures may include, but are not limited to:

(a)  Requiring approval of the local governmental entity's budget by the Governor.

(b)  Authorizing a state loan to the local governmental entity and providing for repayment of same.

(c)  Prohibiting a local governmental entity from issuing bonds, notes, certificates of indebtedness, or any other form of debt until such time as it is no longer subject to this section.

(d)  Making such inspections and reviews of records, information, reports, and assets of the local governmental entity, in which inspections and reviews the appropriate local officials shall cooperate.

(e)  Consulting with the officials of the local governmental entity and the appropriate state agency regarding any steps necessary to bring the books of account, accounting systems, financial procedures, and reports into compliance with state requirements.

(f)  Providing technical assistance to the local governmental entity.

(g)1.  Establishing a financial emergencies board to oversee the activities of the local governmental entity. The board, if established, shall be appointed by the Governor. The Governor shall select a chair and such other officers as are necessary. The board shall adopt such rules as are necessary for conducting board business. The board may:

a.  Make such reviews of records, reports, and assets of the local governmental entity as are needed.

b.  Consult with the officials of the local governmental entity and appropriate state officials regarding any steps necessary to bring the books of account, accounting systems, financial procedures, and reports of the local governmental entity into compliance with state requirements.

c.  Review the operations, management, efficiency, productivity, and financing of functions and operations of the local governmental entity.

2.  The recommendations and reports made by the board must be submitted to the Governor for appropriate action.

(h)  Requiring and approving a plan, to be prepared by the appropriate state agency in conjunction with the local governmental entity, prescribing actions that will cause the local governmental entity to no longer be subject to this section. The plan must include, but need not be limited to:

1.  Provision for payment in full of all payments due or to come due on debt obligations, pension payments, and all payments and charges imposed or mandated by federal or state law and for all judgments and past due accounts, as priority items of expenditures.

2.  Establishment of a basis of priority budgeting or zero-based budgeting, so as to eliminate low-priority items that are not affordable.

3.  The prohibition of a level of operations which can be sustained only with nonrecurring revenues.

(4)  During the financial emergency period, the local governmental entity may not seek application of laws under the bankruptcy provisions of the United States Constitution except with the prior approval of the Governor.

(5)(a)  The governing authority of any municipality with a resident population of 300,000 or more on April 1, 1999, and which has been declared in a state of financial emergency pursuant to this section within the previous 2 fiscal years may impose a discretionary per-vehicle surcharge of up to 20 percent on the gross revenues of the sale, lease, or rental of space at parking facilities within the municipality that are open for use to the general public.

(b)  A municipal governing authority that imposes the surcharge authorized by this subsection may use the proceeds of such surcharge for the following purposes only:

1.  No less than 60 percent and no more than 80 percent of the surcharge proceeds shall be used by the governing authority to reduce its ad valorem tax millage rate or to reduce or eliminate non-ad valorem assessments.

2.  A portion of the balance of the surcharge proceeds shall be used by the governing authority to increase its budget reserves; however, the governing authority shall not reduce the amount it allocates for budget reserves from other sources below the amount allocated for reserves in the fiscal year prior to the year in which the surcharge is initially imposed. When a 15-percent budget reserve is achieved, based on the average gross revenue for the most recent 3 prior fiscal years, the remaining proceeds from this subparagraph shall be used for the payment of annual debt service related to outstanding obligations backed or secured by a covenant to budget and appropriate from non-ad valorem revenues.

(c)  This subsection is repealed on June 30, 2006.

History.--s. 8, ch. 79-183; s. 54, ch. 89-169; s. 1180, ch. 95-147; s. 27, ch. 96-324; s. 29, ch. 97-96; s. 132, ch. 99-251.

218.504  Cessation of state action.--The Governor has the authority to terminate all state actions pursuant to ss. 218.50-218.504. Cessation of state action must not occur until the Governor has determined that:

(1)  The local governmental entity:

(a)  Has established and is operating an effective financial accounting and reporting system.

(b)  Has corrected or eliminated the fiscal emergency conditions outlined in s. 218.503.

(2)  No new fiscal emergency conditions exist.

