Senate Bill 0824c2

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    Florida Senate - 1998                     CS for CS for SB 824

    By the Committees on Rules and Calendar; Governmental Reform
    and Oversight; and Senator Williams




    305-2174-98

  1                      A bill to be entitled

  2         An act relating to state planning and

  3         budgeting; amending s. 216.011, F.S.; defining

  4         the terms "disincentive," "incentive,"

  5         "performance-based program appropriation," and

  6         "performance ledger" for purposes of budgeting

  7         and state fiscal affairs; amending s. 216.0166,

  8         F.S.; revising guidelines and requirements for

  9         state agencies in submitting performance-based

10         budget requests, programs, and performance

11         measures; amending s. 216.0172, F.S.; revising

12         the schedule for submission of

13         performance-based program budget legislative

14         budget requests; amending s. 216.0235, F.S.;

15         requiring that additional information be

16         included in program budget instructions;

17         amending s. 216.031, F.S.; revising information

18         to be contained in legislative budget requests;

19         amending s. 216.163, F.S.; prescribing

20         additional incentives and disincentives that

21         may be included in the Governor's recommended

22         budget; amending s. 216.167, F.S.; requiring

23         that the Governor's recommendations include a

24         financial schedule that provides information on

25         revenues in the Budget Stabilization Fund;

26         amending s. 216.178, F.S.; providing a date for

27         the final budget report; amending s. 216.292,

28         F.S.; providing an exception to nontransferable

29         appropriations; amending 186.022, F.S.;

30         revising requirements for state agency

31         strategic plans; amending s. 121.051, F.S.;

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  1         conforming a cross-reference to changes made by

  2         the act; amending s. 215.32, F.S.; including

  3         the Budget Stabilization Fund in the list of

  4         funds in which state moneys are deposited;

  5         amending s. 216.221, F.S.; providing

  6         legislative intent for use of the Budget

  7         Stabilization Fund; amending s. 20.055, F.S.;

  8         requiring inspectors general to review and

  9         assess the validity of performance measures

10         prior to submission to the Executive Office of

11         the Governor; amending s. 252.37, F.S.;

12         providing legislative intent regarding the

13         order of recourse in use of state funds for

14         emergencies; repealing s. 186.021(5), F.S.,

15         relating to state agency strategic plans;

16         repealing s. 212.081(3), F.S., relating to

17         legislative intent; providing an effective

18         date.

19

20  Be It Enacted by the Legislature of the State of Florida:

21

22         Section 1.  Subsection (1) of section 216.011, Florida

23  Statutes, is amended to read:

24         216.011  Definitions.--

25         (1)  For the purpose of fiscal affairs of the state,

26  appropriations acts, legislative budgets, and approved

27  budgets, each of the following terms has the meaning

28  indicated:

29         (a)  "Annual salary rate" means the salary estimated to

30  be paid or actually paid a position or positions on an

31  annualized basis.  In calculating salary rate, a vacant

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  1  position shall be calculated at the minimum of the pay grade

  2  for that position.

  3         (b)  "Appropriation" means a legal authorization to

  4  make expenditures for specific purposes within the amounts

  5  authorized in the appropriations act.

  6         (c)  "Appropriations act" means the authorization of

  7  the Legislature, based upon legislative budgets or based upon

  8  legislative findings of the necessity for an authorization

  9  when no legislative budget is filed, for the expenditure of

10  amounts of money by an agency, the judicial branch, and the

11  legislative branch for stated purposes in the performance of

12  the functions it is authorized by law to perform.

13         (d)  "Authorized position" means a position included in

14  an approved budget.  In counting the number of authorized

15  positions, part-time positions shall be converted to full-time

16  equivalents.

17         (e)  "Budget entity" means a unit or function at the

18  lowest level to which funds are specifically appropriated in

19  the appropriations act.

20         (f)  "Consultation" means to deliberate and seek advice

21  in an open and forthright manner with the full committee, a

22  subcommittee thereof, the chair, or the staff as deemed

23  appropriate by the chair of the respective appropriations

24  committee.

25         (g)  "Continuing appropriation" means an appropriation

26  automatically renewed without further legislative action,

27  period after period, until altered or revoked by the

28  Legislature.

29         (h)  "Data processing services" means electronic data

30  processing services provided by or to state agencies or the

31  judicial branch, which services include, but are not limited

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  1  to, systems design, software development, or time-sharing by

  2  other governmental units or budget entities.

  3         (i)  "Disbursement" means the payment of an

  4  expenditure.

  5         (j)  "Disincentive" means a sanction as described in s.

  6  216.163.

  7         (k)(j)  "Established position" means an authorized

  8  position which has been classified in accordance with a

  9  classification and pay plan as provided by law.

10         (l)(k)  "Expenditure" means the creation or incurring

11  of a legal obligation to disburse money.

12         (m)(l)  "Expense" means the usual, ordinary, and

13  incidental expenditures by an agency or the judicial branch,

14  including, but not limited to, such items as contractual

15  services, commodities, and supplies of a consumable nature,

16  current obligations, and fixed charges, and excluding

17  expenditures classified as operating capital outlay.  Payments

18  to other funds or local, state, or federal agencies are

19  included in this budget classification of expenditures.

20         (n)(m)  "Fiscal year of the state" means a period of

21  time beginning July 1 and ending on the following June 30,

22  both dates inclusive.

23         (o)(n)  "Fixed capital outlay" means real property

24  (land, buildings, including appurtenances, fixtures and fixed

25  equipment, structures, etc.), including additions,

26  replacements, major repairs, and renovations to real property

27  which materially extend its useful life or materially improve

28  or change its functional use and including furniture and

29  equipment necessary to furnish and operate a new or improved

30  facility, when appropriated by the Legislature in the fixed

31  capital outlay appropriation category.

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  1         (p)(o)  "Full-time position" means a position

  2  authorized for the entire normally established work period,

  3  daily, weekly, monthly, or annually.

  4         (q)(p)  "Grants and aids" means contributions to units

  5  of governments or nonprofit organizations to be used for one

  6  or more specified purposes, activities, or facilities.  Funds

  7  appropriated under this category may be advanced.

  8         (r)  "Incentive" means a mechanism, as described in s.

  9  216.163, for recognizing the achievement of performance

10  standards or for motivating performance that exceeds

11  performance standards.

12         (s)(q)  "Independent judgment" means an evaluation of

13  actual needs made separately and apart from the legislative

14  budget request of any other agency or of the judicial branch,

15  or any assessments by the Governor.  Such evaluation shall not

16  be limited by revenue estimates of the Revenue Estimating

17  Conference.

18         (t)(r)  "Judicial branch" means all officers,

19  employees, and offices of the Supreme Court, district courts

20  of appeal, circuit courts, county courts, and the Judicial

21  Qualifications Commission.

22         (u)(s)  "Legislative branch" means the various

23  officers, committees, and other units of the legislative

24  branch of state government.

25         (v)(t)  "Legislative budget" means a request to the

26  Legislature, filed pursuant to s. 216.023, or supplemental

27  detailed requests filed with the Legislature, for the amounts

28  of money such agency or branch believes will be needed in the

29  performance of the functions that it is authorized, or which

30  it is requesting authorization by law, to perform.

31

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  1         (w)(u)  "Lump-sum appropriation" means funds

  2  appropriated to accomplish a specific activity or project

  3  which must be transferred to one or more appropriation

  4  categories for expenditure.

