House Bill 0077c1

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







    Florida House of Representatives - 1999               CS/HB 77

        By the Committee on Financial Services and Representatives
    Flanagan, Crow, Wallace, Bainter, Goode, Bitner, Turnbull and
    Fasano




  1                      A bill to be entitled

  2         An act relating to state financial matters;

  3         amending s. 17.05, F.S.; specifying certain

  4         powers of the Comptroller and the Department of

  5         Banking and Finance; providing requirements;

  6         specifying procedures, rights, and requirements

  7         for enforcing compliance with certain

  8         subpoenas; providing for assessing certain

  9         costs under certain circumstances; amending s.

10         17.076, F.S.; providing for payment of

11         retirement benefits by direct deposit; amending

12         s. 20.12, F.S.; specifying purposes and duties

13         of the Comptroller; deleting divisions of the

14         department; creating the Office of Financial

15         Investigations; specifying the function of the

16         office; providing for a separate budget for the

17         office; amending s. 20.04, F.S.; providing an

18         exception to the required state government

19         structure for the Department of Banking and

20         Finance; providing for future repeal of certain

21         provisions; amending s. 110.1165, F.S.;

22         deleting a reference for purposes of specifying

23         a statute of limitations for certain purposes;

24         specifying a time limit for filing actions to

25         recover certain compensation; providing

26         application; amending s. 112.061, F.S.;

27         providing for designees of agency heads to

28         perform specified functions; relating to per

29         diem and travel expenses; amending s. 215.422,

30         F.S.; deleting certain requirements relating to

31         vendors and state purchasing agreements and

                                  1

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         warrants; correcting an accounting subsystem

  2         reference; amending s. 216.011, F.S.; revising

  3         a definition; amending s. 216.102, F.S.;

  4         revising duties of the Comptroller relating to

  5         preparing and publishing certain financial

  6         information; requiring the Comptroller to

  7         prepare and publish a Comprehensive Annual

  8         Financial Report; correcting an accounting

  9         subsystem reference; amending s. 273.02, F.S.;

10         revising a definition; amending s. 287.058,

11         F.S.; specifying as public records certain

12         documents and materials relating to contracts

13         for services; specifying an additional

14         requirement for certain written agreements for

15         procurement of contractual services by the

16         state; amending ss. 17.11, 215.3206, 215.3208,

17         216.183, 216.212, 216.237, 280.08, 288.778,

18         494.0011, 494.0017, 494.0041, 494.00421,

19         494.0061, 494.0062, 494.0072, 497.407, 497.435,

20         516.03, 520.998, 655.90, and 655.942, F.S., to

21         conform;  providing an effective date.

22

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

24

25         Section 1.  Section 17.05, Florida Statutes, is amended

26  to read:

27         17.05  Subpoenas; sworn statements; enforcement

28  proceedings May examine under oath parties and persons privy

29  to accounts.--

30         (1)  The Comptroller of this state may demand and

31  require full answers on oath from any and every person, party

                                  2

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  or privy to any account, claim, or demand against or by the

  2  state, such as it may be the Comptroller's his or her official

  3  duty to examine into, and which answers the Comptroller may

  4  require to be in writing and to be sworn to before the

  5  Comptroller or the department himself or herself or before any

  6  judicial officer or clerk of any court of the state so as to

  7  enable the such Comptroller to determine decide as to the

  8  justice or legality of such account, claim, or demand.

  9         (2)  In exercising authority under this chapter, the

10  Comptroller or his or her designee may:

11         (a)  Issue subpoenas, administer oaths, and examine

12  witnesses.

13         (b)  Require or permit a person to file a statement in

14  writing, under oath or otherwise as the Comptroller or his or

15  her designee requires, as to all the facts and circumstances

16  concerning the matter to be audited, examined, or

17  investigated.

18         (3)  Subpoenas shall be issued by the Comptroller or

19  his or her designee under seal commanding such witnesses to

20  appear before the Comptroller or the Comptroller's

21  representative or the department at a specified time and place

22  and to bring books, records, and documents as specified or to

23  submit books, records, and documents for inspection.  Such

24  subpoenas may be served by an authorized representative of the

25  Comptroller or the department.

26         (4)  In the event of noncompliance with a subpoena

27  issued pursuant to this section, the Comptroller or the

28  department may petition the circuit court of the county in

29  which the person subpoenaed resides or has his or her

30  principal place of business for an order requiring the

31  subpoenaed person to appear and testify and to produce books,

                                  3

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  records, and documents as specified in the subpoena.  The

  2  court may grant legal, equitable, or injunctive relief,

  3  including, but not limited to, issuance of a writ of ne exeat

  4  or the restraint by injunction or appointment of a receiver of

  5  any transfer, pledge, assignment, or other disposition of such

  6  person's assets or any concealment, alteration, destruction,

  7  or other disposition of subpoenaed books, records, or

  8  documents, as the court deems appropriate, until such person

  9  has fully complied with such subpoena and the Comptroller or

10  the department has completed the audit, examination, or

11  investigation.  The Comptroller or the department is entitled

12  to the summary procedure provided in s. 51.011 and the court

13  shall advance the cause on its calendar.  Costs incurred by

14  the Comptroller or the department to obtain an order granting,

15  in whole or in part, such petition for enforcement of a

16  subpoena shall be charged against the subpoenaed person, and

17  failure to comply with such order shall be a contempt of

18  court.