History.--s. 8, ch. 79-183; s. 28, ch. 96-324.

218.60  Definitions.

218.61  Local government half-cent sales tax; designated proceeds; trust fund.

218.62  Distribution formulas.

218.63  Participation requirements.

218.64  Local government half-cent sales tax; uses; limitations.

218.65  Emergency distribution.

218.66  Special distributions for contested property taxes.

218.60  Definitions.--

(1)  As used in this part, unless the context clearly indicates a different meaning:

(a)  "Population" means the latest official state estimate of population certified pursuant to s. 186.901 prior to the beginning of the local government fiscal year.

(b)  "Utility tax relief" means a dollar amount which represents a reduction in taxes to be collected pursuant to ss. 166.231 and 166.232 for the upcoming fiscal year compared to such taxes collected in the current year, which reduction results from a reduction in the tax rate.

(2)  All definitions and provisions of s. 200.001 are applicable to this part.

(3)  All estimates of moneys provided pursuant to this part utilized by participating units of local government in the first year of participation shall be equal to 95 percent of those projections made by the revenue estimating conference and provided to local governments by the Office of Economic and Demographic Research, in consultation with the Department of Revenue.

History.--s. 10, ch. 82-154; s. 11, ch. 83-204; s. 86, ch. 83-217; s. 60, ch. 87-224; s. 26, ch. 98-136.

218.61  Local government half-cent sales tax; designated proceeds; trust fund.--

(1)  Each participating county or municipal government shall receive a portion of the local government half-cent sales tax, as provided in this part.

(2)  Money remitted by a sales tax dealer located within the county and transferred into the Local Government Half-cent Sales Tax Clearing Trust Fund shall be earmarked for distribution to the governing body of that county and of each municipality within that county. Such moneys shall be known as the "local government half-cent sales tax."

(3)  There is created in the State Treasury the Local Government Half-cent Sales Tax Clearing Trust Fund. Moneys in the fund are hereby appropriated to the Department of Revenue and shall be distributed monthly to participating units of local government.

History.--s. 10, ch. 82-154; s. 3, ch. 82-399; s. 10, ch. 83-297; s. 68, ch. 85-342; s. 42, ch. 87-548; s. 48, ch. 89-356.

218.62  Distribution formulas.--

(1)  Each participating county and municipal government shall receive a proportion of moneys earmarked for distribution within that county.

(2)  The proportion for each county government shall be computed by dividing the sum of the unincorporated area population plus two-thirds of the incorporated area population by the sum of the total county population plus two-thirds of the incorporated area population.

(3)  The proportion for each municipal government shall be computed by dividing the population of that municipality by the sum of the total county population plus two-thirds of the incorporated area population.

History.--s. 10, ch. 82-154.

218.63  Participation requirements.--

(1)  Only those units of local government which meet the eligibility requirements for revenue sharing pursuant to s. 218.23 shall participate in the local government half-cent sales tax. However, a municipality incorporated subsequent to the effective date of chapter 82-154, Laws of Florida, which does not meet the applicable criteria for incorporation pursuant to s. 165.061 shall not participate in the local government half-cent sales tax. In either case, distributions to eligible units of local government in that county shall be made as though the nonparticipating municipality had not incorporated.

(2)  The moneys which otherwise would be distributed pursuant to this part to a unit of local government failing to certify compliance as required by s. 218.23(1) or having otherwise failed to meet the requirements of s. 200.065 shall be deposited in the General Revenue Fund for the 12 months following a determination of noncompliance by the department.

History.--s. 10, ch. 82-154; s. 14, ch. 83-204; s. 87, ch. 83-217; s. 8, ch. 87-239.

218.64  Local government half-cent sales tax; uses; limitations.--

(1)  The proportion of the local government half-cent sales tax received by a county government based on two-thirds of the incorporated area population shall be deemed countywide revenues and shall be expended only for countywide tax relief or countywide programs. The remaining county government portion shall be deemed county revenues derived on behalf of the unincorporated area but may be expended on a countywide basis.

(2)  Municipalities shall expend their portions of the local government half-cent sales tax only for municipality-wide programs or for municipality-wide property tax or municipal utility tax relief. All utility tax rate reductions afforded by participation in the local government half-cent sales tax shall be applied uniformly across all types of taxed utility services.

