House Bill 2377e3

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                                          HB 2377, Third Engrossed



  1                      A bill to be entitled

  2         An act relating to the state budgetary process;

  3         revising procedures used in submitting and

  4         reviewing requests for state funds; amending s.

  5         216.011, F.S.; revising, deleting, and adding

  6         definitions; creating s. 216.013, F.S.;

  7         requiring agencies to submit long-range program

  8         plans; amending s. 216.015, F.S.; revising

  9         legislative findings; amending s. 216.0152,

10         F.S.; changing the date for publishing a

11         certain report; amending s. 216.0158, F.S.;

12         revising procedures for determination of

13         facility needs; amending s. 216.016, F.S.;

14         requiring additional information in the

15         Governor's recommended budget; amending s.

16         216.023, F.S.; prescribing procedures for

17         submitting agency budget requests to the

18         Legislature; amending s. 216.031, F.S.;

19         revising procedures relating to legislative

20         budget requests; amending s. 216.044, F.S.;

21         revising procedures relating to budget

22         evaluation by the Department of Management

23         Services; amending s. 216.0446, F.S.; revising

24         procedures relating to review of information

25         resources management needs; amending s.

26         216.052, F.S.; providing procedure for

27         submitting community budget requests; amending

28         s. 216.081, F.S.; revising the schedule for

29         submission of data relating to the judicial and

30         legislative branches; amending s. 216.131,

31         F.S.; revising procedures relating to public


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                                          HB 2377, Third Engrossed



  1         hearings; amending s. 216.133, F.S.; revising,

  2         deleting, and adding definitions; amending s.

  3         216.134, F.S.; revising procedures to be used

  4         by estimating conferences; amending s. 216.136,

  5         F.S.; revising duties of the Economic

  6         Estimating Conference; abolishing the

  7         Transportation Estimating Conference; creating

  8         the Self-Insurance Estimating Conference and

  9         the Florida Retirement System Actuarial

10         Assumption Conference; amending s. 216.141,

11         F.S.; revising provisions relating to the

12         planning and budgeting system; amending s.

13         216.162, F.S.; revising procedures relating to

14         furnishing legislators with copies of the

15         Governor's recommended budget; amending s.

16         216.163, F.S.; revising provisions relating to

17         form and content of the Governor's recommended

18         budget; amending s. 216.177, F.S.; revising

19         provisions relating to appropriation act

20         statements of intent and to required notices of

21         budgetary action; amending s. 216.178, F.S.;

22         requiring additional notice before the vote on

23         an appropriations act; revising duties of the

24         Governor with respect to statements of costs of

25         state debts and obligations; amending s.

26         216.179, F.S.; prohibiting reinstatement by a

27         state agency of vetoed appropriations

28         administratively; amending s. 216.181, F.S.;

29         revising procedures relating to approved

30         budgets for operations and fixed capital

31         outlay; revising restrictions on increases on


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                                          HB 2377, Third Engrossed



  1         salary rate; prescribing procedures with

  2         respect to nonoperating budgets; deleting

  3         obsolete provisions; creating s. 216.1825,

  4         F.S.; requiring zero-based budgeting reviews;

  5         providing for use of zero-based budgeting

  6         principles; amending s. 216.183, F.S.; revising

  7         provisions relating to development of charts of

  8         accounts; amending s. 216.192, F.S.; revising

  9         procedures relating to release of

10         appropriations; amending s. 216.195, F.S.;

11         defining the term "impoundment" for purposes of

12         impoundment of funds; amending s. 216.212,

13         F.S.; revising duties of the Executive Office

14         of the Governor and the Office of the

15         Comptroller with respect to budgets for federal

16         funds; creating s. 216.216, F.S.; prescribing

17         procedures to be used with respect to funds

18         subject to a court settlement negotiated by the

19         state; amending s. 212.221, F.S.; revising

20         procedures to be used in the event of budget

21         deficits; amending s. 216.251, F.S.; revising

22         procedures relating to salary appropriations

23         for certain employees; amending s. 216.262,

24         F.S.; revising provisions relating to increases

25         in authorized positions; defining the term

26         "perquisites" for purposes of limiting the

27         furnishing thereof; amending s. 216.271, F.S.;

28         defining the term "revolving fund"; amending s.

29         216.292, F.S.; revising provisions relating to

30         limits on and procedures for transfers of

31         appropriations; creating s. 216.348, F.S.;


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                                          HB 2377, Third Engrossed



  1         providing conditions for receipt of certain

  2         grants and aids appropriations by certain

  3         nonprofit entities; providing definitions;

  4         providing for an affidavit of nonprofit status;

  5         providing for an agreement between the

  6         administering agency and the nonprofit entity;

  7         providing minimum requirements for the

  8         agreement; providing that the nonprofit entity

  9         continue operation of the property for the

10         purposes set forth in the grant; providing for

11         repayment of grant moneys received under

12         certain conditions; providing for the adoption

13         of an accounting system and providing for

14         audit; providing for liability insurance and

15         exempting the administering agency from

16         liability; providing permissive conditions of

17         the agreement; providing for a satisfaction of

18         the agreement; amending s. 11.45, F.S.;

19         prescribing duties of the Auditor General with

20         respect to direct-support and citizen support

21         organizations; creating s. 11.90, F.S.;

22         creating the Legislative Budget Commission;

23         amending s. 120.65, F.S.; deleting 21-day time

24         limitation on action by the Executive Office of

25         the Governor; amending s. 121.031, F.S.;

26         deleting provisions relating to the Florida

27         Retirement System Actuarial Assumption

28         Conference; amending s. 186.002, F.S.; changing

29         "state agency strategic" plan to "long-range

30         program" plan; amending s. 186.003, F.S.;

31         redefining the term "state agency"; amending s.


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                                          HB 2377, Third Engrossed



  1         186.021, F.S.; requiring each state agency to

  2         develop a long-range program plan annually;

  3         amending s. 186.022, F.S.; requiring submission

  4         of information resource strategic plans;

  5         amending s. 186.901, F.S.; revising provisions

  6         relating to production of population estimates;

  7         amending s. 215.18, F.S.; providing authority

  8         for the Governor to approve transfers between

  9         funds to avoid deficits; amending s. 215.22,

10         F.S.; exempting Tobacco Settlement Trust Funds

11         from service charge to general revenue;

12         amending s. 215.32, F.S.; authorizing the

13         Governor to combine trust funds under certain

14         conditions; amending ss. 215.3208, 240.209,

15         240.20941, 240.279, 252.37, 288.7091, 320.20,

16         337.023, 339.135, 376.15, 392.69, F.S., to

17         conform terminology and references to changes

18         made by the act; transferring, renumbering, and

19         amending s. 216.3491, F.S.; providing for the

20         Florida Single Audit Act; renumbering s.

21         216.331, F.S., relating to disbursement of

22         state moneys; renumbering s. 216.3505, F.S.,

23         relating to refinancing of bonds; repealing s.

24         216.001, F.S., relating to definitions;

25         repealing s. 216.0154, F.S., relating to

26         assessment of trends and conditions affecting

27         need for capital facilities; repealing s.

28         216.0162, F.S., relating to monitoring and

29         evaluation of capital facilities planning and

30         budgeting; repealing s. 216.0166, F.S.,

31         relating to submission of performance-based


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                                          HB 2377, Third Engrossed



  1         budget requests, programs, and performance

  2         measures; repealing s. 216.0172, F.S., relating

  3         to the schedule for submission of

  4         performance-based program budgets; repealing s.

  5         216.0235, F.S., relating to furnishing of

  6         performance-based legislative program budget

  7         requests; repealing s. 216.0315, F.S., relating

  8         to budgets of state agencies that have

  9         international programs; repealing s. 216.091,

10         F.S., relating to statements by the

11         Comptroller; repealing s. 216.111, F.S.,

12         relating to financial statements and schedules

13         and other reports; repealing s. 216.281, F.S.,

14         relating to construction of terms; repealing s.

15         216.286, F.S., relating to release of funds

16         under the Florida Employment Opportunity Act;

17         providing applicability; providing an effective

18         date.

19

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

21

22         Section 1.  Section 216.011, Florida Statutes, is

23  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 monetary

30  compensation authorized salary estimated to be paid or

31  actually paid a position or positions on an annualized basis.


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                                          HB 2377, Third Engrossed



  1  The term does not include moneys authorized for benefits

  2  associated with the position. In calculating salary rate, a

  3  vacant position shall be calculated at the minimum of the pay

  4  grade for that position.

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

  6  make expenditures for specific purposes within the amounts

  7  authorized in the appropriations act.

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

  9  the Legislature, based upon legislative budgets or based upon

10  legislative findings of the necessity for an authorization

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

12  amounts of money by an agency, the judicial branch, or and the

13  legislative branch for stated purposes in the performance of

14  the functions it is authorized by law to perform. The

15  categories contained in the appropriations act include, but

16  are not limited to:

17         1.  Data processing services.

18         2.  Expenses.

19         3.  Fixed capital outlay.

20         4.  Food products.

21         5.  Grants and aids.

22         6.  Grants and aids to local governments and nonstate

23  entities-fixed capital outlay.

24         7.  Lump-sum appropriations.

25         8.  Operating capital outlay.

26         9.  Other personal services.

27         10.  Salaries and benefits.

28         11.  Special categories.

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

30  an approved budget.  In counting the number of authorized

31


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                                          HB 2377, Third Engrossed



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

  2  equivalents.

  3         (e)(qq)  "Baseline data" means indicators of a state

  4  agency's current performance level, pursuant to guidelines

  5  established by the Executive Office of the Governor, in

  6  consultation with legislative appropriations and appropriate

  7  substantive committees.

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

  9  lowest level to which funds are specifically appropriated in

10  the appropriations act. "Budget entity" and "service" have the

11  same meaning.

12         (g)  "Chairs of the legislative appropriations

13  committees" means the chairs of the committees of the Senate

14  and the House of Representatives responsible for producing the

15  General Appropriations Act.

16         (h)(f)  "Consultation" means to deliberate and seek

17  advice in an open and forthright manner with the full

18  committee, a subcommittee thereof, the chair, or the staff as

19  deemed appropriate by the chair of the respective

20  appropriations committee.

21         (i)(g)  "Continuing appropriation" means an

22  appropriation automatically renewed without further

23  legislative action, period after period, until altered or

24  revoked by the Legislature.

25         (j)(h)  "Data processing services" means the

26  appropriation category used to fund electronic data processing

27  services provided by or to state agencies or the judicial

28  branch, which services include, but are not limited to,

29  systems design, software development, or time-sharing by other

30  governmental units or budget entities.

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                                          HB 2377, Third Engrossed



  1         (k)(i)  "Disbursement" means the payment of an

  2  expenditure.

  3         (l)(j)  "Disincentive" means a sanction as described in

  4  s. 216.163.

  5         (k)  "Established position" means an authorized

  6  position which has been classified in accordance with a

  7  classification and pay plan as provided by law.

  8         (m)(l)  "Expenditure" means the creation or incurring

  9  of a legal obligation to disburse money.

10         (n)(m)  "Expense" means the appropriation category used

11  to fund the usual, ordinary, and incidental expenditures by an

12  agency or the judicial branch, including, but not limited to,

13  such items as contractual services, commodities, and supplies

14  of a consumable nature, current obligations, and fixed

15  charges, and excluding expenditures classified as operating

16  capital outlay.  Payments to other funds or local, state, or

17  federal agencies may be are included in this category budget

18  classification of expenditures.

19         (o)(n)  "Fiscal year of the state" means a period of

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

21  both dates inclusive.

22         (p)(o)  "Fixed capital outlay" means the appropriation

23  category used to fund real property (land, buildings,

24  including appurtenances, fixtures and fixed equipment,

25  structures, etc.), including additions, replacements, major

26  repairs, and renovations to real property which materially

27  extend its useful life or materially improve or change its

28  functional use and including furniture and equipment necessary

29  to furnish and operate a new or improved facility, when

30  appropriated by the Legislature in the fixed capital outlay

31  appropriation category.


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                                          HB 2377, Third Engrossed



  1         (q)  "Food products" means the appropriation category

  2  used to fund food consumed and purchased in state-run

  3  facilities that provide housing to individuals.

  4         (p)  "Full-time position" means a position authorized

  5  for the entire normally established work period, daily,

  6  weekly, monthly, or annually.

  7         (r)(q)  "Grants and aids" means the appropriation

  8  category used to fund contributions to units of government

  9  governments or nonstate entities nonprofit organizations to be

10  used for one or more specified purposes or, activities, or

11  facilities.  Funds appropriated to units of government and

12  nonprofit entities under this category may be advanced.

13         (s)(pp)  "Grants and aids to local governments and

14  nonstate entities-fixed Nonprofit Organizations-Fixed capital

15  outlay" means the that appropriation category used to fund

16  which includes:

17         1.  Grants to local units of governments or nonstate

18  entities and nonprofit organizations for the acquisition of

19  real property (land, buildings, including appurtenances,

20  fixtures and fixed equipment, structures, etc.); additions,

21  replacements, major repairs, and renovations to real property

22  which materially extend its useful life or materially improve

23  or change its functional use; and operating capital outlay

24  necessary to furnish and operate a new or improved facility;

25  and

26         2.  Grants to local units of government for their

27  respective infrastructure and growth management needs related

28  to local government comprehensive plans.

29

30

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                                          HB 2377, Third Engrossed



  1  Funds appropriated to local units of government and nonprofit

  2  organizations under this category may be advanced in part or

  3  in whole.

  4         (t)(r)  "Incentive" means a mechanism, as described in

  5  s. 216.163, for recognizing the achievement of performance

  6  standards or for motivating performance that exceeds

  7  performance standards.

  8         (u)(s)  "Independent judgment" means an evaluation of

  9  actual needs made separately and apart from the legislative

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

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

12  be limited by revenue estimates of the Revenue Estimating

13  Conference.

14         (v)(t)  "Judicial branch" means all officers,

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

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

17  Qualifications Commission.

18         (w)(u)  "Legislative branch" means the various

19  officers, committees, and other units of the legislative

20  branch of state government.

21         (x)  "Legislative budget instructions" means the annual

22  set of instructions developed to assist agencies in submitting

23  budget requests to the Legislature and to generate information

24  necessary for budgetary decisionmaking. Such instructions may

25  include program-based performance budget instructions.

26         (y)(v)  "Legislative budget request" means a request to

27  the Legislature, filed pursuant to s. 216.023, or supplemental

28  detailed requests filed with the Legislature, for the amounts

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

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

31  it is requesting authorization by law, to perform.


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                                          HB 2377, Third Engrossed



  1         (z)  "Long-range program plan" means a plan developed

  2  on an annual basis by each state agency that is policy based,

  3  priority driven, accountable, and developed through careful

  4  examination and justification of all programs and their

  5  associated costs. Each plan is developed by examining the

  6  needs of agency customers and clients and proposing programs

  7  and associated costs to address those needs based on state

  8  priorities as established by law, the agency mission, and

  9  legislative authorization. The plan provides the framework and

10  context for preparing the legislative budget request and

11  includes performance indicators for evaluating the impact of

12  programs and agency performance.

13         (aa)(w)  "Lump-sum appropriation" means the

14  appropriation category used to fund funds appropriated to

15  accomplish a specific activity or project which must be

16  transferred to one or more appropriation categories for

17  expenditure.

18         (bb)(x)  "Operating capital outlay" means the

19  appropriation category used to fund equipment, fixtures, and

20  other tangible personal property of a nonconsumable and

21  nonexpendable nature, up to the value or cost specified in s.

22  273.02 of which is $1,000 or more and the normal expected life

23  of which is 1 year or more, and hardback-covered bound books

24  that are circulated to students or the general public, the

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

26  bound books, the value or cost of which is $250 or more.

27         (cc)(y)  "Original approved budget" means the approved

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

29  consistent with the General Appropriations Act or special

30  appropriations acts.

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                                          HB 2377, Third Engrossed



  1         (dd)(z)  "Other personal services" means the

  2  appropriation category used to fund the compensation for

  3  services rendered by a person who is not a regular or

  4  full-time employee filling an established position.  This

  5  definition includes, but is not limited to, services of

  6  temporary employees, student or graduate assistants, persons

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

  8  and consultants and other services specifically budgeted by

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

10         1.  In distinguishing between payments to be made from

11  salaries and benefits appropriations and

12  other-personal-services appropriations:,

13         1.  Those persons filling established positions shall

14  be paid from salaries and benefits appropriations and those

15  persons performing services for a state agency or for the

16  judicial branch, but who are not filling established

17  positions, shall be paid from other-personal-services

18  appropriations.

19         2.  It is further intended that Those persons paid from

20  salaries and benefits appropriations shall be state officers

21  or employees and shall be eligible for membership in a state

22  retirement system and those paid from other-personal-services

23  appropriations shall not be eligible for such membership.

24         (ee)(rr)  "Outcome" means an indicator of the actual

25  impact or public benefit of a program.

26         (ff)(ss)  "Output" means the actual service or product

27  delivered by a state agency.

28         (gg)(xx)  "Performance-based program appropriation"

29  means the appropriation category used to fund funds

30  appropriated for a specific set of activities or

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                                          HB 2377, Third Engrossed



  1  classification of expenditure within an approved

  2  performance-based program.

  3         (hh)(tt)  "Performance-based program budget" means a

  4  budget that incorporates approved programs and performance

  5  measures.

  6         (ii)(uu)  "Performance measure" means a quantitative or

  7  qualitative indicator used to assess state agency performance.

  8         (jj)(vv)  "Program" means a set of activities

  9  undertaken in accordance with a plan of action organized to

10  realize identifiable goals and objectives based on legislative

11  authorization.

12         (aa)  "Part-time position" means a position authorized

13  for less than the entire normally established work period,

14  daily, weekly, monthly, or annually.

15         (bb)  "Pay plan" means a document which formally

16  describes the philosophy, methods, procedures, and salary

17  schedule for compensating employees for work performed.

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

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

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

21  additional compensation, or which reduces to some extent the

22  normal personal expenses of the officer or employee receiving

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

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

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

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

27  things.

28         (dd)  "Position" means the work, consisting of duties

29  and responsibilities, assigned to be performed by an officer

30  or employee.

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                                          HB 2377, Third Engrossed



  1         (ee)  "Position number" means the identification number

  2  assigned to an established position.

  3         (kk)(ff)  "Program component" means an aggregation of

  4  generally related objectives which, because of their special

  5  character, related workload, and interrelated output, can

  6  logically be considered an entity for purposes of

  7  organization, management, accounting, reporting, and

  8  budgeting.

  9         (ll)(gg)  "Proviso" means language that qualifies or

10  restricts a specific appropriation and which can be logically

11  and directly related to the specific appropriation.

12         (mm)  "Salaries and benefits" means the appropriation

13  category used to fund the monetary or cash-equivalent

14  compensation for work performed by state employees for a

15  specific period of time. Benefits shall be as provided by law.

16         (hh)  "Reclassification" means changing an established

17  position in one class in a series to the next higher or lower

18  class in the same series or to a class in a different series

19  which is the result of a natural change in the duties and

20  responsibilities of the position.

21         (ii)  "Revolving fund" means a cash fund maintained

22  within or outside of the State Treasury and established from

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

24  branch in making authorized expenditures.

25         (nn)(jj)  "Salary" means the cash compensation for

26  services rendered for a specific period of time.

27         (kk)  "Salary schedule" means an official document

28  which contains a complete list of classes and their assigned

29  salary ranges.

30

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                                          HB 2377, Third Engrossed



  1         (oo)(ll)  "Special category" means the appropriation

  2  category used to fund amounts appropriated for a specific need

  3  or classification of expenditures.

  4         (pp)(ww)  "Standard" means the level of performance of

  5  an outcome or output.

  6         (qq)(mm)  "State agency" or "agency" means any

  7  official, officer, commission, board, authority, council,

  8  committee, or department of the executive branch of state

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

10  "state agency" or "agency" includes, but is not limited to,

11  state attorneys, public defenders, the capital collateral

12  regional counsels Representative, and the Justice

13  Administrative Commission, the Florida Housing Finance

14  Corporation, and the Florida Public Service Commission. For

15  purposes of implementing s. 19(h), Art. III of the State

16  Constitution, "state agency" or "agency" includes the judicial

17  branch.

18         (nn)  "State revenue sharing" means statutory or

19  constitutional distributions to local units of government.

20         (oo)  "Title of position," or "class of positions"

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

22  positions.

23         (yy)  "Performance ledger" means the official

24  compilation of information about state agency

25  performance-based programs and measures, including approved

26  programs, approved outputs and outcomes, baseline data,

27  approved standards for each performance measure and any

28  approved adjustments thereto, as well as actual agency

29  performance for each measure.

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                                          HB 2377, Third Engrossed



  1         (2)  For purposes of this chapter, terms related to

  2  personnel affairs of the state shall be defined as set forth

  3  in s. 110.203.

  4         (3)(2)  For purposes of this chapter, the term:

  5         (a)  "Approved operating budget" or "approved budget"

  6  means the plan of operations consisting of the original

  7  approved operating budget and statement of intent.

  8         (b)  "Commission" means the Legislative Budget

  9  Administration Commission created in s. 11.90 composed of the

10  Governor and Cabinet.

11         (c)  "Emergency situation" means a set of conditions

12  that were unforeseen at the time the General Appropriations

13  Act was adopted and that are essential to correct in order to

14  continue the operation of government, or a set of conditions

15  that were not considered in the General Appropriations Act and

16  that constitute an imminent threat to public health, safety,

17  or welfare. This definition shall not apply to the emergency

18  provisions of chapter 252.

19         (d)  "Impoundment" means the omission of any

20  appropriation or part of an appropriation in the approved

21  operating plan prepared pursuant to the provisions of s.

22  216.181 or in the schedule of releases prepared pursuant to

23  the provisions of s. 216.192 or the failure of any state

24  agency or the judicial branch to spend an appropriation for

25  the stated purposes authorized in the approved operating

26  budget.

27         Section 2.  Section 216.013, Florida Statutes, is

28  created to read:

29         216.013  Long-range program plan.--

30         (1)  State agencies shall develop long-range program

31  plans to achieve state goals using an interagency planning


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                                          HB 2377, Third Engrossed



  1  process that includes the development of integrated agency

  2  program service outcomes.  The plan shall cover a period of 5

  3  fiscal years and shall become effective July 1 each year.

  4  Long-range program plans shall provide the framework for the

  5  development of agency budget requests and shall:

  6         (a)  Identify agency programs and address how agency

  7  programs will be used to implement state policy and achieve

  8  state goals and program component objectives;

  9         (b)  Identify and describe agency functions and how

10  they will be used to achieve designated outcomes;

11         (c)  Identify demand, output, total costs, and unit

12  costs for each function;

13         (d)  Provide information regarding performance

14  measurement, which includes, but is not limited to, how data

15  is collected, the methodology used to measure a performance

16  indicator, the validity and reliability of a measure, the

17  appropriateness of a measure, and whether the agency inspector

18  general has assessed the reliability and validity of agency

19  performance measures, pursuant to s. 20.055(2);

20         (e)  Identify and justify facility and fixed capital

21  outlay projects and their associated costs; and

22         (f)  Identify and justify information technology

23  infrastructure and applications and their associated costs for

24  information technology projects or initiatives.

25         (2)  All agency functions and their costs shall be

26  carefully evaluated and justified by the agency.  The

27  justification must clearly demonstrate the needs of agency

28  customers and clients and why the agency is proposing

29  functions and their associated costs to address the needs

30  based on state priorities, the agency mission, and legislative

31  authorization.  Further, the justification must show how


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                                          HB 2377, Third Engrossed



  1  agency functions are integrated and contribute to the overall

  2  achievement of state goals.  Facilities, fixed capital outlay

  3  and information technology infrastructure, and applications

  4  shall be evaluated pursuant to ss. 216.0158, 216.043, and

  5  216.0446, respectively.

  6         (3)  Long-range program plans shall be submitted to the

  7  Executive Office of the Governor by August 1 of each year in a

  8  form and manner prescribed by the Executive Office of the

  9  Governor and the chairs of the legislative appropriations

10  committees. Such long-range program plans for the Judicial

11  Branch shall be submitted by the Chief Justice of the Supreme

12  Court to the President of the Senate and the Speaker of the

13  House of Representatives, and a copy shall be provided to the

14  Executive Office of the Governor.

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

16  the long-range program plans for executive agencies to ensure

17  that they are consistent with the state's goals and objectives

18  and other requirements as specified in the written

19  instructions and that they provide the framework and context

20  for the agency's budget request. In its review, the Executive

21  Office of the Governor shall consider the findings of the

22  Technology Review Workgroup as to the consistency of the

23  information technology portion of long-range program plans

24  with the State Annual Report on Information Resources

25  Management and statewide policies recommended by the State

26  Technology Council and the state's plan for facility needs

27  pursuant to s. 216.0158. Based on the results of the review,

28  the Executive Office of the Governor may require an agency to

29  revise the plan.