  5         (x)(v)  "Operating capital outlay" means equipment,

  6  fixtures, and other tangible personal property of a

  7  nonconsumable and nonexpendable nature, the value or cost of

  8  which is $500 or more and the normal expected life of which is

  9  1 year or more, and hardback-covered bound books that are

10  circulated to students or the general public, the value or

11  cost of which is $25 or more, and hardback-covered bound

12  books, the value or cost of which is $100 or more.

13         (y)(w)  "Original approved budget" means the approved

14  plan of operation of an agency or of the judicial branch

15  consistent with the General Appropriations Act or special

16  appropriations acts.

17         (z)(x)  "Other personal services" means the

18  compensation for services rendered by a person who is not a

19  regular or full-time employee filling an established position.

20  This definition includes, but is not limited to, services of

21  temporary employees, student or graduate assistants, persons

22  on fellowships, part-time academic employees, board members,

23  and consultants and other services specifically budgeted by

24  each agency, or by the judicial branch, in this category.

25         1.  In distinguishing between payments to be made from

26  salaries appropriations and other-personal-services

27  appropriations, those persons filling established positions

28  shall be paid from salaries appropriations and those persons

29  performing services for a state agency or for the judicial

30  branch, but who are not filling established positions, shall

31  be paid from other-personal-services appropriations.

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  1         2.  It is further intended that those persons paid from

  2  salaries appropriations shall be state officers or employees

  3  and shall be eligible for membership in a state retirement

  4  system and those paid from other-personal-services

  5  appropriations shall not be eligible for such membership.

  6         (aa)(y)  "Part-time position" means a position

  7  authorized for less than the entire normally established work

  8  period, daily, weekly, monthly, or annually.

  9         (bb)(z)  "Pay plan" means a document which formally

10  describes the philosophy, methods, procedures, and salary

11  schedule for compensating employees for work performed.

12         (cc)(aa)  "Perquisites" means those things, or the use

13  thereof, or services of a kind which confer on the officers or

14  employees receiving same some benefit that is in the nature of

15  additional compensation, or which reduces to some extent the

16  normal personal expenses of the officer or employee receiving

17  the same, and shall include, but not be limited to, such

18  things as quarters, subsistence, utilities, laundry services,

19  medical service, use of state-owned vehicles for other than

20  state purposes, servants paid by the state, and other similar

21  things.

22         (dd)(bb)  "Position" means the work, consisting of

23  duties and responsibilities, assigned to be performed by an

24  officer or employee.

25         (ee)(cc)  "Position number" means the identification

26  number assigned to an established position.

27         (ff)(dd)  "Program component" means an aggregation of

28  generally related objectives which, because of their special

29  character, related workload, and interrelated output, can

30  logically be considered an entity for purposes of

31

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  1  organization, management, accounting, reporting, and

  2  budgeting.

  3         (gg)(ee)  "Proviso" means language that qualifies or

  4  restricts a specific appropriation and which can be logically

  5  and directly related to the specific appropriation.

  6         (hh)(ff)  "Reclassification" means changing an

  7  established position in one class in a series to the next

  8  higher or lower class in the same series or to a class in a

  9  different series which is the result of a natural change in

10  the duties and responsibilities of the position.

11         (ii)(gg)  "Revolving fund" means a cash fund maintained

12  within or outside of the State Treasury and established from

13  an appropriation, to be used by an agency or the judicial

14  branch in making authorized expenditures.

15         (jj)(hh)  "Salary" means the cash compensation for

16  services rendered for a specific period of time.

17         (kk)(ii)  "Salary schedule" means an official document

18  which contains a complete list of classes and their assigned

19  salary ranges.

20         (ll)(jj)  "Special category" means amounts appropriated

21  for a specific need or classification of expenditures.

22         (mm)(kk)  "State agency" or "agency" means any

23  official, officer, commission, board, authority, council,

24  committee, or department of the executive branch of state

25  government.  For purposes of this chapter and chapter 215,

26  "state agency" or "agency" includes state attorneys, public

27  defenders, the Capital Collateral Representative, and the

28  Justice Administrative Commission.

29         (nn)(ll)  "State revenue sharing" means statutory or

30  constitutional distributions to local units of government.

31

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  1         (oo)(mm)  "Title of position," or "class of positions"

  2  means the official name assigned to a position or class of

  3  positions.

  4         (pp)(nn)  "Grants and Aids to Local Governments and

  5  Nonprofit Organizations-Fixed Capital Outlay" means that

  6  appropriation category which includes:

  7         1.  Grants to local units of governments and nonprofit

  8  organizations for the acquisition of real property (land,

  9  buildings, including appurtenances, fixtures and fixed

10  equipment, structures, etc.); additions, replacements, major

11  repairs, and renovations to real property which materially

12  extend its useful life or materially improve or change its

13  functional use; and operating capital outlay necessary to

14  furnish and operate a new or improved facility; and

15         2.  Grants to local units of government for their

16  respective infrastructure and growth management needs related

17  to local government comprehensive plans.

18

19  Funds appropriated under this category may be advanced in part

20  or in whole.

21         (qq)(oo)  "Baseline data" means indicators of a state

22  agency's current performance level, pursuant to guidelines

23  established by the Executive Office of the Governor, in

24  consultation with legislative appropriations and appropriate

25  substantive committees.

26         (rr)(pp)  "Outcome" means an indicator of the actual

27  impact or public benefit of a program.

28         (ss)(qq)  "Output" means the actual service or product

29  delivered by a state agency.

30

31

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  1         (tt)(rr)  "Performance-based program budget" means a

  2  budget that incorporates approved programs and performance

  3  measures.

  4         (uu)(ss)  "Performance measure" means a quantitative or

  5  qualitative indicator used to assess state agency performance.

  6         (vv)(tt)  "Program" means a set of activities

  7  undertaken in accordance with a plan of action organized to

  8  realize identifiable goals and objectives based on legislative

  9  authorization.

10         (ww)(uu)  "Standard" means the level of performance of

11  an outcome or output.

12         (xx)  "Performance-based program appropriation" means

13  funds appropriated for a specific set of activities or

14  classification of expenditure within an approved

15  performance-based program.

16         (yy)  "Performance ledger" means the official

17  compilation of information about state agency

18  performance-based programs and measures, including approved

19  programs, approved outputs and outcomes, baseline data,

20  approved standards for each performance measure and any

21  approved adjustments thereto, as well as actual agency

22  performance for each measure.

23         Section 2.  Section 216.0166, Florida Statutes, is

24  amended to read:

25         216.0166  Submission by state agencies of

26  performance-based budget requests, programs, and performance

27  measures.--

28         (1)  Prior to September 1 October 15 of the fiscal year

29  prior to in which a state agency is required to submit a

30  performance-based program budget request pursuant to s.

