Senate Bill sb2578

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2002                                  SB 2578

    By Senator Mitchell





    4-1486-02                                               See HB

  1                      A bill to be entitled

  2         An act relating to local government

  3         accountability; amending s. 11.40, F.S.;

  4         revising duties of the Legislative Auditing

  5         Committee; amending s. 11.45, F.S.; revising

  6         reporting requirements of the Auditor General;

  7         amending s. 75.05, F.S.; deleting a requirement

  8         for an independent special district to submit a

  9         copy of a complaint to the Division of Bond

10         Finance of the State Board of Administration;

11         amending s. 112.625, F.S.; redefining the term

12         "governmental entity" to include counties and

13         district school boards; amending s. 112.63,

14         F.S.; providing for additional information to

15         be provided to the Department of Management

16         Services in actuarial reports with regard to

17         retirement systems and plans and providing

18         procedures therefor; providing for notification

19         of the Department of Revenue and the Department

20         of Banking and Finance in cases of

21         noncompliance and authorizing the withholding

22         of certain funds; requiring the Department of

23         Management Services to notify the Department of

24         Community Affairs in the case of affected

25         special districts; amending s. 130.04, F.S.;

26         revising provisions governing notice of bids

27         and disposition of bonds; amending s. 132.02,

28         F.S.; revising provisions relating to the

29         authorization to issue refund bonds; amending

30         s. 132.09, F.S.; revising provisions relating

31         to the notice of sale, bids, and awards and

                                  1

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         private sale of bonds; amending s. 163.05,

  2         F.S.; revising provisions governing the Small

  3         County Technical Assistance Program; amending

  4         s. 166.121, F.S.; revising provisions governing

  5         the issuance of bonds by a municipality;

  6         amending s. 166.241, F.S.; providing a

  7         municipal budget amendment process and

  8         requirements; amending s. 189.4044, F.S.;

  9         revising special procedures for determination

10         of inactive special districts; amending s.

11         189.412, F.S.; revising duties of the Special

12         District Information Program of the Department

13         of Community Affairs; amending s. 189.418,

14         F.S.; revising reporting requirements of newly

15         created special districts; authorizing the

16         governing body of a special district to amend

17         its budget; amending s. 189.419, F.S.; revising

18         provisions relating to the failure of special

19         districts to file required reports; amending s.

20         189.421, F.S.; revising provisions governing

21         the failure of special districts to disclose

22         financial reports; providing for extension of

23         time for the filing of said reports; providing

24         remedies for noncompliance; providing for

25         attorney's fees and costs; amending s. 189.428,

26         F.S.; revising provisions governing the special

27         district oversight review process; amending s.

28         189.439, F.S.; revising provisions governing

29         the issuance of bonds by special districts;

30         amending s. 215.981, F.S.; exempting state

31         agency direct-support organizations and citizen

                                  2

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         support organizations meeting specified expense

  2         levels from audit requirements; amending s.

  3         218.075, F.S.; revising provisions governing

  4         the reduction or waiver of permit processing

  5         fees for certain counties; amending s. 218.32,

  6         F.S., relating to annual financial reports;

  7         requiring the Department of Banking and Finance

  8         to notify the Speaker of the House of

  9         Representatives and the President of the Senate

10         of any municipality that has not had financial

11         activity for a specified period of time;

12         providing that such notice is sufficient to

13         initiate dissolution procedures; amending s.

14         218.36, F.S.; revising reporting requirements

15         for boards of county commissioners relating to

16         the failure of a county officer to comply with

17         the provisions of the section; amending s.

18         218.369, F.S.; revising the definition of "unit

19         of local government" to include district school

20         boards; renaming pt. V of ch. 218, F.S., as

21         "Local Governmental Entity and District School

22         Board Financial Emergencies"; amending s.

23         218.50, F.S.; renaming ss. 218.50-218.504,

24         F.S., as the "Local Governmental Entity and

25         District School Board Act"; amending s.

26         218.501, F.S.; revising the stated purposes of

27         pt. V of ch. 218, F.S.; amending s. 218.502,

28         F.S.; redefining the term "local governmental

29         entity"; amending s. 218.503, F.S.; revising

30         provisions governing the determination of

31         financial emergency for local governments and

                                  3

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         district school boards; amending s. 218.504,

  2         F.S.; revising provisions relating to the

  3         authority of the Governor and authorizing the

  4         Commissioner of Education to terminate all

  5         state actions pursuant to ss. 218.50-218.504,

  6         F.S.; amending s. 236.43, F.S.; revising

  7         provisions governing receipt of bids and sale

  8         of bonds; amending ss. 237.40, 240.299,

  9         240.331, F.S.; exempting district school board

10         direct-support organizations and citizen

11         support organizations meeting specified expense

12         levels from audit requirements; repealing ch.

13         131, F.S., consisting of ss. 131.01, 131.02,

14         131.03, 131.04, 131.05, 131.06, F.S., relating

15         to refunding bonds of counties, municipalities,

16         and special districts; repealing s. 132.10,

17         F.S., relating to minimum sale price of bonds;

18         repealing s. 165.052, F.S., relating to special

19         dissolution procedures for municipalities;

20         repealing s. 189.409, F.S., relating to

21         determination of financial emergencies of

22         special districts; repealing s. 189.422, F.S.,

23         relating to actions of the Department of

24         Community Affairs and special districts;

25         repealing s. 200.0684, F.S., relating to an

26         annual compliance report of the Department of

27         Community Affairs regarding special districts;

28         repealing s. 218.37(1)(h), F.S., relating to

29         the requirement that the Division of Bond

30         Finance use a served copy of the complaint for

31         bond validation to verify compliance by special

                                  4

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         districts with the requirements in s. 218.38,

  2         F.S.; providing an effective date.

  3

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

  5

  6         Section 1.  Paragraphs (a) and (b) of subsection (5) of

  7  section 11.40, Florida Statutes, are amended to read:

  8         11.40  Legislative Auditing Committee.--

  9         (5)  Following notification by the Auditor General, the

10  Department of Banking and Finance, or the Division of Bond

11  Finance of the State Board of Administration of the failure of

12  a local governmental entity, district school board, charter

13  school, or charter technical career center to comply with the

14  applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or

15  s. 218.38, the Legislative Auditing Committee may schedule a

16  hearing. If a hearing is scheduled, the committee shall

17  determine if the entity should be subject to further state

18  action.  If the committee determines that the entity should be

19  subject to further state action, the committee shall:

20         (a)  In the case of a local governmental entity or

21  district school board, direct request the Department of

22  Revenue and the Department of Banking and Finance to withhold

23  any funds not pledged for bond debt service satisfaction which

24  are payable to such entity until the entity complies with the

25  law. The committee, in its request, shall specify the date

26  such action shall begin, and the request must be received by

27  the Department of Revenue and the Department of Banking and

28  Finance 30 days before the date of the distribution mandated

29  by law. The Department of Revenue and the Department of

30  Banking and Finance are authorized to implement the provisions

31  of this paragraph.

                                  5

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (b)  In the case of a special district, notify the

  2  Department of Community Affairs that the special district has

  3  failed to comply with the law. Upon receipt of notification,

  4  the Department of Community Affairs shall proceed pursuant to

  5  the provisions specified in s. ss. 189.421 and 189.422.