19         Section 2.  Subsection (8) is added to section 17.076,

20  Florida Statutes, to read:

21         17.076  Direct deposit of funds.--

22         (8)  Effective July 1, 2000, all new recipients of

23  retirement benefits from this state shall be paid by direct

24  deposit of funds. A retiree may request from the department an

25  exemption from the provisions of this subsection when such

26  retiree can demonstrate a hardship. The department may pay

27  retirement benefits by state warrant when deemed

28  administratively necessary.

29         Section 3.  Section 20.12, Florida Statutes, is amended

30  to read:

31

                                  4

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         20.12  Department of Banking and Finance.--There is

  2  created a Department of Banking and Finance.

  3         (1)  The head of the Department of Banking and Finance

  4  is the Comptroller.

  5         (2)  As provided in s. 4(d), Art. IV of the State

  6  Constitution, the purpose of the Comptroller is to serve as

  7  the chief fiscal officer of the state, and shall settle and

  8  approve accounts against the state.

  9         (3)  The Comptroller shall execute the programs and

10  policies as adopted by the Legislature. The following

11  divisions are established within the Department of Banking and

12  Finance:

13         (a)  Division of Accounting and Auditing.

14         (b)  Division of Administration.

15         (c)  Division of Banking.

16         (d)  Division of Finance.

17         (e)  Division of Information Systems.

18         (f)  Division of Securities and Investor Protection.

19         (g)  Division of Financial Investigations.

20         (4)  The Office of Financial Investigations is created

21  as a subunit within the Department of Banking and Finance.

22  The office shall function as a criminal justice agency within

23  the meaning of s. 943.045(10)(d) and shall have a separate

24  budget.

25         (5)  Subsections (3) and (4) are repealed January 7,

26  2003.

27         Section 4.  Subsection (3) of section 20.04, Florida

28  Statutes, is amended to read:

29         20.04  Structure of executive branch.--The executive

30  branch of state government is structured as follows:

31

                                  5

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         (3)  For their internal structure, all departments,

  2  except for the Departments of Children and Family Services,

  3  Corrections, Management Services, Revenue, Banking and

  4  Finance, and Transportation, must adhere to the following

  5  standard terms:

  6         (a)  The principal unit of the department is the

  7  "division." Each division is headed by a "director."

  8         (b)  The principal unit of the division is the

  9  "bureau." Each bureau is headed by a "chief."

10         (c)  The principal unit of the bureau is the "section."

11  Each section is headed by an "administrator."

12         (d)  If further subdivision is necessary, sections may

13  be divided into "subsections," which are headed by

14  "supervisors."

15         Section 5.  Subsection (1) of section 110.1165, Florida

16  Statutes, is amended, and subsection (3) is added to said

17  section, to read:

18         110.1165  Executive branch personnel errors.--

19         (1)  An agency of the executive branch, including the

20  State University System, shall establish procedures for the

21  receipt, consideration, and disposition of a claim regarding

22  pay or benefits brought by an employee when that employee is

23  damaged as a result of being provided with erroneous written

24  information by the employing agency regarding his or her pay

25  or benefits, and the employee detrimentally relies upon such

26  written information. In order to qualify for the relief

27  provided by this section, the employee's reliance on the

28  representation must have been reasonable and based only upon

29  the written representations made by those persons authorized

30  by the agency head to make such representations. Furthermore,

31  the erroneous calculation and payment of an employee's salary,

                                  6

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  wages, or benefits is not among the written representations

  2  which will trigger relief under this section. Section 95.11(4)

  3  is the statute of limitations for filing any action to recover

  4  salary, wages, overtime, benefits, or related damages by or on

  5  behalf of a state employee, or any action under this section.

  6  No distinctions between the terms "salary" and "wages" in

  7  construing the provisions of s. 95.11(4) apply to this section

  8  or the statute of limitations for filing any action under this

  9  section.

10         (3)  The time limit to file any action to recover

11  compensation, including, but not limited to, salaries, wages,

12  overtime pay, fringe benefits, or damages or penalties

13  relating to errors in such compensation from, by, or on behalf

14  of a state officer or employee is 2 years from the date of the

15  alleged error in payment of such compensation.  The time limit

16  applies in all disputes over compensation for work performed

17  by state officers or employees, and is not confined to cases

18  arising under subsections (1) and (2).

19         Section 6.  Paragraphs (d) and (f) of subsection (3),

20  paragraph (b) of subsection (4), paragraphs (a), (d), and (f)

21  of subsection (7), and subsections (12) and (13) of section

22  112.061, Florida Statutes, 1998 Supplement, are amended to

23  read:

24         112.061  Per diem and travel expenses of public

25  officers, employees, and authorized persons.--

26         (3)  AUTHORITY TO INCUR TRAVEL EXPENSES.--

27         (d)  Travel expenses of public employees for the sole

28  purpose of taking merit system or other job placement

29  examinations, written or oral, shall not be allowed under any

30  circumstances, except that upon prior written approval of the

31  agency head or his or her designee, candidates for executive

                                  7

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  or professional positions may be allowed travel expenses

  2  pursuant to this section.

  3         (f)  A traveler who becomes sick or injured while away

  4  from his or her official headquarters and is therefore unable

  5  to perform the official business of the agency may continue to

  6  receive subsistence as provided in subsection (6) during this

  7  period of illness or injury until such time as he or she is

  8  able to perform the official business of the agency or returns

  9  to his or her official headquarters, whichever is earlier.

10  Such subsistence may be paid when approved by the agency head

11  or his or her designee.