30         (5)  Executive agencies shall incorporate all revisions

31  required by the Governor within 14 working days.


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                                          HB 2377, Third Engrossed



  1         (6)  Any differences between executive agencies

  2  regarding the programs, policies, or long-range program plans

  3  of such agencies shall be mediated by the Executive Office of

  4  the Governor.

  5         (7)  Each executive agency shall transmit copies of its

  6  long-range program plan and all written comments on its plan

  7  to the President of the Senate and the Speaker of the House of

  8  Representatives not later than 60 days prior to the next

  9  regular session of the Legislature.

10         (8)  Long-range program plans developed pursuant to

11  this chapter are not rules and therefore are not subject to

12  the provisions of chapter 120.

13         (9)  Agencies and the Judicial Branch shall make

14  appropriate adjustments to their long-range program plans to

15  be consistent with the appropriations and performance measures

16  in the General Appropriations Act. Agencies and the Judicial

17  Branch have until June 15 to make adjustments to their plans

18  and submit the adjusted plans to the Executive Office of the

19  Governor for review.

20         Section 3.  Subsections (2) and (4) of section 216.015,

21  Florida Statutes, are amended to read:

22         216.015  Capital facilities planning and budgeting

23  process.--

24         (2)  The Legislature finds that:

25         (a)  The condition of the state's infrastructure,

26  including its roads, water and sewer facilities, state office

27  buildings, bridges, ports, airports, canals, prisons,

28  educational facilities, park and recreational facilities, and

29  other capital assets, are in need of repair, expansion, and

30  replacement at a time when the fiscal resources of the state

31


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                                          HB 2377, Third Engrossed



  1  are increasingly being strained by the competing demands for

  2  state services and capital improvements.

  3         (b)  The high degree of coordination among the various

  4  branches of state government, local government, and public

  5  benefit corporations which is necessary to maximize the

  6  potential public benefits to be derived from the limited

  7  financial resources which will be dedicated to public capital

  8  improvements within this state in the future is lacking.

  9         (c)  There is a need to establish a comprehensive

10  capital facilities planning and budgeting process that which

11  is fully integrated with the state financial planning and debt

12  management activities and that which incorporates the

13  long-range plans of all state agencies and the judicial branch

14  and major public benefit corporations to ensure that projects

15  with the greatest potential for improving the prosperity and

16  well-being of the people of the state receive their proper

17  allocation of limited resources.

18         (d)  There is currently no mechanism in place for

19  managing the debt structure of the state by matching the

20  capital facility needs of the state with the amounts and

21  sources of funds which could be made available to meet those

22  needs.

23

24  It is, therefore, the intent of the Legislature in enacting

25  this legislation that a comprehensive capital facilities

26  planning and budgeting process be established and maintained

27  to enable the state to better meet the demands for new and

28  properly maintained infrastructure in a fiscally responsible

29  manner.

30         (4)  In order to carry out this act, the Executive

31  Office of the Governor is designated as the agency responsible


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                                          HB 2377, Third Engrossed



  1  for the coordination, development, and direction, monitoring,

  2  and evaluation of the comprehensive capital facilities

  3  planning and budgeting process, including the plans revised

  4  pursuant to that process. The Executive Office of the Governor

  5  shall publish an annual report of the progress being made by

  6  the state toward meeting the state goals and objectives of the

  7  plans.

  8         Section 4.  Subsection (3) of section 216.0152, Florida

  9  Statutes, is amended to read:

10         216.0152  Inventory of state-owned facilities or

11  state-occupied facilities.--

12         (3)  The Department of Management Services shall, every

13  3 years, publish a complete report detailing this inventory

14  and shall publish an annual update of the report.  The

15  department shall furnish the updated report to the Executive

16  Office of the Governor and the Legislature no later than

17  September 15 1 of each year.

18         Section 5.  Subsections (2), (4), and (5) of section

19  216.0158, Florida Statutes, are amended to read:

20         216.0158  Assessment of facility needs.--

21         (2)  On or before September 15 1 of each year, each

22  state agency, as defined in s. 216.011, shall submit to the

23  Executive Office of the Governor, and each district court of

24  appeal and the Marshal of the Supreme Court shall submit to

25  the Chief Justice of the Supreme Court, in a manner prescribed

26  by the legislative budget instructions, a short-term plan for

27  facility needs covering the next 5-year period.  The

28  short-term plan shall list the agency's or judicial branch's

29  facility needs in order of priority and shall include

30  preventive maintenance strategies, expected replacement of

31  existing facilities, expected improvements or additions to


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                                          HB 2377, Third Engrossed



  1  facilities on a specific project-by-project basis, estimated

  2  cost, and other information as prescribed by the legislative

  3  budget instructions.  At the same time, when directed in the

  4  legislative budget instructions as provided in s. 216.023(3),

  5  each agency shall submit to the Executive Office of the

  6  Governor, and each district court of appeal and the Marshal of

  7  the Supreme Court shall submit to the Chief Justice of the

  8  Supreme Court, who shall submit copies to the legislative

  9  appropriations committees, in a format prescribed by the

10  instructions, a long-term plan for the 5 years following the

11  period of the short-term plan.  The long-term plan shall

12  outline forecasted agency facility needs.  The Chief Justice

13  shall certify the final approved plan for the judicial branch

14  to the Executive Office of the Governor which shall include

15  the plan, without modification, in the state comprehensive

16  plan.

17         (4)  Each of The first year 2 years of the plan

18  referred to in subsection (2) shall comport with the

19  requirements of s. 216.043.

20         (5)  Each plan for years 2 3 through 5 shall provide

21  the following information:

22         (a)  A full explanation of the basis for each project,

23  including a description of the function which requires the

24  facility; an explanation of the inability of existing

25  facilities to meet such requirements; historical background;

26  alternatives; and anticipated changes in both initial and

27  continuing operating costs.

28         (b)  An application of standards and criteria to

29  establish the scope of each project.

30         (c)  An application of cost factors to all elements of

31  each project to establish an estimate of funding requirements.


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                                          HB 2377, Third Engrossed



  1         (d)  A request for a legislative appropriation to

  2  provide such funding in the appropriate fiscal year, including

  3  the need for advance funding of programming and design

  4  activities.

  5         Section 6.  Paragraph (a) of subsection (2) of section

  6  216.016, Florida Statutes, is amended to read:

  7         216.016  Evaluation of plans; determination of

  8  financing method.--

  9         (2)(a)  The Executive Office of the Governor shall

10  develop a finance plan for meeting the state's infrastructure

11  and fixed capital outlay needs, which shall be incorporated

12  into the Governor's recommended budget submitted to the

13  Legislature pursuant to s. 216.162.

14         Section 7.  Section 216.023, Florida Statutes, is

15  amended to read:

16         216.023  Legislative budget requests to be furnished to

17  Legislature by agencies.--

18         (1)  The head of each state agency shall submit a final

19  legislative budget request to the Legislature and to the

20  Governor, as chief budget officer of the state, in the form

21  and manner prescribed in the budget instructions and at such

22  time as specified by the Executive Office of the Governor,

23  based on the agency's independent judgment of its needs.

24  However, no state agency shall submit its complete final

25  legislative budget request, including all supporting forms and

26  schedules required by this chapter, later than September 15 1

27  of each year.

28         (2)  The judicial branch and the Division of

29  Administrative Hearings shall submit their complete final

30  legislative budget requests directly to the Legislature with a

31  copy to the Governor, as chief budget officer of the state, in


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                                          HB 2377, Third Engrossed



  1  the form and manner as prescribed in the budget instructions.

  2  However, the complete final legislative budget requests,

  3  including all supporting forms and schedules required by this

  4  chapter, shall be submitted no later than September 15 1 of

  5  each year.

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

  7  appropriations committees of the Legislature shall jointly

  8  develop legislative budget instructions for preparing the

  9  exhibits and schedules that make up the agency budget from

10  which each agency and the judicial branch, pursuant to ss.

11  216.031 and 216.043, shall prepare their legislative budget

12  request.  The budget instructions shall be consistent with s.

13  216.141 and shall be transmitted to each agency and to the

14  judicial branch no later than June 15 of each year.  In the

15  event that agreement cannot be reached between the Executive

16  Office of the Governor and the appropriations committees of

17  the Legislature regarding legislative budget instructions, the

18  issue shall be resolved by the Governor, the President of the

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

20         (4)  The legislative budget request must contain for

21  each program:

22         (a)  The constitutional or statutory authority for a

23  program, a brief purpose statement, and approved program

24  components.

25         (b)  Information on expenditures for 3 fiscal years

26  (actual prior-year expenditures, current-year estimated

27  expenditures, and agency budget requested expenditures for the

28  next fiscal year) by appropriation category.

29         (c)  Details on trust funds and fees.

30         (d)  The total number of positions (authorized, fixed,

31  or requested).


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                                          HB 2377, Third Engrossed



  1         (e)  An issue narrative describing and justifying

  2  changes in amounts and positions requested for current and

  3  proposed programs for the next fiscal year.

  4         (f)  Information resource requests.

  5         (g)  Legislatively approved output and outcome

  6  performance measures and any proposed revisions to measures.

  7         (h)  Proposed performance standards for each

  8  performance measure and justification for the standards and

  9  the sources of data to be used for measurement.

10         (i)  Prior-year performance data on approved

11  performance measures and an explanation of deviation from

12  expected performance. Performance data must be assessed for

13  reliability in accordance with s. 20.055.

14         (j)  Unit costs for approved output measures pursuant

15  to s. 186.022.

16         (k)  Proposed performance incentives and disincentives.

17         (5)  Prior to September 15 of the fiscal year prior to

18  which the judicial branch is required to submit a

19  performance-based program budget request, the Chief Justice of

20  the Supreme Court shall identify and, after consultation with

21  the Office of Program Policy Analysis and Government

22  Accountability, submit to the President of the Senate and the

23  Speaker of the House of Representatives a list of proposed

24  programs and associated performance measures. The judicial

25  branch shall provide documentation to accompany the list of

26  proposed programs and performance measures as provided under

27  s. 216.023(4). The judicial branch shall submit a

28  performance-based program agency budget request using the

29  programs and performance measures adopted by the Legislature.

30  The Chief Justice may propose revisions to approved programs

31  or performance measures for the judicial branch. The


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                                          HB 2377, Third Engrossed



  1  Legislature shall have final approval of all programs and

  2  associated performance measures and standards for the judicial

  3  branch through the General Appropriations Act or legislation

  4  implementing the General Appropriations Act. By September 15,

  5  2001, the Chief Justice of the Supreme Court shall submit to

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

  7  Representatives a performance-based program budget request for

  8  programs of the judicial branch approved by the Legislature

  9  and provide a copy to the Executive Office of the Governor.

10         (6)  Agencies must maintain a comprehensive performance

11  accountability system and provide a list of performance

12  measures maintained by the agency which are in addition to the

13  measures approved by the Legislature.

14         (7)  Annually, by June 30, executive agencies shall

15  submit to the Executive Office of the Governor adjustments to

16  their performance standards based on the amounts appropriated

17  for each program by the Legislature. When such an adjustment

18  is made, all performance standards, including any adjustments

19  made, shall be reviewed and revised as necessary by the

20  Executive Office of the Governor and, upon approval, submitted

21  to the Legislature pursuant to the review and approval process

22  provided in s. 216.177. The Senate Committee on Fiscal Policy

23  and the House of Representatives Fiscal Responsibility Council

24  shall advise Senate substantive committees and House of

25  Representatives substantive committees, respectively, of all

26  adjustments made to performance standards or measures. The

27  Executive Office of the Governor shall maintain both the

28  official record of adjustments to the performance standards as

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

30  official performance ledger. As used in this section,

31  "performance ledger" means the official compilation of


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                                          HB 2377, Third Engrossed



  1  information about state agency performance-based programs and

  2  measures, including approved programs, approved outputs and

  3  outcomes, baseline data, approved standards for each

  4  performance measure and any approved adjustments thereto, as

  5  well as actual agency performance for each measure.

  6         (4)  Each agency and the judicial branch shall submit

  7  for review a preliminary legislative budget request to the

  8  Executive Office of the Governor, in the form and manner

  9  prescribed in ss. 216.031 and 216.043, in accordance with the

10  legislative budget instructions, and at such time as may be

11  prescribed by the Executive Office of the Governor.

12         (8)  Annually, by June 30, the judicial branch shall

13  make adjustments to any performance standards for approved

14  programs based on the amount appropriated for each program,

15  which shall be submitted to the Legislature pursuant to the

16  notice and review process provided in s. 216.177. The Senate

17  Committee on Fiscal Policy and the House Fiscal Responsibility

18  Council shall advise Senate substantive committees and House

19  substantive committees, respectively, of all adjustments made

20  to performance standards or measures.

21         (9)(5)  The Executive Office of the Governor shall

22  review the preliminary legislative budget request for

23  technical compliance with the budget format provided for in

24  the budget instructions. The Executive Office of the Governor

25  shall notify the agency or the judicial branch of any

26  adjustment required.  The agency or judicial branch shall make

27  the appropriate corrections as requested in preparing its

28  final legislative budget request.  If the appropriate

29  technical corrections are not made as requested in the final

30  legislative budget requests, the Executive Office of the

31  Governor shall may adjust the budget request to incorporate


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                                          HB 2377, Third Engrossed



  1  the appropriate technical corrections in the format of the

  2  request.

  3         (10)(6)  At any time after the Governor and the Chief

  4  Justice submit their recommended budgets to the Legislature,

  5  the head of the agency or judicial branch may amend his or her

  6  request by transmitting to the Governor and the Legislature an

  7  amended request in the form and manner prescribed in the

  8  legislative budget instructions.

  9         (11)  The legislative budget request from each agency

10  and from the judicial branch shall be reviewed by the

11  Legislature. The review may allow for the opportunity to have

12  information or testimony by the agency, the judicial branch,

13  the Auditor General, the Office of Program Policy Analysis and

14  Government Accountability, the Governor's Office of Planning

15  and Budgeting, and the public regarding the proper level of

16  funding for the agency in order to carry out its mission.

17         (12)  In order to ensure an integrated state planning

18  and budgeting process, the agency long-range plan should be

19  reviewed by the Legislature.

20         (7)(a)  The provisions of subsections (1) and (2) to

21  the contrary notwithstanding, each agency subject to the

22  provisions of this section shall submit its legislative budget

23  request no later than September 1 of the year in which the

24  agency is required to submit its point-by-point response

25  pursuant to s. 216.0165(1)(d).

26         (b)  Each agency and branch subject to the provisions

27  of this section and s. 216.0165 shall provide as part of its

28  budget request a point-by-point response to all funding

29  recommendations prepared and submitted by the Director of the

30  Office of Program Policy Analysis and Government

31  Accountability pursuant to s. 11.513.  If the recommendations


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                                          HB 2377, Third Engrossed



  1  of the director contain recommendations that specifically

  2  apply to an agency or branch other than the agency or branch

  3  that is the subject of the evaluation and review, the agency

  4  that is not the subject of the evaluation and review shall

  5  provide as part of its budget request a point-by-point

  6  response to any funding recommendations which apply to such

  7  agency or branch.  The point-by-point response to the

  8  director's recommended funding levels shall be displayed

  9  numerically as major issues in the agency's legislative budget

10  request.  Each point-by-point response to the director's

11  funding recommendations shall be specifically cross-referenced

12  to the agency's responses to the director's recommendations

13  required in s. 216.0165(1)(d).

14         (c)  The budget instructions required pursuant to

15  subsection (3) shall include requirements that agency or

16  judicial branch responses, major issue summaries contained in

17  the Governor's recommended budget, and the Letter of Intent

18  issued with the General Appropriations Act set the

19  point-by-point responses apart as major issues in the

20  following manner:

21         1.  The director's recommendations for reduced funding

22  shall be separately identified as the director's

23  recommendations and treated as nonrecurring expenditures.

24         2.  Agency requests to restore the director's

25  recommendations for reduced funding shall be separately

26  identified as agency requests to restore the director's

27  recommendations and treated as improved programs.

28         3.  The director's recommendations for increased

29  funding shall be separately identified as the director's

30  recommendations and treated as major issues for continuation

31  of current programs.


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                                          HB 2377, Third Engrossed



  1         4.  All other agency requests that would provide

  2  funding levels above the director's recommendations shall be

  3  separately identified as agency requests for funding above the

  4  director's recommendations and treated as new or improved

  5  programs.

  6         (d)  By March 1 of the year following the submittal of

  7  an agency's budget request in accordance with the operation of

  8  this subsection and the evaluation and review of the agency

  9  pursuant to ss. 11.513 and 216.0165, the appropriate

10  substantive committees of the Senate and the House of

11  Representatives shall review the report of the consultant and

12  the recommendations of the director submitted pursuant to s.

13  11.513 and the responses to the director's recommendations by

14  the agencies that are the subject of the report and

15  recommendations, and shall make recommendations for

16  continuation, modification, or repeal of any of the agencies'

17  programs that are affected by the consultant's report or the

18  recommendations of the director.  In developing their

19  recommendations, such committees also shall consider the

20  recommendations and responses made in the agencies'

21  legislative budget requests as required by this subsection and

22  in the Governor's recommended budget.

23         Section 8.  Section 216.031, Florida Statutes, is

24  amended to read:

25         216.031  Target budget request Budgets for operational

26  expenditures.--A legislative budget request, reflecting the

27  independent judgment of the head of the state agency, and of

28  the Chief Justice of the Supreme Court, with respect to the

29  needs of the agency and the judicial branch for operational

30  expenditures during the next fiscal year, shall be submitted

31


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                                          HB 2377, Third Engrossed



  1  by each head of a state agency and by the Chief Justice of the

  2  Supreme Court and shall contain the following:

  3         (1)  For each budget entity, a summary exhibit showing,

  4  for each appropriation category, for each fund, 1 prior year's

  5  appropriations for general revenue, 1 prior year's actual

  6  expenditures and 1 current year's estimated expenditures, and

  7  the requested expenditures for the next fiscal year.  The

  8  total number of positions for the budget entity shall be shown

  9  for each fiscal year of data for which positions are

10  authorized, fixed, or requested.  However, the agency budget

11  request for the State University System shall be expressed in

12  terms of the amounts for the various programs as prescribed in

13  s. 240.271 and in terms of the specified appropriation

14  categories, including the special units' budgets, prescribed

15  in the prior appropriations act.

16         (2)  For each program component within the budget

17  entity, an exhibit showing, for each appropriation category,

18  the summary explanation of expenditures for each detail issue

19  describing the amounts and positions for the next fiscal year

20  for continuation of current programs, for improved programs,

21  and for new programs, with a summary showing totals by fund

22  for the next fiscal year.

23         (3)  For each trust fund within the budget entity, a

24  schedule showing the trust funds available, providing the

25  source of receipts, detail of nonoperating disbursements,

26  operating expenditures, fixed capital outlay, and unencumbered

27  cash balances, for 1 prior year's actual, the current year's

28  estimated, and the request for the next fiscal year.  In

29  addition, for each trust fund established in connection with

30  legislative action authorizing the collection of a fee or

31  other charge to support a governmental service or activity


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                                          HB 2377, Third Engrossed



  1  being performed by the agency involved, there shall be

  2  submitted a schedule showing the full cost of such service or

  3  activity, the total fees or charges collected to fund such

  4  costs, and the amount of excess collections or any deficit.

  5  The sources and amounts of any funds used to cover a deficit

  6  shall also be shown.  The service or activity being performed

  7  shall be reviewed by the appropriations committees in the

  8  Senate and House of Representatives for the express purpose of

  9  making adjustments in fees or other charges in order to make

10  such activities as nearly self-supporting as possible.

11         (4)  For each budget entity, a schedule showing detail

12  of positions, providing for each class of positions within

13  discrete organizational activities, by the collective

14  bargaining unit and program component for the next fiscal

15  year, the number of full-time equivalent positions, the

16  estimated rate of salary, the amounts requested for new

17  positions, and the number of new positions requested.

18         (5)  Detailed information for the next fiscal year

19  necessary for the Legislature and the Governor to evaluate:

20         (a)  The effectiveness of current programs, including

21  justification for those programs.

22         (b)  The justification for increasing costs to continue

23  the operations of current programs.

24         (c)  The justification for proposed improvements in

25  existing programs.

26         (d)  The justification for proposed new programs.

27         (e)  The projected cost of the requested program for

28  the following fiscal year.

29         (f)  The needs of the agency or of the judicial branch

30  for operational expenditures, by order of priority.

31


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                                          HB 2377, Third Engrossed



  1         (6)  Additional information providing a detailed

  2  description of the request of the agency and the corresponding

  3  calculations needed to support the request.

  4         (7)  Workload and other performance indicators, as

  5  prescribed by the legislative budget instructions.

  6         (8)  An information resources management schedule

  7  showing the agency's or judicial branch's total budget request

  8  for information resources management.  The schedule shall be

  9  in the format provided for in the legislative budget

10  instructions.  The budget request for information resources

11  management shall identify, if applicable, which parts of the

12  request are in response to any information resources

13  management issues included in the legislative budget

14  instructions. This subsection is applicable only to those

15  state agencies which are under the purview of ss.

16  282.303-282.313 and to the judicial branch.

17         (9)  A report separately listing the sources of

18  receipts into each trust fund and the amounts of such

19  receipts. In addition, the report shall identify the

20  administrative and program costs expended from the trust fund,

21  including salaries, other personal services, operating capital

22  outlay, fixed capital outlay, other expenses, contractual

23  services, and transfers to other trust funds.

24         (10)  For those agencies or the judicial branch

25  operating programs under a performance-based program budget,

26  an evaluation of the agency's progress in meeting the

27  performance standards for programs approved pursuant to s.

28  216.0166. Such evaluation shall be developed as prescribed by

29  the budget instructions, and shall include any responses by

30  the agency or the Chief Justice to the findings of the Office

31


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                                          HB 2377, Third Engrossed



  1  of Program Policy Analysis and Government Accountability

  2  pursuant to s. 11.513.

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

  4  baseline data, outcome measures, output measures, and

  5  standards for program measures, including justification for

  6  those programs in the format required by the legislative

  7  budget instructions.

  8         (12)  A prioritized listing of planned expenditures for

  9  review and possible reduction in the event of revenue

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

11  in the format provided in the planning and budgeting

12  instructions.

13

14  Either chair of a legislative appropriations committee, or the

15  Executive Office of the Governor for state agencies, may

16  require the agency or the Chief Justice to address major

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

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

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

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

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

22  instructions.  The Executive Office of the Governor may

23  request an agency, or the chair of the appropriations

24  committees of the Senate or House of Representatives may

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

26  than September 30 15 of each year a budget plan with respect

27  to targets established by the Governor or either chair. The

28  target budget shall require each entity to establish an order

29  of priorities for its budget issues and may include requests

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

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


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                                          HB 2377, Third Engrossed



  1  performance-based budget in the format prescribed by the

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

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

  4  planning and budgeting system requirements set out in s.

  5  216.141.  Such a request shall not influence the agencies' or

  6  judicial branch's independent judgment in making legislative

  7  budget requests, as required by law.

  8         Section 9.  Section 216.044, Florida Statutes, is

  9  amended to read:

10         216.044  Budget evaluation by Department of Management

11  Services.--

12         (1)  Any state agency or judicial branch entity

13  requesting a fixed capital outlay project to be managed by the

14  Department of Management Services shall consult with that

15  department during the budget-development process. The

16  Department of Management Services shall provide

17  recommendations regarding construction requirements, cost of

18  the project, and project alternatives to be incorporated in

19  the agency's or entity's proposed fixed capital outlay budget

20  request and narrative justification.

21         (2)(1)  Concurrently with the submission of the fixed

22  capital outlay legislative budget request to the Executive

23  Office of the Governor or to the Chief Justice of the Supreme

24  Court, the agency or judicial branch shall submit a copy of

25  the legislative budget request to the Department of Management

26  Services for evaluation.

27         (3)(2)  The Department of Management Services shall

28  advise the Executive Office of the Governor, the Chief

29  Justice, and the Legislature regarding alternatives to the

30  proposed fixed capital outlay project and make recommendations

31  relating to the construction requirements and cost of the


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                                          HB 2377, Third Engrossed



  1  project.  These recommendations shall be provided to the

  2  Legislature and Executive Office of the Governor at a time

  3  specified by the Governor, but not less than 90 days prior to

  4  the regular session of the Legislature. When evaluating

  5  alternatives, the Department of Management Services shall

  6  include information as to whether it would be more

  7  cost-efficient to lease private property or facilities, to

  8  construct facilities on property presently owned by the state,

  9  or to acquire property on which to construct the facilities.

10  In determining the cost to the state of constructing

11  facilities on property presently owned by the state or the

12  cost of acquiring property on which to construct facilities,

13  the Department of Management Services shall include the costs

14  which would be incurred by a private person in acquiring the

15  property and constructing the facilities, including, but not

16  limited to, taxes and return on investment.