  6         Section 2.  Paragraph (e) of subsection (7) and

  7  subsection (8) of section 11.45, Florida Statutes, are amended

  8  to read:

  9         11.45  Definitions; duties; authorities; reports;

10  rules.--

11         (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--

12         (e)  The Auditor General shall notify the Governor or

13  the Commissioner of Education, as appropriate, and the

14  Legislative Auditing Committee of any audit report reviewed by

15  the Auditor General pursuant to paragraph (b) that which

16  contains a statement that a the local governmental entity or

17  district school board has met one or more of the conditions

18  specified is in a state of financial emergency as provided in

19  s. 218.503. If the Auditor General requests a clarification

20  regarding information included in an audit report to determine

21  whether a local governmental entity or district school board

22  has met one or more of the conditions specified in s. 218.503

23  is in a state of financial emergency, the requested

24  clarification must be provided within 45 days after the date

25  of the request. If the local governmental entity or district

26  school board does not comply with the Auditor General's

27  request, the Auditor General shall notify the Legislative

28  Auditing Committee. If, after obtaining the requested

29  clarification, the Auditor General determines that the local

30  governmental entity or district school board has met one or

31  more of the conditions specified in s. 218.503 is in a state

                                  6

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  of financial emergency, he or she shall notify the Governor or

  2  the Commissioner of Education and the Legislative Auditing

  3  Committee.

  4         (8)  RULES OF THE AUDITOR GENERAL.--The Auditor

  5  General, in consultation with the Board of Accountancy, shall

  6  adopt rules for the form and conduct of all financial audits

  7  performed by independent certified public accountants pursuant

  8  to ss. 215.981, 218.39, 237.40, 240.299, and 240.331. The

  9  rules for audits of local governmental entities and district

10  school boards must include, but are not limited to,

11  requirements for the reporting of information necessary to

12  carry out the purposes of the Local Governmental Entity and

13  District School Board Government Financial Emergencies Act as

14  stated in s. 218.501.

15         Section 3.  Subsection (3) of section 75.05, Florida

16  Statutes, is amended to read:

17         75.05  Order and service.--

18         (3)  In the case of independent special districts as

19  defined in s. 218.31(7), a copy of the complaint shall be

20  served on the Division of Bond Finance of the State Board of

21  Administration. Notwithstanding any other provision of law,

22  whether a general law or special act, validation of bonds to

23  be issued by a special district, other than a community

24  development district established pursuant to chapter 190, as

25  provided in s. 190.016(12), is not mandatory, but is at the

26  option of the issuer. However, the validation of bonds issued

27  by such community development districts shall not be required

28  on refunding issues.

29         Section 4.  Subsection (5) of section 112.625, Florida

30  Statutes, is amended to read:

31         112.625  Definitions.--As used in this act:

                                  7

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (5)  "Governmental entity" means the state, for the

  2  Florida Retirement System, and the county, municipality, or

  3  special district, or district school board which is the

  4  employer of the member of a local retirement system or plan.

  5         Section 5.  Subsection (4) of section 112.63, Florida

  6  Statutes, is amended to read:

  7         112.63  Actuarial reports and statements of actuarial

  8  impact; review.--

  9         (4)  Upon receipt, pursuant to subsection (2), of an

10  actuarial report, or upon receipt, pursuant to subsection (3),

11  of a statement of actuarial impact, the Department of

12  Management Services shall acknowledge such receipt, but shall

13  only review and comment on each retirement system's or plan's

14  actuarial valuations at least on a triennial basis.  If the

15  department finds that the actuarial valuation is not complete,

16  accurate, or based on reasonable assumptions or otherwise

17  fails to satisfy the requirements of this part, the department

18  requires additional information necessary to complete its

19  review of the actuarial valuation of a system or plan or

20  information necessary to satisfy the duties of the department

21  pursuant to s. 112.665(1), or if the department does not

22  receive the actuarial report or statement of actuarial impact,

23  the department shall notify the administrator of the affected

24  retirement system or plan and the affected governmental entity

25  local government and request appropriate adjustment, the

26  additional information, or the required report or statement.

27  The notification shall inform the administrator of the

28  affected retirement system or plan and the affected

29  governmental entity of the consequences for failure to comply

30  with the requirements of this subsection. If, after a

31  reasonable period of time, a satisfactory adjustment is not

                                  8

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  made or the report, statement, or additional information is

  2  not provided, the department may notify the Department of

  3  Revenue and the Department of Banking and Finance of such

  4  noncompliance, in which case the Department of Revenue and the

  5  Department of Banking and Finance shall withhold any funds not

  6  pledged for bond debt service satisfaction that are payable to

  7  the affected governmental entity until the adjustment is made

  8  or the report, statement, or additional information is

  9  provided to the department. The department shall specify the

10  date such action is to begin and notification by the

11  department must be received by the Department of Revenue and

12  the Department of Banking and Finance 30 days before the date

13  the action is to begin.

14         (a)  The affected governmental entity local government

15  or the Department of Management Services may petition for a

16  hearing under the provisions of ss. 120.569 and 120.57. If the

17  administrative law judge recommends in favor of the

18  department, the department shall perform an actuarial review,

19  or prepare the statement of actuarial impact, or collect the

20  requested information. The cost to the department of

21  performing such actuarial review, or preparing such statement,

22  or collecting the requested information shall be charged to

23  the affected governmental entity of which the employees are

24  covered by the retirement system or plan. If payment of such

25  costs is not received by the department within 60 days after

26  receipt by the affected governmental entity of the request for

27  payment, the department shall certify to the Department of

28  Revenue and the Department of Banking and Finance Comptroller

29  the amount due, and the Department of Revenue and the

30  Department of Banking and Finance Comptroller shall pay such

31  amount to the Department of Management Services from any funds

                                  9

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  payable to the affected governmental entity of which the

  2  employees are covered by the retirement system or plan. If the

  3  administrative law judge recommends in favor of the affected

  4  governmental entity local retirement system and the department

  5  performs an actuarial review, prepares the statement of

  6  actuarial impact, or collects the requested information, the

  7  cost to the department of performing the actuarial review,

  8  preparing the statement, or collecting the requested

  9  information shall be paid by the Department of Management

10  Services.

11         (b)  In the case of an affected special district, the

12  Department of Management Services shall also notify the

13  Department of Community Affairs.  Upon receipt of

14  notification, the Department of Community Affairs shall

15  proceed pursuant to the provisions of s. 189.421 with regard

16  to the special district.

17         Section 6.  Section 130.04, Florida Statutes, is

18  amended to read:

19         130.04  Sale Notice for bids and disposition of

20  bonds.--In case the issuing of bonds shall be authorized by

21  the result of such election, the county commissioners shall

22  sell the bonds in the manner provided in s. 218.385. cause

23  notice to be given by publication in a newspaper published in

24  the county, or in some newspaper published in the same

25  judicial circuit, if there be none published in the county,

26  that they will receive bids for the purchase of county bonds

27  at the clerk's office, on a date not less than 10 days nor

28  more than 60 days from the first publication of such notice.

29  The notice shall specify the amount of bonds offered for sale,

30  the rate of interest, and the time when principal and

31  installments of interest shall be due and payable.  Any and

                                  10

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  all bids shall be rejected if the commissioners shall deem it

  2  to the best interest for the county so to do, and they may

  3  cause a new notice to be given in like manner inviting other

  4  bids for said bonds; provided, that when the rate of interest

  5  on said bonds exceeds 5 percent per annum, said bonds shall

  6  not be sold for less than 95 cents on the dollar, but when any

  7  bonds have heretofore been provided for by election, and the

  8  rate of interest is 5 percent per annum, or less, that in such

  9  cases the county commissioners may accept less than 95 cents

10  upon the dollar, in the sale of said bonds, or for any portion

11  of said bonds not already sold; provided, however, no bonds

12  shall be sold for less than 90 cents on the dollar.