(3)  A local government is authorized to pledge proceeds of the local government half-cent sales tax for the payment of principal and interest on any capital project.

History.--s. 10, ch. 82-154.

218.65  Emergency distribution.--

(1)  Each county government which meets the provisions of subsection (2) or subsection (7) and which participates in the local government half-cent sales tax shall receive a distribution from the Local Government Half-cent Sales Tax Clearing Trust Fund in addition to its regular monthly distribution as provided in this part.

(2)  The Legislature hereby finds and declares that a fiscal emergency exists in any county which meets the criteria specified in paragraph (a), if applicable, and the criterion specified in paragraph (b):

(a)  If the county has a population of 65,000 or above:

1.  In any year from 1977 to 1981, inclusive, the value of net new construction and additions placed on the tax roll for that year was less than 2 percent of the taxable value for school purposes on the roll for that year, exclusive of such net value; or

2.  The percentage increase in county taxable value from 1979 to 1980, 1980 to 1981, or 1981 to 1982 was less than 3 percent.

(b)  The moneys distributed to the county government pursuant to s. 218.62 for the prior fiscal year were less than the current per capita limitation, based on the population of that county.

(3)  Qualification under this section shall be determined annually at the start of the fiscal year. Emergency and supplemental moneys shall be distributed monthly with other moneys provided pursuant to this part.

(4)  For the fiscal year beginning in 1988, the per capita limitation shall be $24.60. Thereafter, commencing with the fiscal year which begins in 1989, this limitation shall be adjusted annually for inflation. The annual adjustment to the per capita limitation for each fiscal period shall be the percentage change in the state and local government price deflator for purchases of goods and services, all items, 1983 equals 100, or successor reports for the preceding calendar year as initially reported by the United States Department of Commerce, Bureau of Economic Analysis, as certified by the Florida Consensus Estimating Conference.

(5)  At the beginning of each fiscal year, the Department of Revenue shall calculate a base allocation for each eligible county equal to the difference between the current per capita limitation times the county's population, minus prior year ordinary distributions to the county pursuant to ss. 212.20(6)(e)3., 218.61, and 218.62. If moneys deposited into the Local Government Half-cent Sales Tax Clearing Trust Fund pursuant to s. 212.20(6)(e)4., excluding moneys appropriated for supplemental distributions pursuant to subsection (7), for the current year are less than or equal to the sum of the base allocations, each eligible county shall receive a share of the appropriated amount proportional to its base allocation. If the deposited amount exceeds the sum of the base allocations, each county shall receive its base allocation, and the excess appropriated amount shall be distributed equally on a per capita basis among the eligible counties.

(6)  There is hereby annually appropriated from the Local Government Half-cent Sales Tax Clearing Trust Fund the distribution provided in s. 212.20(6)(e)4. to be used for emergency and supplemental distributions pursuant to this section.

(7)(a)  Any county the inmate population of which in any year is greater than 7 percent of the total population of the county is eligible for a supplemental distribution for that year from funds expressly appropriated therefor. At the beginning of each fiscal year, the Department of Revenue shall calculate a supplemental allocation for each eligible county equal to the current per capita limitation pursuant to subsection (4) times the inmate population of the county. If moneys appropriated for distribution pursuant to this section for the current year are less than the sum of supplemental allocations, each eligible county shall receive a share of the appropriated amount proportional to its supplemental allocation. Otherwise, each shall receive an amount equal to its supplemental allocation.

(b)  For the purposes of this subsection, the term:

1.  "Inmate population" means the latest official state estimate of the number of inmates and patients residing in institutions operated by the Federal Government, the Department of Corrections, or the Department of Children and Family Services.

2.  "Total population" includes inmate population and noninmate population.

History.--s. 10, ch. 82-154; s. 1, ch. 83-299; s. 39, ch. 88-119; s. 1, ch. 90-93; s. 2, ch. 94-245; s. 328, ch. 96-410; s. 10, ch. 98-258; s. 93, ch. 99-2; s. 24, ch. 99-8; s. 3, ch. 2000-206.