17         (3)  The Department of Management Services shall

18  provide assistance to any state agency, the judicial branch,

19  and the Executive Office of the Governor in fulfilling the

20  requirements of s. 216.0442 as developed pursuant to ss.

21  216.031 and 216.043.

22         Section 10.  Section 216.0446, Florida Statutes, is

23  amended to read:

24         216.0446  Review of information resources management

25  needs.--

26         (1)  There is created within the Legislature the

27  Technology Review Workgroup. The workgroup shall Executive

28  Office of the Governor may contract with the Legislature to

29  provide a mechanism for review of and make recommendations

30  with respect to the portion of agencies' long-range program

31  strategic plans which pertains to information resources


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                                          HB 2377, Third Engrossed



  1  management needs and with respect to agencies' legislative

  2  budget requests for information resources management.  This

  3  mechanism shall be referred to as The Technology Review

  4  Workgroup, which shall be responsible to the chairs of the

  5  legislative appropriations committees headed by a senior-level

  6  manager.

  7         (2)  In addition to its primary duty specified in

  8  subsection (1), the Technology Review Workgroup shall have

  9  powers and duties that include, but are not limited to, the

10  following:

11         (a)  To evaluate the information resource management

12  needs identified in the agency long-range program strategic

13  plans for consistency with the State Annual Report on

14  Information Resources Management and statewide policies

15  recommended by the State Technology Council, and make

16  recommendations to the chairs of the legislative

17  appropriations committees Executive Office of the Governor,

18  pursuant to s. 186.022(3).

19         (b)  To review and make recommendations to the

20  Executive Office of the Governor and the chairs of the

21  legislative appropriations fiscal committees on proposed

22  budget amendments and agency transfers associated with notices

23  of proposed action for budget items with respect to

24  information resources management initiatives or projects that

25  involve more than one agency, that have an outcome that

26  impacts another agency, or that exceed $500,000 in total cost

27  over a 1-year period.

28         (c)  To make recommendations to the Executive Office of

29  the Governor on guidelines and best practices for information

30  resources management based on information received from the

31  State Technology Council.


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                                          HB 2377, Third Engrossed



  1         Section 11.  Section 216.052, Florida Statutes, is

  2  amended to read:

  3         216.052  Community Legislative budget requests;

  4  appropriations; grants.--

  5         (1)  The budget request from each agency and from the

  6  judicial branch shall be reviewed by the Legislature.  The

  7  review may allow for the opportunity to have information or

  8  testimony by the agency, the judicial branch, the Auditor

  9  General's Office, the Governor's Office of Planning and

10  Budgeting, and the public regarding the proper level of

11  funding for the agency in order to carry out its mission.

12         (2)  In order to ensure an integrated state planning

13  and budgeting process, the strategic plan should be reviewed

14  by the Legislature.

15         (1)(3)  A local, county, or regional governmental

16  entity government, private organization, or nonprofit

17  organization may submit a request for requesting a state

18  appropriation for a program, service, or capital outlay

19  initiative that is local or regional in scope, is intended to

20  meet a documented need, addresses a statewide interest, is

21  intended to produce measurable results, and has tangible

22  community support to members of the Legislature, a state

23  agency, or the Governor. has not been formally recommended

24  under procedures established by law or that has been formally

25  recommended under such procedures but has not been recommended

26  by an agency or by the judicial branch, or that promotes only

27  a local or regional interest, may be allowed the opportunity

28  to provide information or testimony to the appropriate

29  subcommittee of each appropriations committee.  Each such

30  request must include a fiscal note that shows the estimated

31  cost of operations and capital outlay for the project.  The


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                                          HB 2377, Third Engrossed



  1  fiscal note shall indicate the percentage of the projected

  2  costs of operations and capital outlay that is to be provided

  3  through state funds.

  4         (2)(4)  Each appropriation to a local government, a

  5  private organization, or a nonprofit organization made

  6  pursuant to a community budget request for a program, service,

  7  or capital outlay initiative that promotes a solely local or

  8  regional interest shall require that the community's support

  9  be tangibly demonstrated by evidence that the program or

10  service will expects to operate in a financially sound manner.

11  Any other appropriation to a local government, a private

12  organization, or a nonprofit organization made pursuant to

13  this section a request as provided in subsection (3) should

14  generally require local matching funds. The match must be

15  based on the size and scope of the project and the applicant's

16  ability to provide the match.  In addition, the granting of

17  state funds shall be used to encourage the establishment of

18  community-based partnerships between the public sector and the

19  private sector.

20         (3)  Each community budget request submitted pursuant

21  to this section must receive a hearing before a body of duly

22  elected public officials before being submitted for

23  consideration.

24         (4)  For requests submitted to members of the

25  Legislature, community budget requests shall be submitted in

26  the form and manner prescribed jointly by the President of the

27  Senate and the Speaker of the House of Representatives. If the

28  President of the Senate and the Speaker of the House of

29  Representatives do not agree on a form and manner of

30  submission to be used by both houses, each may prescribe a

31  form and manner of submission to be used in his or her house.


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                                          HB 2377, Third Engrossed



  1         (5)  Community budget requests shall be submitted to

  2  the chairs of the legislative appropriations committees in

  3  accordance with the schedule established jointly by the

  4  President of the Senate and the Speaker of the House of

  5  Representatives. If the President of the Senate and the

  6  Speaker of the House of Representatives do not agree on a

  7  schedule to be used by both houses, each may prescribe a

  8  schedule to be used in his or her house.

  9         (6)  The Executive Office of the Governor shall

10  prescribe the form and manner of submission of requests to

11  state agencies and to the Governor.

12         (7)(5)  The retention of interest earned on state funds

13  or the amount of interest income earned shall be applied

14  against the state entity's obligation to pay the appropriated

15  contracted amount.

16         (8)(6)  Whenever possible, a loan must be made in lieu

17  of a grant to a local government, a private organization, or a

18  nonprofit organization.  It is the intent of the Legislature

19  that a revolving loan program shall be established so that the

20  loan amount plus interest is paid back by the recipient to the

21  state.

22         (9)(7)  Any private or nonprofit organization that is

23  to receive funds through a community budget request requesting

24  funding shall, at the time of application for such funds,

25  provide information regarding its organization, including a

26  copy of its current budget, and a list of its board of

27  directors, and, if available, a copy of its most recent annual

28  audit report prepared by an independent certified public

29  accountant licensed in this state, including management

30  letters or other documents associated with the audit report.

31


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                                          HB 2377, Third Engrossed



  1         (8)  In addition to any other provision of law granting

  2  access to records and accounts, the Auditor General may,

  3  pursuant to his or her own authority hereby granted in this

  4  subsection or at the direction of the Legislative Auditing

  5  Committee, conduct audits of any direct-support organization

  6  or citizen support organization authorized by law.

  7  Independent audits of direct-support organizations and citizen

  8  support organizations conducted by certified public

  9  accountants shall be performed in accordance with rules

10  promulgated by the Auditor General.

11         Section 12.  Subsection (1) of section 216.081, Florida

12  Statutes, is amended to read:

13         216.081  Data on legislative and judicial branch

14  expenses.--

15         (1)  On or before September 1 in each year, In

16  sufficient time to be included in the Governor's recommended

17  budget, estimates of the financial needs of the legislative

18  branch and the judicial branch during the ensuing fiscal year

19  shall be furnished to the Governor pursuant to chapter 11.

20         Section 13.  Section 216.131, Florida Statutes, is

21  amended to read:

22         216.131  Public hearings on legislative budgets.--The

23  Governor and the Chief Justice of the Supreme Court shall each

24  provide for at least one public hearing prior to submission of

25  budget recommendations to the Legislature on issues contained

26  in agency legislative budget requests or in the judicial

27  branch budget request and issues that which may be included in

28  budget recommendations to the Legislature, which hearing shall

29  be held at such time as the Governor or the Chief Justice may

30  fix. The Governor may require the attendance or participation,

31  or both, at his or her hearings of the heads or responsible


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                                          HB 2377, Third Engrossed



  1  representatives of all state agencies supported by any form of

  2  taxation or licenses, fees, imposts, or exactions. The

  3  Governor and the Chief Justice may provide these hearings

  4  simultaneously via electronic format, such as teleconference,

  5  Internet, etc., provided that a means for active participation

  6  and questions by the audience is accommodated.

  7         Section 14.  Section 216.133, Florida Statutes, is

  8  amended to read:

  9         216.133  Definitions; ss. 216.133-216.137.--As used in

10  ss. 216.133-216.137:

11         (1)  "Consensus estimating conference" includes the

12  Economic Estimating Conference, the Demographic Estimating

13  Conference, the Revenue Estimating Conference, the Education

14  Estimating Conference, the Criminal Justice Estimating

15  Conference, the Juvenile Justice Estimating Conference, the

16  Child Welfare System Estimating Conference, the Occupational

17  Forecasting Conference, the School Readiness Program

18  Estimating Conference, the Self-Insurance Estimating

19  Conference, the Florida Retirement System Actuarial Assumption

20  Conference, and the Social Services Estimating Conference, and

21  the Transportation Estimating Conference.

22         (2)  "Official information" means the data, forecasts,

23  estimates, analyses, studies, and other information which the

24  principals of a consensus estimating conference unanimously

25  adopt for purposes of the state planning and budgeting system.

26         (3)  "Consensus" means the unanimous consent of all of

27  the principals of a consensus estimating conference.

28         (3)  "State planning and budgeting system" refers to

29  the processes and functions prescribed in chapter 186 and this

30  chapter and ss. 215.32, 215.93, 215.94, and 944.096.

31


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                                          HB 2377, Third Engrossed



  1         Section 15.  Section 216.134, Florida Statutes, is

  2  amended to read:

  3         216.134  Consensus estimating conferences; general

  4  provisions.--

  5         (1)  Each consensus estimating conference shall develop

  6  such official information within its area of responsibility as

  7  the conference determines, by consensus, is needed for

  8  purposes of the state planning and budgeting system.  Unless

  9  otherwise provided by law or decided by unanimous agreement of

10  the principals of the conference, all official information

11  developed by the conference shall be based on the assumption

12  that current law and current administrative practices will

13  remain in effect throughout the period for which the official

14  information is to be used.  The official information developed

15  by each consensus estimating conference shall include

16  forecasts for a period of at least 10 years, unless the

17  principals of the conference unanimously agree otherwise.

18         (2)  Whenever an estimating conference is convened, an

19  official estimate does not exist until a new consensus is

20  reached.

21         (3)(2)  The official information developed by the

22  Economic Estimating Conference and the official information

23  developed by the Demographic Estimating Conference shall be

24  used by all other consensus estimating conferences in

25  developing their official information.

26         (4)(3)  The membership of each consensus estimating

27  conference consists of principals and participants.

28         (a)  A person designated by law as a principal may

29  preside over conference sessions, convene conference sessions,

30  request information, specify topics to be included on the

31  conference agenda, agree or withhold agreement on whether


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                                          HB 2377, Third Engrossed



  1  information is to be official information of the conference,

  2  release official information of the conference, interpret

  3  official information of the conference, and monitor errors in

  4  official information of the conference.

  5         (b)  A participant is any person who is invited to

  6  participate in the consensus estimating conference by a

  7  principal. A participant shall, at the request of any

  8  principal before or during any session of the conference,

  9  develop alternative forecasts, collect and supply data,

10  perform analyses, or provide other information needed by the

11  conference. The conference shall consider information provided

12  by participants in developing its official information.

13         (5)(4)  All sessions and meetings of a consensus

14  estimating conference shall be open to the public as provided

15  in chapter 286.

16         Section 16.  Section 216.136, Florida Statutes, is

17  amended to read:

18         216.136  Consensus estimating conferences; duties and

19  principals.--

20         (1)  ECONOMIC ESTIMATING CONFERENCE.--

21         (a)  Duties.--

22         1.  The Economic Estimating Conference shall develop

23  such official information with respect to the national and

24  state economies as the conference determines is needed for the

25  state planning and budgeting system. The basic, long-term

26  forecasts which are a part of its official information shall

27  be trend forecasts. However, the conference may include cycle

28  forecasts as a part of its official information if the subject

29  matter of the forecast warrants a cycle forecast and if such

30  forecast is developed in a special impact session of the

31  conference.


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                                          HB 2377, Third Engrossed



  1         2.  Prior to the submission of the Governor's budget

  2  recommendations to the Legislature pursuant to s. 216.162, and

  3  again prior to each Regular Session of the Legislature, the

  4  Economic Estimating Conference shall evaluate and project the

  5  financial condition of the employee group health

  6  self-insurance plan.  This analysis shall also consider any

  7  financial impact of the state's use of health maintenance

  8  organizations on the funding of the self-insurance plan.  The

  9  conference shall indicate whether the current plan premium

10  rates are sufficient to fund projected plan claims and other

11  expenses during the fiscal year.

12         (b)  Principals.--The Executive Office of the Governor,

13  the coordinator of the Office of Economic and Demographic

14  Research, and professional staff of the Senate and House of

15  Representatives who have forecasting expertise, or their

16  designees, are the principals of the Economic Estimating

17  Conference.  The responsibility of presiding over sessions of

18  the conference shall be rotated among the principals.

19         (2)  DEMOGRAPHIC ESTIMATING CONFERENCE.--

20         (a)  Duties.--The Demographic Estimating Conference

21  shall develop such official information with respect to the

22  population of the nation and state by age, race, and sex as

23  the conference determines is needed for the state planning and

24  budgeting system.  The conference shall use the official

25  population estimates provided under s. 186.901 in developing

26  its official information.

27         (b)  Principals.--The Executive Office of the Governor,

28  the coordinator of the Office of Economic and Demographic

29  Research, and professional staff of the Senate and House of

30  Representatives who have forecasting expertise, or their

31  designees, are the principals of the Demographic Estimating


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                                          HB 2377, Third Engrossed



  1  Conference.  The responsibility of presiding over sessions of

  2  the conference shall be rotated among the principals.

  3         (3)  REVENUE ESTIMATING CONFERENCE.--

  4         (a)  Duties.--The Revenue Estimating Conference shall

  5  develop such official information with respect to anticipated

  6  state and local government revenues as the conference

  7  determines is needed for the state planning and budgeting

  8  system.  Any principal may request the conference to review

  9  and estimate revenues for any trust fund.

10         (b)  Principals.--The Executive Office of the Governor,

11  the coordinator of the Office of Economic and Demographic

12  Research, and professional staff of the Senate and House of

13  Representatives who have forecasting expertise, or their

14  designees, are the principals of the Revenue Estimating

15  Conference.  The responsibility of presiding over sessions of

16  the conference shall be rotated among the principals.

17         (4)  EDUCATION ESTIMATING CONFERENCE.--

18         (a)  Duties.--The Education Estimating Conference shall

19  develop such official information relating to the state public

20  educational system, including forecasts of student

21  enrollments, the number of students qualified for state

22  financial aid programs and the appropriation required to fund

23  the full award amounts for each program, fixed capital outlay

24  needs, and Florida Education Finance Program formula needs, as

25  the conference determines is needed for the state planning and

26  budgeting system.  The conference's initial projections of

27  enrollments in public schools shall be forwarded by the

28  conference to each school district no later than 2 months

29  prior to the start of the regular session of the Legislature.

30  Each school district may, in writing, request adjustments to

31  the initial projections.  Any adjustment request shall be


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                                          HB 2377, Third Engrossed



  1  submitted to the conference no later than 1 month prior to the

  2  start of the regular session of the Legislature and shall be

  3  considered by the principals of the conference.  A school

  4  district may amend its adjustment request, in writing, during

  5  the first 3 weeks of the legislative session, and such amended

  6  adjustment request shall be considered by the principals of

  7  the conference.  For any adjustment so requested, the district

  8  shall indicate and explain, using definitions adopted by the

  9  conference, the components of anticipated enrollment changes

10  that correspond to continuation of current programs with

11  workload changes; program improvement; program reduction or

12  elimination; initiation of new programs; and any other

13  information that may be needed by the Legislature.  For public

14  schools, the conference shall submit its full-time equivalent

15  student consensus estimate to the Legislature no later than 1

16  month after the start of the regular session of the

17  Legislature. No conference estimate may be changed without the

18  agreement of the full conference.

19         (b)  Adjustments.--No later than 2 months prior to the

20  start of the regular session of the Legislature, the

21  conference shall forward to each eligible postsecondary

22  education institution its initial projections of the number of

23  students qualified for state financial aid programs and the

24  appropriation required to fund those students at the full

25  award amount. Each postsecondary education institution may

26  request, in writing, adjustments to the initial projection.

27  Any adjustment request must be submitted to the conference no

28  later than 1 month prior to the start of the regular session

29  of the Legislature and shall be considered by the principals

30  of the conference. For any adjustment so requested, the

31  postsecondary education institution shall indicate and


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                                          HB 2377, Third Engrossed



  1  explain, using definitions adopted by the conference, the

  2  components of anticipated changes that correspond to

  3  continuation of current programs with enrollment changes,

  4  program reduction or elimination, initiation of new programs,

  5  award amount increases or decreases, and any other information

  6  that is considered by the conference. The conference shall

  7  submit its consensus estimate to the Legislature no later than

  8  1 month after the start of the regular session of the

  9  Legislature. No conference estimate may be changed without the

10  agreement of the full conference.

11         (c)  Principals.--The Associate Deputy Commissioner of

12  Education for Educational Management, the Executive Office of

13  the Governor, the coordinator of the Office of Economic and

14  Demographic Research, and professional staff of the Senate and

15  House of Representatives who have forecasting expertise, or

16  their designees, are the principals of the Education

17  Estimating Conference. The Associate Deputy Commissioner of

18  Education for Educational Management or his or her designee

19  shall preside over sessions of the conference.

20         (5)  CRIMINAL JUSTICE ESTIMATING CONFERENCE.--

21         (a)  Duties.--The Criminal Justice Estimating

22  Conference shall develop such official information relating to

23  the criminal justice system, including forecasts of prison

24  admissions by offense categories specified in Rule 3.701,

25  Florida Rules of Criminal Procedure, as the conference

26  determines is needed for the state planning and budgeting

27  system.

28         (b)  Principals.--The Executive Office of the Governor,

29  the coordinator of the Office of Economic and Demographic

30  Research, and professional staff, who have forecasting

31  expertise, from the Senate, the House of Representatives, and


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                                          HB 2377, Third Engrossed



  1  the Supreme Court, or their designees, are the principals of

  2  the Criminal Justice Estimating Conference.  The principal

  3  representing the Executive Office of the Governor shall

  4  preside over sessions of the conference.

  5         (6)  SOCIAL SERVICES ESTIMATING CONFERENCE.--

  6         (a)  Duties.--

  7         1.  The Social Services Estimating Conference shall

  8  develop such official information relating to the social

  9  services system of the state, including forecasts of social

10  services caseloads, as the conference determines is needed for

11  the state planning and budgeting system.  Such official

12  information shall include, but not be limited to, subsidized

13  child care caseloads mandated by the Family Support Act of

14  1988.

15         2.  In addition, the Social Services Estimating

16  Conference shall develop estimates and forecasts of the

17  unduplicated count of children eligible for subsidized child

18  care as defined in s. 402.3015(1).  These estimates and

19  forecasts shall not include children enrolled in the

20  prekindergarten early intervention program established in s.

21  230.2305.

22         3.  The Department of Children and Family Services and

23  the Department of Education shall provide information on

24  caseloads and waiting lists for the subsidized child care and

25  prekindergarten early intervention programs requested by the

26  Social Services Estimating Conference or individual conference

27  principals, in a timely manner.

28         (b)  Principals.--The Executive Office of the Governor,

29  the coordinator of the Office of Economic and Demographic

30  Research, and professional staff, who have forecasting

31  expertise, from the Department of Children and Family


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                                          HB 2377, Third Engrossed



  1  Services, the Senate, and the House of Representatives, or

  2  their designees, are the principals of the Social Services

  3  Estimating Conference.  The principal representing the

  4  Executive Office of the Governor shall preside over sessions

  5  of the conference.

  6         (7)  TRANSPORTATION ESTIMATING CONFERENCE.--

  7         (a)  Duties.--The Transportation Estimating Conference

  8  shall develop such official budget information relating to

  9  transportation planning and budgeting as is determined by the

10  conference principals to be needed for the state planning and

11  budgeting system.  This information shall include estimates of

12  transportation cost indices and other budget-related

13  estimates. This conference shall not address estimates of

14  transportation revenues.

15         (b)  Principals.--The Executive Office of the Governor,

16  the coordinator of the Office of Economic and Demographic

17  Research, and professional staff with budgeting expertise from

18  the Department of Transportation, the Senate, and the House of

19  Representatives are the principals of the Transportation

20  Estimating Conference. The principal representing the

21  Executive Office of the Governor shall preside over sessions

22  of the conference.

23         (7)(8)  CHILD WELFARE SYSTEM ESTIMATING CONFERENCE.--

24         (a)  Duties.--The Child Welfare System Estimating

25  Conference shall develop such official information relating to

26  the child welfare system of the state, including forecasts of

27  child welfare caseloads, as the conference determines is

28  needed for the state planning and budgeting system. Such

29  official information may include, but is not limited to:

30         1.  Estimates and projections of the number of initial

31  and additional reports of child abuse, abandonment, or neglect


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                                          HB 2377, Third Engrossed



  1  made to the central abuse hotline maintained by the Department

  2  of Children and Family Services as established in s.

  3  39.201(4). Projections may take into account other factors

  4  that may influence the number of future reports to the abuse

  5  hotline.

  6         2.  Estimates and projections of the number of children

  7  who are alleged to be victims of child abuse, abandonment, or

  8  neglect and are in need of emergency shelter, foster care,

  9  residential group care, adoptive services, or other

10  appropriate care.

11

12  In addition, the conference shall develop other official

13  information relating to the child welfare system of the state

14  which the conference determines is needed for the state

15  planning and budgeting system.  The Department of Children and

16  Family Services shall provide information on the child welfare

17  system requested by the Child Welfare System Estimating

18  Conference, or individual conference principals, in a timely

19  manner.

20         (b)  Principals.--The Executive Office of the Governor,

21  the coordinator of the Office of Economic and Demographic

22  Research, and professional staff who have forecasting

23  expertise from the Department of Children and Family Services,

24  the Senate, and the House of Representatives, or their

25  designees, are the principals of the Child Welfare System

26  Estimating Conference. The principal representing the

27  Executive Office of the Governor shall preside over sessions

28  of the conference.

29         (8)(9)  JUVENILE JUSTICE ESTIMATING CONFERENCE.--

30         (a)  Duties.--The Juvenile Justice Estimating

31  Conference shall develop such official information relating to


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                                          HB 2377, Third Engrossed



  1  the juvenile justice system of the state as is determined by

  2  the conference principals to be needed for the state planning

  3  and budgeting system.  This information shall include, but is

  4  not limited to:  estimates of juvenile delinquency caseloads

  5  and workloads; estimates for secure, nonsecure, and home

  6  juvenile detention placements; estimates of workloads in the

  7  juvenile sections in the offices of the state attorneys and

  8  public defenders; estimates of mental health and substance

  9  abuse treatment relating to juveniles; and such other

10  information as is determined by the conference principals to

11  be needed for the state planning and budgeting system.

12         (b)  Principals.--The Executive Office of the Governor,

13  the Office of Economic and Demographic Research, and

14  professional staff who have forecasting expertise from the

15  Department of Juvenile Justice, the Department of Children and

16  Family Services Alcohol, Drug Abuse, and Mental Health Program

17  Office, the Department of Law Enforcement, the Senate

18  Appropriations Committee staff, the House of Representatives

19  Appropriations Committee staff, or their designees, are the

20  principals of the Juvenile Justice Estimating Conference. The

21  responsibility of presiding over sessions of the conference

22  shall be rotated among the principals. To facilitate policy

23  and legislative recommendations, the conference may call upon

24  professional staff of the Juvenile Justice Accountability

25  Board and appropriate legislative staff.

26         (9)(10)  OCCUPATIONAL FORECASTING CONFERENCE.--

27         (a)  Duties.--The Occupational Forecasting Conference

28  shall develop such official information on the workforce

29  development system planning process as it relates to the

30  personnel needs of current, new, and emerging industries as

31  the conference determines is needed by the state planning and


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                                          HB 2377, Third Engrossed



  1  budgeting system.  Such information must include at least:

  2  short-term and long-term forecasts of employment demand for

  3  high-skills/high-wage jobs by occupation and industry;

  4  relative wage forecasts among those occupations; and estimates

  5  of the supply of trained and qualified individuals available

  6  for employment in those occupations.