13         Section 7.  Subsection (1) of section 132.02, Florida

14  Statutes, is amended to read:

15         132.02  Taxing units may refund obligations.--

16         (1)  Each county, municipality, city, town, special

17  road and bridge district, special tax school district, or and

18  other taxing district districts in this state, herein

19  sometimes called a unit, may issue, pursuant to a resolution

20  or resolutions of the governing body thereof (meaning thereby

21  the board or body vested with the power of determining the

22  amount of tax levies required for taxing the taxable property

23  of such unit for the purpose of such unit) and either with or

24  without the approval of such bonds at an election, except as

25  may be required by the Constitution of the state, bonds of

26  such unit for the purpose of refunding any or all bonds,

27  coupons, or interest on any such bonds, or coupons or paving

28  certificates of indebtedness or interest on any such paving

29  certificates of indebtedness, now or hereafter outstanding, or

30  any other funded debt, all of which are herein referred to as

31  bonds, whether such unit created such indebtedness or has

                                  11

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  assumed, or may become liable therefor, and whether

  2  indebtedness to be refunded has matured or to thereafter

  3  become matured.

  4         Section 8.  Section 132.09, Florida Statutes, is

  5  amended to read:

  6         132.09  Sale of bonds Notice of sale; bids and award;

  7  private sale.--When sold, the refunding bonds (except as

  8  otherwise expressly provided) shall be sold in the manner

  9  provided in s. 218.385. pursuant to the terms of a notice of

10  sale which shall be published at least twice.  The first

11  publication to be not less than 7 days before the date fixed

12  for the sale and to be published in a newspaper published in

13  the unit, or if no newspaper is published in the unit, then in

14  a newspaper published in the county, or if no newspaper is

15  published in the county, then in a newspaper published in

16  Tallahassee, and in the discretion of the governing body of

17  the unit may be published in a financial newspaper in the City

18  of New York.  Such notices shall state the time and place and

19  when and where sealed bids will be received, shall state the

20  amount of bonds, their dates, maturities, denominations and

21  interest rate or rates (which may be a maximum rate), interest

22  payment dates, an outline of the terms, if any, on which they

23  are redeemable or become payable before maturity, the amount

24  which must be deposited with the bid to secure its performance

25  if accepted, and such other pertinent information as the

26  governing body of the unit may determine.  The notice of sale

27  may require the bidders to fix the interest rate or rates that

28  the bonds are to bear subject to the terms of the notice and

29  the maximum rate permitted by this chapter.  The award of the

30  bonds shall be made by the governing body of the unit to the

31  bidder making the most advantageous bid which shall be

                                  12

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  determined by the governing body in its absolute and

  2  uncontrolled discretion.  The right to reject all bids shall

  3  be reserved to the governing body of the unit.  If no bids are

  4  received at such public sale, or if all bids are rejected, the

  5  bonds may be sold without notice at private sale at any time

  6  within one year thereafter, but such bonds shall not be sold

  7  at private sale on terms less favorable to the unit than were

  8  contained in the best bid at the prior public sale.

  9         Section 9.  Paragraph (a) of subsection (2) of section

10  163.05, Florida Statutes, is amended to read:

11         163.05  Small County Technical Assistance Program.--

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

13  Legislature declares that:

14         (a)  The financial difficulties fiscal emergencies

15  confronting small counties require an investment that will

16  facilitate efforts to improve the productivity and efficiency

17  of small counties' structures and operating procedures.

18         Section 10.  Subsection (2) of section 166.121, Florida

19  Statutes, is amended to read:

20         166.121  Issuance of bonds.--

21         (2)  The governing body of a municipality shall

22  determine the terms and manner of sale and distribution or

23  other disposition of any and all bonds it may issue,

24  consistent with the provisions of s. 218.385, and shall have

25  any and all powers necessary or convenient to such

26  disposition.

27         Section 11.  Section 166.241, Florida Statutes, is

28  amended to read:

29         166.241  Fiscal years, financial reports,

30  appropriations, and budgets, and budget amendments.--

31

                                  13

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (1)  Each municipality shall report its finances

  2  annually as provided by general law.

  3         (1)(2)  Each municipality shall make provision for

  4  establishing a fiscal year beginning October 1 of each year

  5  and ending September 30 of the following year.

  6         (2)(3)  The governing body of each municipality shall

  7  adopt a budget each fiscal year. The budget must be adopted by

  8  ordinance unless otherwise specified in the respective

  9  municipality's charter, except that municipalities required to

10  establish millage pursuant to chapter 200 shall adopt the

11  budget by resolution or ordinance in the manner specified in

12  s. 200.065(2). The amount available from taxation and other

13  sources, including amounts carried over from prior fiscal

14  years, must equal the total appropriations for expenditures

15  and reserves. The budget must regulate expenditures of the

16  municipality, and it is unlawful for any officer of a

17  municipal government to expend or contract for expenditures in

18  any fiscal year except in pursuance of budgeted

19  appropriations.

20         (3)  The governing body of each municipality at any

21  time within a fiscal year or within up to 60 days following

22  the end of the fiscal year may amend a budget for that year as

23  follows:

24         (a)  Appropriations for expenditures within a fund may

25  be decreased or increased by motion recorded in the minutes,

26  provided that the total of the appropriations of the fund is

27  not changed.

28         (b)  The governing body may establish procedures by

29  which the designated budget officer may authorize certain

30  budget amendments within a department, provided that the total

31  of the appropriations of the department is not changed.

                                  14

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (c)  If a budget amendment is required for a purpose

  2  not specifically authorized in paragraph (a) or paragraph (b),

  3  the budget amendment must be adopted in the same manner as the

  4  original budget unless otherwise specified in the charter of

  5  the respective municipality.

  6         Section 12.  Section 189.4044, Florida Statutes, is

  7  amended to read:

  8         189.4044  Special procedures for inactive districts.--

  9         (1)  The department shall declare inactive any special

10  district in this state by documenting the following filing a

11  report with the Speaker of the House of Representatives and

12  the President of the Senate which shows that such special

13  district is no longer active.  The inactive status of the

14  special district must be based upon a finding:

15         (a)  That The special district meets one of the

16  following criteria:

17         1.  The registered agent of the district, the chair of

18  the governing body of the district, or the governing body of

19  the appropriate local general-purpose government notifies the

20  department in writing that the district has taken no action

21  for 2 or more calendar years;

22         2.  Following an inquiry from the department, the

23  registered agent of the district, the chair of the governing

24  body of the district, or the governing body of the appropriate

25  local general-purpose government notifies the department in

26  writing that the district has not had a governing board or a

27  sufficient number of governing board members to constitute a

28  quorum for 2 or more years or the registered agent of the

29  district, the chair of the governing body of the district, or

30  the governing body of the appropriate local general-purpose

31

                                  15

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  government fails to respond to the department's inquiry within

  2  21 days; or 18 or more months;

  3         3.  The department determines, pursuant to s. 189.421,

  4  that the district has failed to file or make a good faith

  5  effort to file any of the reports listed in s. 189.419.; or

  6         4.  The district has failed, for 2 consecutive fiscal

  7  years, to pay fees assessed by the Special District

  8  Information Program pursuant to this chapter.

  9         (b)  The department, special district, or local

10  general-purpose government published That a notice of the

11  proposed declaration of inactive status has been published

12  once a week for 2 weeks in a newspaper of general circulation

13  in within the county or municipality in which wherein the

14  territory of the special district is located and sent a copy

15  of such notice by certified mail to the registered agent or

16  chair of the board, if any. Such notice shall state, stating

17  the name of said special district, the law under which it was

18  organized and operating, a general description of the

19  territory included in said special district, and a statement

20  stating that any objections must be filed pursuant to chapter

21  120 within 21 days after the publication date to the proposed

22  declaration or to any claims against the assets of said

23  special district shall be filed not later than 60 days

24  following the date of last publication with the department;

25  and

26         (c)  Twenty-one That 60 days have elapsed from the last

27  publication date of the notice of proposed declaration of

28  inactive status and no administrative appeals were sustained

29  objections have been filed.