12         (4)  OFFICIAL HEADQUARTERS.--The official headquarters

13  of an officer or employee assigned to an office shall be the

14  city or town in which the office is located except that:

15         (b)  When any state employee is stationed in any city

16  or town for a period of over 30 continuous workdays, such city

17  or town shall be deemed to be the employee's official

18  headquarters, and he or she shall not be allowed per diem or

19  subsistence, as provided in this section, after the said

20  period of 30 continuous workdays has elapsed, unless this

21  period of time is extended by the express approval of the

22  agency head or his or her designee.

23         (7)  TRANSPORTATION.--

24         (a)  All travel must be by a usually traveled route.

25  In case a person travels by an indirect route for his or her

26  own convenience, any extra costs shall be borne by the

27  traveler; and reimbursement for expenses shall be based only

28  on such charges as would have been incurred by a usually

29  traveled route. The agency head or his or her designee shall

30  designate the most economical method of travel for each trip,

31  keeping in mind the following conditions:

                                  8

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         1.  The nature of the business.

  2         2.  The most efficient and economical means of travel

  3  (considering time of the traveler, impact on the productivity

  4  of the traveler, cost of transportation, and per diem or

  5  subsistence required). When it is more efficient and

  6  economical to either the traveler or the agency head, jet

  7  service offered by any airline, whether on state contract or

  8  not, may be used when the cost is within an approved threshold

  9  determined by the agency head or his or her designee.

10         3.  The number of persons making the trip and the

11  amount of equipment or material to be transported.

12         (d)1.  The use of privately owned vehicles for official

13  travel in lieu of publicly owned vehicles or common carriers

14  may be authorized by the agency head or his or her designee.

15  Whenever travel is by privately owned vehicle, the traveler

16  shall be entitled to a mileage allowance at a fixed rate of 25

17  cents per mile for state fiscal year 1994-1995 and 29 cents

18  per mile thereafter or the common carrier fare for such

19  travel, as determined by the agency head. Reimbursement for

20  expenditures related to the operation, maintenance, and

21  ownership of a vehicle shall not be allowed when privately

22  owned vehicles are used on public business and reimbursement

23  is made pursuant to this paragraph, except as provided in

24  subsection (8).

25         2.  All mileage shall be shown from point of origin to

26  point of destination and, when possible, shall be computed on

27  the basis of the current map of the Department of

28  Transportation. Vicinity mileage necessary for the conduct of

29  official business is allowable but must be shown as a separate

30  item on the expense voucher.

31

                                  9

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         (f)  The agency head or his or her designee may grant

  2  monthly allowances in fixed amounts for use of privately owned

  3  automobiles on official business in lieu of the mileage rate

  4  provided in paragraph (d).  Allowances granted pursuant to

  5  this paragraph shall be reasonable, taking into account the

  6  customary use of the automobile, the roads customarily

  7  traveled, and whether any of the expenses incident to the

  8  operation, maintenance, and ownership of the automobile are

  9  paid from funds of the agency or other public funds.  Such

10  allowance may be changed at any time, and shall be made on the

11  basis of a signed statement of the traveler, filed before the

12  allowance is granted or changed, and at least annually

13  thereafter. The statement shall show the places and distances

14  for an average typical month's travel on official business,

15  and the amount that would be allowed under the approved rate

16  per mile for the travel shown in the statement, if payment had

17  been made pursuant to paragraph (d).

18         (12)  ADVANCEMENTS.--Notwithstanding any of the

19  foregoing restrictions and limitations, an agency head or his

20  or her designee may make, or authorize the making of, advances

21  to cover anticipated costs of travel to travelers.  Such

22  advancements may include the costs of subsistence and travel

23  of any person transported in the care or custody of the

24  traveler in the performance of his or her duties.

25         (13)  DIRECT PAYMENT OF EXPENSES BY AGENCY.--Whenever

26  an agency requires an employee to incur either Class A or

27  Class B travel on emergency notice to the traveler, such

28  traveler may request the agency to pay his or her expenses for

29  meals and lodging directly to the vendor, and the agency may

30  pay the vendor the actual expenses for meals and lodging

31  during the travel period, limited to an amount not to exceed

                                  10

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  that authorized pursuant to this section. In emergency

  2  situations, the agency head or his or her designee may

  3  authorize an increase in the amount paid for a specific meal,

  4  provided that the total daily cost of meals does not exceed

  5  the total amount authorized for meals each day.  The agency

  6  head or his or her designee may also grant prior approval for

  7  a state agency to make direct payments of travel expenses in

  8  other situations that result in cost savings to the state, and

  9  such cost savings shall be documented in the voucher submitted

10  to the Comptroller for the direct payment of travel expenses.

11  The provisions of this subsection shall not be deemed to apply

12  to any legislator or to any employee of the Legislature.

13         Section 7.  Subsections (5), (6), and (9) of section

14  215.422, Florida Statutes, are amended to read:

15         215.422  Warrants, vouchers, and invoices; processing

16  time limits; dispute resolution; agency or judicial branch

17  compliance.--

18         (5)  All purchasing agreements between a state agency

19  or the judicial branch and a vendor, applicable to this

20  section, shall include a statement of the vendor's rights and

21  the state's responsibilities under this section.  The vendor's

22  rights shall include being provided with the name and

23  telephone number of the vendor ombudsman within the Department

24  of Banking and Finance, which information shall also be placed

25  on all agency or judicial branch purchase orders.