  7         (b)  Principals.--The Commissioner of Education, the

  8  Executive Office of the Governor, the director of the Office

  9  of Tourism, Trade, and Economic Development, the Secretary of

10  Labor, and the coordinator of the Office of Economic and

11  Demographic Research, or their designees, are the principals

12  of the Occupational Forecasting Conference.  The Commissioner

13  of Education, or the commissioner's designee, shall preside

14  over the sessions of the conference.

15         (10)(11)  SCHOOL READINESS PROGRAM ESTIMATING

16  CONFERENCE.--

17         (a)  Duties.--

18         1.  The School Readiness Program Estimating Conference

19  shall develop such estimates and forecasts of the number of

20  individuals eligible for school readiness programs in

21  accordance with the standards of eligibility established by

22  state or federal statute or administrative rule as the

23  conference determines are needed to support the state

24  planning, budgeting, and appropriations processes.

25         2.  In addition, the School Readiness Program

26  Estimating Conference shall estimate the unduplicated count of

27  children who are eligible for services under the school

28  readiness program.

29         3.  The Florida Partnership for School Readiness shall

30  provide information on needs and waiting lists for school

31  readiness program services requested by the School Readiness


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                                          HB 2377, Third Engrossed



  1  Program Estimating Conference or individual conference

  2  principals in a timely manner.

  3         (b)  Principals.--The Executive Office of the Governor,

  4  the Director of Economic and Demographic Research, and

  5  professional staff who have forecasting expertise from the

  6  Florida Partnership for School Readiness, the Department of

  7  Children and Family Services, the Department of Education, the

  8  Senate, and the House of Representatives, or their designees,

  9  are the principals of the School Readiness Program Estimating

10  Conference. The principal representing the Executive Office of

11  the Governor shall preside over sessions of the conference.

12         (11)  SELF-INSURANCE ESTIMATING CONFERENCE.--

13         (a)  Duties.--The Self-Insurance Estimating Conference

14  shall develop such official information on self-insurance

15  related issues as the conference determines is needed by the

16  state planning and budgeting system.

17         (b)  Principals.--The Executive Office of the Governor,

18  the coordinator of the Office of Economic and Demographic

19  Research, and staff directors of the committees of the Senate

20  and the House of Representatives which have primary

21  responsibility for legislation dealing with taxation, or their

22  designees, are the principals of the Self-Insurance Estimating

23  Conference. The responsibility of presiding over sessions of

24  the conference shall be rotated among the principals.

25         (12)  FLORIDA RETIREMENT SYSTEM ACTUARIAL ASSUMPTION

26  CONFERENCE.--

27         (a)  Duties.--The Florida Retirement System Actuarial

28  Assumption Conference shall develop official information with

29  respect to the economic and noneconomic assumptions and

30  funding methods of the Florida Retirement System necessary to

31  perform the system actuarial study undertaken pursuant to s.


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                                          HB 2377, Third Engrossed



  1  121.031(3). Such information shall include:  an analysis of

  2  the actuarial assumptions and actuarial methods used in the

  3  study and a determination of whether changes to the

  4  assumptions or methods need to be made due to experience

  5  changes or revised future forecasts.

  6         (b)  Principals.--The Executive Office of the Governor,

  7  the coordinator of the Office of Economic and Demographic

  8  Research, and professional staff of the Senate and House of

  9  Representatives who have forecasting expertise, or their

10  designees, are the principals of the Florida Retirement System

11  Actuarial Assumption Conference. The Executive Office of the

12  Governor shall have the responsibility of presiding over the

13  sessions of the conference. The State Board of Administration

14  and the Division of Retirement shall be participants in the

15  conference.

16         Section 17.  Subsection (1) of section 216.141, Florida

17  Statutes, is amended to read:

18         216.141  Budget system procedures; planning and

19  programming by state agencies.--

20         (1)  The Executive Office of the Governor, in

21  consultation with the appropriations committees of the Senate

22  and House of Representatives, and by utilizing the Florida

23  Financial Management Information System management data and

24  the Comptroller's chart of accounts, shall prescribe a

25  planning and budgeting system, pursuant to s. 215.94(1), to

26  provide for continuous planning and programming and for

27  effective management practices for the efficient operations of

28  all state agencies and the judicial branch. However, the

29  planning and budgeting system shall be limited to the

30  processing of information related to ss. 216.023, 216.0235,

31  216.031, 216.043, 216.121, 216.181, 216.182, and 216.192 and


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                                          HB 2377, Third Engrossed



  1  those applications relating to part I of chapter 23 and part I

  2  of chapter 252 which are funded by the Legislature.  The

  3  Legislature Executive Office of the Governor may contract with

  4  the Executive Office of the Governor Legislature to develop

  5  the planning and budgeting system and to provide services to

  6  the Legislature for the support and use of the legislative

  7  appropriations system.  The contract shall include the

  8  policies and procedures for combining the legislative

  9  appropriations system with the planning and budgeting

10  information system established pursuant to s. 215.94(1).  At a

11  minimum, the contract shall require the use of common data

12  codes.  The combined legislative appropriations and planning

13  and budgeting information subsystem shall support the

14  legislative appropriations and legislative oversight functions

15  without data code conversion or modification.

16         Section 18.  Subsection (1) of section 216.162, Florida

17  Statutes, is amended to read:

18         216.162  Governor's recommended budget to be furnished

19  Legislature; copies to members.--

20         (1)  At least 45 days before the scheduled annual

21  legislative session in each odd-numbered year, the Governor

22  shall furnish each senator and representative a copy of his or

23  her recommended balanced budget for the state, based on the

24  Governor's own conclusions and judgment; provided, however,

25  that in his or her first year in office a new Governor may

26  request, subject to approval of the President of the Senate

27  and the Speaker of the House of Representatives, that his or

28  her recommended balanced budget be submitted at a later time

29  prior to the Governor's first regular legislative session.

30         Section 19.  Section 216.163, Florida Statutes, is

31  amended to read:


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                                          HB 2377, Third Engrossed



  1         216.163  Governor's recommended budget; form and

  2  content; declaration of collective bargaining impasses.--

  3         (1)  The Governor's recommended budget shall be

  4  referenced to the legislative budget requests prescribed in

  5  ss. 216.023 216.031 and 216.043 and shall be consistent with

  6  the format of the current fiscal year General Appropriations

  7  Act or shall be distinctly separated into four sections.  If

  8  separated into four sections, Section One of the budget shall

  9  be entitled "Operations"; Section Two shall be entitled

10  "Revenue Sharing, Distributions and Transfers"; Section Three

11  shall be entitled "Fixed Capital Outlay"; and Section Four

12  shall be entitled "Debt Service."

13         (2)  The Governor's recommended budget shall also

14  include:

15         (a)  The Governor's recommendations for operating each

16  state agency, and those of the Chief Justice of the Supreme

17  Court for operating the judicial branch, for the next fiscal

18  year.  These recommendations shall be displayed by

19  appropriation category within each budget entity, with detail

20  by program component within each budget entity, and shall also

21  include the legislative budget request of the corresponding

22  agency.

23         (b)1.  The Governor's recommendations and those of the

24  Chief Justice for fixed capital outlay appropriations for the

25  next fiscal year. These recommendations shall be displayed by

26  budget entity and shall also include the legislative budget

27  request of the corresponding agency.

28         2.  For each specific fixed capital outlay project or

29  group of projects or operating capital outlay requests

30  recommended to be funded from a proposed state debt or

31


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                                          HB 2377, Third Engrossed



  1  obligation, he or she shall make available pursuant to s.

  2  216.164(1)(a) the documents set forth in s. 216.0442(2).

  3         (c)  The evaluation of the fixed capital outlay request

  4  of each agency and the judicial branch and alternatives to the

  5  proposed projects as made by the Department of Management

  6  Services pursuant to s. 216.044.

  7         (d)  A summary statement of the amount of

  8  appropriations requested by each state agency and as

  9  recommended by the Governor and by the judicial branch.

10         (e)  A distinct listing of all nonrecurring

11  appropriations recommended by the Governor or the Chief

12  Justice.

13         (f)  A listing of the general policies used to

14  calculate the amounts required for salaries, other personal

15  services, expenses, operating capital outlay, electronic data

16  processing, and food products recommended by the Governor or

17  the Chief Justice.

18         (g)  Explanations and justification, expressed in terms

19  of program-effectiveness measures, program-efficiency

20  measures, workload, productivity adjustments, staffing

21  standards, and any other criteria needed to evaluate the

22  delivery of governmental services and to explain the

23  Governor's recommendations or the Chief Justice's

24  recommendations, and such other supporting schedules and

25  exhibits as may be determined by the Governor or the Chief

26  Justice.

27         (h)  With respect to the Department of Transportation,

28  a reconciliation of the Governor's recommendations for the

29  funding of the agency budget and tentative work program with

30  the budget and tentative work program submitted by the

31


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                                          HB 2377, Third Engrossed



  1  department pursuant to s. 339.135 by project, by project

  2  phase, by department district, and by appropriation category.

  3         (f)(i)  The Governor's recommendations for critical

  4  information resource management projects which should be

  5  subject to special monitoring under s. 282.322. These

  6  recommendations shall include proviso language which specifies

  7  whether funds are specifically provided to contract for

  8  project monitoring, or whether the Auditor General will

  9  conduct such project monitoring. When funds are recommended

10  for contracting with a project monitor, such funds may equal 1

11  percent to 5 percent of the project's estimated total costs.

12  These funds shall be specifically appropriated and

13  nonrecurring.

14         (g)(j)  Any additional information which the Governor

15  or Chief Justice feels is needed to justify his or her

16  recommendations.

17         (3)  The Governor shall provide to the Legislature a

18  performance-based program budget for approved programs

19  according to the schedule provided in s. 216.0172. Information

20  submitted to the Legislature shall be provided in a fashion

21  that will allow comparison of the requested information with

22  the agency request and legislative appropriation by the

23  automated legislative appropriation planning and budgeting

24  system.

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

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

27  findings of the Office of Program Policy Analysis and

28  Government Accountability, to the extent they are available,

29  request any reports or additional analyses as necessary, and

30  submit a recommendation for executive agencies, which may

31  include a recommendation regarding incentives or disincentives


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                                          HB 2377, Third Engrossed



  1  for agency performance. Incentives or disincentives may apply

  2  to all or part of a state agency. The Chief Justice shall

  3  review the findings of the Office of Program Policy Analysis

  4  and Government Accountability regarding judicial branch

  5  performance and make appropriate recommendations for the

  6  judicial branch.

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

  8         1.  Additional flexibility in budget management, such

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

10  categories, or performance-based program appropriation;

11  consolidation of budget entities or program components;

12  consolidation of appropriation categories; and increased

13  agency transfer authority between appropriation categories or

14  budget entities.

15         2.  Additional flexibility in salary rate and position

16  management.

17         3.  Retention of up to 50 percent of all unencumbered

18  balances of appropriations as of June 30, or undisbursed

19  balances as of December 31, excluding special categories and

20  grants and aids, which may be used for nonrecurring purposes

21  including, but not limited to, lump-sum bonuses, employee

22  training, or productivity enhancements, including technology

23  and other improvements.

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

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

26  enhancements, including technology and other improvements.

27         5.  Additional funds provided pursuant to law to be

28  released to an agency quarterly or incrementally contingent

29  upon the accomplishment of units of output or outcome

30  specified in the General Appropriations Act.

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


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                                          HB 2377, Third Engrossed



  1         1.  Mandatory quarterly reports to the Executive Office

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

  3  in meeting performance standards.

  4         2.  Mandatory quarterly appearances before the

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

  6  report on the agency's progress in meeting performance

  7  standards.

  8         3.  Elimination or restructuring of the program, which

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

10  outsourcing all or a portion of the program.

11         4.  Reduction of total positions for a program.

12         5.  Restriction on or reduction of the spending

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

14         6.  Reduction of managerial salaries.

15         (5)  At the same time that the Governor furnishes each

16  senator and representative with a copy of his or her

17  recommended balanced budget under s. 216.162(1), the Executive

18  Office of the Governor shall electronically transmit to the

19  legislative appropriations committees the Governor's

20  recommended budget, the Exhibit B, Major Issues, and D-3a's.

21         (6)  At the time the Governor is required to furnish

22  copies of his or her recommended budget to each senator and

23  representative under s. 216.162(1), the Governor shall declare

24  an impasse in all collective bargaining negotiations for which

25  he or she is deemed to be the public employer and for which a

26  collective bargaining agreement has not been executed.  Within

27  14 days thereafter, the Governor shall furnish the legislative

28  appropriations committees with documentation relating to the

29  last offer he or she made during such collective bargaining

30  negotiations or recommended to a mediator or special master

31  appointed to resolve the impasse.


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                                          HB 2377, Third Engrossed



  1         Section 20.  Subsections (1) and (2) of section

  2  216.177, Florida Statutes, are amended to read:

  3         216.177  Appropriations acts, statement of intent,

  4  violation, notice, review and objection procedures.--

  5         (1)  When an appropriations act is delivered to the

  6  Governor after the Legislature has adjourned sine die, as soon

  7  as practicable, but no later than the 10th day before the end

  8  of the period allowed by law for veto consideration in any

  9  year in which an appropriation is made, the chairs of the

10  legislative appropriations committees shall jointly transmit:

11         (a)  A statement of intent, including performance and

12  workload measures as appropriate;

13         (a)(b)  The official list of General Revenue Fund

14  appropriations determined in consultation with the Executive

15  Office of the Governor to be nonrecurring; and

16         (b)(c)  The documents set forth in s. 216.0442(2)(a)

17  and (c),

18

19  to the Executive Office of the Governor, the Comptroller, the

20  Auditor General, the Chief Justice of the Supreme Court, and

21  each state agency.  The statement of intent constitutes a

22  manifestation of how the Legislature, in its considered

23  opinion as a representative of the people, thinks

24  appropriations should be spent.  The statement of intent is

25  not a law and may not allocate or appropriate any funds, or

26  amend or correct any provision, in the General Appropriations

27  Act, but the statement of intent may provide additional

28  explanation to the Executive Office of the Governor, the

29  judicial branch, the Administration Commission, and each

30  affected state agency relative to the purpose, objectives,

31  spending philosophy, and restrictions associated with any


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                                          HB 2377, Third Engrossed



  1  specific appropriation.  The statement of intent shall compare

  2  the request of the agency or of the judicial branch or the

  3  recommendation of the Governor to the funds appropriated for

  4  the purpose of establishing intent in the development of the

  5  approved operating budget.  A request for additional

  6  explanation and direction regarding the legislative intent of

  7  the General Appropriations Act during the fiscal year may be

  8  made only by and through the Executive Office of the Governor

  9  for state agencies, and by and through the Chief Justice of

10  the Supreme Court for the judicial branch, as is deemed

11  necessary.  However, the Comptroller may also request further

12  clarification of legislative intent pursuant to the

13  Comptroller's responsibilities related to his or her preaudit

14  function of expenditures.

15         (2)(a)  Whenever notice of action to be taken by the

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

17  Supreme Court, or the commission is required by this chapter,

18  such notice shall be given to the chair of the Legislative

19  Budget Commission and chairs of the legislative appropriations

20  committees in writing, and shall be delivered to both such

21  chairs at least 14 consecutive days prior to the action

22  referred to, unless a shorter period is approved in writing by

23  the chair both such chairs. If the action is solely for the

24  release of funds appropriated by the Legislature, the notice

25  shall be delivered at least 3 days before the effective date

26  of the action. Action shall not be taken on any budget item

27  for which this chapter requires notice to the Legislative

28  Budget Commission and appropriations committees without such

29  notice having been provided, even though there may be good

30  cause for considering such item.

31


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                                          HB 2377, Third Engrossed



  1         (b)  If the chair of the Legislative Budget Commission

  2  chairs of the legislative appropriations committees or the

  3  President of the Senate and the Speaker of the House of

  4  Representatives timely advise, in writing, the Executive

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

  6  Court, or the Administration Commission that an action or a

  7  proposed action, whether subject to the notice and review

  8  requirements of this chapter or not, exceeds the delegated

  9  authority of the Executive Office of the Governor for the

10  executive branch or, the Chief Justice for the judicial

11  branch, or the Administration Commission, respectively, or is

12  contrary to legislative policy and intent, the Governor or,

13  the Chief Justice of the Supreme Court, or the Administration

14  Commission shall void such action and instruct the affected

15  state agency or entity of the judicial branch to change

16  immediately its spending action or spending proposal until the

17  Legislature addresses the issue.  The written documentation

18  shall indicate the specific reasons that an action or proposed

19  action exceeds the delegated authority or is contrary to

20  legislative policy and intent.

21         (c)  The House of Representatives and the Senate shall

22  provide by rule that any member of the House of

23  Representatives or Senate may request, in writing, of either

24  the President of the Senate or the Speaker of the House of

25  Representatives or the chair of the respective Legislative

26  Budget Commission appropriations committee to initiate the

27  procedures of paragraph (b).

28         Section 21.  Section 216.178, Florida Statutes, is

29  amended to read:

30         216.178  General Appropriations Act; format; procedure;

31  cost statement for new debt or obligation.--


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                                          HB 2377, Third Engrossed



  1         (1)  Any information contained in a conference

  2  committee report on a general or supplemental appropriations

  3  bill, on any other bill adopted by the same conference

  4  committee to implement a general or supplemental

  5  appropriations bill and effective for the same period as such

  6  appropriations bill, or on a revenue bill during any regular

  7  or special legislative session must be made available to the

  8  members of the Legislature and to the public at least 72 48

  9  hours before the report may be voted on by the Senate or the

10  House of Representatives.

11         (2)  Effective June 30, 1993, The Office of Planning

12  and Budgeting shall develop a final budget report that

13  reflects the net appropriations for each budget item.  The

14  report shall reflect actual expenditures for each of the 2

15  preceding fiscal years and the estimated expenditures for the

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

17  actual revenues and cash balances for the preceding 2 fiscal

18  years and the estimated revenues and cash balances for the

19  current fiscal year.  The report may also contain expenditure

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

21  agency program. The report must be produced by October 15 each

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

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

24  to the Auditor General, and to the public.

25         (3)  The Governor shall submit to the Secretary of

26  State, along with the signed General Appropriations Act, a

27  statement which sets forth the estimated cost of each new

28  proposed state debt or obligation contained in the act.  Each

29  statement shall be written in substantially the following

30  form:

31


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                                          HB 2377, Third Engrossed



  1         The General Appropriations Act for fiscal year

  2  ...(insert years)... authorizes the issuance of $ ...(insert

  3  principal)... of debt or obligation at a forecasted interest

  4  rate of ...(insert rate of interest)....  The total interest

  5  paid over the life of this debt or obligation will be $

  6  ...(insert sum of interest payments).... Additionally, it is

  7  estimated that the 5-year operational costs associated with

  8  those capital outlay projects to be funded by the incurrence

  9  of this debt or obligation will be $ ...(insert costs)....

10         Section 22.  Section 216.179, Florida Statutes, is

11  amended to read:

12         216.179  Reinstatement of vetoed appropriations by

13  administrative means prohibited.--After the Governor has

14  vetoed a specific appropriation for an agency or the judicial

15  branch, neither the Governor, the Administration Commission,

16  nor the Chief Justice of the Supreme Court, nor a state

17  agency, in their various statutory and constitutional roles,

18  may authorize expenditures for or implementation in any manner

19  of the programs that were authorized by the vetoed

20  appropriation.

21         Section 23.  Section 216.181, Florida Statutes, is

22  amended to read:

23         216.181  Approved budgets for operations and fixed

24  capital outlay.--

25         (1)  The General Appropriations Act and any other acts

26  containing appropriations shall be considered the original

27  approved operating budgets for operational and fixed capital

28  expenditures. Amendments to the approved operating budgets for

29  operational and fixed capital outlay expenditures from state

30  agencies may be requested only through the Executive Office of

31  the Governor and approved by the Governor and the Legislative


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                                          HB 2377, Third Engrossed



  1  Budget Commission or Administration Commission as provided in

  2  this chapter. Amendments from the judicial branch may be

  3  requested only through, and approved by, the Chief Justice of

  4  the Supreme Court.  This includes amendments which are

  5  necessary to implement the provisions of s. 216.212 or s.

  6  216.221.

  7         (2)  Amendments to the original approved operating

  8  budgets for operational and fixed capital outlay expenditures

  9  must comply with the following guidelines in order to be

10  approved by the Governor and the Legislative Budget Commission

11  or Administration Commission as provided in this chapter for

12  the executive branch and the Chief Justice for the judicial

13  branch:

14         (a)  The amendment must be consistent with legislative

15  policy and intent.

16         (b)  The amendment may not initiate or commence a new

17  program, except as authorized by this chapter, or eliminate an

18  existing program.

19         (c)  Except as authorized in s. 216.292 or other

20  provisions of this chapter, the amendment may not provide

21  funding or increased funding for items which were funded by

22  the Legislature in an amount less than that requested by the

23  agency or Governor in the legislative budget request or which

24  were vetoed by the Governor.

25         (d)  For amendments that involve trust funds, there

26  must be adequate and appropriate revenues available in the

27  trust fund and the amendment must be consistent with the laws

28  authorizing such trust funds and the laws relating to the use

29  of the trust funds. However, a trust fund shall not be

30  increased in excess of the original approved budget, except as

31  provided in subsection (11).


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                                          HB 2377, Third Engrossed



  1         (e)  The amendment shall not conflict with any

  2  provision of law.

  3         (f)  The amendment must not provide funding for any

  4  issue which was requested by the agency or branch in their

  5  legislative budget request and not funded in the General

  6  Appropriations Act.

  7         (g)  The amendment must include a written description

  8  of the purpose of the proposed change, an indication of why

  9  interim budget action is necessary, and the intended recipient

10  of any funds for contracted services.

11         (h)  The amendment must not provide general salary

12  increases which the Legislature has not authorized in the

13  General Appropriations Act or other laws.

14         (3)  All amendments to original approved operating

15  budgets, regardless of funding source, are subject to the

16  notice and review procedures set forth in s. 216.177.

17         (4)  To the extent possible, individual members of the

18  Senate and the House of Representatives should be advised of

19  budget amendments requested by the executive branch.

20         (5)(4)  An All amendments to the original approved

21  operating budgets, regardless of funding source, are subject

22  to the notice and review procedures set forth in s. 216.177

23  and must be approved by the Governor and Administration

24  Commission as provided in this chapter for the executive

25  branch and the Chief Justice for the judicial branch if the

26  amendment is for an information resources management project

27  or initiative that involves more than one agency, has an

28  outcome that impacts another agency, or exceeds $500,000 in

29  total cost over a 1-year period, except for those projects

30  that are a continuation of hardware or software maintenance or

31  software licensing agreements, or that are for desktop


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                                          HB 2377, Third Engrossed



  1  replacement that is similar to the technology currently in use

  2  must be reviewed by the Technology Review Workgroup pursuant

  3  to s. 216.0466 and approved by the Executive Office of the

  4  Governor for the executive branch or by the Chief Justice for

  5  the judicial branch, and shall be subject to the notice and

  6  review procedures set forth in s. 216.177.

  7         (6)(5)(a)  The Executive Office of the Governor or the

  8  Chief Justice of the Supreme Court may require the submission

  9  of a detailed plan from the agency or entity of the judicial

10  branch affected, consistent with the General Appropriations

11  Act, special appropriations acts, and the statement of intent

12  before transferring and releasing the balance of a lump-sum

13  appropriation. The provisions of this paragraph are subject to

14  the notice and review procedures set forth in s. 216.177.

15         (b)  The Executive Office of the Governor may amend,

16  without approval of the Legislative Budget Administration

17  Commission, state agency budgets to reflect the transferred

18  funds based on the approved plans for lump-sum appropriations.

19

20  The Executive Office of the Governor shall transmit to each

21  state agency and the Comptroller, and the Chief Justice shall

22  transmit to each judicial branch component and the

23  Comptroller, any approved amendments to the approved operating

24  budgets.

25         (7)(6)  The Executive Office of the Governor may, for

26  the purpose of improved contract administration, authorize the

27  consolidation of two or more fixed capital outlay

28  appropriations for an agency, and the Chief Justice of the

29  Supreme Court for the judicial branch, except for projects

30  authorized under chapter 235, provided the original scope and

31  purpose of each project are not changed.


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  1         (7)  The original approved annual salary rate for the

  2  Division of Administrative Hearings shall be as set forth in

  3  the General Appropriations Act.  This rate may be adjusted by

  4  the Executive Office of the Governor subject to the provisions

  5  of s. 120.65(2).

  6         (8)  As part of the approved operating budget, the

  7  Executive Office of the Governor shall furnish to each state

  8  agency, and the Chief Justice of the Supreme Court shall

  9  furnish to the entity of the judicial branch, an approved

10  annual salary rate for each budget entity containing a salary

11  appropriation. This rate shall be based upon the actual salary

12  rate and shall be consistent with the General Appropriations

13  Act or special appropriations acts.  The annual salary rate

14  shall be:

15         (a)  Calculated based on the actual salary rate in

16  effect on June 30, and the salary policy and the number of

17  authorized positions as specified in the General

18  Appropriations Act and special appropriations acts, or as

19  provided pursuant to s. 216.177.