30         (2)  If any special district is declared inactive

31  pursuant to this section, the property or assets of the

                                  16

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  special district are subject to legal process for payment of

  2  any debts of the district.  After the payment of all the debts

  3  of said inactive special district, the remainder of its

  4  property or assets shall escheat to the county or municipality

  5  wherein located.  If, however, it shall be necessary, in order

  6  to pay any such debt, to levy any tax or taxes on the property

  7  in the territory or limits of the inactive special district,

  8  the same may be assessed and levied by order of the local

  9  general-purpose government wherein the same is situated and

10  shall be assessed by the county property appraiser and

11  collected by the county tax collector.

12         (3)  In the case of a district created by special act

13  of the Legislature, the department shall send a notice of

14  declaration of inactive status to notify the Speaker of the

15  House of Representatives and the President of the Senate. The

16  notice of declaration of inactive status shall reference of

17  each known special act creating or amending the charter of any

18  special district declared to be inactive under this section.

19  The declaration of inactive status shall be sufficient notice

20  as required by s. 10, Art. III of the State Constitution to

21  authorize the Legislature to repeal any special laws so

22  reported. In the case of a district created by one or more

23  local general-purpose governments, the department shall send a

24  notice of declaration of inactive status to the chair of the

25  governing body of each local general-purpose government that

26  created the district.  In the case of a district created by

27  interlocal agreement, the department shall send a notice of

28  declaration of inactive status to the chair of the governing

29  body of each local general-purpose government that entered

30  into the interlocal agreement.

31

                                  17

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (4)  The entity that created a special district

  2  declared inactive under this section must dissolve the special

  3  district be dissolved by repealing repeal of its enabling laws

  4  or by other appropriate means.

  5         Section 13.  Subsection (1) of section 189.412, Florida

  6  Statutes, is amended, and subsection (8) is added to that

  7  section, to read:

  8         189.412  Special District Information Program; duties

  9  and responsibilities.--The Special District Information

10  Program of the Department of Community Affairs is created and

11  has the following special duties:

12         (1)  The collection and maintenance of special district

13  noncompliance compliance status reports from the Department of

14  Management Services Auditor General, the Department of Banking

15  and Finance, the Division of Bond Finance of the State Board

16  of Administration, and the Auditor General the Department of

17  Management Services, the Department of Revenue, and the

18  Commission on Ethics for the reporting required in ss.

19  112.3144, 112.3145, 112.3148, 112.3149, 112.63, 200.068,

20  218.32, 218.34, 218.38, and 218.39, and 280.17 and chapter 121

21  and from state agencies administering programs that distribute

22  money to special districts. The noncompliance special district

23  compliance status reports must list those consist of a list of

24  special districts used in that state agency and a list of

25  which special districts that did not comply with the statutory

26  reporting requirements statutorily required by that agency.

27         (8)  Providing assistance to local general-purpose

28  governments and certain state agencies in collecting

29  delinquent reports or information, helping special districts

30  comply with reporting requirements, declaring special

31  districts inactive when appropriate, and, when directed by the

                                  18

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  Legislative Auditing Committee, initiating enforcement

  2  provisions as provided in ss. 189.4044, 189.419, and 189.421.

  3         Section 14.  Subsections (1) and (2) of section

  4  189.418, Florida Statutes, are amended, present subsection (5)

  5  of that section is renumbered as subsection (6), present

  6  subsection (6) of that section is renumbered as subsection (7)

  7  and amended, and a new subsection (5) is added to that

  8  section, to read:

  9         189.418  Reports; budgets; audits.--

10         (1)  When a new special district is created, the

11  district must forward to the department, within 30 days after

12  the adoption of the special act, rule, ordinance, resolution,

13  or other document that provides for the creation of the

14  district, a copy of the document and a written statement that

15  includes a reference to the status of the special district as

16  dependent or independent and the basis for such

17  classification. In addition to the document or documents that

18  create the district, the district must also submit a map of

19  the district, showing any municipal boundaries that cross the

20  district's boundaries, and any county lines if the district is

21  located in more than one county.  The department must notify

22  the local government or other entity and the district within

23  30 days after receipt of the document or documents that create

24  the district as to whether the district has been determined to

25  be dependent or independent.

26         (2)  Any amendment, modification, or update of the

27  document by which the district was created, including changes

28  in boundaries, must be filed with the department within 30

29  days after adoption.  The department may initiate proceedings

30  against special districts as provided in s. ss. 189.421 and

31

                                  19

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  189.422 for failure to file the information required by this

  2  subsection.

  3         (5)  The governing body of each special district at any

  4  time within a fiscal year or within up to 60 days following

  5  the end of the fiscal year may amend a budget for that year.

  6  The budget amendment must be adopted by resolution.

  7         (7)(6)  All reports or information required to be filed

  8  with a local governing authority under ss. 189.415, 189.416,

  9  and 189.417, 218.32, and 218.39 and this section shall:

10         (a)  When the local governing authority is a county, be

11  filed with the clerk of the board of county commissioners.

12         (b)  When the district is a multicounty district, be

13  filed with the clerk of the county commission in each county.

14         (c)  When the local governing authority is a

15  municipality, be filed at the place designated by the

16  municipal governing body.

17         Section 15.  Section 189.419, Florida Statutes, is

18  amended to read:

19         189.419  Effect of failure to file certain reports or

20  information.--

21         (1)  If a special district fails to file the reports or

22  information required under s. 189.415, s. 189.416, or s.

23  189.417, s. 189.418, s. 218.32, or s. 218.39 and a description

24  of all new bonds as provided in s. 218.38(1) with the local

25  governing authority, the person authorized to receive and read

26  the reports or information shall notify the district's

27  registered agent and the appropriate local governing authority

28  or authorities. If requested by the district At any time, the

29  governing authority shall may grant an extension of time of up

30  to 30 days for filing the required reports or information,

31  except that an extension may not exceed 30 days.

                                  20

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (2)  If at any time the local governing authority or

  2  authorities or the board of county commissioners determines

  3  that there has been an unjustified failure to file the reports

  4  or information described in subsection (1), it may notify

  5  petition the department and the department may proceed

  6  pursuant to initiate proceedings against the special district

  7  in the manner provided in s. 189.421.

  8         (3)  If a special district fails to file the reports or

  9  information required under s. 112.63, s. 218.32, s. 218.38, or

10  s. 218.39 with the appropriate state agency, the agency shall

11  notify the department, and the department shall proceed

12  pursuant to s. 189.421 may initiate proceedings against the

13  special district in the manner provided in s. 189.421 or

14  assess fines of not more than $25, with an aggregate total not

15  to exceed $50, when formal inquiries do not resolve the

16  noncompliance.

17         Section 16.  Section 189.421, Florida Statutes, is

18  amended to read:

19         (Substantial rewording of section. See

20         s. 189.421, F.S., for present text.)

21         189.421  Failure of district to disclose financial

22  reports.--

23         (1)  When notified pursuant to s. 189.419, the

24  department shall attempt to assist a special district to

25  comply with its financial reporting requirements by sending a

26  certified letter to the special district, and a copy of the

27  letter to the chair of the governing body of the local

28  general-purpose government, which includes the following: a

29  description of the required report, including statutory

30  submission deadlines, a contact telephone number for technical

31  assistance to help the special district comply, a 60-day

                                  21

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  extension of time for filing the required report with the

  2  appropriate entity, the address where the report must be

  3  filed, and an explanation of the penalties for noncompliance.