26         (6)  The Department of Banking and Finance shall

27  monitor each agency's and the judicial branch's compliance

28  with the time limits and interest penalty provisions of this

29  section.  The department shall provide a report to an agency

30  or to the judicial branch if the department determines that

31  the agency or the judicial branch has failed to maintain an

                                  11

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  acceptable rate of compliance with the time limits and

  2  interest penalty provisions of this section.  The department

  3  shall establish criteria for determining acceptable rates of

  4  compliance. The report shall also include a list of late

  5  vouchers or payments, the amount of interest owed or paid, and

  6  any corrective actions recommended.  The department shall

  7  perform monitoring responsibilities, pursuant to this section,

  8  using the Management Services and Purchasing Subsystem or the

  9  Florida State Automated Management Accounting Information

10  Resource Subsystem provided in s. 215.94.  Each agency and the

11  judicial branch shall be responsible for the accuracy of

12  information entered into the Management Services and

13  Purchasing Subsystem and the Florida State Automated

14  Management Accounting Information Resource Subsystem for use

15  in this monitoring.

16         (9)  Each agency and the judicial branch shall include

17  in the official position description of every officer or

18  employee who is responsible for the approval or processing of

19  vendors' invoices or distribution of warrants to vendors that

20  the requirements of this section are mandatory.  In addition,

21  each employee shall be required to sign a statement at least

22  annually that he or she has been provided a copy of this

23  section and the rules promulgated by the Comptroller.  The

24  statement shall also acknowledge that the employee understands

25  the approval and processing time limitations and the provision

26  for automatic interest penalty payments.  Each agency and the

27  judicial branch shall certify its compliance with this

28  subsection to the Comptroller on or before February 1 of each

29  year.

30

31

                                  12

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         Section 8.  Paragraph (x) of subsection (1) of section

  2  216.011, Florida Statutes, 1998 Supplement, is amended to

  3  read:

  4         216.011  Definitions.--

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

  6  appropriations acts, legislative budgets, and approved

  7  budgets, each of the following terms has the meaning

  8  indicated:

  9         (x)  "Operating capital outlay" means equipment,

10  fixtures, and other tangible personal property of a

11  nonconsumable and nonexpendable nature, the value or cost of

12  which is $1,000 $500 or more and the normal expected life of

13  which is 1 year or more, and hardback-covered bound books that

14  are circulated to students or the general public, the value or

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

16  books, the value or cost of which is $250 $100 or more.

17         Section 9.  Subsections (1) and (2) of section 216.102,

18  Florida Statutes, as amended by chapter 95-303, Laws of

19  Florida, are amended to read:

20         216.102  Recording and filing of financial information;

21  handling by Comptroller; penalty for noncompliance.--

22         (1)  On or before September 30 of each year, each

23  agency supported by any form of taxation, licenses, fees,

24  imposts, or exactions, and the judicial branch, shall, in the

25  form and format prescribed by the Comptroller, file with the

26  Comptroller the financial and other information necessary for

27  the preparation of annual financial statements for the State

28  of Florida as of June 30 in accordance with generally accepted

29  accounting principles.  In addition, each such agency and the

30  judicial branch shall prepare financial statements showing the

31

                                  13

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  financial position and results of agency or branch operations

  2  as of June 30 for internal management purposes.

  3         (a)  Each state agency and the judicial branch shall

  4  record the receipt and disbursement of funds from federal

  5  sources in a form and format prescribed by the Comptroller.

  6  The access to federal funds by the administering agencies or

  7  the judicial branch may not be authorized until:

  8         1.  The deposit has been recorded in the Florida State

  9  Automated Management Accounting Information Resource Subsystem

10  using proper, consistent codes which designate deposits as

11  federal funds.

12         2.  The deposit and appropriate recording required by

13  this paragraph have been verified by the Office of the

14  Treasurer.

15         (b)  The Comptroller shall publish a statewide policy

16  detailing the requirements for recording receipt and

17  disbursement of federal funds into the Florida State Automated

18  Management Accounting Information Resource Subsystem and

19  provide technical assistance to the agencies and the judicial

20  branch to implement the policy.

21         (2)  It shall be the duty of the Comptroller to:

22         (a)  Prepare and furnish to the Auditor General publish

23  annual financial statements for the State of Florida in

24  accordance with generally accepted accounting principles on or

25  before December 31 annually.

26         (b)  Prepare and publish a Comprehensive Annual

27  Financial Report for the State of Florida in accordance with

28  generally accepted accounting principles on or before February

29  28 each year.

30         (c)(b)  Furnish the Governor, the President of the

31  Senate, and the Speaker of the House of Representatives with

                                  14

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  copies of the Comprehensive Annual Financial Report annual

  2  financial statements prepared pursuant to paragraph (b)(a).

  3         (d)(c)  Notify each agency and the judicial branch of

  4  the data that is required to be recorded to enhance

  5  accountability for tracking federal financial assistance.

  6         (e)(d)  Provide reports, as requested, to executive or

  7  judicial branch entities, the President of the Senate, the

  8  Speaker of the House of Representatives, and the members of

  9  the Florida Congressional Delegation, detailing the federal

10  financial assistance received and disbursed by state agencies

11  and the judicial branch.

12         (f)(e)  Consult with and elicit comments from the

13  Executive Office of the Governor on changes to the Florida

14  State Automated Management Accounting Information Resource

15  Subsystem which clearly affect the accounting of federal

16  funds, so as to ensure consistency of information entered into

17  the Federal Aid Tracking System by state executive and

18  judicial branch entities.  While efforts shall be made to

19  ensure the compatibility of the Florida State Automated

20  Management Accounting Information Resource Subsystem and the

21  Federal Aid Tracking System, any successive systems serving

22  identical or similar functions shall preserve such

23  compatibility.