20         (b)  Controlled by department or agency; except for the

21  Department of Education, which shall be controlled by division

22  and for the judicial branch, which shall be controlled at the

23  branch level budget entity.

24         (c)  Assigned to the number of authorized positions,

25  which may not be transferred between budget entities unless

26  the associated positions are also transferred pursuant to s.

27  216.262(1)(c).

28         (9)(a)  The calculation for the annual salary rate for

29  vacant and newly authorized positions shall be at no more than

30  the midpoint of the range of the pay grade for the position or

31  as provided in the General Appropriations Act.


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  1         (b)  No agency or the judicial branch may exceed its

  2  maximum approved annual salary rate for the fiscal year.

  3  However, at any time during the fiscal year, an agency or

  4  entity of the judicial branch may exceed its approved rate for

  5  all budget entities by no more than 5 percent, provided that,

  6  by June 30 of every fiscal year, the agency or entity of the

  7  judicial branch has reduced its salary rate so that the salary

  8  rate for each budget entity is within the approved rate limit

  9  for that budget entity.

10         (10)(a)  The Executive Office of the Governor and the

11  Chief Justice of the Supreme Court may increase or decrease

12  the approved salary rate for positions for the purpose of

13  implementing the General Appropriations Act, special

14  appropriations acts, and actions pursuant to s. 216.262 other

15  adjustments if they are deemed to be necessary and in the best

16  interest of the state and consistent with legislative intent

17  and policy.  The provisions of this paragraph are subject to

18  the notice and review procedures set forth in s. 216.177.

19         (b)  Lump-sum salary bonuses may be provided only if

20  specifically appropriated.

21         (11)  The Executive Office of the Governor may approve

22  transfers of appropriations in the General Appropriations Act

23  within any state trust fund of an agency, and the Chief

24  Justice of the Supreme Court may approve such transfers for

25  the judicial branch.  The Governor and the Chief Justice of

26  the Supreme Court may establish nonoperating budgets if deemed

27  necessary and in the best interest of the state and consistent

28  with legislative intent and policy.  The Executive Office of

29  the Governor and the Chief Justice of the Supreme Court may

30  approve changes in the amounts appropriated from state trust

31  funds in excess of those in the approved operating budget only


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                                          HB 2377, Third Engrossed



  1  pursuant to the federal funds provisions of s. 216.212, when

  2  grants and donations are received after April 1, or when

  3  deemed necessary due to a set of conditions that were

  4  unforeseen at the time the General Appropriations Act was

  5  adopted and that are essential to correct in order to continue

  6  the operation of government. The provisions of this subsection

  7  are subject to the notice, review, and objection procedures

  8  set forth in s. 216.177.

  9         (12)  There is appropriated nonoperating budget for

10  refunds, payments to the U.S. Treasury, payments of the

11  service charge to the General Revenue Fund, and transfers of

12  funds specifically required by law. Such authorized budget,

13  together with related releases, shall be transmitted by the

14  state agency or by the judicial branch to the Comptroller for

15  entry in the Comptroller's records in the manner and format

16  prescribed by the Executive Office of the Governor in

17  consultation with the Comptroller. A copy of such authorized

18  budgets shall be furnished to the Executive Office of the

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

20  committees responsible for developing the general

21  appropriations acts, and the Auditor General. The Governor may

22  withhold approval of nonoperating investment authority for

23  certain trust funds when deemed in the best interest of the

24  state. The Governor for the executive branch, and the Chief

25  Justice for the judicial branch, may establish nonoperating

26  budgets for transfers, purchase of investments, special

27  expenses, distributions, and any other nonoperating budget

28  categories they deem necessary and in the best interest of the

29  state and consistent with legislative intent and policy. The

30  provisions of this subsection are subject to the notice,

31  review, and objection procedures set forth in s. 216.177. For


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  1  purposes of this section, the term "nonoperating budgets"

  2  means nonoperating disbursement authority for purchase of

  3  investments, refunds, payments to the U.S. Treasury, transfers

  4  of funds specifically required by law, distributions of assets

  5  held by the state in a trustee capacity as an agent of

  6  fiduciary, special expenses, and other nonoperating budget

  7  categories as determined necessary by the Executive Office of

  8  the Governor, not otherwise appropriated in the General

  9  Appropriations Act.

10         (13)(12)  Each state agency and the judicial branch

11  shall develop the internal management procedures and budgets

12  necessary to assure compliance with the approved operating

13  budget.

14         (14)(13)  The Executive Office of the Governor and the

15  Chief Justice of the Supreme Court shall certify the amounts

16  approved for operations and fixed capital outlay, together

17  with any relevant supplementary materials or information, to

18  the Comptroller; and such certification shall be the

19  Comptroller's guide with reference to the expenditures of each

20  state agency pursuant to s. 216.192.

21         (15)(14)  The provisions of this section do not apply

22  to the budgets for the legislative branch.

23         (16)(15)(a)  Funds provided in any specific

24  appropriation in the General Appropriations Act may be

25  advanced if the General Appropriations Act specifically so

26  provides.

27         (b)  Any agency, or the judicial branch, that has been

28  authorized by the General Appropriations Act or expressly

29  authorized by other law to make advances for program startup

30  or advances for contracted services, in total or periodically,

31  shall limit such disbursements to other governmental entities


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                                          HB 2377, Third Engrossed



  1  and not-for-profit corporations.  The amount which may be

  2  advanced shall not exceed the expected cash needs of the

  3  contractor or recipient within the initial 3 months.

  4  Thereafter, disbursements shall only be made on a

  5  reimbursement basis.  Any agreement that provides for

  6  advancements may contain a clause that permits the contractor

  7  or recipient to temporarily invest the proceeds, provided that

  8  any interest income shall either be returned to the agency or

  9  be applied against the agency's obligation to pay the contract

10  amount.  This paragraph does not constitute lawful authority

11  to make any advance payment not otherwise authorized by laws

12  relating to a particular agency or general laws relating to

13  the expenditure or disbursement of public funds.  The

14  Comptroller may, after consultation with the legislative

15  appropriations committees, advance funds beyond a 3-month

16  requirement waive the requirements of this paragraph which

17  apply to advances if it is determined to be consistent with

18  the intent of the approved operating budget.

19         (c)  For the 1999-2000 fiscal year only, funds

20  appropriated to the Department of Children and Family Services

21  in Specific Appropriations 292 through 425 and the Department

22  of Health in Specific Appropriations 445 through 540 of the

23  1999-2000 General Appropriations Act may be advanced, unless

24  specifically prohibited in such General Appropriations Act,

25  for those contracted services that were approved for

26  advancement by the Comptroller in fiscal year 1993-1994,

27  including those services contracted on a fixed-price or unit

28  cost basis.  This paragraph is repealed on July 1, 2000.

29         (16)  Notwithstanding any provision of this section to

30  the contrary and for the 1999-2000 fiscal year only, the

31  Department of Children and Family Services is authorized to


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                                          HB 2377, Third Engrossed



  1  use operating funds budgeted for Developmental Services

  2  Institutions for fixed capital outlay expenditures as needed

  3  to bring any currently unlicensed beds up to Federal

  4  Intermediate Care Facility for the Developmentally Disabled

  5  licensure standards. This subsection is repealed on July 1,

  6  2000.

  7         (17)  Notwithstanding any other provision of this

  8  section to the contrary, and for the 1999-2000 fiscal year

  9  only, the Florida Department of Law Enforcement may transfer

10  up to 20 positions and associated budget between budget

11  entities, provided the same funding source is used throughout

12  each transfer. The department may also transfer up to 10

13  percent of the initial approved salary rate between budget

14  entities, provided the same funding source is used throughout

15  each transfer. The department must provide notice to the

16  Executive Office of the Governor, the chair of the Senate

17  Budget Committee, and the chair of the House Committee on

18  Criminal Justice Appropriations for all transfers of positions

19  or salary rate. This subsection is repealed on July 1, 2000.

20         (18)  Notwithstanding any other provision of this

21  chapter to the contrary, the Florida Department of

22  Transportation, in order to facilitate the transfer of

23  personnel to the new turnpike headquarters location in Orange

24  County, may transfer salary rate to the turnpike budget entity

25  from other departmental budget entities. The department must

26  provide documentation of all transfers to the Executive Office

27  of the Governor, the Chairman of the Senate Budget Committee,

28  and the Chairman of the House of Representatives Committee on

29  Transportation and Economic Development Appropriations. This

30  subsection expires July 1, 2000.

31


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                                          HB 2377, Third Engrossed



  1         Section 24.  Section 216.1825, Florida Statutes, is

  2  created to read:

  3         216.1825  Zero-based budgeting.--

  4         (1)  Beginning July 1, 2000, and continuing thereafter,

  5  the Legislative Budget Commission shall apply zero-based

  6  budgeting principles in reviewing the budget of each state

  7  agency at least once every 8 years.

  8         (2)  No later than July 1 of each year, the commission

  9  shall issue instructions to the agencies whose budgets are to

10  be reviewed prior to the next legislative session. Dates of

11  submission for information required by the commission will be

12  included in the instructions.

13         (3)  The commission shall provide its reports of

14  zero-based budgeting reviews to the President of the Senate

15  and the Speaker of the House of Representatives on or before

16  December 31.

17         (4)  For fiscal year 2001-2002, budgets of the

18  Department of Revenue and the Department of Law Enforcement

19  shall be the subject of zero-based budgeting review by the

20  commission. The commission shall, by February 1, 2001, provide

21  to the President of the Senate and the Speaker of the House of

22  Representatives, a schedule for completing zero-based

23  budgeting reviews of all remaining state agencies prior to

24  December 31, 2008.

25         Section 25.  Section 216.183, Florida Statutes, is

26  amended to read:

27         216.183  Entities using performance-based program

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

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

30  appropriated shall utilize the chart of accounts used by the

31  Florida Accounting Information Resource Subsystem in the


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                                          HB 2377, Third Engrossed



  1  manner described in s. 215.93(3). The chart of accounts for

  2  state agencies and the judicial branch for which a

  3  performance-based program budget has been appropriated shall

  4  be developed and amended, if necessary, in consultation with

  5  the Department of Banking and Finance, and the Executive

  6  Office of the Governor, and the chairs of the Legislative

  7  Budget Commission.

  8         Section 26.  Subsection (1) of section 216.192, Florida

  9  Statutes, is amended to read:

10         216.192  Release of appropriations; revision of

11  budgets.--

12         (1)  Unless otherwise provided in the General

13  Appropriations Act, on July 1 of each fiscal year, up to 25 20

14  percent of the original approved operating budget of each

15  agency and of the judicial branch may shall be released until

16  such time as annual plans for quarterly releases for all

17  appropriations have been developed, approved, and furnished to

18  the Comptroller by the Executive Office of the Governor for

19  state agencies and by the Chief Justice of the Supreme Court

20  for the judicial branch.  The plans, including appropriate

21  plans of releases for fixed capital outlay projects that

22  correspond with each project schedule, shall attempt to

23  maximize the use of trust funds and shall be transmitted to

24  the Comptroller by August 1 of each fiscal year. Such releases

25  shall at no time exceed the total appropriations available to

26  a state agency or to the judicial branch, or the approved

27  budget for such agency or the judicial branch if less. The

28  Comptroller shall enter such releases in his or her records in

29  accordance with the release plans prescribed by the Executive

30  Office of the Governor and the Chief Justice, unless otherwise

31  amended as provided by law.  The Executive Office of the


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                                          HB 2377, Third Engrossed



  1  Governor and the Chief Justice shall transmit a copy of the

  2  approved annual releases to the head of the state agency, the

  3  chair of the Legislative Budget Commission, the chairs of the

  4  legislative appropriations committees, and the Auditor

  5  General. The Comptroller shall authorize all expenditures to

  6  be made from the appropriations on the basis of such releases

  7  and in accordance with the approved budget, and not otherwise.

  8  Expenditures shall be authorized only in accordance with

  9  legislative authorizations. Nothing herein precludes periodic

10  reexamination and revision by the Executive Office of the

11  Governor or by the Chief Justice of the annual plans for

12  release of appropriations and the notifications of the parties

13  of all such revisions.

14         Section 27.  Section 216.195, Florida Statutes, is

15  amended to read:

16         216.195  Impoundment of funds; restricted.--The

17  Executive Office of the Governor, the Chief Justice of the

18  Supreme Court, any member of the Cabinet, the Administration

19  Commission, or any state agency shall not impound any

20  appropriation except as necessary to avoid or eliminate a

21  deficit pursuant to the provisions of s. 216.221.  As used in

22  this section, the term "impoundment" means the omission of any

23  appropriation or part of an appropriation in the approved

24  operating plan prepared pursuant to s. 216.181 or in the

25  schedule of releases prepared pursuant to s. 216.192 or the

26  failure of any state agency or the judicial branch to spend an

27  appropriation for the stated purposes authorized in the

28  approved operating budget. The provisions of this section are

29  subject to the notice and review procedures of s. 216.177.

30  The Governor or either house of the Legislature may seek

31


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                                          HB 2377, Third Engrossed



  1  judicial review of any action or proposed action which

  2  violates the provisions of this section.

  3         Section 28.  Section 216.212, Florida Statutes, is

  4  amended to read:

  5         216.212  Budgets for federal funds; restrictions on

  6  expenditure of federal funds.--

  7         (1)  The Executive Office of the Governor, the office

  8  of the Comptroller, and the office of the Treasurer shall

  9  develop and implement procedures for accelerating the drawdown

10  of, and minimizing the payment of interest on, federal funds.

11  The Executive Office of the Governor shall establish a

12  clearinghouse for federal programs and activities.  The

13  clearinghouse shall develop the capacity to respond to federal

14  grant opportunities and to coordinate the use of federal funds

15  in the state.

16         (a)  Every state agency, when making a request or

17  preparing a budget to be submitted to the Federal Government

18  for funds, equipment, material, or services, shall submit such

19  request or budget to the Executive Office of the Governor for

20  review approval before submitting it to the proper federal

21  authority. However, the Executive Office of the Governor may

22  specifically authorize any agency to submit specific types of

23  grant proposals directly to the Federal Government.

24         (b)  Every office or court of the judicial branch, when

25  making a request or preparing a budget to be submitted to the

26  Federal Government for funds, equipment, material, or

27  services, shall submit such request or budget to the Chief

28  Justice of the Supreme Court for approval before submitting it

29  to the proper federal authority.  However, the Chief Justice

30  may specifically authorize any court to submit specific types

31  of grant proposals directly to the Federal Government.


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                                          HB 2377, Third Engrossed



  1         (2)  When such federal authority has approved the

  2  request or budget, the state agency or the judicial branch

  3  shall submit to the Executive Office of the Governor such

  4  documentation showing approval as that office prescribes.

  5  Beginning July 1, 1993, The Executive Office of the Governor

  6  must acknowledge each approved request or budget by entering

  7  that approval into an Automated Grant Management System

  8  developed in consultation with the chairs of the House of

  9  Representatives and Senate appropriations committees.

10         (3)  Federal money appropriated by Congress or received

11  from court settlements to be used for state purposes, whether

12  by itself or in conjunction with moneys appropriated by the

13  Legislature, may not be expended unless appropriated by the

14  Legislature.  However, the Executive Office of the Governor or

15  the Chief Justice of the Supreme Court may, after consultation

16  with the legislative appropriations committees, approve the

17  receipt and expenditure of funds from federal sources by state

18  agencies or by the judicial branch.  Any federal programs

19  requiring state matching funds which funds were eliminated, or

20  were requested and were not approved, by the Legislature may

21  not be implemented during the interim.  However, federal and

22  other fund sources for the State University System which do

23  not carry a continuing commitment on future appropriations are

24  hereby appropriated for the purpose received.

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

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

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

28  and maintain a means to ensure the compatibility of the

29  Florida Accounting Information Resource Subsystem and the

30  Federal Aid Tracking System.  Any successive systems serving

31


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                                          HB 2377, Third Engrossed



  1  identical or similar functions shall preserve such

  2  compatibility.

  3         Section 29.  Section 216.216, Florida Statutes, is

  4  created to read:

  5         216.216  Court settlement funds negotiated by the

  6  state.--In any court settlement in which a state agency or

  7  officer or any other counsel representing the interests of the

  8  state negotiates settlement amounts to be expended on any

  9  state operational or fixed capital issue in the judicial

10  branch or the executive branch, such funds may not be expended

11  unless appropriated by the Legislature to the appropriate

12  agency responsible for the operational or fixed capital issue.

13  When a state agency or officer settles an action in which the

14  state will receive moneys, the funds shall be placed in the

15  General Revenue Fund or in the trust fund that is associated

16  with the agency's or officer's authority to pursue the legal

17  action. The provisions of this section are subject to the

18  notice and review procedures set forth in s. 216.177.

19         Section 30.  Subsections (2) and (6) of section

20  216.221, Florida Statutes, are amended to read:

21         216.221  Appropriations as maximum appropriations;

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

23         (2)  The Legislature may shall annually provide

24  direction in the General Appropriations Act regarding use of

25  the Budget Stabilization Fund and Working Capital Fund to

26  offset General Revenue Fund deficits.

27         (6)  If the Revenue Estimating Conference projects a

28  deficit in the General Revenue Fund in excess of 1.5 percent

29  of the moneys appropriated from the General Revenue Fund $300

30  million during a fiscal year or when the cumulative total of a

31  series of projected deficits in the General Revenue Fund


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                                          HB 2377, Third Engrossed



  1  exceeds 1.5 percent of the moneys appropriated from the

  2  General Revenue Fund $300 million, the deficit shall be

  3  resolved by the Legislature.

  4         Section 31.  Paragraph (a) of subsection (2) of section

  5  216.251, Florida Statutes, is amended to read:

  6         216.251  Salary appropriations; limitations.--

  7         (2)(a)  The salary for each position not specifically

  8  indicated in the appropriations acts shall be as provided in

  9  one of the following subparagraphs:

10         1.  Within the classification and pay plans provided

11  for in chapter 110.

12         2.  Within the classification and pay plans established

13  by the Board of Trustees for the Florida School for the Deaf

14  and the Blind of the Department of Education and approved by

15  the State Board of Education for academic and academic

16  administrative personnel.

17         3.  Within the classification and pay plan approved and

18  administered by the Board of Regents for those positions in

19  the State University System.

20         4.  Within the classification and pay plan approved by

21  the President of the Senate and the Speaker of the House of

22  Representatives, or by the Legislative Auditing Committee, as

23  the case may be, for employees of the Legislature.

24         5.  Within the approved classification and pay plan for

25  the judicial branch.

26         6.  The salary of all positions not specifically

27  included in this subsection shall be set by the commission or

28  by the Chief Justice for the judicial branch.

29         Section 32.  Paragraphs (a), (b), and (f) of subsection

30  (1) of section 216.262, Florida Statutes, are amended to read:

31         216.262  Authorized positions.--


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                                          HB 2377, Third Engrossed



  1         (1)(a)  Unless otherwise expressly provided by law, the

  2  total number of authorized positions may not exceed the total

  3  provided in the appropriations acts.  In the event any state

  4  agency or entity of the judicial branch finds that the number

  5  of positions so provided is not sufficient to administer its

  6  authorized programs, it may file an application with the

  7  Executive Office of the Governor or the Chief Justice; and, if

  8  the office or Chief Justice certifies that there are no

  9  authorized positions available for addition, deletion, or

10  transfer within the agency as provided in paragraph (c) and

11  recommends an increase in the number of positions, the

12  Governor commission or the Chief Justice may, after a public

13  hearing, authorize an increase in the number of positions for

14  the following reasons only:

15         1.  To implement or provide for continuing federal

16  grants or changes in grants not previously anticipated;

17         2.  To meet emergencies pursuant to s. 252.36;

18         3.  To satisfy new federal regulations or changes

19  therein;

20         4.  To take advantage of opportunities to reduce

21  operating expenditures or to increase the revenues of the

22  state or local government; and

23         5.  To authorize positions which were not fixed by the

24  Legislature through error in drafting the appropriations acts.

25

26  The provisions of this paragraph are subject to the notice and

27  review procedures set forth in s. 216.177.  A copy of the

28  application, the certification, and the final authorization

29  shall be filed with the Legislative Budget Commission, the

30  appropriations committees and with the Auditor General.

31


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                                          HB 2377, Third Engrossed



  1         (b)  The Governor Administration Commission and the

  2  Chief Justice may, after a public hearing, delete supervisory

  3  or managerial positions within a department and establish

  4  direct service delivery positions in excess of the number of

  5  supervisory or managerial positions deleted.  The salary rate

  6  for all positions authorized under this paragraph may not

  7  exceed the salary rate for all positions deleted under this

  8  paragraph. Positions affected by changes made under this

  9  paragraph may be funded only from identical funding sources.

10         (f)  Perquisites may not be furnished by a state agency

11  or by the judicial branch unless approved by the Department of

12  Management Services, or otherwise delegated to the agency

13  head, or by the Chief Justice, respectively, during each

14  fiscal year. Whenever a state agency or the judicial branch is

15  to furnish perquisites, the Department of Management Services

16  or the agency head to which the approval has been delegated or

17  the Chief Justice, respectively, must approve the kind and

18  monetary value of such perquisites before they may be

19  furnished. Perquisites may be furnished only when in the best

20  interest of the state due to the exceptional or unique

21  requirements of the position. The value of a perquisite may

22  not be used to compute an employee's base rate of pay or

23  regular rate of pay unless required by the Fair Labor

24  Standards Act. Permissible perquisites include, but are not

25  limited to, moving expenses, clothing, use of vehicles and

26  other transportation, domestic services, groundskeeping

27  services, telephone services, medical services, housing,

28  utilities, and meals. The Department of Management Services

29  may adopt uniform rules applicable to the executive branch

30  agencies to implement its responsibilities under this

31  paragraph, which rules may specify additional perquisites,


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                                          HB 2377, Third Engrossed



  1  establish additional criteria for each kind of perquisite,

  2  provide the procedure to be used by executive agencies in

  3  applying for approvals, and establish the required

  4  justification. As used in this section, the term "perquisites"

  5  means those things, or the use thereof, or services of a kind

  6  that confer on the officers or employees receiving them some

  7  benefit that is in the nature of additional compensation, or

  8  that reduce to some extent the normal personal expenses of the

  9  officer or employee receiving them. The term includes, but is

10  not limited to, such things as quarters, subsistence,

11  utilities, laundry services, medical service, use of

12  state-owned vehicles for other than state purposes, and

13  servants paid by the state.

14         Section 33.  Subsection (1) of section 216.271, Florida

15  Statutes, is amended to read:

16         216.271  Revolving funds.--

17         (1)  No revolving fund may be established or increased

18  in amount pursuant to s. 18.101(2), unless approved by the

19  Comptroller.  The purpose and uses of a revolving fund may not

20  be changed without the prior approval of the Comptroller. As

21  used in this section, the term "revolving fund" means a cash

22  fund maintained within or outside the State Treasury and

23  established from an appropriation, to be used by an agency or

24  the judicial branch in making authorized expenditures.

25         Section 34.  Section 216.292, Florida Statutes, is

26  amended to read:

27         216.292  Appropriations nontransferable; exceptions.--

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

29  Act or as otherwise expressly provided by law shall be

30  expended only for the purpose for which appropriated, except

31  that if deemed necessary such moneys may be transferred as


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

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

  3  Appropriations for fixed capital outlay may not be expended

  4  for any other purpose, and appropriations may not be

  5  transferred between state agencies, or between a state agency

  6  and the judicial branch, unless specifically authorized by

  7  law.

  8         (b)  For the 1998-1999 fiscal year only, The Department

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

10  Administration may transfer general revenue funds as necessary

11  to comply with any provision of the General Appropriations Act

12  that requires or specifically authorizes the transfer of

13  general revenue funds between these two agencies. This

14  paragraph is repealed on July 1, 1999.

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

16  program must be distributed by the Governor for state agencies

17  or the Chief Justice for the judicial branch into the

18  traditional expenditure categories in accordance with s.

19  216.181(6)(b) s. 216.181(5)(b).  At any time during the year,

20  the agency head or Chief Justice may transfer funds between

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

22  Authorized revisions of the original approved operating

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

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

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

26  chair of the Legislative Budget Commission, the chairs of the

27  legislative appropriations committees, the Office of Program

28  Policy Analysis and Government Accountability, and the Auditor

29  General. Such authorized revisions shall be consistent with

30  the intent of the approved operating budget, shall be

31  consistent with legislative policy and intent, and shall not


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                                          HB 2377, Third Engrossed



  1  conflict with specific spending policies specified in the

  2  General Appropriations Act. The Executive Office of the

  3  Governor shall forward a copy of the revisions within 7

  4  working days to the Comptroller for entry in his or her

  5  records in the manner and format prescribed by the Executive

  6  Office of the Governor in consultation with the Comptroller.

  7  Such authorized revisions shall be consistent with the intent

  8  of the approved operating budget, shall be consistent with

  9  legislative policy and intent, and shall not conflict with

10  specific spending policies specified in the General

11  Appropriations Act. Additionally, subsection (3) shall not

12  apply to programs operating under performance-based program

13  budgeting where a lump sum was appropriated.