  4  The department may grant an additional 30-day extension of

  5  time if requested to do so in writing by the special district.

  6  The department shall notify the appropriate entity of the new

  7  extension of time.  In the case of a special district that did

  8  not timely file the reports or information required by s.

  9  218.38, the department shall send a certified technical

10  assistance letter to the special district that summarizes the

11  requirements and encourages the special district to take steps

12  to prevent the noncompliance from reoccurring.

13         (2)  Failure of a special district to comply with the

14  financial reporting requirements after the procedures of

15  subsection (1) are exhausted shall be deemed final action of

16  the special district.  The financial reporting requirements

17  are hereby declared to be essential requirements of law.

18  Remedy for noncompliance shall be by writ of certiorari as set

19  forth in subsection (3).

20         (3)  Pursuant to s. 11.40(5)(b), the Legislative

21  Auditing Committee shall notify the department of those

22  districts that failed to file the required report.  Within 30

23  days after receiving this notice or within 30 days after the

24  extension date provided in subsection (1), whichever occurs

25  later, the department shall proceed as follows:

26  notwithstanding the provisions of chapter 120, the department

27  shall file a petition for writ of certiorari with the circuit

28  court.  Venue for all actions pursuant to this subsection

29  shall be in Leon County.  The court shall award the prevailing

30  party attorney's fees and costs in all cases filed pursuant to

31  this section unless affirmatively waived by all parties.  A

                                  22

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  writ of certiorari shall be issued unless a respondent

  2  establishes that the notification of the Legislative Auditing

  3  Committee was issued as a result of material error.

  4  Proceedings under this subsection shall otherwise be governed

  5  by the Rules of Appellate Procedure.

  6         Section 17.  Subsection (5) of section 189.428, Florida

  7  Statutes, is amended to read:

  8         189.428  Special districts; oversight review process.--

  9         (5)  Those conducting the oversight review process

10  shall, at a minimum, consider the listed criteria for

11  evaluating the special district, but may also consider any

12  additional factors relating to the district and its

13  performance.  If any of the listed criteria does do not apply

14  to the special district being reviewed, it they need not be

15  considered. The criteria to be considered by the reviewer

16  include:

17         (a)  The degree to which the service or services

18  offered by the special district are essential or contribute to

19  the well-being of the community.

20         (b)  The extent of continuing need for the service or

21  services currently provided by the special district.

22         (c)  The extent of municipal annexation or

23  incorporation activity occurring or likely to occur within the

24  boundaries of the special district and its impact on the

25  delivery of services by the special district.

26         (d)  Whether there is a less costly alternative method

27  of delivering the service or services that would adequately

28  provide the district residents with the services provided by

29  the district.

30         (e)  Whether transfer of the responsibility for

31  delivery of the service or services to an entity other than

                                  23

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  the special district being reviewed could be accomplished

  2  without jeopardizing the district's existing contracts, bonds,

  3  or outstanding indebtedness.

  4         (f)  Whether the Auditor General has notified the

  5  Legislative Auditing Committee that the special district's

  6  audit report, reviewed pursuant to s. 11.45(7), indicates that

  7  the district has met any of the conditions specified in s.

  8  218.503(1) or that a deteriorating financial condition exists

  9  that may cause a condition described in s. 218.503(1) to occur

10  if actions are not taken to address such condition.

11         (g)  Whether the Governor Auditor General has

12  determined that the special district is in a state of

13  financial emergency as provided in s. 218.503(1), and has

14  notified the Governor and the Legislative Auditing Committee.

15         (h)  Whether the district is inactive according to the

16  official list of special districts, and whether the district

17  is meeting and discharging its responsibilities as required by

18  its charter, as well as projected increases or decreases in

19  district activity.

20         (i)  Whether the special district has failed to comply

21  with any of the reporting requirements in this chapter,

22  including preparation of the public facilities report.

23         (j)  Whether the special district has designated a

24  registered office and agent as required by s. 189.416, and has

25  complied with all open public records and meeting

26  requirements.

27         Section 18.  Paragraph (a) of subsection (1) of section

28  189.439, Florida Statutes, is amended to read:

29         189.439  Bonds.--

30         (1)  AUTHORIZATION AND FORM OF BONDS.--

31

                                  24

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (a)  The authority may issue and sell bonds for any

  2  purpose for which the authority has the power to expend money,

  3  including, without limitation, the power to obtain working

  4  capital loans to finance the costs of any project and to

  5  refund any bonds or other indebtedness at the time outstanding

  6  at or before maturity. Bonds may be sold in the manner

  7  provided in s. 218.385 and by public or negotiated sale after

  8  advertisement, if any, as the board considers advisable.

  9  Bonds may be authorized by resolution of the board.

10         Section 19.  Section 215.981, Florida Statutes, is

11  amended to read:

12         215.981  Audits of state agency direct-support

13  organizations and citizen support organizations.--Each

14  direct-support organization and each citizen support

15  organization, created or authorized pursuant to law, and

16  created, approved, or administered by a state agency, other

17  than a university, district board of trustees of a community

18  college, or district school board, shall provide for an annual

19  financial audit of its accounts and records to be conducted by

20  an independent certified public accountant in accordance with

21  rules adopted by the Auditor General pursuant to s. 11.45(8)

22  and the state agency that created, approved, or administers

23  the direct-support organization or citizen support

24  organization, whenever the organization's expenses exceed

25  $100,000. The audit report shall be submitted within 9 months

26  after the end of the fiscal year to the Auditor General and to

27  the state agency responsible for creation, administration, or

28  approval of the direct-support organization or citizen support

29  organization. Such state agency, the Auditor General, and the

30  Office of Program Policy Analysis and Government

31  Accountability shall have the authority to require and receive

                                  25

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  from the organization or from the independent auditor any

  2  records relative to the operation of the organization.

  3         Section 20.  Subsection (3) of section 218.075, Florida

  4  Statutes, is amended to read:

  5         218.075  Reduction or waiver of permit processing

  6  fees.--Notwithstanding any other provision of law, the

  7  Department of Environmental Protection and the water

  8  management districts shall reduce or waive permit processing

  9  fees for counties with a population of 50,000 or less on April

10  1, 1994, until such counties exceed a population of 75,000 and

11  municipalities with a population of 25,000 or less, or any

12  county or municipality not included within a metropolitan

13  statistical area. Fee reductions or waivers shall be approved

14  on the basis of fiscal hardship or environmental need for a

15  particular project or activity. The governing body must

16  certify that the cost of the permit processing fee is a fiscal

17  hardship due to one of the following factors:

18         (3)  Any condition specified in s. 218.503(1), that

19  results in the county or municipality being declared to be in

20  determines a state of financial emergency;

21

22  The permit applicant must be the governing body of a county or

23  municipality or a third party under contract with a county or

24  municipality and the project for which the fee reduction or

25  waiver is sought must serve a public purpose. If a permit

26  processing fee is reduced, the total fee shall not exceed

27  $100.

28         Section 21.  Subsection (3) is added to section 218.32,

29  Florida Statutes, to read:

30         218.32  Annual financial reports; local governmental

31  entities.--

                                  26

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (3)  The department shall notify the President of the

  2  Senate and the Speaker of the House of Representatives of any

  3  municipality that has not had financial activity for the last

  4  4 fiscal years.  Such notice shall be sufficient to initiate

  5  dissolution procedures described in s. 165.051(1)(a).  Any

  6  special law authorizing the incorporation or creation of said

  7  municipality shall be included within the notification.