31  216.0172, such state agency shall identify and submit to the

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  1  Executive Office of the Governor a list of proposed state

  2  agency programs and performance measures. The agency may also

  3  provide a list of statutes or rules affecting its performance

  4  which may be addressed as incentives or disincentives for the

  5  performance-based program budget.  The list should be

  6  accompanied by recommended legislation to implement the

  7  requested changes for potential incentives. Such

  8  identification shall be conducted after discussion with

  9  legislative appropriations and appropriate substantive

10  committees and shall be approved by the Executive Office of

11  the Governor. State agencies selected by the Governor pursuant

12  to s. 216.0172(1) shall submit such lists prior to May 15,

13  1994. The Executive Office of the Governor, after discussion

14  with legislative appropriations and appropriate substantive

15  committees and the Office of Program Policy Analysis and

16  Government Accountability, shall review the list of programs

17  and performance measures, may make any changes or require the

18  agency to resubmit the list, and shall make a final

19  recommendation of programs and associated performance measures

20  to the Legislature approve or disapprove a list within 60 30

21  days after of receipt, to be used in the preparation and

22  submission of the state agency's final legislative budget

23  request pursuant to s. 216.023(5). The Executive Office of the

24  Governor may also recommend legislation to implement any or

25  all of the proposed incentives.  Agencies continuing under

26  performance-based program budgeting may provide as part of

27  their legislative budget request a list of statutes or rules

28  affecting their program performance which may be addressed as

29  incentives or disincentives for the performance-based program

30  budget.  The Executive Office of the Governor shall provide

31  the approved program list to the Legislature.

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  1         (2)  The following documentation shall accompany the

  2  list of proposed programs and measures submitted by the state

  3  agency:

  4         (a)  The constitutional or statutory direction and

  5  authority for each program.

  6         (b)  Identification of the customers, clients, and

  7  users of each program.

  8         (c)  The purpose of each program or the benefit derived

  9  by the customers, clients, and users of the program.

10         (d)  Direct and indirect costs of each program.

11         (e)  Information on fees collected and the adequacy of

12  those fees in funding each program for which the fees are

13  collected.

14         (e)(f)  An assessment of whether each program is

15  conducive to performance-based program budgeting.

16         (f)(g)  An assessment of the time needed to develop

17  meaningful performance measures for each program.

18         (g)  Any proposed legislation necessary to implement

19  the incentives or disincentives requested pursuant to this

20  subsection.

21         (h)  A comparison of the agency's existing budget

22  structure to the proposed budget structure.

23         (i)  A description of the use of performance measures

24  in agency decisionmaking, agency actions to allocate funds and

25  manage programs, and the agency strategic plan.

26         (3)  The Executive Office of the Governor, after

27  discussion with legislative appropriations committees,

28  appropriate substantive committees, and the Legislative

29  Auditing Committee, shall jointly develop instructions for the

30  development of performance measures for each program on the

31  list approved pursuant to this section and shall submit such

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  1  instructions to the state agencies prior to December 1 of the

  2  fiscal year preceding the year in which a state agency is

  3  required to submit a performance-based program budget request

  4  pursuant to s. 216.0172.

  5         (4)  Prior to June 1, each state agency is required to

  6  submit to the executive Office of the Governor performance

  7  measures for each program on the approved list required

  8  pursuant to subsection (1). State agencies shall also identify

  9         (j)  The outputs produced by each proposed approved

10  program, the outcomes resulting from each proposed approved

11  program, and baseline data associated with each performance

12  measure. Agencies must submit documentation for each output

13  and outcome measure which explains the validity, reliability,

14  and appropriateness of each performance measure. Such

15  documentation must be prepared by the agency in consultation

16  with its inspector general. Performance measures shall be

17  reviewed, after discussion with legislative appropriations and

18  appropriate substantive committees and the Office of Program

19  Policy Analysis and Government Accountability, revised as

20  necessary, and approved or disapproved by the Executive Office

21  of the Governor within 30 days of receipt. For those state

22  agencies selected by the Governor pursuant to s. 216.0172(1),

23  performance measures, outputs, outcomes, and baseline data

24  shall be submitted prior to July 1, 1994.

25         (3)(5)  The agency shall submit a performance-based

26  program legislative budget request pursuant to s. 216.0172,

27  using the programs and performance measures adopted by the

28  Legislature, or, if none are adopted, those recommended by the

29  Executive Office of the Governor. Notwithstanding the

30  programs, performance measures, and standards requested in

31  each state agency's final legislative budget request or the

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  1  Governor's budget recommendations, the Legislature shall have

  2  final approval of all programs, performance measures, and

  3  standards through the General Appropriations Act or

  4  legislation implementing the General Appropriations Act.

  5         (6)  Each state agency shall submit documentation to

  6  the Executive Office of the Governor regarding the validity,

  7  reliability, and appropriateness of each performance measure.

  8  In addition, each state agency shall indicate how the

  9  performance measure relates to its strategic plan and how it

10  is used in management decisionmaking and other agency

11  processes.

12         (4)(7)  Annually, no later than 45 days after the

13  General Appropriations Act becomes law, state agencies may

14  submit to the Executive Office of the Governor any adjustments

15  to their performance standards based on the amounts

16  appropriated for each program by the Legislature. When such

17  adjustment is made, all performance standards, including any

18  adjustments made, shall be submitted to and reviewed and

19  revised as necessary by the Executive Office of the Governor,

20  and, upon approval, submitted to the Legislature pursuant to

21  the review and approval process provided in s. 216.177. The

22  Executive Office of the Governor shall maintain both the

23  official record of adjustments to the performance standards as

24  part of the agency's approved operating budget and the

25  official performance ledger.

26         (5)(8)  A state agency operating under a

27  performance-based program budget pursuant to s. 216.0172 shall

28  not have the authority to amend approved or establish programs

29  or performance measures. However, a state agency may propose

30  revisions a revision to the list of approved programs or

31  performance measures used in its legislative budget request.

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  1  Such revisions are revision is subject to review and approval

  2  by the Executive Office of the Governor and the Legislature

  3  and shall be submitted to the Executive Office of the Governor

  4  prior to February 1 April 15 of the year in which the state

  5  agency proposes intends to incorporate these changes into its

  6  legislative budget request. The submission must include the

  7  documentation required by s. 216.0166(2), where applicable.

  8  The Executive Office of the Governor shall have 30 days to

  9  review act on the proposed revisions and make a recommendation

10  to the Legislature. All approved revisions must Revised

11  performance measures, standards, and baseline data shall be

12  submitted along with the agency's preliminary legislative

13  budget request. Any new programs or performance measures

14  proposed by the agency must be submitted pursuant to s.

15  216.0166(1) and must include the documentation required by s.

16  216.0166(2), where applicable.

17         Section 3.  Section 216.0172, Florida Statutes, is

18  amended to read:

19         216.0172  Schedule for submission of performance-based

20  program budgets.--In order to implement the provisions of

21  chapter 94-249, Laws of Florida, state agencies shall submit

22  performance-based program budget legislative budget requests

23  budgets for programs approved pursuant to s. 216.0166 to the

24  Executive Office of the Governor and the Legislature based on

25  the following schedule:

26         (1)  By September 1, 1994, for the 1995-1996 fiscal

27  year, two state agencies selected by the Governor, subject to

28  the review and approval process pursuant to s. 216.177.

29         (2)  By September 1, 1995, for the 1996-1997 fiscal

30  year:

31         (a)  Department of Education (Community Colleges).

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  1         (b)  Department of Health and Rehabilitative Services

  2  (Alcohol, Drug Abuse, Mental Health).

  3         (c)  Department of Labor and Employment Security.

  4         (d)  Department of Law Enforcement.

  5         (e)  Department of Management Services.

  6         (f)  Division of Retirement.

  7         (3)  By September 1, 1996, for the 1997-1998 fiscal

  8  year, by the following:

  9         (a)  Agency for Health Care Administration.

10         (b)  Department of Education (State University System).

11         (c)  Game and Fresh Water Fish Commission.

12         (d)  Department of Highway Safety and Motor Vehicles.

