House Bill 1825e1

CODING: Words stricken are deletions; words underlined are additions.







                                          HB 1825, First Engrossed



  1                      A bill to be entitled

  2         An act relating to municipalities and special

  3         districts; creating s. 163.055, F.S.; creating

  4         the Local Government Financial Technical

  5         Assistance Program; providing legislative

  6         findings and declaration; requiring the

  7         Comptroller to enter into certain contracts;

  8         providing for review of contract proposals;

  9         providing for fiscal oversight by the

10         Comptroller; providing for an annual

11         performance review; providing for a report;

12         amending s. 163.01, F.S.; allowing local

13         government self-insurance reserves to be used

14         to guarantee local government obligations under

15         certain circumstances; providing an effective

16         date.

17

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

19

20         Section 1.  Section 163.055, Florida Statutes, is

21  created to read:

22         163.055  Local Government Financial Technical

23  Assistance Program.--

24         (1)  Among municipalities and special districts, the

25  Legislature finds that:

26         (a)  Florida is a state comprised of 400 municipalities

27  and almost 1,000 special districts statewide.

28         (b)  Of the 400 municipalities in the state, over 200

29  have a population under 5,000.

30

31


                                  1

CODING: Words stricken are deletions; words underlined are additions.






                                          HB 1825, First Engrossed



  1         (c)  State and federal mandates will continue to place

  2  additional funding demands on all municipalities and special

  3  districts.

  4         (d)  State government lacks the specific technical

  5  expertise or resources to effectively perform ongoing

  6  educational support and financial emergency detection or

  7  assistance.

  8         (2)  Recognizing the findings in subsection (1), the

  9  Legislature declares that:

10         (a)  The fiscal challenges confronting various

11  municipalities and special districts require an investment

12  that will facilitate efforts to improve the productivity and

13  efficiency of their financial structures and operating

14  procedures.

15         (b)  Current and additional revenue enhancements

16  authorized by the Legislature should be managed and

17  administered using appropriate management practices and

18  expertise.

19         (3)  The purpose of this section is to provide

20  technical assistance to municipalities and special districts

21  to enable them to implement workable solutions to financially

22  related problems.

23         (4)  The Comptroller shall enter into contracts with

24  program providers who shall:

25         (a)  Be a public agency or private, nonprofit

26  corporation, association, or entity.

27         (b)  Use existing resources, services, and information

28  that are available from state or local agencies, universities,

29  or the private sector.

30         (c)  Seek and accept funding from any public or private

31  source.


                                  2

CODING: Words stricken are deletions; words underlined are additions.






                                          HB 1825, First Engrossed



  1         (d)  Annually submit information to assist the

  2  Legislative Committee on Intergovernmental Relations in

  3  preparing a performance review that will include a analysis of

  4  the effectiveness of the program.

  5         (e)  Assist municipalities and independent special

  6  districts in developing alternative revenue sources.

  7         (f)  Provide for an annual independent financial audit

  8  of the program, if the program receives funding.

  9         (g)  Provide assistance to municipalities and special

10  districts in the areas of financial management, accounting,

11  investing, budgeting, and debt issuance.

12         (h)  Develop a needs assessment to determine where

13  assistance should be targeted, and to establish a priority

14  system to deliver assistance to those jurisdictions most in

15  need through the most economical means available.

16         (i)  Provide financial emergency assistance upon

17  direction from the Office of the Governor pursuant to s.

18  218.503.

19         (5)(a)  The Comptroller shall issue a request for

20  proposals to provide assistance to municipalities and special

21  districts.  At the request of the Comptroller, the Legislative

22  Committee on Intergovernmental Relations shall assist in the

23  preparation of the request for proposals.

24         (b)  The Comptroller shall review each contract

25  proposal submitted.

26         (c)  The Legislative Committee on Intergovernmental

27  Relations shall review each contract proposal and submit to

28  the Comptroller, in writing, advisory comments and

29  recommendations, citing with specificity the reasons for its

30  recommendations.

31


                                  3

CODING: Words stricken are deletions; words underlined are additions.






                                          HB 1825, First Engrossed



  1         (d)  The Comptroller and the Legislative Committee on

  2  Intergovernmental Relations shall consider the following

  3  factors in reviewing contract proposals:

  4         1.  The demonstrated capacity of the provider to

  5  conduct needs assessments and implement the program as

  6  proposed.

  7         2.  The number of municipalities and special districts

  8  to be served under the proposal.

  9         3.  The cost of the program as specified in a proposed

10  budget.

11         4.  The short-term and long-term benefits of the

12  assistance to municipalities and special districts.

13         5.  The form and extent to which existing resources,

14  services, and information that are available from state and

15  local agencies, universities, and the private sector will be

16  used by the provider under the contract.