  8         Section 22.  Subsection (3) of section 218.36, Florida

  9  Statutes, is amended to read:

10         218.36  County officers; record and report of fees and

11  disposition of same.--

12         (3)  The board of county commissioners may shall, on

13  the 32nd day following the close of the fiscal year, notify

14  the Governor of the failure of any county officer to comply

15  with the provisions of this section.  Such notification shall

16  specify the name of the officer and the office held by him or

17  her at the time of such failure and shall subject said officer

18  to suspension from office at the Governor's discretion.

19         Section 23.  Section 218.369, Florida Statutes, is

20  amended to read:

21         218.369  Definitions applicable to ss.

22  218.37-218.386.--As used in this section and in ss. 218.37,

23  218.38, 218.385, and 218.386, the term "unit of local

24  government," except where exception is made, means a county,

25  municipality, special district, district school board, local

26  agency, authority, or consolidated city-county government or

27  any other local governmental body or public body corporate and

28  politic authorized or created by general or special law and

29  granted the power to issue general obligation or revenue

30  bonds; and the words "general obligation or revenue bonds"

31  shall be interpreted to include within their scope general

                                  27

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  obligation bonds, revenue bonds, special assessment bonds,

  2  limited revenue bonds, special obligation bonds, debentures,

  3  and other similar instruments, but not bond anticipation

  4  notes.

  5         Section 24.  Part V of chapter 218, Florida Statutes,

  6  entitled "Financial Emergencies" is renamed "Local

  7  Governmental Entity and District School Board Financial

  8  Emergencies."

  9         Section 25.  Section 218.50, Florida Statutes, is

10  amended to read:

11         218.50  Short title.--Sections 218.50-218.504 shall be

12  known as the "Local Governmental Entity and District School

13  Board Government Financial Emergencies Act."

14         Section 26.  Section 218.501, Florida Statutes, is

15  amended to read:

16         218.501  Purposes.--The purposes of ss. 218.50-218.504

17  are:

18         (1)  To promote preserve and protect the fiscal

19  responsibility solvency of local governmental entities and

20  district school boards.

21         (2)  To assist local governmental entities and district

22  school boards in providing essential services without

23  interruption and in meeting their financial obligations.

24         (3)  To assist local governmental entities and district

25  school boards through the improvement of local financial

26  management procedures.

27         Section 27.  Section 218.502, Florida Statutes, is

28  amended to read:

29         218.502  Definition.--As used in ss. 218.50-218.504,

30  the term "local governmental entity" means a county,

31  municipality, or special district, or district school board.

                                  28

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         Section 28.  Section 218.503, Florida Statutes, as

  2  amended by chapter 2001-354, Laws of Florida, is amended to

  3  read:

  4         218.503  Determination of financial emergency.--

  5         (1)  A Local governmental entities and district school

  6  boards shall be subject to review and oversight by the

  7  Governor or the Commissioner of Education entity is in a state

  8  of financial emergency when any one of the following

  9  conditions occurs:

10         (a)  Failure within the same fiscal year in which due

11  to pay short-term loans from banks or failure to make bond

12  debt service or other long-term debt payments when due, as a

13  result of a lack of funds.

14         (b)  Failure to pay uncontested claims from creditors

15  within 90 days after the claim is presented, as a result of a

16  lack of funds.

17         (c)(b)  Failure to transfer at the appropriate time,

18  due to lack of funds:

19         1.  Taxes withheld on the income of employees; or

20         2.  Employer and employee contributions for:

21         a.  Federal social security; or

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

23  employee.

24         (d)(c)  Failure for one pay period to pay, due to lack

25  of funds:

26         1.  Wages and salaries owed to employees; or

27         2.  Retirement benefits owed to former employees.

28         (e)(d)  An unreserved or total fund balance or retained

29  earnings deficit, or unrestricted or total net assets deficit,

30  as reported on the balance sheet or statement of net assets on

31  the general purpose or fund financial statements, for which

                                  29

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  sufficient resources of the local governmental entity, as

  2  reported on the balance sheet or statement of net assets on

  3  the general purpose or fund financial statements, are not

  4  available to cover the deficit for 2 successive years.

  5  Resources available to cover reported deficits include net

  6  assets that are not otherwise restricted by federal, state, or

  7  local laws, bond covenants, contractual agreements, or other

  8  legal constraints. Fixed or capital assets, the disposal of

  9  which would impair the ability of a local governmental entity

10  to carry out its functions, are not considered resources

11  available to cover reported deficits.

12         (e)  Noncompliance of the local government retirement

13  system with actuarial conditions provided by law.

14         (2)  A local governmental entity shall notify the

15  Governor and the Legislative Auditing Committee, and a

16  district school board shall notify the Commissioner of

17  Education and the Legislative Auditing Committee, when one or

18  more of the conditions specified in subsection (1) have

19  occurred or will occur if action is not taken to assist the

20  local governmental entity or district school board.  In

21  addition, any state agency must, within 30 days after a

22  determination that one or more of the conditions specified in

23  subsection (1) have occurred or will occur if action is not

24  taken to assist the local governmental entity or district

25  school board the identification of the financial emergency,

26  notify the Governor or the Commissioner of Education, as

27  appropriate, and the Legislative Auditing Committee when one

28  or more of the conditions specified in subsection (1) have

29  occurred or will occur if action is not taken to assist a

30  local governmental entity.

31

                                  30

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (3)  Upon notification that one or more of the

  2  conditions in subsection (1) exist, the Governor or his or her

  3  designee shall contact the local governmental entity or the

  4  Commissioner of Education or his or her designee shall contact

  5  the district school board to determine what actions have been

  6  taken by the local governmental entity or the district school

  7  board to resolve the condition financial emergency. The

  8  Governor or the Commissioner of Education, as appropriate,

  9  shall determine whether the local governmental entity or the

10  district school board needs state assistance to resolve the

11  condition.  If state assistance is needed, the local

12  governmental entity or district school board is considered to

13  be in a state of financial emergency.  The Governor or the

14  Commissioner of Education, as appropriate, has the authority

15  to implement measures as set forth in ss. 218.50-218.504 to

16  assist the local governmental entity or district school board

17  in resolving resolve the financial emergency.  Such measures

18  may include, but are not limited to:

19         (a)  Requiring approval of the local governmental

20  entity's budget by the Governor or approval of the district

21  school board's budget by the Commissioner of Education.

22         (b)  Authorizing a state loan to a the local

23  governmental entity and providing for repayment of same.

24         (c)  Prohibiting a local governmental entity or

25  district school board from issuing bonds, notes, certificates

26  of indebtedness, or any other form of debt until such time as

27  it is no longer subject to this section.

28         (d)  Making such inspections and reviews of records,

29  information, reports, and assets of the local governmental

30  entity or district school board. The appropriate local

31

                                  31

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  officials shall cooperate in such, in which inspections and

  2  reviews the appropriate local officials shall cooperate.

  3         (e)  Consulting with the officials and auditors of the

  4  local governmental entity or the district school board and the

  5  appropriate state officials agency regarding any steps

  6  necessary to bring the books of account, accounting systems,

  7  financial procedures, and reports into compliance with state

  8  requirements.

  9         (f)  Providing technical assistance to the local

10  governmental entity or the district school board.

11         (g)1.  Establishing a financial emergency emergencies

12  board to oversee the activities of the local governmental

13  entity or the district school board. If a financial emergency

14  The board, if is established for a local governmental entity,

15  shall be appointed by the Governor shall appoint board members

16  and select a chair. If a financial emergency board is

17  established for a district school board, the State Board of

18  Education shall appoint board members and select a chair. The

19  Governor shall select a chair and such other officers as are

20  necessary. The financial emergency board shall adopt such

21  rules as are necessary for conducting board business. The

22  board may:

23         a.  Make such reviews of records, reports, and assets

24  of the local governmental entity or the district school board

25  as are needed.