13         (e)  Department of Revenue.

14         (f)  Department of State.

15         (g)  Department of Transportation.

16         (4)  By September 1, 1997, for the 1998-1999 fiscal

17  year, by the following:

18         (a)  Department of Banking and Finance.

19         (b)  Department of Corrections.

20         (c)  Department of Education (Public Schools).

21         (d)  Department of Environmental Protection.

22         (e)  Executive Office of the Governor.

23         (f)  Department of Children and Family Health and

24  Rehabilitative Services.

25         (g)  Department of Legal Affairs.

26         (h)  Department of Juvenile Justice.

27         (5)  By September 1, 1998, for the 1999-2000 fiscal

28  year, by the following:

29         (a)  Department of Agriculture and Consumer Services.

30         (b)  Department of Commerce.

31         (b)(c)  Department of Elderly Affairs.

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  1         (c)(d)  Department of the Lottery.

  2         (d)(e)  Department of Military Affairs.

  3         (6)  By September 1, 1999, for the 2000-2001 fiscal

  4  year, by the following:

  5         (a)  Division of Administrative Hearings.

  6         (b)  Department of Business and Professional

  7  Regulation.

  8         (c)  Parole and Probation Commission.

  9         (d)  Public Service Commission.

10         (e)  Department of Health.

11         (f)  Department of Education (all remaining programs).

12         (7)  By September 1, 2000, for the 2001-2002 fiscal

13  year, by the following:

14         (a)  Department of Citrus.

15         (b)  Department of Community Affairs.

16         (c)  Department of Insurance.

17         (d)  Department of Veterans' Affairs.

18         (e)  State attorneys.

19         (f)  Public defenders.

20         (g)  Justice Administrative Commission and capital

21  collateral counsel.

22         (8)  Any new agency or portion thereof created after

23  September 1, 2000, shall submit a performance-based program

24  budget request for programs approved pursuant to s. 216.0166

25  to the Executive Office of the Governor and the Legislature by

26  September 1 of the year following the creation of the agency

27  or portion thereof.

28         (9)(8)  The schedule set forth in subsections (2)

29  through (7) may be amended by the Legislative Auditing

30  Committee, the General Appropriations Act, or upon the

31  recommendation of the Governor, which recommendation is

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  1  subject to the review and approval process provided in s.

  2  216.177.

  3         (10)  Beginning in fiscal year 1998-1999, the Executive

  4  Office of the Governor shall, for any agency that fails to

  5  meet the requirements set forth in s. 216.0166 according to

  6  the schedule set forth in s. 216.0172 or within three years

  7  thereafter, recommend programs and performance measures to the

  8  Legislature on behalf of that agency.

  9         Section 4.  Subsection (3) of section 216.0235, Florida

10  Statutes, is amended to read:

11         216.0235  Performance-based legislative program budget

12  requests to be furnished by agencies.--

13         (3)  The Executive Office of the Governor and the

14  legislative appropriations committees shall jointly develop

15  legislative program budget instructions from which each agency

16  that has an approved program and the judicial branch, pursuant

17  to ss. 216.0166 and 216.043, shall prepare its legislative

18  program budget request. The program budget instructions must

19  be consistent with s. 216.141 and must be transmitted to each

20  agency and to the judicial branch no later than June 15 of

21  each year. The budget instructions must also include

22  instructions for agencies in submitting performance measures

23  and standards as required by s. 216.0166. In the event that

24  agreement cannot be reached between the Executive Office of

25  the Governor and the legislative appropriations committees

26  regarding legislative program budget instructions, the issue

27  shall be resolved by the Governor, the President of the

28  Senate, and the Speaker of the House of Representatives.

29         Section 5.  Subsection (11) of section 216.031, Florida

30  Statutes, is amended and subsection (12) is added to that

31  section to read:

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  1         216.031  Budgets for operational expenditures.--A

  2  legislative budget request, reflecting the independent

  3  judgment of the head of the state agency, and of the Chief

  4  Justice of the Supreme Court, with respect to the needs of the

  5  agency and the judicial branch for operational expenditures

  6  during the next fiscal year, shall be submitted by each head

  7  of a state agency and by the Chief Justice of the Supreme

  8  Court and shall contain the following:

  9         (11)  For performance-based program budgets, the

10  baseline data, outcome measures outcomes, output performance

11  measures, and standards for program measures current programs,

12  including justification for those programs in the format

13  required by the legislative budget instructions.

14         (12)  A prioritized listing of planned expenditures for

15  review and possible reduction in the event of revenue

16  shortfalls, as provided for in s. 216.221. Such list shall be

17  in the format provided in the planning and budgeting

18  instructions.

19

20  Either chair of a legislative appropriations committee, or the

21  Executive Office of the Governor for state agencies, may

22  require the agency or the Chief Justice to address major

23  issues separate from those outlined in s. 216.023, this

24  section, and s. 216.043 for inclusion in the requests of the

25  agency or of the judicial branch.  The issues shall be

26  submitted to the agency no later than July 30 of each year and

27  shall be displayed in its requests as provided in the budget

28  instructions.  The Executive Office of the Governor may

29  request an agency, or the chair of the appropriations

30  committees of the Senate or House of Representatives may

31  request any agency or the judicial branch, to submit no later

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  1  than September 15 of each year a budget plan with respect to

  2  targets established by the Governor or either chair. The

  3  target budget shall require each entity to establish an order

  4  of priorities for its budget issues and may include requests

  5  for multiple options for the budget issues.  The target budget

  6  may also require each entity to submit a program budget or a

  7  performance-based budget in the format prescribed by the

  8  Executive Office of the Governor or either chair; provided,

  9  however, the target budget format shall be compatible with the

10  planning and budgeting system requirements set out in s.

11  216.141.  Such a request shall not influence the agencies' or

12  judicial branch's independent judgment in making legislative

13  budget requests, as required by law.

14         Section 6.  Subsection (4) of section 216.163, Florida

15  Statutes, is amended to read:

16         216.163  Governor's recommended budget; form and

17  content; declaration of collective bargaining impasses.--

18         (4)  The Executive Office of the Governor shall review

19  the evaluation report required by s. 216.031(10) and the

20  findings of the Office of Program Policy Analysis and

21  Government Accountability, to the extent they are available,

22  request any reports or additional analyses as necessary, and

23  submit a recommendation, pursuant to paragraph (2)(g) which

24  may include a recommendation regarding incentives or

25  disincentives for agency performance. Incentives or

26  disincentives may apply to all or part of a state agency.

27         (a)  Incentives may include, but are not limited to:

28         1.  Additional flexibility in budget management, such

29  as, but not limited to, the use of lump sums, special

30  categories, or performance-based program appropriation;

31  consolidation of budget entities or program components;

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  1  consolidation of appropriation categories; and increased

  2  agency transfer authority between appropriation categories or

  3  budget entities.

  4         2.  Additional flexibility in salary rate and position

  5  management.

  6         3.  Retention of up to 50 percent of all unexpended and

  7  unencumbered balances of appropriations as of June 30, or

  8  undisbursed balances as of December 31, excluding special

  9  categories and grants and aids, which may be used for

10  nonrecurring purposes including, but not limited to, lump-sum

11  bonuses, employee training, or productivity enhancements,

12  including technology and other improvements.

13         4.  Additional funds to be used for, but not limited

14  to, lump-sum bonuses, employee training, or productivity

15  enhancements, including technology and other improvements.