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

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

16  reason of changed conditions, may transfer appropriations

17  funded from identical funding sources, except appropriations

18  for fixed capital outlay, and transfer the amounts included

19  within the total original approved budget and releases as

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

21         (a)  Between categories of appropriations within a

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

23  decreased by more than 5 percent of the original approved

24  budget or $150,000 $25,000, whichever is greater, by all

25  action taken under this subsection.

26         (b)  Additionally, between budget entities within

27  identical categories of appropriations, if no category of

28  appropriation is increased or decreased by more than 5 percent

29  of the original approved budget or $150,000 $25,000, whichever

30  is greater, by all action taken under this subsection.

31


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  1         (c)  Such authorized revisions must be consistent with

  2  the intent of the approved operating budget, must be

  3  consistent with legislative policy and intent, and must not

  4  conflict with specific spending policies specified in the

  5  General Appropriations Act.

  6

  7  Such authorized revisions, together with related changes, if

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

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

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

11  manner and format prescribed by the Executive Office of the

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

13  revision shall be furnished to the Executive Office of the

14  Governor or the Chief Justice, the chair of the Legislative

15  Budget Commission, the chairs of the legislative committees,

16  and the Auditor General.

17         (4)(a)  The head of each department or the Chief

18  Justice of the Supreme Court may transfer funds within

19  programs identified in the General Appropriations Act from

20  identical funding sources between the following appropriation

21  categories without limitation so long as such a transfer does

22  not result in an increase to the total recurring general

23  revenue or trust fund cost of the agency or entity of the

24  judicial branch in the subsequent fiscal year:  other personal

25  services, expenses, operating capital outlay,

26  performance-based program budgeting lump sums, acquisition of

27  motor vehicles, data processing services, operating and

28  maintenance of patrol vehicles, overtime payments, salary

29  incentive payments, compensation to retired judges, law

30  libraries, and juror and witness payments. Such transfers must

31  be consistent with legislative policy and intent and must not


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                                          HB 2377, Third Engrossed



  1  adversely affect achievement of approved performance outcomes

  2  or outputs in any program.  Notice of proposed transfers under

  3  this authority shall be provided to the Executive Office of

  4  the Governor and the chairs of the legislative appropriations

  5  committees at least 5 working days prior to their

  6  implementation.

  7         (b)  The head of each department or the Chief Justice

  8  of the Supreme Court may transfer funds from identical funding

  9  sources between salaries and benefits appropriation categories

10  within programs identified in the General Appropriations Act.

11  Such transfers must be consistent with legislative policy and

12  intent and must not adversely affect achievement of approved

13  performance outcomes or outputs in any program. Notice of

14  proposed transfers under this authority shall be provided to

15  the Executive Office of the Governor and the chairs of the

16  legislative appropriations committees at least 5 working days

17  prior to their implementation.

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

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

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

21  and salary rate within and between program budget entities

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

23  216.011(1)(xx). Such transfers may include appropriations from

24  any operating category, except appropriations for fixed

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

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

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

28  Authorized revisions of the original approved operating

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

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

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


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  1  chairs of the legislative appropriations committees, the

  2  Office of Program Policy Analysis and Government

  3  Accountability, and the Auditor General. Such authorized

  4  revisions shall be consistent with legislative policy and

  5  intent and shall not conflict with specific spending policies

  6  specified in the General Appropriations Act. The Executive

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

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

  9  her records in the manner and format prescribed by the

10  Executive Office of the Governor in consultation with the

11  Comptroller.

12         (5)(a)  Transfers of appropriations for operations from

13  the General Revenue Fund in excess of those provided in

14  subsections (3) and (4) but within a state agency or within

15  the judicial branch may be authorized by the commission for

16  the executive branch and the Chief Justice for the judicial

17  branch, pursuant to the request of the agency filed with the

18  Executive Office of the Governor, or pursuant to the request

19  of an entity of the judicial branch filed with the Chief

20  Justice of the Supreme Court, if deemed necessary and in the

21  best interest of the state and consistent with legislative

22  policy and intent.  The provisions of this paragraph are

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

24  forth in s. 216.177.

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

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

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

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

29  Supreme Court for the judicial branch the excess may be

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

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


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                                          HB 2377, Third Engrossed



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

  2  within the same department where a deficiency is found to

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

  4  initiated without a specific legislative appropriation, nor

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

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

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

  8  forth in s. 216.177.

  9         (c)  Federal funds for fixed capital outlay projects

10  for the Department of Military Affairs which do not carry a

11  continuing commitment on future appropriations by the

12  Legislature may be approved by the Executive Office of the

13  Governor for the purpose received. The provisions of this

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

15  procedures set forth in s. 216.177.

16         (6)  Upon request of a department to, and approval by,

17  the Comptroller, funds appropriated may be transferred to

18  accounts established for disbursement purposes upon release of

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

20  same appropriation category and the same funding source from

21  which the funds are transferred.

22         (7)  Any transfers from the Working Capital Fund to the

23  General Revenue Fund may be approved provided such transfers

24  were identified or contemplated by the Legislature in the

25  original approved budget.

26         (8)(a)  Should any state agency or the judicial branch

27  become more than 90 days delinquent on reimbursements due to

28  the Unemployment Compensation Trust Fund, the Department of

29  Labor and Employment Security shall certify to the Comptroller

30  the amount due; and the Comptroller shall transfer the amount

31  due to the Unemployment Compensation Trust Fund from any funds


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                                          HB 2377, Third Engrossed



  1  of the agency available. (b)  Should any state agency or the

  2  judicial branch become more than 90 days delinquent in paying

  3  the Division of Risk Management of the Department of Insurance

  4  for insurance coverage, the Department of Insurance may

  5  certify to the Comptroller the amount due; and the Comptroller

  6  shall transfer the amount due to the Division of Risk

  7  Management from any funds of the agency or the judicial branch

  8  available.

  9         (9)  Moneys appropriated in the General Appropriations

10  Act for the purpose of paying for services provided by the

11  state communications system in the Department of Management

12  Services shall be paid by the user agencies, or the judicial

13  branch, within 45 days after the billing date.  Billed amounts

14  not paid by the user agencies, or by the judicial branch,

15  shall be transferred by the Comptroller from the user agencies

16  to the Communications Working Capital Trust Fund.

17         (10)  The Comptroller shall report all such transfers

18  and the reasons for such transfers to the legislative

19  appropriations committees and the Executive Office of the

20  Governor.

21         (11)  Where any reorganization has been authorized by

22  the Legislature and the necessary adjustments of

23  appropriations and positions have not been provided in the

24  General Appropriations Act, the Legislative Budget

25  Administration Commission may approve, consistent with

26  legislative policy and intent, the necessary transfers to

27  accomplish the purposes of such reorganization within state

28  agencies.  The Chief Justice of the Supreme Court may approve

29  such transfers for the judicial branch.

30         Section 35.  Section 216.348, Florida Statutes, is

31  created to read:


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  1         216.348  Fixed capital outlay grants and aids

  2  appropriations to certain nonprofit entities.--If a bill

  3  appropriating a fixed capital outlay grants and aids

  4  appropriation requires compliance with this section, the

  5  following conditions shall apply, except to the extent that

  6  such bill modifies these conditions:

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

  8         (a)  "Administering agency" means the governmental

  9  agency or entity which is charged by the bill appropriating

10  the fixed capital outlay grants and aids appropriation to a

11  grantee with administering that appropriation.

12         (b)  "Grant" means a fixed capital outlay grants and

13  aids appropriation to a nonprofit entity other than a

14  governmental entity.

15         (c)  "Grantee" means a nonprofit entity, other than a

16  governmental entity, to which the Legislature has appropriated

17  over $50,000 pursuant to a fixed capital outlay grants and

18  aids appropriation.

19         (2)  Prior to the receipt of any grant money from the

20  administering agency, a grantee must provide the administering

21  agency with an affidavit by an officer or director of the

22  grantee certifying under oath that the grantee is a nonprofit

23  entity and must execute a written agreement with the

24  administering agency, in a form approved by the administering

25  agency, pursuant to subsection (3).

26         (3)(a)  If the grantee is acquiring real property with

27  the grant, or if the grantee owns the real property upon which

28  an improvement is being constructed, renovated, altered,

29  modified, or maintained with the grant, the grantee must

30  execute, deliver, and record in the county in which the

31  subject property is located an agreement that:


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                                          HB 2377, Third Engrossed



  1         1.  States a correct legal description of the real

  2  property.

  3         2.  Sets forth with specificity the buildings,

  4  appurtenances, fixtures, fixed equipment, structures,

  5  improvements, renovations, and personalty to be purchased

  6  pursuant to the grant.

  7         3.  During the term of the agreement, prohibits the

  8  grantee from selling, transferring, mortgaging, or assigning

  9  the grantee's interest in the real property, unless the

10  administering agency approves the sale, transfer, mortgage, or

11  assignment; and, in the case of sale, transfer, or assignment,

12  the purchaser, transferor, or assignee must fully assume, in

13  writing, all of the terms and conditions of the agreement

14  required by this subsection. The administering agency may not

15  agree to subordinate a mortgage.

16         (b)  If the grantee is not acquiring real property, or

17  does not own the real property being improved, the agreement

18  shall:

19         1.  Specify the leasehold or other real property

20  interest the grantee has in the real property.

21         2.  State the name of the owner of the real property.

22         3.  Describe the relationship between the owner of the

23  real property and the grantee.

24         4.  Set forth with specificity the improvements,

25  renovations, and personalty to be purchased pursuant to the

26  grant.

27         5.  During the term of the agreement, prohibit the

28  grantee from selling, transferring, mortgaging, or assigning

29  the grantee's interest in the leasehold, improvements,

30  renovations, or personalty, unless the administering agency

31  approves the sale, transfer, mortgage, or assignment; and, in


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                                          HB 2377, Third Engrossed



  1  the case of sale, transfer, or assignment, the purchaser,

  2  transferor, or assignee must fully assume, in writing, all of

  3  the terms and conditions of the agreement required by this

  4  subsection. Additionally, the grantee shall execute and

  5  deliver a security instrument, financing statement, or other

  6  appropriate document securing the interest of the

  7  administering agency in the improvements, renovations, and

  8  personalty associated with the grant. The administering agency

  9  may not subordinate or modify a security interest.

10         (c)  All agreements required by this subsection shall:

11         1.  Require the grantee to continue the operation,

12  maintenance, repair, and administration of the property in

13  accordance with the purposes for which the funds were

14  originally appropriated and for the period of time expressly

15  specified by the bill appropriating the grant. If the bill

16  appropriating the grant does not specify a time period, the

17  administering agency shall determine a reasonable period of

18  time.

19         2.  Provide that if the grantee fails, during the term

20  of the agreement, to operate, maintain, repair, and administer

21  the property in accordance with the purposes for which the

22  funds were originally granted, the grantee shall return to the

23  administering agency, no later than upon demand by the

24  administering agency, an amount calculated as follows:

25         a.  If the bill appropriating the grant states a

26  specific repayment formula, that formula shall be used;

27         b.  If the bill appropriating the grant states a

28  specific period of time but does not specify a repayment

29  formula, the amount to be returned shall be calculated on a

30  pro rata basis for that period of time; or

31


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                                          HB 2377, Third Engrossed



  1         c.  If the bill appropriating the grant does not state

  2  a specific period of time or formula, the amount to be

  3  returned shall be specified by the administering agency, which

  4  shall be no less than the full amount of the grant less

  5  $100,000 or 10 percent of the grant, whichever is more, for

  6  each full year for which the property was used for such

  7  purposes.

  8

  9  The administering agency shall deposit all funds returned by

10  the grantee into the state fund from which the grant was

11  originally made.

12         3.  Require that the grantee adopt an accounting

13  system, in compliance with generally accepted accounting

14  principles, which shall provide for a complete record of the

15  use of the grant money. In addition, the provisions of s.

16  216.3491 shall apply.

17         4.  Provide that the grantee shall indemnify, defend,

18  and hold the administering agency harmless from and against

19  any and all claims or demands for damages resulting from

20  personal injury, including death or damage to property,

21  arising out of or relating to the subject property or the use

22  of the grant money. The agreement shall require the grantee to

23  purchase and maintain insurance on behalf of directors,

24  officers, and employees of the grantee against any personal

25  liability or accountability by reason of actions taken while

26  acting within the scope of their authority. The administering

27  agency shall be immune from civil or criminal liability

28  resulting from acts or omissions of the grantee and the

29  grantee's agents, employees, or assigns.

30         5.  Require the grantee to return any portion of the

31  grant money received that is not necessary to the purchase of


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                                          HB 2377, Third Engrossed



  1  the land, or to the cost of the improvements, renovations, and

  2  personalty, for which the grant was awarded.

  3         (d)  The administering agency may:

  4         1.  Require that, during any term or period of

  5  construction, or until such time as the grant money is fully

  6  and properly spent according to the bill appropriating the

  7  grant, the grantee obtain a blanket fidelity bond, in the

  8  amount of the grant, issued by a company authorized and

  9  licensed to do business in this state, which will reimburse

10  the administering agency in the event that anyone handling the

11  grant moneys either misappropriates or absconds with the grant

12  moneys. All employees handling the grant moneys must be

13  covered by the bond.

14         2.  Include any other term or condition the

15  administering agency deems reasonable and necessary for the

16  effective and efficient administration of the grant.

17         3.  Modify any condition required by this subsection,

18  provided the administering agency deems that such modification

19  is necessary in order to best effectuate the purpose of the

20  grant and provided the bill appropriating the grant, or

21  applicable law, does not otherwise require.

22         (e)  The agreement must provide that the administering

23  agency shall execute a satisfaction of the agreement in

24  recordable form upon full compliance by the grantee with the

25  terms of the agreement.

26         Section 36.  Subsection (11) is added to section 11.45,

27  Florida Statutes, to read:

28         11.45  Definitions; duties; audits; reports.--

29         (11)  In addition to any other provision of law

30  granting access to records and accounts, the Auditor General

31  may, pursuant to his or her own authority granted in this


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                                          HB 2377, Third Engrossed



  1  subsection or at the direction of the Legislative Auditing

  2  Committee, conduct audits of any direct-support organization

  3  or citizen-support organization authorized by law. Independent

  4  audits of direct-support organizations and citizen-support

  5  organizations conducted by certified public accountants shall

  6  be performed in accordance with rules adopted by the Auditor

  7  General.

  8         Section 37.  Section 11.90, Florida Statutes, is

  9  created to read:

10         11.90  Legislative Budgeting Commission.--

11         (1)  There is created a standing joint committee of the

12  Legislature designated the Legislative Budgeting Commission,

13  composed of 14 members as follows:  7 members of the Senate

14  appointed by the President of the Senate, to include the

15  Chairman of the Senate Budget Committee or its successor, and

16  7 members of the House of Representatives appointed by the

17  Speaker of the House of Representatives, to include the

18  Chairman of the Fiscal Responsibility Council or its

19  successor. The terms of members shall be for 2 years and shall

20  run from the organization of one Legislature to the

21  organization of the next Legislature. Vacancies occurring

22  during the interim period shall be filled in the same manner

23  as the original appointment.  The members of the committee

24  shall elect a chair and vice chair. During the 2-year term, a

25  member of each house shall serve as chair for 1 year.

26         (2)  The Legislative Budget Commission shall be

27  governed by joint rules of the Senate and the House of

28  Representatives which shall remain in effect until repealed or

29  amended by concurrent resolution.

30         (3)  The commission shall meet at least quarterly and

31  more frequently at the direction of the presiding officers or


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                                          HB 2377, Third Engrossed



  1  upon call of the chairman. A quorum shall consist of a

  2  majority of members from each house, plus one additional

  3  member from either house. Action by the commission requires a

  4  majority vote of the members present of each house.

  5         (4)  The commission may conduct its meetings through

  6  teleconferences or other similar means.

  7         (5)  The commission will be jointly staffed by the

  8  appropriations committees of the House of Representatives and

  9  the Senate. During even-numbered years, the Senate will serve

10  as lead staff, and during odd-numbered years, the House of

11  Representatives will serve as lead staff.

12         Section 38.  Subsection (2) of section 120.65, Florida

13  Statutes, is amended to read:

14         120.65  Administrative law judges.--

15         (2)  The director has the right to appeal actions by

16  the Executive Office of the Governor that affect amendments to

17  the division's approved operating budget or any personnel

18  actions pursuant to chapter 216 to the Administration

19  Commission, which shall decide such issue by majority vote.

20  The appropriations committees may advise the Administration

21  Commission on the issue. If the President of the Senate and

22  the Speaker of the House of Representatives object in writing

23  to the effects of the appeal, the appeal may be affirmed by

24  the affirmative vote of two-thirds of the commission members

25  present. The failure of the Executive Office of the Governor

26  to act on a request for action by the director within 21 days

27  after receiving a written request constitutes approval of the

28  request.

29         Section 39.  Subsection (3) of section 121.031, Florida

30  Statutes, is amended to read:

31


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                                          HB 2377, Third Engrossed



  1         121.031  Administration of system; appropriation;

  2  oaths; actuarial studies; public records.--

  3         (3)  The administrator shall cause an actuarial study

  4  of the system to be made at least once every 2 years and shall

  5  report the results of such study to the Legislature by

  6  February 1 prior to the next legislative session.

  7         (a)  The study shall, at a minimum, conform to the

  8  requirements of s. 112.63, with the following exceptions and

  9  additions:

10         (a)1.  The valuation of plan assets shall be based on a

11  5-year averaging methodology such as that specified in the

12  United States Department of Treasury Regulations, 26 C.F.R. s.

13  1.412(c)(2)-1, or a similar accepted approach designed to

14  attenuate fluctuations in asset values.

15         (b)2.  The study shall include a narrative explaining

16  the changes in the covered group over the period between

17  actuarial valuations and the impact of those changes on

18  actuarial results.

19         (c)3.  When substantial changes in actuarial

20  assumptions have been made, the study shall reflect the

21  results of an actuarial assumption as of the current date

22  based on the assumptions utilized in the prior actuarial

23  report.

24         (d)4.  The study shall include an analysis of the

25  changes in actuarial valuation results by the factors

26  generating those changes.  Such analysis shall reconcile the

27  current actuarial valuation results with those results from

28  the prior valuation.

29         (e)5.  The study shall include measures of funding

30  status and funding progress designed to facilitate the

31  assessment of trends over several actuarial valuations with


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  1  respect to the overall solvency of the system. Such measures

  2  shall be adopted by the division and shall be used

  3  consistently in all actuarial valuations performed on the

  4  system.

  5         (b)  The Florida Retirement System Actuarial Assumption

  6  Conference which is hereby created shall by consensus develop

  7  official information with respect to the economic and

  8  noneconomic assumptions and funding methods of the Florida

  9  Retirement System necessary to perform the study. Such

10  information shall include: an analysis of the actuarial

11  assumptions and actuarial methods and a determination of

12  whether changes to the assumptions or methods need to be made

13  due to experience changes or revised future forecasts. The

14  members of the conference shall include the Executive Office

15  of the Governor, the coordinator of the Office of Economic and

16  Demographic Research, and professional staff of the Senate and

17  House of Representatives who have forecasting expertise, or

18  their designees.  The Executive Office of the Governor shall

19  have the responsibility of presiding over the sessions of the

20  conference.  The State Board of Administration and the

21  Division of Retirement shall be participants, as defined in s.

22  216.134, in the conference.

23         Section 40.  Subsection (2) of section 186.002, Florida

24  Statutes, is amended to read:

25         186.002  Findings and intent.--

26         (2)  It is the intent of the Legislature that:

27         (a)  The state planning process provide direction for

28  the delivery of governmental services, a means for defining

29  and achieving the specific goals and objectives of the state,

30  and a method for evaluating the accomplishment of those goals

31  and objectives.


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  1         (b)  The state comprehensive plan shall provide basic

  2  policy direction to all levels of government regarding the

  3  orderly social, economic, and physical growth of the state.

  4         (c)  Long-range program State agency strategic plans

  5  shall be effectively coordinated to ensure the establishment

  6  of appropriate agency priorities and facilitate the orderly,

  7  positive management of agency activities consistent with the

  8  public interest.  It is also intended that the implementation

  9  of state and regional plans enhance the quality of life of the

10  citizens of the state.

11         (d)  The state planning process shall be informed and

12  guided by the experience of public officials at all levels of

13  government.  In preparing any plans or proposed revisions or

14  amendments required by this chapter, the Governor shall

15  consider the experience of and information provided by local

16  governments in their evaluation and appraisal reports pursuant

17  to s. 163.3191.

18         (e)  All agencies and levels of government involved in

19  the integrated planning process shall provide sufficient

20  opportunities for meaningful public participation in the

21  preparation, implementation, evaluation, and revision of all

22  plans and programs.

23         Section 41.  Section 186.003, Florida Statutes, is

24  amended to read:

25         186.003  Definitions.--As used in ss. 186.001-186.031

26  and 186.801-186.901, the term:

27         (1)  "Executive Office of the Governor" means the

28  Office of Planning and Budgeting of the Executive Office of

29  the Governor.

30         (2)  "Goal" means the long-term end toward which

31  programs and activities are ultimately directed.


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  1         (3)  "Objective" means a specific, measurable,

  2  intermediate end that is achievable and marks progress toward

  3  a goal.

  4         (4)  "Policy" means the way in which programs and

  5  activities are conducted to achieve an identified goal.

  6         (5)  "Regional planning agency" means the regional

  7  planning council created pursuant to ss. 186.501-186.515 to

  8  exercise responsibilities under ss. 186.001-186.031 and

  9  186.801-186.901 in a particular region of the state.

10         (6)  "State agency" or "agency" means any official,

11  officer, commission, board, authority, council, committee, or

12  department of the executive branch of state government. For

13  purposes of this chapter, "state agency" or "agency" includes

14  state attorneys, public defenders, the Capital Collateral

15  Regional Counsels, the Justice Administrative Commission, and

16  the Public Service Commission. each executive department, the

17  Fish and Wildlife Conservation Commission, the Parole

18  Commission, and the Department of Military Affairs.

19         (7)  "State agency strategic plan" means the statement

20  of priority directions that an agency will take to carry out

21  its mission within the context of the state comprehensive plan

22  and within the context of any other statutory mandates and

23  authorizations given to the agency, pursuant to ss.

24  186.021-186.022.

25         (7)(8)  "State comprehensive plan" means the state

26  planning document required in s. 19, Art. III of the State

27  Constitution and published as ss. 187.101 and 187.201.

28         Section 42.  Section 186.021, Florida Statutes, is

29  amended to read:

30         186.021  Long-range program State agency strategic

31  plans.--Pursuant to s. 216.013, each state agency shall


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  1  develop a long-range program plan on an annual basis. The plan

  2  shall provide the framework and context for designing and

  3  interpreting the agency budget request. The plan will be

  4  developed through careful examination and justification of

  5  agency functions and their associated costs. It shall be used

  6  by the agency to implement the state's goals and objectives.

  7  Indicators shall be developed to measure service and activity

  8  performance.

  9         (1)  A state agency strategic plan shall be a statement

10  of the priority directions an agency will take to carry out

11  its mission within the context of the state comprehensive plan

12  and any other statutory mandates and authorizations given to

13  the agency. Each state agency strategic plan must identify

14  infrastructure needs, capital improvement needs, and

15  information resources management projects or initiatives that

16  involve more than one agency, that have an outcome that

17  impacts another agency, or that exceed $500,000 in total cost

18  over a 1-year period, except for those projects that are a

19  continuation of hardware or software maintenance or software

20  licensing agreements, or that are for desktop replacement that

21  is similar to the technology currently in use. Each agency

22  strategic plan shall specify those objectives against which

23  will be judged the agency's achievement of its goals and the

24  goals of the state comprehensive plan. The state agency

25  strategic plan shall be consistent with and shall further the

26  goals of the state comprehensive plan.

27         (2)  A state agency strategic plan shall be developed

28  with a 5-year outlook and shall provide the strategic

29  framework within which an agency's legislative budget request

30  is developed.  An agency's budget shall be designed to further

31  the agency's strategic plan.


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  1         (3)  All amendments, revisions, or updates to a state

  2  agency strategic plan shall be prepared in the same manner as

  3  the original and shall be prepared as needed because of

  4  changes in the state comprehensive plan or changes in the

  5  statutory authority and responsibility of the agency.

  6         (4)  The Department of Environmental Protection, with

  7  regard to the plan required by s. 373.036, and the state land

  8  planning agency, with regard to the plan defined in s.