218.66  Special distributions for contested property taxes.--

(1)  In the event that an action to contest a tax assessment is brought by a taxpayer in a county or municipality participating in the distribution of half-cent sales tax proceeds pursuant to s. 218.61 and the difference between the good faith payment made by that taxpayer pursuant to s. 194.171(3) and the taxes that would have been paid on the property appraiser's tax assessment is greater than 6 percent of the total assessed taxes for the county or municipality, the county or municipality qualifies for a special distribution of funds from the Local Government Half-cent Sales Tax Clearing Trust Fund as provided in this section.

(2)  The determination of eligibility for the special distribution pursuant to this section and the amount of the distribution shall be calculated based on the total of districtwide millage levies by the county or municipality. The distribution shall be made upon application to the Department of Revenue by a qualified county or municipality in which the action to contest a tax assessment has not been resolved by July 1 of the year following the year in which the tax was assessed. Distributions shall be made prior to September 30 of that year and shall be in an amount equal to 95 percent of the difference between the good faith payment by the taxpayer and the taxes that would have been paid on the property appraiser's tax assessment. Counties or municipalities receiving such distributions must use the revenue in the same manner prescribed for the ad valorem revenue which the distribution replaces. In calculating the distribution to participating county and municipal governments pursuant to s. 218.61, the amount earmarked for distribution within each county pursuant to s. 218.61(2) shall be reduced by a portion of the amount required for the special distribution equal to its proportionate share of total moneys remitted for distribution by sales tax dealers located in all counties.

(3)  Upon resolution of the action to contest the tax assessment, any county or municipality which received a special distribution pursuant to this section shall immediately repay to the Local Government Half-cent Sales Tax Clearing Trust Fund the full amount of any tax revenues received as a result of the resolution. In calculating the distribution to participating county and municipal governments pursuant to s. 218.61, the amount earmarked for distribution within each county pursuant to s. 218.61(2) shall be increased by a portion of the amount of such repayment equal to its proportionate share of total moneys remitted for distribution by sales tax dealers located in all counties.

History.--s. 2, ch. 98-228.

218.70  Short title.

218.71  Purpose and policy.

218.72  Definitions.

218.73  Timely payment.

218.735  Timely payment for purchases of construction services.

218.74  Procedures for calculation of payment due dates.

218.75  Mandatory interest.

218.76  Improper invoice; resolution of disputes.

218.77  Payment by federal funds.

218.78  Report of interest.

218.79  Repeal of conflicting laws.

218.80  Public Bid Disclosure Act.

218.70  Short title.--This part may be cited as the "Florida Prompt Payment Act."

History.--s. 4, ch. 89-297.

218.71  Purpose and policy.--

(1)  The purpose of this part is:

(a)  To provide for prompt payments by local governmental entities and their institutions and agencies.

(b)  To provide for interest payments on late payments made by local governmental entities and their institutions and agencies.

(c)  To provide for a dispute resolution process for payment of obligations.

(2)  It is the policy of this state that payment for all purchases by local governmental entities be made in a timely manner.

History.--s. 4, ch. 89-297.

218.72  Definitions.--As used in this part:

(1)  "Proper invoice" means an invoice which conforms with all statutory requirements and with all requirements specified by the local governmental entity to which the invoice is submitted if:

(a)  Such requirements have been adopted by formal action of the local governmental entity taken prior to the transaction to which the invoice applies.

(b)  The local governmental entity made such requirements available to vendors.

(2)  "Local governmental entity" means a county or municipal government or any office, board, bureau, commission, department, branch, division, or institution thereof or any project supported by county or municipal funds.

(3)  "County" means a political subdivision of the state established pursuant to s. 1, Art. VIII of the State Constitution.

(4)  "Municipality" means a municipality created pursuant to general or special law and metropolitan and consolidated governments as provided in s. 6(e) and (f), Art. VIII of the State Constitution.

(5)  "Purchase" means the purchase of goods or services, the purchase or lease of personal property, or the lease of real property by a local governmental entity.

(6)  "Vendor" means any person who sells goods or services, sells or leases personal property, or leases real property to a local governmental entity.