16         5.  Additional funds provided pursuant to law to be

17  released to an agency quarterly or incrementally contingent

18  upon the accomplishment of units of output or outcome

19  specified in the General Appropriations Act.

20         (b)  Disincentives may include, but are not limited to:

21         1.  Mandatory quarterly reports to the Executive Office

22  of the Governor and the Legislature on the agency's progress

23  in meeting performance standards.

24         2.  Mandatory quarterly appearances before the

25  Legislature, the Governor, or the Governor and Cabinet to

26  report on the agency's progress in meeting performance

27  standards.

28         3.  Elimination or restructuring of the program, which

29  may include, but not be limited to transfer of the program or

30  outsourcing all or a portion of the program.

31         4.  Reduction of total positions for a program.

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  1         5.  Restriction on or reduction of the spending

  2  authority provided in s. 216.292(2) and (4) s. 216.292(2)(c).

  3         6.  Reduction of managerial salaries.

  4         Section 7.  Section 216.167, Florida Statutes, is

  5  amended to read:

  6         216.167  Governor's recommendations.--The Governor's

  7  recommendations shall include a financial schedule that

  8  provides which shall provide:

  9         (1)  The Governor's estimate of the recommended

10  recurring revenues available in the Budget Stabilization Fund,

11  in the Working Capital Fund, and the General Revenue Fund.

12         (2)  The Governor's estimate of the recommended

13  nonrecurring revenues available in the Budget Stabilization

14  Fund, in the Working Capital Fund, and the General Revenue

15  Fund.

16         (3)  The Governor's recommended recurring and

17  nonrecurring appropriations from the Budget Stabilization

18  Fund, the Working Capital Fund, and the General Revenue Fund.

19         (4)  The Governor's estimates of any interfund loans or

20  temporary obligations of the Budget Stabilization Fund, the

21  Working Capital Fund, or trust funds, which loans or

22  obligations are needed to implement his or her recommended

23  budget.

24         (5)(a)  For any recommendation to be funded by a

25  proposed state debt or obligation as defined in s. 216.0442,

26  the documents set forth in s. 216.0442(2) and a 5-year

27  estimate of the program operational costs associated with any

28  proposed fixed capital outlay project to be funded by the

29  proposed state debt or obligation.

30         (b)  The Governor's estimates of the debt service and

31  reserve requirements for any recommended new bond issues or

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  1  reissues and his or her recommended debt service

  2  appropriations for all outstanding fixed capital outlay bond

  3  issues.

  4         Section 8.  Subsection (2) of section 216.178, Florida

  5  Statutes, is amended to read:

  6         216.178  General Appropriations Act; format; procedure;

  7  cost statement for new debt or obligation.--

  8         (2)  Effective June 30, 1993, the Office of Planning

  9  and Budgeting shall develop a final budget report that

10  reflects the net appropriations for each budget item.  The

11  report shall reflect actual expenditures for each of the 2

12  preceding fiscal years and the estimated expenditures for the

13  current fiscal year.  In addition, the report must contain the

14  actual revenues and cash balances for the preceding 2 fiscal

15  years and the estimated revenues and cash balances for the

16  current fiscal year.  The report may also contain expenditure

17  data, program objectives, and program measures for each state

18  agency program.  The report must be produced by October 15

19  each year within 90 days after the beginning of the fiscal

20  year.  A copy of the report must be made available to each

21  member of the Legislature, to the head of each state agency,

22  to the Auditor General, and to the public.

23         Section 9.  Section 216.292, Florida Statutes, is

24  amended to read:

25         216.292  Appropriations nontransferable; exceptions.--

26         (1)(a)  Funds provided in the General Appropriations

27  Act or as otherwise expressly provided by law shall be

28  expended only for the purpose for which appropriated, except

29  that if deemed necessary such moneys may be transferred as

30  provided in subsections (3), and (4), and (5) when it is

31  determined to be in the best interest of the state.

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  1  Appropriations for fixed capital outlay may not be expended

  2  for any other purpose, and appropriations may not be

  3  transferred between state agencies, or between a state agency

  4  and the judicial branch, unless specifically authorized by

  5  law.

  6         (b)  For the 1997-1998 fiscal year only, the Department

  7  of Children and Family Services and the Agency for Health Care

  8  Administration may transfer general revenue funds as necessary

  9  to comply with any provision of the General Appropriations Act

10  that requires or specifically authorizes the transfer of

11  general revenue funds between these two agencies. This

12  paragraph is repealed on July 1, 1998.

13         (2)  A lump sum appropriated for a performance-based

14  program must be distributed by the Governor for state agencies

15  or the Chief Justice for the judicial branch into the

16  traditional expenditure categories in accordance with s.

17  216.181(5)(b) s. 216.181(4)(b).  At any time during the year,

18  the agency head or Chief Justice may transfer funds between

19  those categories with no limit on the amount of the transfer.

20  Authorized revisions of the original approved operating

21  budget, together with related changes, if any, must be

22  transmitted by the state agency or by the judicial branch to

23  the Executive Office of the Governor or the Chief Justice, the

24  chairs of the legislative appropriations committees, the

25  Office of Program Policy Analysis and Government

26  Accountability, and the Auditor General. Such authorized

27  revisions shall be consistent with the intent of the approved

28  operating budget, shall be consistent with legislative policy

29  and intent, and shall not conflict with specific spending

30  policies specified in the General Appropriations Act. The

31  Executive Office of the Governor shall forward a copy of the

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  1  revisions within 7 working days to the Comptroller for entry

  2  in his or her records in the manner and format prescribed by

  3  the Executive Office of the Governor in consultation with the

  4  Comptroller. Authorized revisions of the original approved

  5  operating budget, together with related changes, if any, must

  6  be transmitted by the state agency or by the judicial branch

  7  to the Comptroller for entry in his or her records in the

  8  manner and format prescribed by the Executive Office of the

  9  Governor in consultation with the Comptroller.  A copy of such

10  revisions shall be furnished, within 7 working days, to the

11  Executive Office of the Governor or the Chief Justice, the

12  chairs of the legislative appropriations committees, the

13  Office of Program Policy Analysis and Government

14  Accountability, and the Auditor General. Such authorized

15  revisions shall be consistent with the intent of the approved

16  operating budget, shall be consistent with legislative policy

17  and intent, and shall not conflict with specific spending

18  policies specified in the General Appropriations Act.

19  Additionally, subsection (3) shall not apply to programs

20  operating under performance-based program budgeting where a

21  lump sum was appropriated program-performance based budgets.

22         (3)  The head of each department or the Chief Justice

23  of the Supreme Court, whenever it is deemed necessary by

24  reason of changed conditions, may transfer appropriations

25  funded from identical funding sources, except appropriations

26  for fixed capital outlay, and transfer the amounts included

27  within the total original approved budget and releases as

28  furnished pursuant to ss. 216.181 and 216.192, as follows:

29         (a)  Between categories of appropriations within a

30  budget entity, if no category of appropriation is increased or

31  decreased by more than 5 percent of the original approved

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  1  budget or $25,000, whichever is greater, by all action taken

  2  under this subsection.

  3         (b)  Additionally, between budget entities within

  4  identical categories of appropriations, if no category of

  5  appropriation is increased or decreased by more than 5 percent

  6  of the original approved budget or $25,000, whichever is

  7  greater, by all action taken under this subsection.