26         b.  Consult with the officials and auditors of the

27  local governmental entity or the district school board and the

28  appropriate state officials regarding any steps necessary to

29  bring the books of account, accounting systems, financial

30  procedures, and reports of the local governmental entity or

31

                                  32

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  the district school board into compliance with state

  2  requirements.

  3         c.  Review the operations, management, efficiency,

  4  productivity, and financing of functions and operations of the

  5  local governmental entity or district school board.

  6         2.  The recommendations and reports made by the

  7  financial emergency board must be submitted to the Governor

  8  for local governmental entities or to the Commissioner of

  9  Education and the State Board of Education for district school

10  boards for appropriate action.

11         (h)  Requiring and approving a plan, to be prepared by

12  officials of the appropriate state agency in conjunction with

13  the local governmental entity or the district school board in

14  consultation with the appropriate state officials, prescribing

15  actions that will cause the local governmental entity or

16  district school board to no longer be subject to this section.

17  The plan must include, but need not be limited to:

18         1.  Provision for payment in full of obligations

19  outlined in subsection (1), designated as priority items, that

20  are currently all payments due or will to come due on debt

21  obligations, pension payments, and all payments and charges

22  imposed or mandated by federal or state law and for all

23  judgments and past due accounts, as priority items of

24  expenditures.

25         2.  Establishment of a basis of priority budgeting or

26  zero-based budgeting in order, so as to eliminate low-priority

27  items that are not affordable.

28         3.  The prohibition of a level of operations which can

29  be sustained only with nonrecurring revenues.

30         (4)  A During the financial emergency period, the local

31  governmental entity or district school board may not seek

                                  33

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  application of laws under the bankruptcy provisions of the

  2  United States Constitution except with the prior approval of

  3  the Governor for local governmental entities or the

  4  Commissioner of Education for district school boards.

  5         (5)(a)  The governing authority of any municipality

  6  having a resident population of 300,000 or more on or after

  7  April 1, 1999, which has been declared in a state of financial

  8  emergency pursuant to this section may impose a discretionary

  9  per-vehicle surcharge of up to 20 percent on the gross

10  revenues of the sale, lease, or rental of space at parking

11  facilities within the municipality which are open for use to

12  the general public.

13         (b)  A municipal governing authority that imposes the

14  surcharge authorized by this subsection may use the proceeds

15  of such surcharge for the following purposes only:

16         1.  No less than 60 percent and no more than 80 percent

17  of the surcharge proceeds shall be used by the governing

18  authority to reduce its ad valorem tax millage rate or to

19  reduce or eliminate non-ad valorem assessments.

20         2.  A portion of the balance of the surcharge proceeds

21  shall be used by the governing authority to increase its

22  budget reserves; however, the governing authority shall not

23  reduce the amount it allocates for budget reserves from other

24  sources below the amount allocated for reserves in the fiscal

25  year prior to the year in which the surcharge is initially

26  imposed. When a 15-percent budget reserve is achieved, based

27  on the average gross revenue for the most recent 3 prior

28  fiscal years, the remaining proceeds from this subparagraph

29  shall be used for the payment of annual debt service related

30  to outstanding obligations backed or secured by a covenant to

31  budget and appropriate from non-ad valorem revenues.

                                  34

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1         (c)  This subsection expires June 30, 2006.

  2         Section 29.  Section 218.504, Florida Statutes, is

  3  amended to read:

  4         218.504  Cessation of state action.--The Governor or

  5  the Commissioner of Education, as appropriate, has the

  6  authority to terminate all state actions pursuant to ss.

  7  218.50-218.504.  Cessation of state action must not occur

  8  until the Governor or the Commissioner of Education, as

  9  appropriate, has determined that:

10         (1)  The local governmental entity or district school

11  board:

12         (a)  Has established and is operating an effective

13  financial accounting and reporting system.

14         (b)  Has resolved corrected or eliminated the fiscal

15  emergency conditions outlined in s. 218.503(1).

16         (2)  None of the No new fiscal emergency conditions

17  outlined in s. 218.593(1) exist.

18         Section 30.  Section 236.43, Florida Statutes, is

19  amended to read:

20         236.43  Receiving bids and sale of bonds.--

21         (1)  In case the issuance of bonds shall be authorized

22  at said election, or in case any bonds outstanding against the

23  district are being refunded, the school board shall sell the

24  bonds in the manner provided in s. 218.385. cause notice to be

25  given by publication in some newspaper published in the

26  district that said board will receive bids for the purchase of

27  the bonds at the office of the superintendent of said

28  district.  The notice shall be published twice and the first

29  publication shall be given not less than 30 days prior to the

30  date set for receiving the bids.  Said notice shall specify

31  the amount of the bonds offered for sale and shall state

                                  35

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  whether the bids shall be sealed bids or whether the bonds are

  2  to be sold at auction, shall give the schedule of maturities

  3  of the proposed bonds and such other pertinent information as

  4  may be prescribed by regulations of the state board.  Bidders

  5  may be invited to name the rate of interest which the bonds

  6  are to bear or the school board may name rates of interest and

  7  invite bids thereon.  In addition to publication of notice of

  8  the proposed sale as set forth above, the school board shall

  9  also notify in writing at least three recognized bond dealers

10  in the state and shall also at the same time notify the

11  Department of Education concerning the proposed sale,

12  enclosing a copy of the advertisement.

13         (2)  All bonds and refunding bonds issued as provided

14  by law shall be sold to the highest and best bidder at such

15  public sale unless sold at a better price or yield basis

16  within 30 days after failure to receive an acceptable bid at a

17  duly advertised public sale; provided, that at no time shall

18  bonds or refunding bonds be sold or exchanged at less than par

19  value except as specifically authorized by the department; and

20  provided, further, that the school board shall have the right

21  to reject all bids and cause a new notice to be given in like

22  manner inviting other bids for such bonds, or to sell all or

23  any part of such bonds to the state board at a price and yield

24  basis which shall not be less advantageous to the school board

25  than that represented by the highest and best bid received.

26  In the marketing of said bonds the school board shall be

27  entitled to have such assistance as can be rendered by the

28  Governor, the State Treasurer, the Commissioner of Education,

29  or any other public state officer or agency.  In determining

30  the highest and best bidder for bonds offered for sale by

31  competitive bid, the true net interest cost to the school

                                  36

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  board as shown in standard bond tables shall govern,;

  2  provided, that the determination of the school board as to the

  3  highest and best bidder shall be final.

  4         Section 31.  Subsection (4) of section 237.40, Florida

  5  Statutes, is amended to read:

  6         237.40  Direct-support organization; use of property;

  7  board of directors; audit.--

  8         (4)  ANNUAL AUDIT.--Each direct-support organization

  9  with more than $100,000 in expenses shall provide for an

10  annual financial audit of its accounts and records, to be

11  conducted by an independent certified public accountant in

12  accordance with rules adopted by the Auditor General pursuant

13  to s. 11.45(8) and the Commissioner of Education. The annual

14  audit report shall be submitted within 9 months after the

15  fiscal year's end to the district school board and the Auditor

16  General. The Commissioner of Education, the Auditor General,

17  and the Office of Program Policy Analysis and Government

18  Accountability have the authority to require and receive from

19  the organization or the district auditor any records relative

20  to the operation of the organization. The identity of donors

21  and all information identifying donors and prospective donors

22  are confidential and exempt from the provisions of s.

23  119.07(1), and that anonymity shall be maintained in the

24  auditor's report. All other records and information shall be

25  considered public records for the purposes of chapter 119.