24         (g)  The Comptroller may furnish and publish the

25  financial statements and the Comprehensive Annual Financial

26  Report pursuant to paragraphs (a), (b), and (c) in electronic

27  form.

28         Section 10.  Subsection (2) of section 216.102, Florida

29  Statutes, as amended by chapter 95-312, Laws of Florida, is

30  amended to read:

31

                                  15

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         216.102  Filing of financial information; handling by

  2  Comptroller; penalty for noncompliance.--

  3         (2)  Financial information must be contained within the

  4  Florida State Automated Management Accounting Information

  5  Resource Subsystem.  Other information must be submitted in

  6  the form and format prescribed by the Comptroller.

  7         (a)  Each component unit shall file financial

  8  information and other information necessary for the

  9  preparation of annual financial statements with the agency or

10  branch designated by the Comptroller, by the date specified by

11  the Comptroller.

12         (b)  The state agency or branch designated by the

13  Comptroller to receive financial information and other

14  information from component units shall include the financial

15  information in the Florida State Automated Management

16  Accounting Information Resource Subsystem and shall include

17  the component units' other information in its submission to

18  the Comptroller.

19         Section 11.  Section 273.02, Florida Statutes, is

20  amended to read:

21         273.02  Record and inventory of certain property.--The

22  word "property" as used in this section means equipment,

23  fixtures, and other tangible personal property of a

24  nonconsumable and nonexpendable nature, the value or cost of

25  which is $1,000 $500 or more and the normal expected life of

26  which is 1 year or more, and hardback-covered bound books that

27  are circulated to students or the general public, the value or

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

29  books, the value or cost of which is $250 $100 or more.  Each

30  item of property which it is practicable to identify by

31  marking shall be marked in the manner required by the Auditor

                                  16

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  General.  Each custodian shall maintain an adequate record of

  2  property in his or her custody, which record shall contain

  3  such information as shall be required by the Auditor General.

  4  Once each year, on July 1 or as soon thereafter as is

  5  practicable, and whenever there is a change of custodian, each

  6  custodian shall take an inventory of property in his or her

  7  custody. The inventory shall be compared with the property

  8  record, and all discrepancies shall be traced and reconciled.

  9  All publicly supported libraries shall be exempt from marking

10  hardback-covered bound books, as required by this section.

11  The catalog and inventory control records maintained by each

12  publicly supported library shall constitute the property

13  record of hardback-covered bound books with a value or cost of

14  $25 or more included in each publicly supported library

15  collection and shall serve as a perpetual inventory in lieu of

16  an annual physical inventory.  All books identified by these

17  records as missing shall be traced and reconciled, and the

18  library inventory shall be adjusted accordingly.

19         Section 12.  Paragraph (c) of subsection (1) of section

20  287.058, Florida Statutes, 1998 Supplement, is amended to

21  read:

22         287.058  Contract document.--

23         (1)  Every procurement of contractual services in

24  excess of the threshold amount provided in s. 287.017 for

25  CATEGORY TWO, except for the providing of health and mental

26  health services or drugs in the examination, diagnosis, or

27  treatment of sick or injured state employees or the providing

28  of other benefits as required by the provisions of chapter

29  440, shall be evidenced by a written agreement embodying all

30  provisions and conditions of the procurement of such services,

31

                                  17

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  which provisions and conditions shall, where applicable,

  2  include, but shall not be limited to:

  3         (c)  A provision allowing unilateral cancellation by

  4  the agency for refusal by the contractor to allow public

  5  access to all documents, papers, letters, or other material,

  6  subject to the provisions of chapter 119 and made or received

  7  by the contractor directly in conjunction with the contract.

  8  All documents, papers, letters, or other material made or

  9  received by any contractor, subcontractor, or any other person

10  directly in connection with any contract for services in

11  excess of the threshold amount for CATEGORY TWO, are public

12  records and subject to the provisions of chapter 119.   Every

13  written agreement, in excess of the threshold amount for

14  CATEGORY TWO, between a contractor and subcontractor, or

15  between a subcontractor and other parties performing services

16  relating to the contract, shall also contain a provision

17  allowing unilateral cancellation for refusal to allow public

18  access to all documents, papers, letters, or other material

19  made or received in connection with the contract.

20

21  In lieu of a written agreement, the department may authorize

22  the use of a purchase order for classes of contractual

23  services, provided the provisions of paragraphs (a)-(f) are

24  included in the purchase order, invitation to bid, or request

25  for proposals.  The purchase order shall include an adequate

26  description of the services, the contract period, and the

27  method of payment. In lieu of printing the provisions of

28  paragraphs (a)-(f) in the contract document or purchase order,

29  agencies may incorporate the requirements of paragraphs

30  (a)-(f) by reference.

31

                                  18

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         Section 13.  Subsection (2) of section 17.11, Florida

  2  Statutes, is amended to read:

  3         17.11  To report disbursements made.--

  4         (2)  The Comptroller shall also cause to have reported

  5  from the Florida state automated management Accounting

  6  Information Resource  Subsystem no less than quarterly the

  7  disbursements which agencies made to small businesses, as

  8  defined in the Florida Small and Minority Business Assistance

  9  Act of 1985; to certified minority business enterprises in the

10  aggregate; and to certified minority business enterprises

11  broken down into categories of minority persons, as well as

12  gender and nationality subgroups. This information shall be

13  made available to the agencies, the Minority Business Advocacy

14  and Assistance Office, the Governor, the President of the

15  Senate, and the Speaker of the House of Representatives. Each

16  agency shall be responsible for the accuracy of information

17  entered into the Florida state automated management Accounting

18  Information Resource Subsystem for use in this reporting.

19         Section 14.  Subsection (4) of section 215.3206,

20  Florida Statutes, is amended to read:

21         215.3206  Trust funds; termination or re-creation.--

22         (4)  For the purposes of this section, the Governor,

23  Chief Justice, and agencies shall review the trust funds as

24  they are identified by a unique 6-digit code in the Florida

25  State Automated Management Accounting Information Resource

26  Subsystem (SAMAS) at a level composed of the 2-digit

27  organization level 1, the 1-digit state fund type 2, and the

28  first three digits of the fund identifier. The Governor, Chief

29  Justice, and agencies may also conduct their review and make

30  recommendations concerning accounts within such trust funds.