  8         (c)  Such authorized revisions must be consistent with

  9  the intent of the approved operating budget, must be

10  consistent with legislative policy and intent, and must not

11  conflict with specific spending policies specified in the

12  General Appropriations Act.

13

14  Such authorized revisions, together with related changes, if

15  any, in the plan for release of appropriations, shall be

16  transmitted by the state agency or by the judicial branch to

17  the Comptroller for entry in the Comptroller's records in the

18  manner and format prescribed by the Executive Office of the

19  Governor in consultation with the Comptroller.  A copy of such

20  revision shall be furnished to the Executive Office of the

21  Governor or the Chief Justice, the chairs of the legislative

22  committees, and the Auditor General.

23         (4)  The head of each department or the Chief Justice

24  of the Supreme Court, whenever it is deemed necessary by

25  reason of changed conditions, may transfer funds, positions,

26  and salary rate within and between program budget entities

27  with performance-based program appropriations as defined in s.

28  216.011(1)(xx). Such transfers may include appropriations from

29  any operating category, except appropriations for fixed

30  capital outlay. However, the total program funds, positions,

31  and salary rate shall not be increased or decreased by more

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  1  than 5 percent by all action taken under this section.

  2  Authorized revisions of the original approved operating

  3  budget, together with related changes, if any, must be

  4  transmitted by the state agency or by the judicial branch to

  5  the Executive Office of the Governor or the Chief Justice, the

  6  chairs of the legislative appropriations committees, the

  7  Office of Program Policy Analysis and Government

  8  Accountability, and the Auditor General. Such authorized

  9  revisions shall be consistent with legislative policy and

10  intent, and shall not conflict with specific spending policies

11  specified in the General Appropriations Act. The Executive

12  Office of the Governor shall forward a copy of the revisions

13  within 7 working days to the Comptroller for entry in his or

14  her records in the manner and format prescribed by the

15  Executive Office of the Governor in consultation with the

16  Comptroller.

17         (5)(4)(a)  Transfers of appropriations for operations

18  from the General Revenue Fund in excess of those provided in

19  subsections subsection (3) and (4) but within a state agency

20  or within the judicial branch may be authorized by the

21  commission for the executive branch and the Chief Justice for

22  the judicial branch, pursuant to the request of the agency

23  filed with the Executive Office of the Governor, or pursuant

24  to the request of an entity of the judicial branch filed with

25  the Chief Justice of the Supreme Court, if deemed necessary

26  and in the best interest of the state and consistent with

27  legislative policy and intent.  The provisions of this

28  paragraph are subject to the notice, review, and objection

29  procedures set forth in s. 216.177.

30         (b)  When an appropriation for a named fixed capital

31  outlay project is found to be in excess of that needed to

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  1  complete that project, at the request of the Executive Office

  2  of the Governor for state agencies or the Chief Justice of the

  3  Supreme Court for the judicial branch the excess may be

  4  transferred, with the approval of the commission or the Chief

  5  Justice, to another project for which there has been an

  6  appropriation in the same fiscal year from the same fund and

  7  within the same department where a deficiency is found to

  8  exist.  Further, a fixed capital outlay project may not be

  9  initiated without a specific legislative appropriation, nor

10  may the scope of a fixed capital outlay project be changed by

11  the transfer of funds.  The provisions of this paragraph are

12  subject to the notice, review, and objection procedures set

13  forth in s. 216.177.

14         (6)(5)  Upon request of a department to, and approval

15  by, the Comptroller, funds appropriated may be transferred to

16  accounts established for disbursement purposes upon release of

17  such appropriation.  Such transfer may only be made to the

18  same appropriation category and the same funding source from

19  which the funds are transferred.

20         (7)(6)  Any transfers from the Working Capital Fund to

21  the General Revenue Fund may be approved provided such

22  transfers were identified or contemplated by the Legislature

23  in the original approved budget.

24         (8)(7)(a)  Should any state agency or the judicial

25  branch become more than 90 days delinquent on reimbursements

26  due to the Unemployment Compensation Trust Fund, the

27  Department of Labor and Employment Security shall certify to

28  the Comptroller the amount due; and the Comptroller shall

29  transfer the amount due to the Unemployment Compensation Trust

30  Fund from any funds of the agency available.

31

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  1         (b)  Should any state agency or the judicial branch

  2  become more than 90 days delinquent in paying the Division of

  3  Risk Management of the Department of Insurance for insurance

  4  coverage, the Department of Insurance may certify to the

  5  Comptroller the amount due; and the Comptroller shall transfer

  6  the amount due to the Division of Risk Management from any

  7  funds of the agency or the judicial branch available.

  8         (9)(8)  Moneys appropriated in the General

  9  Appropriations Act for the purpose of paying for services

10  provided by the state communications system in the Division of

11  Communications of the Department of Management Services shall

12  be paid by the user agencies, or the judicial branch, within

13  45 days after the billing date.  Billed amounts not paid by

14  the user agencies, or by the judicial branch, shall be

15  transferred by the Comptroller from the user agencies to the

16  Communications Working Capital Trust Fund.

17         (10)(9)  The Comptroller shall report all such

18  transfers and the reasons for such transfers to the

19  legislative appropriations committees.

20         (11)(10)  Where any reorganization has been authorized

21  by the Legislature and the necessary adjustments of

22  appropriations and positions have not been provided in the

23  General Appropriations Act, the Administration Commission may

24  approve, consistent with legislative policy and intent, the

25  necessary transfers to accomplish the purposes of such

26  reorganization within state agencies.  The Chief Justice of

27  the Supreme Court may approve such transfers for the judicial

28  branch.

29         Section 10.  Subsection (2) of section 186.022, Florida

30  Statutes, is amended to read:

31

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  1         186.022  State agency strategic plans; preparation,

  2  form, and review.--

  3         (2)  Each agency strategic plan must be in a form and

  4  manner prescribed in written instructions prepared by the

  5  Executive Office of the Governor after consultation with the

  6  President of the Senate and the Speaker of the House of

  7  Representatives.  Each agency strategic plan must identify the

  8  specific legislative authority necessary to implement the

  9  provisions of the plan.  An agency may only implement those

10  portions of its strategic plan that are consistent with

11  existing statutory or constitutional authority and for which

12  funding, if needed, is available consistent with the

13  provisions of chapter 216.  An agency's budget request

14  prescribed in s. 216.023(1) shall identify the financial

15  resources necessary to further the provisions of the agency's

16  strategic plan. Performance measures, as defined in s. 216.011

17  and proposed by the agency pursuant to s. 216.0166(1), must be

18  consistent with the objectives in the draft agency strategic

19  plan and shall represent 1-year implementation efforts

20  necessary to meet the 5-year agency strategic plan objectives.

21  State agency strategic plans shall be amended by the agency,

22  as necessary, to ensure consistency with the legislative

23  actions prior to the effective date of the agency strategic

24  plan.

25         Section 11.  Subsection (8) of section 121.051, Florida

26  Statutes, is amended to read:

27         121.051  Participation in the system.--

28         (8)  DIVISION OF REHABILITATION AND LIQUIDATION

29  EMPLOYEES MEMBERSHIP.--Effective July 1, 1994, the regular

30  receivership employees of the Division of Rehabilitation and

31  Liquidation who are assigned to established positions and are

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  1  subject to established rules and regulations regarding

  2  discipline, pay, classification, and time and attendance are

  3  hereby declared to be state employees within the meaning of

  4  this chapter and shall be compulsory members in compliance

  5  with this chapter, the provisions of s. 216.011(1)(z)2. s.