  9  380.031(17), shall prepare revisions to such plans no later

10  than 6 months after the adoption of revisions to the growth

11  management portion of the state comprehensive plan or by June

12  1 of each even-numbered year, whichever is later.

13         (5)  Notwithstanding the provisions of this section and

14  ss. 186.009 and 186.022, the short-range component of the

15  Florida Transportation Plan and annual performance report

16  developed pursuant to s. 339.155 shall serve as the state

17  agency strategic plan and annual performance report for the

18  Department of Transportation.

19         Section 43.  Section 186.022, Florida Statutes, is

20  amended to read:

21         186.022  Information resource State agency strategic

22  plans; preparation, form, and review.--

23         (1)  Beginning in 1992, 3 months prior to the annual

24  submission of its final agency legislative budget request

25  pursuant to s. 216.023(1), each state agency shall prepare and

26  submit its agency strategic plan to the Executive Office of

27  the Governor. Prior to the submission of its agency strategic

28  plan to the Governor, each agency shall hold public workshops

29  on the proposed agency strategic plan, and shall allow at

30  least a 21-day period for public comment.  At a minimum,

31  adequate public notice must be assured by publication of


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  1  notice of the hearing and comment period in the Florida

  2  Administrative Weekly.  Public participation must be further

  3  encouraged through procedures and instructions.

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

  5  manner prescribed in written instructions prepared by the

  6  Executive Office of the Governor after consultation with the

  7  President of the Senate and the Speaker of the House of

  8  Representatives.  Each agency strategic plan must identify the

  9  specific legislative authority necessary to implement the

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

11  portions of its strategic plan that are consistent with

12  existing statutory or constitutional authority and for which

13  funding, if needed, is available consistent with the

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

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

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

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

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

19  consistent with the objectives in the draft agency strategic

20  plan and shall represent 1-year implementation efforts

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

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

23  as necessary, to ensure consistency with the legislative

24  actions prior to the effective date of the agency strategic

25  plan.

26         (3)  The Executive Office of the Governor shall review

27  the state agency strategic plans to ensure that they are

28  consistent with the state comprehensive plan and other

29  requirements as specified in the written instructions. In its

30  review, the Executive Office of the Governor shall consider

31


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  1  all comments received in formulating required revisions. This

  2  shall include:

  3         (a)  The findings of the Technology Review Workgroup as

  4  to the consistency of the information resources management

  5  portion of agency strategic plans with the State Annual Report

  6  on Information Resources Management and statewide policies

  7  recommended by the State Technology Council; and 

  8         (b)  The findings and recommendations of the Criminal

  9  and Juvenile Justice Information Systems Council's review with

10  respect to public safety system strategic information

11  resources management issues.

12

13  Within 60 days, reviewed plans shall be returned to the

14  agency, together with any required revisions. However, any

15  required revisions relating to information resources

16  management needs identified in the agency strategic plans are

17  subject to the notice and review procedures set forth in s.

18  216.177 and must be approved by the Administration Commission

19  for the executive branch and the Chief Justice for the

20  judicial branch.

21         (4)  The state agency shall, within 30 days of the

22  return of its state agency strategic plan, incorporate all

23  revisions required by the Governor, or shall petition the

24  Administration Commission to resolve any disputes regarding

25  the consistency of the state agency strategic plan or the

26  revisions recommended by the Governor with the state

27  comprehensive plan or the written instructions.  The

28  Administration Commission shall resolve any disputes within 60

29  days of the petition.

30

31


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  1         (5)  Any differences between state agencies regarding

  2  the programs, policies, or strategic plans of such agencies

  3  shall be mediated by the Executive Office of the Governor.

  4         (6)  Each agency shall transmit copies of its strategic

  5  plan and all written comments on its plan to the President of

  6  the Senate and the Speaker of the House of Representatives not

  7  later than 30 days prior to the next regular session of the

  8  Legislature.

  9         (7)  Agency strategic plans developed pursuant to this

10  chapter are not rules and therefore are not subject to the

11  provisions of chapter 120.

12         (8)  Each agency shall submit by September 1 of each

13  year an annual performance report to the Executive Office of

14  the Governor, with copies to the President of the Senate, the

15  Speaker of the House of Representatives, the Auditor General,

16  and the Office of Program Policy Analysis and Government

17  Accountability. The purpose of this report is to evaluate the

18  attainment of the agency objectives in the agency strategic

19  plan and the performance measures approved by the Legislature

20  pursuant to s. 216.0166(3) and established in the General

21  Appropriations Act or implementing legislation for the General

22  Appropriations Act for the previous fiscal year. In addition,

23  each state agency must include a one-page summary of all

24  moneys that were expended or encumbered by the agency, or for

25  which the agency was otherwise responsible, during the

26  preceding fiscal year and an estimate of such moneys projected

27  by the agency for the current fiscal year. All such

28  expenditures and estimates of such expenditures must be

29  divided by program and expressed in line items by unit costs

30  for each output measure approved pursuant to s. 216.0166(3)

31  for those agencies and programs operating under


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  1  performance-based program budgeting and for major services and

  2  products for those agencies and programs operating under

  3  traditional line-item budgeting. Unit cost totals must equal

  4  the total amount of moneys that were expended or projected to

  5  be expended by each agency and must include expenditures or

  6  projected expenditures of state funds by subordinate

  7  governmental entities and contractors, as applicable. Moneys

  8  that agencies receive but are not responsible for, such as

  9  reversions or pass-throughs to entities over which the agency

10  has no authority or responsibility, shall be shown in separate

11  line items and expressed in total amounts only. At the regular

12  session immediately following the submission of the agency

13  performance report, the Legislature shall reduce in the

14  General Appropriations Act for the ensuing fiscal year, by an

15  amount equal to at least 10 percent of the allocation for the

16  fiscal year preceding the current fiscal year, the funding of

17  each state agency that fails to submit the report required by

18  this subsection. All reports must be submitted in the form and

19  manner prescribed by the instructions prepared pursuant to

20  subsection (2) and s. 216.0235(3).

21         (9)  By June March 1 of each year, the Geographic

22  Information Board, the Financial Management Information Board,

23  the Criminal and Juvenile Justice Information Systems Council,

24  and the Health Information Systems Council shall each develop

25  and submit an information resource a strategic plan to the

26  Executive Office of the Governor in a form and manner

27  prescribed in written instructions prepared by the Executive

28  Office of the Governor in consultation with the legislative

29  appropriation committees. The Executive Office of the Governor

30  shall review the strategic plan and may provide comments

31  within 30 days. In its review, the Executive Office of the


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  1  Governor shall consider all comments and findings of the

  2  Technology Review Workgroup as to whether the plan is

  3  consistent with the State Annual Report on Information

  4  Resources Management and statewide policies recommended by the

  5  State Technology Council. If revisions are required, boards

  6  and councils have 30 days to incorporate those revisions and

  7  return the plan to the Executive Office of the Governor.

  8  following the general statutory requirements that are

  9  applicable to agencies pursuant to s. 186.021(1), (2), and

10  (3).  The strategic plan shall be subject to the requirements,

11  and the review and approval processes, set forth in

12  subsections (2) through (8), with the following exceptions:

13         (a)  The Executive Office of the Governor, after

14  consultation with the President of the Senate and the Speaker

15  of the House of Representatives, may prescribe a specific

16  format and content for the strategic plans of coordinating

17  boards and councils.

18         (b)  The time periods for review and return of any

19  required strategic plan revisions, incorporation of such

20  revisions by the boards or councils, and resolution of

21  disputes shall be established by the Executive Office of the

22  Governor, after consultation with the President of the Senate

23  and the Speaker of the House of Representatives.

24         Section 44.  Subsection (1) of section 186.901, Florida

25  Statutes, is amended to read:

26         186.901  Population census determination.--

27         (1)  The Office of Economic and Demographic Research

28  shall annually provide to the Executive Office of the

29  Governor, either through its own resources or by contract,

30  shall produce population estimates of local governmental units

31  as of April 1 of each year, utilizing accepted statistical


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  1  practices. The population of local governments provided by the

  2  Office of Economic and Demographic Research, as determined by

  3  the Executive Office of the Governor, shall apply to any

  4  revenue-sharing formula with local governments under the

  5  provisions of ss. 218.20-218.26, part II of chapter 218. The

  6  Office of Economic and Demographic Research shall additionally

  7  provide the Executive Office of the Governor population

  8  estimates for municipal annexations or consolidations

  9  occurring during the period April 1 through February 28, and

10  the Executive Office of the Governor shall determine the

11  population count of the annexed areas as of April 1 and

12  include these estimates such in its certification to the

13  Department of Revenue for the annual revenue-sharing

14  calculation.

15         Section 45.  Section 215.18, Florida Statutes, is

16  amended to read:

17         215.18  Transfers between funds; limitation.--Whenever

18  there exists in any fund provided for by s. 215.32 a

19  deficiency which would render such fund insufficient to meet

20  its just requirements, and there shall exist in the other

21  funds in the State Treasury moneys which are for the time

22  being or otherwise in excess of the amounts necessary to meet

23  the just requirements of such last-mentioned funds, the

24  Administration Commission, with the concurrence of the

25  Governor, may order a temporary transfer of moneys from one

26  fund to another in order to meet temporary deficiencies in a

27  particular fund without resorting to the necessity of

28  borrowing money and paying interest thereon. The fund from

29  which any money is temporarily transferred shall be repaid the

30  amount transferred from it not later than the end of the

31  fiscal year in which such transfer is made, the date of


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                                          HB 2377, Third Engrossed



  1  repayment to be specified in the order of the Governor

  2  Administration Commission.

  3         Section 46.  Subsection (1) of section 215.22, Florida

  4  Statutes, is amended to read:

  5         215.22  Certain income and certain trust funds

  6  exempt.--

  7         (1)  The following income of a revenue nature or the

  8  following trust funds shall be exempt from the deduction

  9  required by s. 215.20(1):

10         (a)  Student financial aid or prepaid tuition receipts.

11         (b)  Trust funds administered by the Department of the

12  Lottery.

13         (c)  Departmental administrative assessments for

14  administrative divisions.

15         (d)  Funds charged by a state agency for services

16  provided to another state agency, by a state agency for

17  services provided to the judicial branch, or by the judicial

18  branch for services provided to a state agency.

19         (e)  State, agency, or political subdivision

20  investments by the Treasurer.

21         (f)  Retirement or employee benefit funds.

22         (g)  Self-insurance programs administered by the

23  Treasurer.

24         (h)  Funds held for the payment of citrus canker

25  eradication and compensation.

26         (i)  Medicaid, Medicare, or third-party receipts for

27  client custodial care.

28         (j)  Bond proceeds or revenues dedicated for bond

29  repayment, except for the Documentary Stamp Clearing Trust

30  Fund administered by the Department of Revenue.

31


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                                          HB 2377, Third Engrossed



  1         (k)  Trust funds administered by the Department of

  2  Education.

  3         (l)  Trust funds administered by the Department of

  4  Transportation.

  5         (m)  Trust funds administered by the Department of

  6  Agriculture and Consumer Services.

  7         (n)  The Motor Vehicle License Clearing Trust Fund.

  8         (o)  The Solid Waste Management Trust Fund.

  9         (p)  The Coconut Grove Playhouse Trust Fund.

10         (q)  The Communications Working Capital Trust Fund of

11  the Department of Management Services.

12         (r)  The Camp Blanding Management Trust Fund.

13         (s)  The Indigent Criminal Defense Trust Fund.

14         (t)  That portion of the Highway Safety Operating Trust

15  Fund funded by the motorcycle safety education fee collected

16  pursuant to s. 320.08(1)(d).

17         (u)  The Save the Manatee Trust Fund.

18         (v)  Tobacco Settlement Trust Funds administered by any

19  agency.

20         Section 47.  Paragraph (b) of subsection (2) of section

21  215.32, Florida Statutes, is amended to read:

22         215.32  State funds; segregation.--

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

24  as follows:

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

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

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

28  or branch of state government receiving or collecting such

29  moneys shall be responsible for their proper expenditure as

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

31  branch of state government responsible for the administration


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  1  of the trust fund, the Comptroller may establish accounts

  2  within the trust fund at a level considered necessary for

  3  proper accountability. Once an account is established within a

  4  trust fund, the Comptroller may authorize payment from that

  5  account only upon determining that there is sufficient cash

  6  and releases at the level of the account.

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

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

  9  branch may consolidate, if permitted under the terms and

10  conditions of their receipt, the trust funds administered by

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

12  effectively a uniform system of accounts sufficient to

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

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

15  Governor Administration Commission or the Chief Justice.

16         3.  All such moneys are hereby appropriated to be

17  expended in accordance with the law or trust agreement under

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

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

20  applicable laws relating to the deposit or expenditure of

21  moneys in the State Treasury.

22         4.a.  Notwithstanding any provision of law restricting

23  the use of trust funds to specific purposes, unappropriated

24  cash balances from selected trust funds may be authorized by

25  the Legislature for transfer to the Budget Stabilization Fund

26  and Working Capital Fund in the General Appropriations Act.

27         b.  This subparagraph does not apply to trust funds

28  required by federal programs or mandates; trust funds

29  established for bond covenants, indentures, or resolutions

30  whose revenues are legally pledged by the state or public body

31  to meet debt service or other financial requirements of any


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                                          HB 2377, Third Engrossed



  1  debt obligations of the state or any public body; the State

  2  Transportation Trust Fund; the trust fund containing the net

  3  annual proceeds from the Florida Education Lotteries; the

  4  Florida Retirement Trust Fund; trust funds under the

  5  management of the Board of Regents, where such trust funds are

  6  for auxiliary enterprises, self-insurance, and contracts,

  7  grants, and donations, as those terms are defined by general

  8  law; trust funds that serve as clearing funds or accounts for

  9  the Comptroller or state agencies; trust funds that account

10  for assets held by the state in a trustee capacity as an agent

11  or fiduciary for individuals, private organizations, or other

12  governmental units; and other trust funds authorized by the

13  State Constitution.

14         Section 48.  Section 215.3208, Florida Statutes, is

15  amended to read:

16         215.3208  Trust funds; schedule for termination;

17  legislative review.--

18         (1)  Except for those trust funds exempt from automatic

19  termination pursuant to the provisions of s. 19(f)(3), Art.

20  III of the State Constitution, trust funds administered by the

21  following entities shall be reviewed and may be terminated or

22  re-created by the Legislature, as appropriate, during the

23  regular session of the Legislature in the year indicated:

24         (a)  In 1994:

25         1.  Department of Corrections.

26         2.  Department of Highway Safety and Motor Vehicles.

27         3.  Department of Law Enforcement.

28         4.  Department of Legal Affairs.

29         5.  Department of the Lottery.

30         6.  Department of Management Services.

31         7.  Department of Military Affairs.


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                                          HB 2377, Third Engrossed



  1         8.  Department of Transportation.

  2         9.  Game and Fresh Water Fish Commission.

  3         10.  Judicial branch.

  4         11.  Justice Administrative Commission.

  5         12.  Parole Commission.

  6         (b)  In 1995:

  7         1.  Department of Agriculture and Consumer Services.

  8         2.  Department of Banking and Finance.

  9         3.  Department of Citrus.

10         4.  Department of Education.

11         5.  Department of Environmental Protection.

12         6.  Department of Revenue.

13         7.  Executive Office of the Governor.

14         8.  Florida Public Service Commission.

15         (c)  In 1996:

16         1.  Agency for Health Care Administration.

17         2.  Commission on Ethics.

18         3.  Department of Business and Professional Regulation.

19         4.  Department of Children and Family Services.

20         5.  Department of Commerce.

21         6.  Department of Community Affairs.

22         7.  Department of Elderly Affairs.

23         8.  Department of Health.

24         9.  Department of Insurance.

25         10.  Department of Juvenile Justice.

26         11.  Department of Labor and Employment Security.

27         12.  Department of State.

28         13.  Department of Veterans' Affairs.

29         14.  Legislative branch.

30         (2)  All other trust funds not administered by the

31  entities listed in subsection (1) and not exempt from


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  1  automatic termination pursuant to the provisions of s.

  2  19(f)(3), Art. III of the State Constitution shall be reviewed

  3  and may be terminated or re-created by the Legislature, as

  4  appropriate, during the 1996 Regular Session of the

  5  Legislature.

  6         (1)(3)  In order to implement s. 19(f), Art. III of the

  7  State Constitution For the purposes of this section, the

  8  Legislature shall review all state trust funds at least once

  9  every 4 years. The schedule for such review may be included in

10  the legislative budget instructions developed pursuant to the

11  requirements of s. 216.023. The Legislature shall review the

12  trust funds as they are identified by a unique 6-digit code in

13  the Florida Accounting Information Resource Subsystem at a

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

15  1-digit state fund type 2, and the first three digits of the

16  fund identifier. When a statutorily created trust fund that

17  was in existence on November 4, 1992, has more than one

18  6-digit code, the Legislature may treat it as a single trust

19  fund for the purposes of this section. The Legislature may

20  also conduct its review concerning accounts within such trust

21  funds.

22         (2)(4)(a)  When the Legislature terminates a trust

23  fund, the agency or branch of state government that

24  administers the trust fund shall pay any outstanding debts or

25  obligations of the trust fund as soon as practicable, and the

26  Comptroller shall close out and remove the trust fund from the

27  various state accounting systems, using generally accepted

28  accounting principles concerning assets, liabilities, and

29  warrants outstanding.

30         (b)  If the Legislature determines to terminate a trust

31  fund, it may provide for the distribution of moneys in that


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                                          HB 2377, Third Engrossed



  1  trust fund. If such a distribution is not provided, the moneys

  2  remaining after all outstanding obligations of the trust fund

  3  are met shall be deposited in the General Revenue Fund.

  4         Section 49.  Paragraph (f) of subsection (3) of section

  5  240.209, Florida Statutes, is amended to read:

  6         240.209  Board of Regents; powers and duties.--

  7         (3)  The board shall:

  8         (f)  Establish and maintain systemwide personnel

  9  programs for all State University System employees, including

10  a systemwide personnel classification and pay plan,

11  notwithstanding provisions of law that grant authority to the

12  Department of Management Services over such programs for state

13  employees.  The board shall consult with the legislative

14  appropriations committees regarding any major policy changes

15  related to classification and pay which are in conflict with

16  those policies in effect for career service employees with

17  similar job classifications and responsibilities. The board

18  may adopt rules delegating its authority to the Chancellor or

19  the universities. The board shall submit, in a manner

20  prescribed by law, any reports concerning State University

21  System personnel programs as shall be required of the

22  Department of Management Services for other state employees.

23  The Department of Management Services shall retain authority

24  over State University System employees for programs

25  established in ss. 110.116, 110.123, 110.1232, 110.1234,

26  110.1235, and 110.1238 and in chapters 121, 122, and 238.  The

27  board shall adopt only those rules necessary to provide for a

28  coordinated, efficient systemwide program and shall delegate

29  to the universities all authority necessary for implementation

30  of the program consistent with these coordinating rules so

31  adopted and applicable collective bargaining agreements.


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  1  Notwithstanding the provisions of s. 216.181(7), The salary

  2  rate controls for positions in budgets under the Board of

  3  Regents shall separately delineate the general faculty and all

  4  other categories.

  5         Section 50.  Section 240.20941, Florida Statutes, is

  6  amended to read:

  7         240.20941  Vacant faculty positions.--Notwithstanding

  8  the provisions of s. 216.181(8) and (9) s. 216.181(7), (8),

  9  and (9), and pursuant to the provisions of s. 216.351, actions

10  to reduce positions, rate, or salaries and benefits, excluding

11  salary lapse calculations, taken by the Legislature or, by the

12  Executive Office of the Governor, or by the Administration

13  Commission which relate specifically to vacant positions, and

14  which are applied on a uniform basis to all state employee

15  positions, may affect the positions within the faculty pay

16  plan approved and administered by the Board of Regents only to

17  the extent that they do so by express reference to this

18  section.

19         Section 51.  Subsection (1) of section 240.279, Florida

20  Statutes, is amended to read:

21         240.279  Working capital trust funds established.--

22         (1)  The Board of Regents, with the approval of the

23  Legislative Budget Administration Commission, is hereby

24  authorized to establish in the State Treasury a working

25  capital trust fund for each of the individual institutions in

26  the university system for the purpose of providing central

27  financing and cost controls for certain general services

28  necessary to the operation of all departments of the

29  respective universities, including the auxiliary enterprises.

30         Section 52.  Subsection (2) of section 252.37, Florida

31  Statutes, is amended to read:


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  1         252.37  Financing.--

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

  3  recourse be made to funds regularly appropriated to state and

  4  local agencies.  If the Governor finds that the demands placed

  5  upon these funds in coping with a particular disaster declared

  6  by the Governor as a state of emergency are unreasonably

  7  great, she or he may make funds available by transferring and

  8  expending moneys appropriated for other purposes, by

  9  transferring and expending moneys out of any unappropriated

10  surplus funds, or from the Budget Stabilization Fund or

11  Working Capital Fund.  Following the expiration or termination

12  of the state of emergency, the Governor may process a budget

13  amendment under the notice and review procedures set forth in

14  s. 216.177 to transfer moneys to satisfy the budget authority

15  granted for such emergency.

16         Section 53.  Section 288.7091, Florida Statutes, is

17  amended to read:

18         288.7091  Duties of the Florida Black Business

19  Investment Board.--The Florida Black Business Investment Board

20  shall:

21         (1)  Establish certification criteria for black

22  business investment corporations. Certification criteria shall

23  include administrative capacity, fiduciary controls, and, in

24  the case of existing black business investment corporations,

25  solvency and soundness of prior loan decisions;

26         (2)  Develop a memorandum of understanding with

27  Enterprise Florida, Inc., that outlines a strategy for

28  collaboration with the programs and boards of Enterprise

29  Florida, Inc.;

30

31


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  1         (3)  Include in the criteria for loan decisions,

  2  occupational forecasting results set forth in s. 216.136(9) s.

  3  216.136(10) which target high growth jobs;

  4         (4)  Establish, in communities that are not currently

  5  served by an existing black business investment corporation,

  6  memoranda of understanding with local financial institutions

  7  that will provide loan guarantees for loans to black business

  8  enterprises;

  9         (5)  Develop memoranda of understanding with the

10  Departments of Labor and Employment Security, Education,

11  Transportation, and Management Services, as well as the State

12  Board of Regents, detailing efforts of common interest and

13  collaborations to expand black business development;

14         (6)  Intensify efforts to increase the number of the

15  black business enterprises in construction and

16  construction-related projects, focusing on federal, state, and

17  local government financed construction projects; and

18         (7)  Annually, prepare a report detailing the

19  performance of each black business investment corporation,

20  addressing the number of jobs created and/or retained, success

21  and failure rates among loan recipients, and the amount of

22  funds leveraged from other sources.

23         Section 54.  Paragraph (b) of subsection (5) of section

24  320.20, Florida Statutes, is amended to read:

25         320.20  Disposition of license tax moneys.--The revenue

26  derived from the registration of motor vehicles, including any

27  delinquent fees and excluding those revenues collected and

28  distributed under the provisions of s. 320.081, must be

29  distributed monthly, as collected, as follows:

30         (5)

31


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  1         (b)  The State Comptroller each month shall deposit in

  2  the State Transportation Trust Fund an amount, drawn from

  3  other funds in the State Treasury which are not immediately

  4  needed or are otherwise in excess of the amount necessary to

  5  meet the requirements of the State Treasury, which when added

  6  to such remaining revenues each month will equal one-twelfth

  7  of the amount of the anticipated annual revenues to be

  8  deposited in the State Transportation Trust Fund under

  9  paragraph (a) as estimated by the most recent revenue

10  estimating conference held pursuant to s. 216.136(3).  The

11  transfers required hereunder may be suspended by action of the

12  Legislative Budget Administration Commission in the event of a

13  significant shortfall of state revenues.

14         Section 55.  Section 337.023, Florida Statutes, is

15  amended to read:

16         337.023  Sale of building; acceptance of replacement

17  building.--Notwithstanding the provisions of s. 216.292(4)(b)

18  s. 216.292(5)(b), if the department sells a building, the

19  department may accept the construction of a replacement

20  building, in response to a request for proposals, totally or

21  partially in lieu of cash, and may do so without a specific

22  legislative appropriation.  Such action is subject to the

23  approval of the Executive Office of the Governor, and is

24  subject to the notice, review, and objection procedures under

25  s. 216.177.  The replacement building shall be consistent with

26  the current and projected needs of the department as agreed

27  upon by the department and the Department of Management

28  Services.

29         Section 56.  Paragraph (a) of subsection (2) of section

30  339.135, Florida Statutes, is amended to read:

31


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                                          HB 2377, Third Engrossed



  1         339.135  Work program; legislative budget request;

  2  definitions; preparation, adoption, execution, and

  3  amendment.--

  4         (2)  SUBMISSION OF LEGISLATIVE BUDGET REQUEST AND

  5  REQUEST FOR LIST OF ADDITIONAL TRANSPORTATION PROJECTS.--

  6         (a)  The department shall file the legislative budget

  7  request in the manner required by chapter 216, setting forth

  8  the department's proposed revenues and expenditures for

  9  operational and fixed capital outlay needs to accomplish the

10  objectives of the department in the ensuing fiscal year.  The

11  right-of-way, construction, preliminary engineering,

12  maintenance, and all grants and aids programs of the

13  department shall be set forth only in program totals.  The

14  legislative budget request must include a balanced 36-month

15  forecast of cash and expenditures and a 5-year finance plan.