17         (6)  A decision of the Comptroller to award a contract

18  under this section is final and shall be in writing with a

19  copy provided to the Legislative Committee on

20  Intergovernmental Relations.

21         (7)  The Comptroller may enter into contracts and

22  agreements with other state and local agencies and with any

23  person, association, corporation, or entity other than the

24  program providers, for the purpose of administering this

25  section.

26         (8)  The Comptroller shall provide fiscal oversight to

27  ensure that funds expended for the program are used in

28  accordance with the contracts entered into pursuant to

29  subsection (4).

30         (9)  The Legislative Committee on Intergovernmental

31  Relations shall annually conduct a performance review of the


                                  4

CODING: Words stricken are deletions; words underlined are additions.






                                          HB 1825, First Engrossed



  1  program.  The findings of the review shall be presented in a

  2  report submitted to the Governor, the President of the Senate,

  3  the Speaker of the House of Representatives, and the

  4  Comptroller by January 15 of each year.

  5         Section 2.  Paragraph (d) of subsection (7) of section

  6  163.01, Florida Statutes, is amended to read:

  7         163.01  Florida Interlocal Cooperation Act of 1969.--

  8         (7)(d)  Notwithstanding the provisions of paragraph

  9  (c), any separate legal entity created pursuant to this

10  section and controlled by the municipalities or counties of

11  this state or by one or more municipality and one or more

12  county of this state, the membership of which consists or is

13  to consist of municipalities only, counties only, or one or

14  more municipality and one or more county, may, for the purpose

15  of financing or refinancing any capital projects, exercise all

16  powers in connection with the authorization, issuance, and

17  sale of bonds. Notwithstanding any limitations provided in

18  this section, all of the privileges, benefits, powers, and

19  terms of part I of chapter 125, part II of chapter 166, and

20  part I of chapter 159 shall be fully applicable to such

21  entity.  Bonds issued by such entity shall be deemed issued on

22  behalf of the counties or municipalities which enter into loan

23  agreements with such entity as provided in this paragraph.

24  Any loan agreement executed pursuant to a program of such

25  entity shall be governed by the provisions of part I of

26  chapter 159 or, in the case of counties, part I of chapter

27  125, or in the case of municipalities and charter counties,

28  part II of chapter 166. Proceeds of bonds issued by such

29  entity may be loaned to counties or municipalities of this

30  state or a combination of municipalities and counties, whether

31  or not such counties or municipalities are also members of the


                                  5

CODING: Words stricken are deletions; words underlined are additions.






                                          HB 1825, First Engrossed



  1  entity issuing the bonds.  The issuance of bonds by such

  2  entity to fund a loan program to make loans to municipalities

  3  or counties or a combination of municipalities and counties

  4  with one another for capital projects to be identified

  5  subsequent to the issuance of the bonds to fund such loan

  6  programs is deemed to be a paramount public purpose.  Any

  7  entity so created may also issue bond anticipation notes, as

  8  provided by s. 215.431, in connection with the authorization,

  9  issuance, and sale of such bonds.  In addition, the governing

10  body of such legal entity may also authorize bonds to be

11  issued and sold from time to time and may delegate, to such

12  officer, official, or agent of such legal entity as the

13  governing body of such legal entity may select, the power to

14  determine the time; manner of sale, public or private;

15  maturities; rate or rates of interest, which may be fixed or

16  may vary at such time or times and in accordance with a

17  specified formula or method of determination; and other terms

18  and conditions as may be deemed appropriate by the officer,

19  official, or agent so designated by the governing body of such

20  legal entity.  However, the amounts and maturities of such

21  bonds and the interest rate or rates of such bonds shall be

22  within the limits prescribed by the governing body of such

23  legal entity and its resolution delegating to such officer,

24  official, or agent the power to authorize the issuance and

25  sale of such bonds.  A local government self-insurance fund

26  established under this section may financially guarantee bonds

27  or bond anticipation notes issued or loans made under this

28  subsection.  Bonds issued pursuant to this paragraph may be

29  validated as provided in chapter 75.  The complaint in any

30  action to validate such bonds shall be filed only in the

31  Circuit Court for Leon County.  The notice required to be


                                  6

CODING: Words stricken are deletions; words underlined are additions.






                                          HB 1825, First Engrossed



  1  published by s. 75.06 shall be published only in Leon County,

  2  and the complaint and order of the circuit court shall be

  3  served only on the State Attorney of the Second Judicial

  4  Circuit and on the state attorney of each circuit in each

  5  county where the public agencies which were initially a party

  6  to the agreement are located. Notice of such proceedings shall

  7  be published in the manner and the time required by s. 75.06

  8  in Leon County and in each county where the public agencies

  9  which were initially a party to the agreement are located.

10  Obligations of any county or municipality pursuant to a loan

11  agreement as described in this paragraph may be validated as

12  provided in chapter 75.

13         Section 3.  This act shall take effect upon becoming a

14  law.

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31


                                  7