  6  216.011(1)(x)2., notwithstanding. Employment performed before

  7  July 1, 1994, as such a receivership employee may be claimed

  8  as creditable retirement service upon payment by the employee

  9  or employer of contributions required in s. 121.081(1), as

10  applicable for the period claimed.

11         Section 12.  Section 215.32, Florida Statutes, is

12  amended to read:

13         215.32  State funds; segregation.--

14         (1)  All moneys received by the state shall be

15  deposited in the State Treasury unless specifically provided

16  otherwise by law and shall be deposited in and accounted for

17  by the Treasurer and the Department of Banking and Finance

18  within the following funds, which funds are hereby created and

19  established:

20         (a)  General Revenue Fund.

21         (b)  Trust funds.

22         (c)  Working Capital Fund.

23         (d)  Budget Stabilization Fund.

24         (2)  The source and use of each of these funds shall be

25  as follows:

26         (a)  The General Revenue Fund shall consist of all

27  moneys received by the state from every source whatsoever,

28  except as provided in paragraphs (b) and (c).  Such moneys

29  shall be expended pursuant to General Revenue Fund

30  appropriations acts or transferred as provided in paragraph

31  (c).  Annually, at least 5 percent of the estimated increase

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  1  in General Revenue Fund receipts for the upcoming fiscal year

  2  over the current year General Revenue Fund effective

  3  appropriations shall be appropriated for state-level capital

  4  outlay, including infrastructure improvement and general

  5  renovation, maintenance, and repairs.

  6         (b)1.  The trust funds shall consist of moneys received

  7  by the state which under law or under trust agreement are

  8  segregated for a purpose authorized by law.  The state agency

  9  or branch of state government receiving or collecting such

10  moneys shall be responsible for their proper expenditure as

11  provided by law.  Upon the request of the state agency or

12  branch of state government responsible for the administration

13  of the trust fund, the Comptroller may establish accounts

14  within the trust fund at a level considered deemed necessary

15  for proper accountability.  Once an account is established

16  within a trust fund, the Comptroller may shall authorize

17  payment from that account only upon determining that there is

18  sufficient cash and releases at the level of the account.

19         2.  In order to maintain a minimum number of trust

20  funds in the State Treasury, each state agency or the judicial

21  branch may consolidate, if permitted under the terms and

22  conditions of their receipt, the trust funds administered by

23  it; provided, however, the agency or judicial branch employs

24  effectively a uniform system of accounts sufficient to

25  preserve the integrity of such trust funds; and provided,

26  further, that consolidation of trust funds is approved by the

27  Administration Commission or the Chief Justice.

28         3.  All such moneys are hereby appropriated to be

29  expended in accordance with the law or trust agreement under

30  which they were received, subject always to the provisions of

31  chapter 216 relating to the appropriation of funds and to the

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  1  applicable laws relating to the deposit or expenditure of

  2  moneys in the State Treasury.

  3         4.a.  Notwithstanding any provision of law restricting

  4  the use of trust funds to specific purposes, unappropriated

  5  cash balances from selected trust funds may be authorized by

  6  the Legislature for transfer to the Budget Stabilization and

  7  Working Capital Fund in the General Appropriations Act.

  8         b.  The provisions of This subparagraph does shall not

  9  apply to trust funds required by federal programs or mandates;

10  trust funds established for bond covenants, indentures, or

11  resolutions whose revenues are legally pledged by the state or

12  public body to meet debt service or other financial

13  requirements of any debt obligations of the state or any

14  public body; the State Transportation Trust Fund; the trust

15  fund containing the net annual proceeds from the Florida

16  Education Lotteries; the Florida Retirement Trust Fund; trust

17  funds under the management of the Board of Regents, where such

18  trust funds are for auxiliary enterprises, self-insurance, and

19  contracts, grants, and donations, as those terms are defined

20  by general law; trust funds that serve as clearing funds or

21  accounts for the Comptroller or state agencies; trust funds

22  that account for assets held by the state in a trustee

23  capacity as an agent or fiduciary for individuals, private

24  organizations, or other governmental units; and other trust

25  funds authorized by the State Constitution.

26         (c)1.  The Budget Stabilization Fund shall consist of

27  amounts equal to at least 5 percent of net revenue collections

28  for the General Revenue Fund during the last completed fiscal

29  year. The Budget Stabilization Fund's principal balance shall

30  not exceed an amount equal to 10 percent of the last completed

31  fiscal year's net revenue collections for the General Revenue

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  1  Fund. As used in this paragraph, the term "last completed

  2  fiscal year" means the most recently completed fiscal year

  3  prior to the regular legislative session at which the

  4  Legislature considers the General Appropriations Act for the

  5  year in which the transfer to the Budget Stabilization Fund

  6  must be made under this paragraph.

  7         2.  By September 15 of each year, the Governor shall

  8  authorize the Comptroller to transfer, and the Comptroller

  9  shall transfer pursuant to appropriations made by law, to the

10  Budget Stabilization Fund the amount of money needed for the

11  balance of that fund to equal the amount specified in

12  subparagraph 1., less any amounts expended and not restored.

13  The moneys needed for this transfer may be appropriated by the

14  Legislature from any funds.

15         3.  Unless otherwise provided in this subparagraph, an

16  expenditure from the Budget Stabilization Fund must be

17  restored pursuant to a restoration schedule that provides for

18  making five equal annual transfers from the General Revenue

19  Fund, beginning in the fiscal year following that in which the

20  expenditure was made. For any Budget Stabilization Fund

21  expenditure, the Legislature may establish by law a different

22  restoration schedule and such change may be made at any time

23  during the restoration period. Moneys are hereby appropriated

24  for transfers pursuant to this subparagraph.

25         4.  The Budget Stabilization Fund and the Working

26  Capital Fund may be used as revolving funds for transfers as

27  provided in s. 18.125; however, any interest earned must be

28  deposited in the General Revenue Fund.

29         (d)  The Working Capital Fund shall consist of moneys

30  in the General Revenue Fund which are in excess of the amount

31  needed to meet General Revenue Fund appropriations for the

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  1  current fiscal year. Each year, no later than the publishing

  2  date of the annual financial statements for the state by the

  3  Comptroller under s. 216.102, funds shall be transferred

  4  between the Working Capital Fund and the General Revenue Fund

  5  to establish the balance of the Working Capital Fund for that

  6  fiscal year at the amount determined pursuant to this

  7  paragraph.

  8         1.  The amount of moneys in the General Revenue Fund

  9  shall be determined at the beginning of the fiscal year based

10  on the Revenue Estimating Conference's estimate of funds

11  available.  This amount shall be adjusted upon determination

12  of the previous year's appropriations which remain unspent

13  after certifications are completed pursuant to s. 216.301.