31

                                  19

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         Section 15.  Subsection (3) of section 215.3208,

  2  Florida Statutes, is amended to read:

  3         215.3208  Trust funds; schedule for termination;

  4  legislative review.--

  5         (3)  For the purposes of this section, the Legislature

  6  shall review the trust funds as they are identified by a

  7  unique 6-digit code in the Florida State Automated Management

  8  Accounting Information Resource  Subsystem (SAMAS) at a level

  9  composed of the 2-digit organization level 1, the 1-digit

10  state fund type 2, and the first three digits of the fund

11  identifier. When a statutorily created trust fund that was in

12  existence on November 4, 1992, has more than one 6-digit code,

13  the Legislature may treat it as a single trust fund for the

14  purposes of this section. The Legislature may also conduct its

15  review concerning accounts within such trust funds.

16         Section 16.  Section 216.183, Florida Statutes, is

17  amended to read:

18         216.183  Entities using performance-based program

19  budgets; chart of accounts.--State agencies and the judicial

20  branch for which a performance-based program budget has been

21  appropriated shall utilize the chart of accounts used by the

22  Florida State Automated Management Accounting Information

23  Resource Subsystem in the manner described in s. 215.93(3).

24  The chart of accounts for state agencies and the judicial

25  branch for which a performance-based program budget has been

26  appropriated shall be developed and amended, if necessary, in

27  consultation with the Department of Banking and Finance and

28  the Executive Office of the Governor.

29         Section 17.  Subsection (4) of section 216.212, Florida

30  Statutes, is amended to read:

31

                                  20

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         216.212  Budgets for federal funds; restrictions on

  2  expenditure of federal funds.--

  3         (4)  The Office of the Comptroller and the Executive

  4  Office of the Governor, in consultation with the Office of the

  5  Treasurer and the Office of the Auditor General, shall develop

  6  and maintain a means to ensure the compatibility of the

  7  Florida State Automated Management Accounting Information

  8  Resource Subsystem and the Federal Aid Tracking System.  Any

  9  successive systems serving identical or similar functions

10  shall preserve such compatibility.

11         Section 18.  Section 216.237, Florida Statutes, is

12  amended to read:

13         216.237  Availability of any remaining funds; agency

14  maintenance of accounting records.--Any remaining funds from

15  the General Revenue Fund and trust fund spending authority not

16  awarded to agencies pursuant to section 2 of this bill shall

17  be available to agencies for innovative projects which

18  generate a cost savings, increase revenue, or improve service

19  delivery. Innovative projects which generate a cost savings

20  shall receive greater consideration when awarding innovation

21  investment funds. Any trust fund authority granted under this

22  program shall be utilized in a manner consistent with the

23  statutory authority for the use of said trust fund. Any

24  savings realized as a result of implementing the innovative

25  project shall be used by the agency to establish an internal

26  innovations fund. State agencies which are awarded funds for

27  innovative projects shall utilize the chart of accounts used

28  by the Florida State Automated Management Accounting

29  Information Resource Subsystem System in the manner described

30  in s. 215.93(3). Such chart of accounts shall be developed and

31  amended in consultation with the Department of Banking and

                                  21

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  Finance and the Executive Office of the Governor to separate

  2  and account for the savings that result from the

  3  implementation of the innovative projects and to keep track of

  4  how the innovative funds are reinvested by the state agency to

  5  fund additional innovative projects, which may include, but

  6  not be limited to, expenditures for training and information

  7  technology resources. Guidelines for the establishment of such

  8  internal innovations fund shall be provided by the Department

  9  of Management Services. Any agency awarded funds under this

10  section shall maintain detailed accounting records showing all

11  expenses, loan transfers, savings, or other financial actions

12  concerning the project. Any savings realized as a result of

13  implementing the innovative project shall be quantified,

14  validated, and verified by the agency. A final report of the

15  results of the implementation of each innovative project shall

16  be submitted by each participating agency to the Governor's

17  Office of Planning and Budgeting and the legislative

18  appropriations committees by June 30 of the fiscal year in

19  which the funds were received and ensuing fiscal years for the

20  life of the project.

21         Section 19.  Subsection (1) of section 280.08, Florida

22  Statutes, 1998 Supplement, is amended to read:

23         280.08  Procedure for payment of losses.--When the

24  Treasurer determines that a default or insolvency has

25  occurred, he or she shall provide notice as required in s.

26  280.085(1) and implement the following procedures:

27         (1)  The Treasurer, in cooperation with the Director of

28  the Division of Banking of the Department of Banking and

29  Finance or the receiver of the qualified public depository in

30  default, shall ascertain the amount of funds of each public

31

                                  22

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  depositor on deposit at such depository and the amount of

  2  deposit insurance applicable to such deposits.