26         Section 32.  Subsection (5) of section 240.299, Florida

27  Statutes, is amended to read:

28         240.299  Direct-support organizations; use of property;

29  board of directors; activities; audit; facilities.--

30         (5)  ANNUAL AUDIT.--Each direct-support organization

31  with more than $100,000 in expenses shall provide for an

                                  37

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1  annual financial audit of its accounts and records to be

  2  conducted by an independent certified public accountant in

  3  accordance with rules adopted by the Auditor General pursuant

  4  to s. 11.45(8) and by the Board of Regents.  The annual audit

  5  report shall be submitted, within 9 months after the end of

  6  the fiscal year, to the Auditor General and the Board of

  7  Regents for review.  The Board of Regents, the Auditor

  8  General, and the Office of Program Policy Analysis and

  9  Government Accountability shall have the authority to require

10  and receive from the organization or from its independent

11  auditor any records relative to the operation of the

12  organization. The identity of donors who desire to remain

13  anonymous shall be protected, and that anonymity shall be

14  maintained in the auditor's report.  All records of the

15  organization other than the auditor's report, management

16  letter, and any supplemental data requested by the Board of

17  Regents, the Auditor General, and the Office of Program Policy

18  Analysis and Government Accountability shall be confidential

19  and exempt from the provisions of s. 119.07(1).

20         Section 33.  Subsection (6) of section 240.331, Florida

21  Statutes, is amended to read:

22         240.331  Community college direct-support

23  organizations.--

24         (6)  ANNUAL AUDIT.--Each direct-support organization

25  with more than $100,000 in expenses shall provide for an

26  annual financial audit of its accounts and records in

27  accordance with rules adopted by the Auditor General pursuant

28  to s. 11.45(8). The annual audit report must be submitted,

29  within 9 months after the end of the fiscal year, to the

30  Auditor General, the State Board of Community Colleges, and

31  the board of trustees for review.  The board of trustees, the

                                  38

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




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

  2  Government Accountability may require and receive from the

  3  organization or from its independent auditor any detail or

  4  supplemental data relative to the operation of the

  5  organization.  The identity of donors who desire to remain

  6  anonymous shall be protected, and that anonymity shall be

  7  maintained in the auditor's report. All records of the

  8  organization, other than the auditor's report, any information

  9  necessary for the auditor's report, any information related to

10  the expenditure of funds, and any supplemental data requested

11  by the board of trustees, the Auditor General, and the Office

12  of Program Policy Analysis and Government Accountability,

13  shall be confidential and exempt from the provisions of s.

14  119.07(1).

15         Section 34.  Chapter 131, Florida Statutes, consisting

16  of sections 131.01, 131.02, 131.03, 131.04, 131.05, and

17  131.06, Florida Statutes, is repealed.

18         Section 35.  Section 132.10, Florida Statutes, is

19  repealed.

20         Section 36.  Section 165.052, Florida Statutes, is

21  repealed.

22         Section 37.  Section 189.409, Florida Statutes, is

23  repealed.

24         Section 38.  Section 189.422, Florida Statutes, is

25  repealed.

26         Section 39.  Section 200.0684, Florida Statutes, is

27  repealed.

28         Section 40.  Paragraph (h) of subsection (1) of section

29  218.37, Florida Statutes, is repealed.

30         Section 41.  This act shall take effect upon becoming a

31  law.

                                  39

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




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

  2                       LEGISLATIVE SUMMARY

  3
      Revises provisions relating to local government
  4    accountability. Revises duties of the Legislative
      Auditing Committee. Revises reporting requirements of the
  5    Auditor General. Deletes a requirement for an independent
      special district to submit a copy of a complaint to the
  6    Division of Bond Finance of the State Board of
      Administration. Revises the definition of "governmental
  7    entity" to include counties and district school boards.
      Provides for additional information to be provided to the
  8    Department of Management Services in actuarial reports
      with regard to retirement systems and plans and provides
  9    procedures therefor. Provides for notification of the
      Department of Revenue and the Department of Banking and
10    Finance in cases of noncompliance and authorizes the
      withholding of certain funds. Requires the Department of
11    Management Services to notify the Department of Community
      Affairs in the case of affected special districts.
12    Revises provisions governing notice of bids and
      disposition of bonds, authorization to issue refund
13    bonds, notice of sale, bids, and awards, and private sale
      of bonds.
14

15    Revises provisions governing the Small County Technical
      Assistance Program. Revises provisions governing the
16    issuance of bonds by a municipality. Provides a municipal
      budget amendment process and requirements. Revises
17    special procedures for determination of inactive special
      districts. Revises duties of the Special District
18    Information Program of the Department of Community
      Affairs. Revises reporting requirements of newly created
19    special districts. Authorizes the governing body of a
      special district to amend its budget. Revises provisions
20    relating to the failure of special districts to file
      required reports. Revises provisions governing the
21    failure of special districts to disclose financial
      reports, provides for extension of time for the filing of
22    said reports, and provides remedies for noncompliance.
      Provides for attorney's fees and costs. Revises
23    provisions governing the special district oversight
      review process. Revises provisions governing the issuance
24    of bonds by special districts.

25
      Exempts state agency direct-support organizations and
26    citizen support organizations meeting specified expense
      levels from audit requirements. Revises provisions
27    governing the reduction or waiver of permit processing
      fees for certain counties. Requires the Department of
28    Banking and Finance to notify the Speaker of the House of
      Representatives and the President of the Senate of any
29    municipality that has not had financial activity for a
      specified period of time and provides that such notice is
30    sufficient to initiate dissolution procedures. Revises
      reporting requirements for boards of county commissioners
31    relating to the failure of a county officer to comply
      with the provisions of s. 218.36, F.S. Revises the
                                  40

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






    Florida Senate - 2002                                  SB 2578
    4-1486-02                                               See HB




  1    definition of "unit of local government" to include
      district school boards.
  2

  3    Renames pt. V of ch. 218, F.S., as "Local Governmental
      Entity and District School Board Financial Emergencies"
  4    and renames ss. 218.50-218.504, F.S., as the "Local
      Governmental Entity and District School Board Act."
  5    Revises the stated purposes of pt. V of ch. 218, F.S.
      Revises the definition of "local governmental entity."
  6    Revises provisions governing the determination of
      financial emergency for local governments and district
  7    school boards. Revises provisions relating to the
      authority of the Governor and authorizes the Commissioner
  8    of Education to terminate all state actions pursuant to
      ss. 218.50-218.504, F.S. Revises provisions governing
  9    receipt of bids and sale of bonds. Exempts district
      school board direct-support organizations and citizen
10    support organizations meeting specified expense levels
      from audit requirements.
11

12    Repeals ch. 131, F.S., consisting of ss. 131.01, 131.02,
      131.03, 131.04, 131.05, and 131.06, F.S., relating to
13    refunding bonds of counties, municipalities, and special
      districts. Repeals s. 132.10, F.S., relating to minimum
14    sale price of bonds. Repeals s. 165.052, F.S., relating
      to special dissolution procedures for municipalities.
15    Repeals s. 189.409, F.S., relating to determination of
      financial emergencies of special districts. Repeals s.
16    189.422, F.S., relating to actions of the Department of
      Community Affairs and special districts. Repeals s.
17    200.0684, F.S., relating to an annual compliance report
      of the Department of Community Affairs regarding special
18    districts. Repeals s. 218.37(1)(h), F.S., relating to the
      requirement that the Division of Bond Finance use a
19    served copy of the complaint for bond validation to
      verify compliance by special districts with the
20    requirements in s. 218.38, F.S.

21

22

23

24

25

26

27

28

29

30

31

                                  41

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