16  The legislative budget request shall be amended to conform to

17  the tentative work program. The department may amend its

18  legislative budget request and the tentative work program

19  based on the most recent revenue estimate by the

20  Transportation estimating conference estimate of revenues and

21  the most recent federal aid apportionments.

22         Section 57.  Subsection (3) of section 392.69, Florida

23  Statutes, is amended to read:

24         392.69  Appropriation, sinking, and maintenance trust

25  funds; additional powers of the department.--

26         (3)  In the execution of its public health program

27  functions, notwithstanding s. 216.292(4)(b) s. 216.292(5)(b),

28  the department is hereby authorized to use any sums of money

29  which it may heretofore have saved or which it may hereafter

30  save from its regular operating appropriation, or use any sums

31  of money acquired by gift or grant, or any sums of money it


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  1  may acquire by the issuance of revenue certificates of the

  2  hospital to match or supplement any state or federal funds, or

  3  any moneys received by said department by gift or otherwise,

  4  for the construction or maintenance of additional facilities

  5  or improvement to existing facilities, as the department deems

  6  necessary.

  7         Section 58.  Section 216.3491, Florida Statutes, is

  8  transferred, renumbered as section 215.97, Florida Statutes,

  9  and amended to read:

10         215.97 216.3491  Florida Single Audit Act.--

11         (1)  The purposes of the section are to:

12         (a)  Establish uniform state audit requirements for

13  state financial assistance provided by state agencies to

14  nonstate entities to carry out state projects.

15         (b)  Promote sound financial management, including

16  effective internal controls, with respect to state financial

17  assistance administered by nonstate entities.

18         (c)  Promote audit economy and efficiency by relying to

19  the extent possible on already required audits of federal

20  financial assistance provided to nonstate entities.

21         (d)  Provide for identification of state financial

22  assistance transactions in the appropriations act, state

23  accounting records, and recipient organization records.

24         (e)  Promote improved coordination and cooperation

25  within and between affected state agencies providing making

26  state financial assistance awards and nonstate entities

27  receiving state assistance awards.

28         (f)  Ensure, to the maximum extent possible, that state

29  agencies monitor, use, and followup on audits of state

30  financial assistance provided to nonstate entities.

31         (2)  Definitions; as used in this section, the term:


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  1         (a)  "Audit threshold" means the amount to use in

  2  determining when a state single audit of a nonstate entity

  3  shall be conducted in accordance with this section. Each

  4  nonstate entity that expends a total amount of state financial

  5  assistance awards equal to or in excess of $300,000 in any

  6  fiscal year of such nonstate entity shall be required to have

  7  a state single audit for such fiscal year in accordance with

  8  the requirements of this section. Every 2 years the Auditor

  9  General, after consulting with the Executive Office of the

10  Governor, the Comptroller, and all state agencies that provide

11  state financial assistance to nonstate entities, shall review

12  the amount for requiring audits under this section and may

13  adjust such dollar amount consistent with the purpose of this

14  section.

15         (b)  "Auditing standards" means the auditing standards

16  as stated in the rules of the Auditor General as applicable to

17  for-profit organizations, nonprofit organizations, or local

18  governmental entities.

19         (c)  "Catalog of State Financial Assistance" means a

20  comprehensive listing of all major state projects and other

21  state projects. The Catalog of State Financial Assistance

22  shall be issued by the Executive Office of the Governor after

23  conferring with the Comptroller and all state agencies that

24  provide state financial assistance to nonstate entities. The

25  Catalog of State Financial Assistance shall include for each

26  listed state project: the responsible state agency; standard

27  state project number identifier; official title; legal

28  authorization; and description of the state project, including

29  objectives, restrictions, application and awarding procedures,

30  and other relevant information determined necessary.

31


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  1         (d)  "Financial reporting package" means the nonstate

  2  entities' financial statements, Schedule of State Financial

  3  Assistance, auditor's reports, management letter, auditee's

  4  written responses or corrective action plan, correspondence on

  5  followup of prior years' corrective actions taken, and such

  6  other information determined by the Auditor General to be

  7  necessary and consistent with the purposes of this section.

  8         (e)  "Federal financial assistance" means financial

  9  assistance from federal sources passed through the state and

10  provided to nonstate entities to carry out a federal program.

11  "Federal financial assistance" includes all types of federal

12  assistance as defined in applicable United States Office of

13  Management and Budget circulars.

14         (f)  "For-profit organization" means any organization

15  or sole proprietor individual that received a state award but

16  is not a local governmental entity or a nonprofit

17  organization.

18         (g)  "Independent auditor" means an external state or

19  local government auditor or a certified public accountant who

20  meets the independence standards.

21         (h)  "Internal control over state projects" means a

22  process, effected by an entity's management and other

23  personnel, designed to provide reasonable assurance regarding

24  the achievement of objectives in the following categories:

25         1.  Effectiveness and efficiency of operations.

26         2.  Reliability of financial operations.

27         3.  Compliance with applicable laws and regulations.

28         (i)  "Local governmental entity" means a county agency,

29  municipality, or special district or any other entity (other

30  than a district school board or community college), however

31


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                                          HB 2377, Third Engrossed



  1  styled, which independently exercises any type of governmental

  2  function.

  3         (j)  "Major state project" means any state project

  4  meeting the criteria as stated in the rules of the Executive

  5  Office of the Governor. Such criteria shall be established

  6  after consultation with the Comptroller and appropriate state

  7  agencies that provide make state financial assistance awards

  8  and shall consider the amount of state project expenditures or

  9  expenses or inherent risks. Each major state project shall be

10  audited in accordance with the requirements of this section.

11         (k)  "Nonprofit organization" means any corporation,

12  trust, association, cooperative, or other organization that:

13         1.  Is operated primarily for scientific, educational

14  service, charitable, or similar purpose in the public

15  interest;

16         2.  Is not organized primarily for profit;

17         3.  Uses net proceeds to maintain, improve, or expand

18  the operations of the organization; and

19         4.  Has no part of its income or profit distributable

20  to its members, directors, or officers.

21         (l)  "Nonstate entity" means a local governmental

22  entity, nonprofit organization, or for-profit organization

23  that receives a state resources award.

24         (m)  "Recipient" means a nonstate entity that receives

25  a state financial assistance award directly from a state

26  awarding agency.

27         (n)  "Schedule of State Financial Assistance" means a

28  document prepared in accordance with the rules of the

29  Comptroller and included in each financial reporting package

30  required by this section.

31


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  1         (o)  "State award" means state financial assistance

  2  provided to a nonstate entity to carry out a state project.

  3         (o)(p)  "State awarding agency" means the state agency

  4  that provided state financial assistance to the nonstate

  5  entity for purposes of carrying out a state project.

  6         (p)(q)  "State financial assistance" means financial

  7  assistance from state resources, not including federal

  8  financial assistance and state matching, provided to nonstate

  9  entities to carry out a state project. "State financial

10  assistance" includes all types of state assistance as stated

11  in the rules of the Executive Office of the Governor

12  established in consultation with the Comptroller and

13  appropriate state agencies that provide state financial

14  assistance make state awards. It includes state financial

15  assistance provided awards made directly by state awarding

16  agencies or indirectly by recipients of state awards or

17  subrecipients. It does not include procurement contracts,

18  under state awards, used to buy goods or services from

19  vendors. Audits of such procurement contracts with vendors are

20  outside of the scope of this section. Also, audits of

21  contracts to operate state-government-owned and

22  contractor-operated facilities are excluded from the audit

23  requirements of this section.

24         (q)(r)  "State matching" means state resources awards

25  provided to nonstate entities to be used to meet federal

26  financial participation matching requirements of federal

27  programs.

28         (r)(s)  "State project" means all state financial

29  assistance awards to a nonstate entity assigned a single state

30  project number identifier in the Catalog of State Financial

31  Assistance.


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  1         (s)(t)  "State Projects Compliance Supplement" means a

  2  document issued by the Executive Office of the Governor, in

  3  consultation with the Comptroller and all state agencies that

  4  provide state financial assistance make state awards. The

  5  State Projects Compliance Supplement shall identify each major

  6  state project and other state projects, the significant

  7  compliance requirements, eligibility requirements, matching

  8  requirements, suggested audit procedures, and other relevant

  9  information determined necessary.

10         (t)(u)  "State project-specific audit" means an audit

11  of one state project performed in accordance with the

12  requirements of subsection (9) this section.

13         (u)(v)  "State single audit" means an audit of a

14  nonstate entity's financial statements and state financial

15  assistance awards. Such audits shall be conducted in

16  accordance with the auditing standards as stated in the rules

17  of the Auditor General.

18         (v)(w)  "Subrecipient" means a nonstate entity that

19  receives a state financial assistance award through another

20  nonstate entity, but does not include an individual who

21  receives state financial assistance through such state awards.

22         (w)(x)  "Vendor" means a dealer, distributor, merchant,

23  or other seller providing goods or services that are required

24  for the conduct of a state project. These goods or services

25  may be for an organization's own use or for the use of

26  beneficiaries of the state project.

27         (3)  The Executive Office of the Governor shall:

28         (a)  Upon conferring with the Comptroller and all state

29  awarding agencies that make state awards, adopt rules

30  necessary to provide appropriate guidance to state awarding

31  agencies, recipients and subrecipients, and independent


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  1  auditors of state financial assistance relating to the

  2  requirements of this section, including:

  3         1.  The types or classes of financial assistance

  4  considered to be state financial assistance which would be

  5  subject to the requirements of this section. This would

  6  include guidance to assist in identifying when the state

  7  agency or recipient has contracted with a vendor rather than

  8  with a recipient or subrecipient.

  9         2.  The criteria for identifying a major state project.

10         3.  The criteria for selecting state projects for

11  audits based on inherent risk.

12         (b)  Be responsible for coordinating the initial

13  preparation and subsequent revisions of the Catalog of State

14  Financial Assistance after consultation with the Comptroller

15  and all state awarding agencies that award state financial

16  assistance to nonstate entities.

17         (c)  Be responsible for coordinating the initial

18  preparation and subsequent revisions of the State Projects

19  Compliance Supplement, after consultation with the Comptroller

20  and all state awarding agencies that award state financial

21  assistance to nonstate entities.

22         (4)  The Comptroller shall:

23         (a)  Make enhancements to the state's accounting system

24  to provide for the:

25         1.  Recording of state financial assistance and federal

26  financial assistance appropriations and expenditures as

27  separate categories within the state awarding agencies'

28  operating funds.

29         2.  Recording of state project number identifiers, as

30  provided in the Catalog of State Financial Assistance, for

31  state financial assistance awards.


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  1         3.  Establishment and recording of an identification

  2  code for each financial transaction, including state agencies'

  3  disbursements awards of state financial assistance and federal

  4  financial assistance, as to the corresponding type or

  5  organization that is party to the transaction (e.g., other

  6  governmental agencies, nonprofit organizations, and for-profit

  7  organizations), and disbursements of federal financial

  8  assistance, as to whether the party to the transaction is or

  9  is not a recipient or subrecipient.

10         (b)  Upon conferring with the Executive Office of the

11  Governor and all state awarding agencies that make state

12  awards, adopt rules necessary to provide appropriate guidance

13  to state awarding agencies, recipients and subrecipients, and

14  independent auditors of state financial assistance relating to

15  the format for the Schedule of State Financial Assistance.

16         (c)  Perform any inspections, reviews, investigations,

17  or audits of state financial assistance considered necessary

18  in carrying out the Comptroller's legal responsibilities for

19  state financial assistance or to comply with the requirements

20  of this section.

21         (5)  Each state awarding agency that makes state awards

22  shall:

23         (a)  Provide for each state award to a recipient

24  information needed by the recipient to comply with the

25  requirements of this section, including:

26         1.  The audit and accountability requirements for state

27  projects as stated in this section and applicable rules of the

28  Executive Office of the Governor, rules of the Comptroller,

29  and rules of the Auditor General.

30         2.  Information from the Catalog of State Financial

31  Assistance, including the standard state project number


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  1  identifier; official title; legal authorization; and

  2  description of the state project including objectives,

  3  restrictions, and other relevant information determined

  4  necessary.

  5         3.  Information from the State Projects Compliance

  6  Supplement, including the significant compliance requirements,

  7  eligibility requirements, matching requirements, suggested

  8  audit procedures, and other relevant information determined

  9  necessary.

10         (b)  Require the recipient, as a condition of receiving

11  state financial assistance, to allow the state awarding

12  agency, the Comptroller, and the Auditor General access to the

13  recipient's records and the recipient's independent auditor's

14  working papers as necessary for complying with the

15  requirements of this section.

16         (c)  Notify the recipient that this section does not

17  limit the authority of the state awarding agency to conduct or

18  arrange for the conduct of additional audits or evaluations of

19  state financial assistance or limit the authority of any state

20  agency inspector general, the Auditor General, or any other

21  state official.

22         (d)  Be provided one copy of each financial reporting

23  package prepared in accordance with the requirement of this

24  section.

25         (e)  Review the recipient financial reporting package,

26  including the management letters and corrective action plans,

27  to the extent necessary to determine whether timely and

28  appropriate corrective action has been taken with respect to

29  audit findings and recommendations pertaining to state

30  financial assistance provided awards made by the state agency.

31


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  1         (6)  As a condition of receiving state financial

  2  assistance, each recipient that provides state financial

  3  assistance to a subrecipient shall:

  4         (a)  Provide for each state award to a subrecipient

  5  information needed by the subrecipient to comply with the

  6  requirements of this section, including:

  7         1.  Identification of the state awarding agency.

  8         2.  The audit and accountability requirements for state

  9  projects as stated in this section and applicable rules of the

10  Executive Office of the Governor, rules of the Comptroller,

11  and rules of the Auditor General.

12         3.  Information from the Catalog of State Financial

13  Assistance, including the standard state project number

14  identifier; official title; legal authorization; and

15  description of the state project, including objectives,

16  restrictions, and other relevant information.

17         4.  Information from the State Projects Compliance

18  Supplement including the significant compliance requirements,

19  eligibility requirements, matching requirements, and suggested

20  audit procedures, and other relevant information determined

21  necessary.

22         (b)  Review the subrecipient audit reports, including

23  the management letters, to the extent necessary to determine

24  whether timely and appropriate corrective action has been

25  taken with respect to audit findings and recommendations

26  pertaining to state financial assistance provided awards made

27  by the state agency.

28         (c)  Perform such other procedures as specified in

29  terms and conditions of the written agreement with the state

30  awarding agency including any required monitoring of the

31  subrecipient's use of state financial assistance through


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  1  onsite visits, limited scope audits, or other specified

  2  procedures.

  3         (d)  Require subrecipients, as a condition of receiving

  4  state financial assistance, to permit the independent auditor

  5  of the recipient, the state awarding agency, the Comptroller,

  6  and the Auditor General access to the subrecipient's records

  7  and the subrecipient's independent auditor's working papers as

  8  necessary to comply with the requirements of this section.

  9         (7)  Each recipient or subrecipient of state financial

10  assistance shall comply obtain an audit that complies with the

11  following:

12         (a)  Each nonstate entity that receives state financial

13  assistance awards and meets audit threshold requirements, in

14  any fiscal year of the nonstate entity, as stated in the rules

15  of the Auditor General, shall have a state single audit

16  conducted for such fiscal year in accordance with the

17  requirements of this act and with additional requirements

18  established in rules of the Executive Office of the Governor,

19  rules of the Comptroller, and rules of the Auditor General. If

20  only one state project is involved in a nonstate entity's

21  fiscal year, the nonstate entity may elect to have require

22  only a state project-specific compliance audit of the state

23  project for that fiscal year.

24         (b)  Each nonstate entity that receives state financial

25  assistance awards and does not meet the threshold

26  requirements, in any fiscal year of the nonstate entity, as

27  stated in this law or the rules of the Auditor General is

28  exempt for such fiscal year from the state single audit

29  requirements of this section. However, such nonstate entity

30  must meet terms and conditions specified in the written

31  agreement with the state awarding agency.


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                                          HB 2377, Third Engrossed



  1         (c)  Regardless of the amount of the state financial

  2  assistance award, the provisions of this section do not exempt

  3  a nonstate entity from compliance with provisions of law

  4  relating to maintaining records concerning state financial

  5  assistance awards to such nonstate entity or allowing access

  6  and examination of those records by the state awarding agency,

  7  the Comptroller, or the Auditor General.

  8         (d)  Audits conducted pursuant to this section shall be

  9  performed annually.

10         (e)  Audits conducted pursuant to this section shall be

11  conducted by independent auditors in accordance with auditing

12  standards as stated in rules of the Auditor General.

13         (f)  Upon completion of the audit as required by this

14  section, a copy of the recipient's financial reporting package

15  shall be filed with the state awarding agency and the Auditor

16  General. Upon completion of the audit as required by this

17  section, a copy of the subrecipient's financial reporting

18  package shall be filed with the recipient that provided the

19  state financial assistance. The financial reporting package

20  shall be filed in accordance with the rules of the Auditor

21  General.

22         (g)  All financial reporting packages prepared pursuant

23  to the requirements of this section shall be available for

24  public inspection.

25         (h)  If an audit conducted pursuant to this section

26  discloses any significant audit findings relating to state

27  financial assistance, including material noncompliance with

28  individual major state project compliance requirements or

29  reportable conditions in internal controls of the nonstate

30  entity, the nonstate entity shall submit as part of the audit

31  package to the state awarding agency a plan for corrective


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  1  action to eliminate such audit findings or a statement

  2  describing the reasons that corrective action is not

  3  necessary.

  4         (i)  An audit conducted in accordance with this section

  5  is in addition to any audit of federal awards required by the

  6  federal Single Audit Act and other federal laws and

  7  regulations. To the extent that such federally required audits

  8  provide the state awarding agency with information it requires

  9  to carry out its responsibilities under state law or other

10  guidance, a state agency shall rely upon and use that

11  information.

12         (j)  Unless prohibited by law, the cost of audits

13  pursuant to this section are allowable charges to state

14  projects. However, any charges to state projects should be

15  limited to those incremental costs incurred as a result of the

16  audit requirements of this section in relation to other audit

17  requirements. The nonstate entity should allocate such

18  incremental costs to all state projects for which it expended

19  state financial assistance.

20         (k)  Audit costs may not be charged to state projects

21  when audits required by this section have not been made or

22  have been made but not in accordance with this section. If a

23  nonstate entity fails to have an audit conducted consistent

24  with this section, state awarding agencies may take

25  appropriate corrective action to enforce compliance.

26         (l)(j)  This section does not prohibit the state

27  awarding agency from including terms and conditions in the

28  written agreement which require additional assurances that

29  state financial assistance meets awards meet the applicable

30  requirements of laws, regulations, and other compliance rules.

31


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                                          HB 2377, Third Engrossed



  1         (m)(k)  A state awarding agency that provides state

  2  financial assistance awards to nonstate entities and conducts

  3  or arranges for audits of state financial assistance awards

  4  that are in addition to the audits conducted under this act

  5  shall, consistent with other applicable law, arrange for

  6  funding the full cost of such additional audits.

  7         (8)  The independent auditor when conducting a state

  8  single audit of recipients or subrecipients shall:

  9         (a)  Determine whether the nonstate entity's financial

10  statements are presented fairly in all material respects in

11  conformity with generally accepted accounting principles.

12         (b)  Determine whether state financial assistance

13  awards shown on the Schedule of State Financial Assistance is

14  are presented fairly in all material respects in relation to

15  the nonstate entity's financial statements taken as a whole.

16         (c)  With respect to internal controls pertaining to

17  each major state project:

18         1.  Obtain an understanding of internal controls;

19         2.  Assess control risk;

20         3.  Perform tests of controls unless the controls are

21  deemed to be ineffective; and

22         4.  Determine whether the nonstate entity has internal

23  controls in place to provide reasonable assurance of

24  compliance with the provisions of laws, regulations, and other

25  rules pertaining to state financial assistance awards that

26  have a material effect on each major state project.

27         (d)  Determine whether each major state project

28  complied with the provisions of laws, rules, and guidelines as

29  identified in the State Projects Compliance Supplement, or

30  otherwise identified by the state awarding agency, which have

31  a material effect on each major state project. When major


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                                          HB 2377, Third Engrossed



  1  state projects are less than 50 percent of the nonstate

  2  entity's total expenditures for all state financial assistance

  3  awards, the auditor shall select and test additional state

  4  projects as major state projects as necessary to achieve audit

  5  coverage of at least 50 percent of the expenditures for all

  6  state financial assistance provided awards to the nonstate

  7  entity. Additional state projects needed to meet the

  8  50-percent requirement may be selected on an inherent risk

  9  basis as stated in the rules of the Executive Office of the

10  Governor.

11         (e)  Report on the results of any audit conducted

12  pursuant to this section in accordance with the rules of the

13  Executive Office of the Governor, rules of the Comptroller,

14  and rules of the Auditor General. Audit reports shall include

15  summaries of the auditor's results regarding the nonstate

16  entity's financial statements; Schedule of State Financial

17  Assistance; internal controls; and compliance with laws,

18  rules, and guidelines other compliance guidance.

19         (f)  Issue a management letter as prescribed in the

20  rules of the Auditor General.

21         (g)  Upon notification by the nonstate entity, make

22  available the working papers relating to the audit conducted

23  pursuant to the requirements of this section to the state

24  awarding agency, the Comptroller, or the Auditor General for

25  review or copying.

26         (9)  The independent auditor, when conducting a state

27  project-specific audit of recipients or subrecipients, shall:

28         (a)  Determine whether the nonstate entity's schedule

29  of state financial assistance is presented fairly in all

30  material respects in conformity with stated accounting

31  policies.


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                                          HB 2377, Third Engrossed



  1         (b)  Obtain an understanding of internal control and

  2  perform tests of internal control over the state project

  3  consistent with the requirements of a major state project.

  4         (c)  Determine whether or not the auditee has complied

  5  with applicable provisions of laws, rules, and guidelines as

  6  identified in the State Projects Compliance Supplement, or

  7  otherwise identified by the state awarding agency, which could

  8  have a direct and material effect on the state project.

  9         (d)  Report on the results of a state project-specific

10  audit consistent with the requirements of the state single

11  audit and issue a management letter as prescribed in the rules

12  of the Auditor General.

13         (e)  Upon notification by the nonstate entity, make

14  available the working papers relating to the audit conducted

15  pursuant to the requirements of this section to the state

16  awarding agency, the Comptroller, or the Auditor General for

17  review or copying.

18         (10)(9)  The Auditor General shall:

19         (a)  Have the authority to audit state financial

20  assistance provided to any nonstate entity when determined

21  necessary by the Auditor General or when directed by the

22  Legislative Auditing Committee.

23         (b)  Adopt rules that state the auditing standards that

24  independent auditors are to follow for audits of nonstate

25  entities required by this section.

26         (c)  Adopt rules that describe the contents and the

27  filing deadlines for the financial reporting package.

28         (d)  Provide technical advice upon request of the

29  Comptroller, Executive Office of the Governor, and state

30  agencies relating to financial reporting and audit

31  responsibilities contained in this section.


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                                          HB 2377, Third Engrossed



  1         (e)  Be provided one copy of each financial reporting

  2  package prepared in accordance with the requirements of this

  3  section.

  4         (f)  Perform ongoing reviews of a sample of financial

  5  reporting packages filed pursuant to the requirements of this

  6  section to determine compliance with the reporting

  7  requirements of this section and applicable rules of the

  8  Executive Office of the Governor, rules of the Comptroller,

  9  and rules of the Auditor General.

10         Section 59.  Section 216.331, Florida Statutes, is

11  transferred and renumbered as section 215.965, Florida

12  Statutes.

13         Section 60.  Section 216.3505, Florida Statutes, is

14  transferred and renumbered as section 215.966, Florida

15  Statutes.

16         Section 61.  Sections 27.38, 27.60, 216.001, 216.0154,

17  216.0162, 216.0166, 216.0172, 216.0235, 216.0315, 216.091,

18  216.111, 216.281, and 216.286, Florida Statutes, are repealed.

19         Section 62.  This act shall take effect July 1, 2000,

20  and shall apply to preparation of the state budget beginning

21  with fiscal year 2001-2002.

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