  3         Section 20.  Section 288.778, Florida Statutes, is

  4  amended to read:

  5         288.778  Department of Banking and Finance.--The

  6  Division of Banking of the Department of Banking and Finance

  7  shall review the corporation's activities once every 24 months

  8  to determine compliance with this part and other related laws

  9  and rules and to evaluate the corporation's operations.  The

10  department division shall prepare a report based on its review

11  and evaluation with recommendation for any corrective action.

12  The president shall submit to the department division regular

13  reports on the corporation's activities.  The content and

14  frequency of such reports shall be determined by the

15  department division.  The department division shall charge a

16  fee for conducting the review and evaluation and preparing the

17  related report, which fee shall not be in excess of the

18  examination fee paid by financial institutions chartered or

19  licensed under the financial institutions code of this state.

20         Section 21.  Subsection (3) of section 494.0011,

21  Florida Statutes, 1998 Supplement, is amended to read:

22         494.0011  Powers and duties of the department.--

23         (3)  All fees, charges, and fines collected by the

24  department pursuant to ss. 494.001-494.0077 shall be deposited

25  in the State Treasury to the credit of the Regulatory Trust

26  Fund under the Division of Finance of the department.

27         Section 22.  Subsection (3) of section 494.0017,

28  Florida Statutes, is amended to read:

29         494.0017  Mortgage Brokerage Guaranty Fund.--

30         (3)  The Mortgage Brokerage Guaranty Fund shall be

31  disbursed as provided in former s. 494.044, upon approval by

                                  23

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  the department Division of Finance, to any party to a mortgage

  2  financing transaction who:

  3         (a)  Is adjudged by a court of competent jurisdiction

  4  of this state to have suffered monetary damages as a result of

  5  any violation of chapter 494 in effect prior to October 1,

  6  1991, committed by a licensee or registrant;

  7         (b)  Has filed a claim for recovery prior to January 1,

  8  1992; and

  9         (c)  Has suffered monetary damages as a result of an

10  act occurring prior to October 1, 1991.

11         Section 23.  Paragraph (m) of subsection (2) of section

12  494.0041, Florida Statutes, is amended to read:

13         494.0041  Administrative penalties and fines; license

14  violations.--

15         (2)  Each of the following acts constitutes a ground

16  for which the disciplinary actions specified in subsection (1)

17  may be taken:

18         (m)  Failure to maintain, preserve, and keep available

19  for examination all books, accounts, or other documents

20  required by ss. 494.001-494.0077 and the rules of the

21  department Division of Finance.

22         Section 24.  Paragraph (a) of subsection (7) of section

23  494.00421, Florida Statutes, is amended to read:

24         494.00421  Fees earned upon obtaining a bona fide

25  commitment.--Notwithstanding the provisions of ss.

26  494.001-494.0077, any mortgage brokerage business which

27  contracts to receive from a borrower a mortgage brokerage fee

28  upon obtaining a bona fide commitment shall accurately

29  disclose in the mortgage brokerage agreement:

30

31

                                  24

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         (7)(a)  The following statement, in no less than

  2  12-point boldface type immediately above the signature lines

  3  for the borrowers:

  4

  5  "You are entering into a contract with a mortgage brokerage

  6  business to obtain a bona fide mortgage loan commitment under

  7  the same terms and conditions as stated hereinabove or in a

  8  separate executed good faith estimate form.  If the mortgage

  9  brokerage business obtains a bona fide commitment under the

10  same terms and conditions, you will be obligated to pay the

11  mortgage brokerage business fees, including, but not limited

12  to, a mortgage brokerage fee, even if you choose not to

13  complete the loan transaction.  If the provisions of s.

14  494.00421, Florida Statutes, are not met, the mortgage

15  brokerage fee can only be earned upon the funding of the

16  mortgage loan.  The borrower may contact the Department of

17  Banking and Finance, Division of Finance, Tallahassee,

18  Florida, regarding any complaints that the borrower may have

19  against the mortgage broker or the mortgage brokerage

20  business.  The telephone number of the department as set by

21  rule of the department is:  ...[insert telephone number]...."

22         Section 25.  Subsection (3) of section 494.0061,

23  Florida Statutes, is amended to read:

24         494.0061  Mortgage lender's license requirements.--

25         (3)  Each initial application for a mortgage lender's

26  license must be in written form prescribed by the department.

27  The department division may require each applicant to provide

28  any information reasonably necessary to make a determination

29  of the applicant's eligibility for licensure.  The department

30  may require that each officer, director, and ultimate

31  equitable owner of a 10-percent or greater interest in the

                                  25

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  applicant submit a complete set of fingerprints taken by an

  2  authorized law enforcement officer.

  3         Section 26.  Subsection (3) of section 494.0062,

  4  Florida Statutes, is amended to read:

  5         494.0062  Correspondent mortgage lender's license

  6  requirements.--

  7         (3)  Each initial application for a correspondent

  8  mortgage lender's license must be in written form prescribed

  9  by the department.  The department division may require each

10  applicant to provide any information reasonably necessary to

11  make a determination of the applicant's eligibility for

12  licensure.  The department may require that each officer,

13  director, and ultimate equitable owner of a 10-percent or

14  greater interest submit a complete set of fingerprints taken

15  by an authorized law enforcement officer.

16         Section 27.  Paragraph (m) of subsection (2) of section

17  494.0072, Florida Statutes, is amended to read:

18         494.0072  Administrative penalties and fines; license

19  violations.--

20         (2)  Each of the following acts constitutes a ground

21  for which the disciplinary actions specified in subsection (1)

22  may be taken:

23         (m)  Failure to maintain, preserve, and keep available

24  for examination all books, accounts, or other documents

25  required by ss. 494.001-494.0077 or the rules of the

26  department Division of Finance.