(7)  "Construction services" means all services performed in connection with the construction, alteration, repair, demolition, reconstruction, or any other improvements to real property that require a license under parts I and II of chapter 489.

History.--s. 4, ch. 89-297; s. 1, ch. 95-331.

218.73  Timely payment.--The time at which payment for a purchase by a local governmental entity, except for the purchase of construction services, is due must be calculated from:

(1)  The date on which a proper invoice is received by the chief disbursement officer of the local governmental entity after approval by the governing body, if required; or

(2)  If a proper invoice is not received by the local governmental entity, the date:

(a)  On which delivery of personal property is accepted by the local governmental entity;

(b)  On which services are completed;

(c)  On which the rental period begins; or

(d)  On which the local governmental entity and vendor agree in a contract that provides dates relative to payment periods;

whichever date is latest.

History.--s. 4, ch. 89-297; s. 2, ch. 95-331.

218.735  Timely payment for purchases of construction services.--

(1)  The due date for payment for the purchase of construction services by a local governmental entity is determined as follows:

(a)  If the project architect or project engineer must approve the invoice prior to the invoice being submitted to the local governmental entity, payment is due 20 business days after the date on which the architect or engineer approves the invoice and the invoice is stamped as received as provided in s. 218.74(1).

(b)  If the project architect or project engineer need not approve the invoice which is submitted by the contractor, payment is due 20 business days after the date on which the invoice is stamped as received as provided in s. 218.74(1).

(2)  The local governmental entity may reject the invoice within 20 business days after the date on which the invoice is stamped as received as provided in s. 218.74(1). The rejection must be written and must specify the deficiency in the invoice and the action necessary to make the invoice proper.

(3)  If an invoice is rejected under subsection (2) or this subsection and the contractor submits a corrected invoice, the corrected invoice must be paid or rejected on the later of:

(a)  Ten business days after the date the corrected invoice is stamped as received as provided in s. 218.74(1); or

(b)  If the governing body is required by ordinance, charter, or other law to approve or reject the corrected invoice, the first business day after the next regularly scheduled meeting of the governing body held after the corrected invoice is stamped as received as provided in s. 218.74(1).

(4)  If a dispute between the local governmental entity and the contractor cannot be resolved by the procedure in subsection (3), the dispute must be resolved in accordance with the dispute resolution procedure prescribed in the construction contract or in any applicable ordinance. In the absence of a prescribed procedure, the dispute must be resolved by the procedure specified in s. 218.76(2).

(5)  The payment time periods provided in this section for construction services purchased by a local governmental entity shall not affect contractual provisions or contractual covenants of a local governmental entity in effect on September 30, 1995.

(6)  All payments due from a local governmental entity and not made within the time period specified by this section shall bear interest as specified in s. 218.74(4).

History.--s. 3, ch. 95-331.

218.74  Procedures for calculation of payment due dates.--

(1)  Each local governmental entity shall establish procedures whereby each invoice received by the local governmental entity is marked as received on the date on which it is delivered to an agent or employee of the local governmental entity or of a facility or office of the local governmental entity.

(2)  The payment due date for a local governmental entity is 45 days after the date specified in s. 218.73. The payment due date for the purchase of construction services is specified in s. 218.735.

(3)  If the terms under which a purchase is made allow for partial deliveries and a proper invoice is submitted for a partial delivery, the time for payment for the partial delivery must be calculated from the time of the partial delivery and the submission of the invoice in the same manner as provided in s. 218.73.

(4)  All payments due from a local governmental entity and not made within the time specified by this section bear interest from 30 days after the due date at the rate of 1 percent per month on the unpaid balance. The vendor must invoice the local governmental entity for any interest accrued in order to receive the interest payment. Any overdue period of less than 1 month is considered as 1 month in computing interest. Unpaid interest is compounded monthly. With respect to each past due payment, interest ceases to accrue after interest on that payment has accrued for 12 months. For the purposes of this section, the term "1 month" means a period beginning on any day of one month and ending on the same day of the following month.

History.--s. 4, ch. 89-297; s. 4, ch. 95-331.