14         2.  The Working Capital Fund shall consist of an

15  amount, not more than 10 percent of the amount of net revenue

16  of the General Revenue Fund for the preceding fiscal year,

17  which accrues from moneys in the General Revenue Fund which

18  are in excess of the amount needed to meet the General Revenue

19  Fund appropriations acts. The Legislature shall have as a goal

20  that the Working Capital Fund for fiscal year 1994-1995 have

21  not less than 2 percent of the amount of net revenue of the

22  General Revenue Fund for the preceding fiscal year, that the

23  Working Capital Fund for fiscal year 1995-1996 have not less

24  than 3 percent of the amount of net revenue of the General

25  Revenue Fund for the preceding fiscal year, that the Working

26  Capital Fund for fiscal year 1996-1997 have not less than 4

27  percent of the amount of net revenue of the General Revenue

28  Fund for the preceding fiscal year, and that the Working

29  Capital Fund for fiscal year 1997-1998 and each fiscal year

30  thereafter have not less than 5 percent of the amount of net

31  revenue of the General Revenue Fund for the preceding fiscal

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  1  year.  By September 15 of each year, the Executive Office of

  2  the Governor shall transfer the excess funds that are in the

  3  General Revenue Fund to the Working Capital Fund. Whenever the

  4  Governor determines that revenue collections in the General

  5  Revenue Fund will be insufficient to meet General Revenue Fund

  6  appropriations, he or she shall certify the amount of the

  7  deficit and transfer up to the amount specified in the General

  8  Appropriations Act from the Working Capital Fund to the

  9  General Revenue Fund pursuant to s. 216.221. When not required

10  to meet General Revenue Fund appropriations, such moneys shall

11  be used as a revolving fund for transfers as provided by s.

12  215.18; and when the Comptroller determines that such moneys

13  are not needed for either type of transfer, they may be

14  temporarily invested as provided in s. 18.125.

15         3.  The provisions of subparagraph 1. notwithstanding,

16  the Comptroller shall pay from the Working Capital Fund such

17  claims as are authorized pursuant to s. 265.55.

18         Section 13.  Subsections (2), (5), and (7) of section

19  216.221, Florida Statutes, are amended to read:

20         216.221  Appropriations as maximum appropriations;

21  adjustment of budgets to avoid or eliminate deficits.--

22         (2)  The Legislature shall annually provide direction

23  in the General Appropriations Act regarding use of the Budget

24  Stabilization Fund and Working Capital Fund to offset General

25  Revenue Fund deficits.

26         (5)(a)  If, in the opinion of the Governor, after

27  consultation with the Revenue Estimating Conference, a deficit

28  will occur in the General Revenue Fund, he or she shall so

29  certify to the commission and to the Chief Justice of the

30  Supreme Court.  No more than 30 days after certifying that a

31  deficit will occur in the General Revenue Fund, the Governor

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  1  shall develop for the executive branch, and the Chief Justice

  2  of the Supreme Court shall develop for the judicial branch,

  3  and provide to the commission and to the Legislature plans of

  4  action to eliminate the deficit.

  5         (b)  In developing a plan of action to prevent deficits

  6  in accordance with subsection (7), the Governor and Chief

  7  Justice shall, to the extent possible, preserve legislative

  8  policy and intent, and, absent any specific direction to the

  9  contrary in the General Appropriations Act, the Governor and

10  Chief Justice shall comply with the following guidelines for

11  reductions in the approved operating budgets of the executive

12  branch and the judicial branch:

13         1.  Entire statewide programs previously established by

14  the Legislature should not be eliminated.

15         2.  Education budgets should not be reduced more than

16  provided for in s. 215.16(2).

17         3.  The use of nonrecurring funds to solve recurring

18  deficits should be minimized.

19         4.  Newly created programs that are not fully

20  implemented and programs with critical audits should receive

21  first consideration for reductions.

22         5.  No agencies or branches of government receiving

23  appropriations should be exempt from reductions.

24         6.  When reductions in positions are required, the

25  focus should be initially on vacant positions.

26         7.  Any reductions applied to all agencies and branches

27  should be uniformly applied.

28         8.  Reductions that would cause substantial losses of

29  federal funds should be minimized.

30         9.  To the greatest extent possible, across-the-board,

31  prorated reductions should be considered.

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  1         10.  Reductions to statewide programs should occur only

  2  after review of programs that provide only local benefits.

  3         11.  Reductions in administrative and support functions

  4  should be considered before reductions in direct-support

  5  services.

  6         12.  Maximum reductions should be considered in budgets

  7  for expenses including travel and in budgets for equipment

  8  replacement, outside consultants, and contracts.

  9         13.  Reductions in salaries for elected state officials

10  should be considered.

11         14.  Reductions that adversely affect the public

12  health, safety, and welfare should be minimized.

13         15.  The Budget Stabilization Fund Working Capital Fund

14  should not be reduced to a level that would impair the

15  financial stability of this state.

16         16.  Reductions in programs that are traditionally

17  funded by the private sector and that may be assumed by

18  private enterprise should be considered.

19         17.  Reductions in programs that are duplicated among

20  state agencies or branches of government should be considered.

21         (7)  Deficits in the General Revenue Fund that do not

22  meet the amounts specified by subsection (6) shall be resolved

23  by the commission for the executive branch and the Chief

24  Justice of the Supreme Court for the judicial branch. The

25  commission and Chief Justice shall implement any directions

26  provided in the General Appropriations Act related to

27  eliminating deficits and to reducing reduce agency and

28  judicial branch budgets, including the use of those

29  legislative appropriations voluntarily placed in reserve.  In

30  addition, the commission shall implement any directions in the

31  General Appropriations Act relating to the resolution of use

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  1  of the Working Capital Fund in deficit situations.  When

  2  reducing state agency or judicial branch budgets, the

  3  commission or the Chief Justice, respectively, shall use the

  4  guidelines prescribed in subsection (5).  The Executive Office

  5  of the Governor for the commission, and the Chief Justice for

  6  the judicial branch, shall implement the deficit reduction

  7  plans through amendments to the approved operating budgets in

  8  accordance with s. 216.181.

  9         Section 14.  Subsections (1) and (2) of section 252.37,

10  Florida Statutes, are amended to read:

11         252.37  Financing.--

12         (1)  It is the intent of The Legislature intends and

13  declares it declared to be the policy of the state that funds

14  to be prepared for and meet emergencies shall always be

15  available.

16         (2)  It is the legislative intent that the first

17  recourse shall be made to funds regularly appropriated to

18  state and local agencies.  If the Governor finds that the

19  demands placed upon these funds in coping with a particular

20  disaster are unreasonably great, she or he may make funds

21  available by transferring and expending moneys appropriated

22  for other purposes, by transferring and expending moneys or

23  out of any unappropriated surplus funds, or from the Budget

24  Stabilization Fund or Working Capital Fund.

25         Section 15.  Paragraph (b) of subsection (2) of section

26  20.055, Florida Statutes, is amended to read:

27         20.055  Agency inspectors general.--

28         (2)  The Office of Inspector General is hereby

29  established in each state agency to provide a central point

30  for coordination of and responsibility for activities that

31  promote accountability, integrity, and efficiency in

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  1  government. It shall be the duty and responsibility of each

  2  inspector general, with respect to the state agency in which

  3  the office is established, to:

  4         (b)  Assess the reliability and validity of the

  5  information provided by the state agency on performance

  6  measures and standards, and make recommendations for

  7  improvement, if necessary, prior to submission of those

  8  measures and standards to the Executive Office of the Governor

  9  pursuant to s. 216.0166(1).

10         Section 16.  Subsection (3) of section 212.081, Florida

11  Statutes, and subsection (5) of section 186.021, Florida

12  Statutes, are repealed.

13         Section 17.  This act shall take effect upon becoming a

14  law.

15

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                            CS/SB 824

18

19  The Changes made in the Committee Substitute were technical
    changes relating to cross referencing and the proper
20  designation of funds. Sections 186.009 and 186.031, F.S. were
    not repealed.
21

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