27         Section 28.  Subsections (4), (9), and (12) of section

28  497.407, Florida Statutes, are amended to read:

29         497.407  Certificate of authority; annual statement;

30  renewal; transfer.--

31

                                  26

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1         (4)  The fee payable to the department for issuance of

  2  the original certificate of authority and each annual renewal

  3  thereof shall be set by the board at an amount not to exceed

  4  $500 and shall accompany each application for an original

  5  certificate and, thereafter, each annual statement.  Any

  6  person or entity that is part of a common business enterprise

  7  that has a certificate of authority issued pursuant to this

  8  section and elects to operate under a name other than that of

  9  the common business enterprise shall submit an application on

10  a form adopted by the board to become a branch registrant.

11  Upon the approval of the board that such entity qualifies to

12  sell preneed contracts under this chapter except for the

13  requirements of subparagraph (2)(c)1. and if the

14  certificateholder meets the requirements of such subparagraph,

15  a branch registration shall be issued.  Each branch registrant

16  may operate under the certificate of authority of the common

17  business enterprise upon the payment of a fee established by

18  the board not to exceed $100 accompanying the application on

19  April 1 annually. The fee shall be payable to the Regulatory

20  Trust Fund under the department Division of Finance.

21         (9)  In addition to any other penalty that may be

22  provided for under this chapter, the board may levy a fine not

23  to exceed $50 a day for each day the certificateholder fails

24  to file its annual statement, and the board may levy a fine

25  not to exceed $50 a day for each day the certificateholder

26  fails to file the statement of activities of the trust.  Upon

27  notice to the certificateholder by the board that the

28  certificateholder has failed to file the annual statement or

29  the statement of activities of the trust, the

30  certificateholder's authority to sell preneed contracts shall

31  cease while such default continues.  The board shall deposit

                                  27

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  all sums collected under this section to the credit of the

  2  Regulatory Trust Fund under the department Division of

  3  Finance.

  4         (12)  Each certificateholder shall pay to the

  5  Regulatory Trust Fund under the department Division of Finance

  6  an amount established by the board not to exceed $5 for each

  7  preneed contract entered into. This amount must be paid within

  8  60 days after the end of each quarter. These funds must be

  9  used to defray the cost of the board and the department in

10  administering the provisions of this chapter.

11         Section 29.  Subsection (3) of section 497.435, Florida

12  Statutes, is amended to read:

13         497.435  Administrative fine in lieu of revocation or

14  suspension of certificate of authority.--

15         (3)  The fine shall be deposited into the Regulatory

16  Trust Fund under the department Division of Finance.

17         Section 30.  Subsection (2) of section 516.03, Florida

18  Statutes, is amended to read:

19         516.03  Application for license; fees; etc.--

20         (2)  FEES.--Fees herein provided for shall be collected

21  by the department and shall be turned into the State Treasury

22  to the credit of the regulatory trust fund under the Division

23  of Finance of the department.  The department shall have full

24  power to employ such examiners or clerks to assist the

25  department as may from time to time be deemed necessary and

26  fix their compensation.

27         Section 31.  Section 520.998, Florida Statutes, is

28  amended to read:

29         520.998  Regulatory Trust Fund.--All fees, charges, and

30  fines collected by the department pursuant to this chapter

31  shall be deposited in the State Treasury to the credit of the

                                  28

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1  Regulatory Trust Fund under the Division of Finance of the

  2  department.

  3         Section 32.  Paragraph (a) of subsection (1) of section

  4  655.90, Florida Statutes, is amended to read:

  5         655.90  Closing during emergencies and other special

  6  days.--

  7         (1)  DEFINITIONS.--As used in this section, the term:

  8         (a)  "Commissioner" means the officer of this state

  9  designated by law as the head of the Department of Banking and

10  Finance and any other person lawfully exercising such powers,

11  whether as a deputy to such officer; as a division director,

12  bureau chief, or financial administrator of or within such

13  department; or otherwise.  In the absence of any person

14  lawfully exercising the powers of the head of the Department

15  of Banking and Finance, the director of the Division of

16  Banking or any other person lawfully exercising the powers of

17  the director of the division, whether as another division

18  director, as a bureau chief or financial administrator, or

19  otherwise.

20         Section 33.  Subsection (1) of section 655.942, Florida

21  Statutes, is amended to read:

22         655.942  Standards of conduct; institutions.--

23         (1)  A financial institution which is licensed or

24  authorized to do business pursuant to the financial

25  institutions codes, or its officers, directors, or employees

26  may not make or grant any loan or gratuity to any employee of

27  the department Division of Banking who has authority to

28  examine or otherwise supervise such financial institution.

29         Section 34.  This act shall take effect October 1,

30  1999.

31

                                  29

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






    Florida House of Representatives - 1999               CS/HB 77

    614-136-99






  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Provides for payment of retirement benefits by direct
  4    deposit. Specifies purposes and duties of the Comptroller
      and deletes provisions creating divisions of the
  5    Department of Banking and Finance. Specifies a time limit
      for filing actions to recover compensation by executive
  6    branch personnel. Provides for designees of agency heads
      to perform specified functions relating to per diem and
  7    travel expenses. Revises duties of the Comptroller
      relating to preparing and publishing required financial
  8    information. Declares contracts for services above a
      threshold amount as public records. Requires written
  9    agreements for procurement of contractual services by the
      state to contain a provision for unilateral cancellation
10    if the public is denied access to public information. See
      bill for details.
11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  30