218.75  Mandatory interest.--No contract between a local governmental entity and a vendor shall prohibit the vendor from invoicing the local governmental entity for late payment interest charges allowable under this part.

History.--s. 4, ch. 89-297.

218.76  Improper invoice; resolution of disputes.--

(1)  In any case in which an improper invoice is submitted by a vendor, the local governmental entity shall, within 10 days after the improper invoice is received by it, notify the vendor that the invoice is improper and indicate what corrective action on the part of the vendor is needed to make the invoice proper.

(2)  In the event a dispute occurs between a vendor and a local governmental entity concerning payment of an invoice, such disagreement shall be finally determined by the local governmental entity as provided in this section. Each local governmental entity shall establish a dispute resolution procedure to be followed by the local governmental entity in cases of such disputes. Such procedure shall provide that proceedings to resolve the dispute shall be commenced not later than 45 days after the date on which the proper invoice was received by the local governmental entity and shall be concluded by final decision of the local governmental entity not later than 60 days after the date on which the proper invoice was received by the local governmental entity. Such procedures shall not be subject to chapter 120, and such procedures shall not constitute an administrative proceeding which prohibits a court from deciding de novo any action arising out of the dispute. If the dispute is resolved in favor of the local governmental entity, then interest charges shall begin to accrue 15 days after the local governmental entity's final decision. If the dispute is resolved in favor of the vendor, then interest shall begin to accrue as of the original date the payment became due.

History.--s. 4, ch. 89-297.

218.77  Payment by federal funds.--A local governmental entity which intends to pay for a purchase with federal funds shall not make such purchase without reasonable assurance that federal funds to cover the cost thereof will be received. Where payment or the time of payment is contingent on receipt of federal funds or federal approval, any contract and any solicitation to bid shall clearly state such contingency.

History.--s. 4, ch. 89-297.

218.78  Report of interest.--If the total amount of interest paid during the preceding fiscal year exceeds $250, each local governmental entity shall, during December of each year, report to the board of county commissioners or the municipal governing body the number of interest payments made by it during the preceding fiscal year and the total amount of such payments made under this part.

History.--s. 4, ch. 89-297; s. 5, ch. 95-331.

218.79  Repeal of conflicting laws.--All laws and parts of laws in conflict with this part are repealed.

History.--s. 4, ch. 89-297.

218.80  Public Bid Disclosure Act.--

(1)  This section may be cited as the "Public Bid Disclosure Act."

(2)  It is the intent of the Legislature that a local governmental entity shall disclose all of the local governmental entity's permits or fees, including, but not limited to, all license fees, permit fees, impact fees, or inspection fees, payable by the contractor to the unit of government that issued the bidding documents or other request for proposal, unless such permits or fees are disclosed in the bidding documents or other request for proposal for the project at the time the project was let for bid. It is further the intent of the Legislature to prohibit local governments from halting construction to collect any undisclosed permits or fees which were not disclosed or included in the bidding documents or other request for proposal for the project at the time the project was let for bid.

(3)  Bidding documents or other request for proposal issued for bids by a local governmental entity, or any public contract entered into between a local governmental entity and a contractor shall disclose each permit or fee which the contractor will have to pay before or during construction and shall include the dollar amount or the percentage method or the unit method of all permits or fees which may be required by the local government as a part of the contract. If the request for proposal does not require the response to include a final fixed price, the local governmental entity is not required to disclose any fees or assessments in the request for proposal. However, at least 10 days prior to requiring the contractor to submit a final fixed price for the project, the local governmental entity shall make the disclosures required in this section. Any of the local governmental entity's permits or fees which are not disclosed in the bidding documents, other request for proposal, or a contract between a local government and a contractor shall not be assessed or collected after the contract is let. No local government shall halt construction under any public contract or delay completion of the contract in order to collect any permits or fees which were not provided for or specified in the bidding documents, other request for proposal, or the contract.

(4)  This section does not require disclosure in the bidding documents of any permits or fees imposed as a result of a change order or a modification to the contract. The local government shall disclose all permits or fees imposed as a result of a change order or a modification to the contract prior to the date the contractor is required to submit a price for the change order or modification.

History.--s. 1, ch. 93-76.