Senate Bill sb1454

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    Florida Senate - 2003                                  SB 1454

    By Senator Atwater





    25-772A-03

  1                      A bill to be entitled

  2         An act relating to local government funding;

  3         creating the "Local Funding Revenue

  4         Maximization Act"; providing legislative

  5         intent; defining the term "agency" for purposes

  6         of the act; providing requirements for state

  7         agencies that provide health services, social

  8         services, or human services; providing

  9         requirements for the use of certain public

10         revenues as local matching funds and for the

11         uses of federal reimbursements received as a

12         result of the certification of local matching

13         funds; providing for agreements between

14         agencies and local political subdivisions;

15         requiring agencies and local political

16         subdivisions to cooperate in modifying state

17         plans and in seeking and implementing any

18         necessary federal waivers; providing for

19         administrative costs; requiring agencies to

20         submit annual reports to the Governor and to

21         legislative leaders; providing an effective

22         date.

23

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

25

26         Section 1.  Local Funding Revenue Maximization Act;

27  legislative intent; revenue maximization program.--

28         (1)  SHORT TITLE.--This section may be cited as the

29  "Local Funding Revenue Maximization Act."

30         (2)  LEGISLATIVE INTENT.--

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    Florida Senate - 2003                                  SB 1454
    25-772A-03




  1         (a)  The Legislature recognizes that state funds do not

  2  fully utilize federal funding matching opportunities for

  3  health and human services needs. It is the intent of the

  4  Legislature to authorize the use of certified local funding

  5  for federal matching programs to the fullest extent possible

  6  to maximize federal funding of local preventive services and

  7  local child development programs in this state. To that end,

  8  the Legislature expects that state agencies will take a

  9  proactive approach in implementing this legislative priority.

10  It is the further intent of the Legislature that this act

11  shall be revenue-neutral with respect to state funds.

12         (b)  It is the intent of the Legislature that revenue

13  maximization opportunities using certified local funding shall

14  occur only after available state funds have been utilized to

15  generate matching federal funding for the state.

16         (c)  It is the intent of the Legislature that

17  participation in revenue maximization is to be voluntary for

18  local political subdivisions.

19         (d)  It is the intent of the Legislature that certified

20  local funding for federal matching programs not supplant or

21  replace state funds.

22         (3)  REVENUE MAXIMIZATION PROGRAM.--

23         (a)  For purposes of this section, the term "agency"

24  means any state agency that is involved in providing health,

25  social, or human services, including, but not limited to, the

26  Agency for Health Care Administration, the Agency for

27  Workforce Innovation, the Department of Children and Family

28  Services, the Department of Elderly Affairs, the Department of

29  Juvenile Justice, and the Florida Board of Education.

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    Florida Senate - 2003                                  SB 1454
    25-772A-03




  1         (b)  Each agency shall establish programs and

  2  mechanisms designed to maximize the use of local funding for

  3  federal programs in accordance with this section.

  4         (c)  The use of local matching funds under this section

  5  must be limited to public revenue funds of local political

  6  subdivisions, including, but not limited to, counties,

  7  municipalities, and special districts. To the extent permitted

  8  by federal law, funds donated to such local political

  9  subdivisions by private entities, such as, but not limited to,

10  the United Way, community foundations or other foundations,

11  and businesses, or by individuals are considered to be public

12  revenue funds available for matching federal funding.

13         (d)  Subject to paragraph (f), any federal

14  reimbursement received as a result of the certification of

15  local matching funds must, unless specifically prohibited by

16  federal law, be returned by check or wire transfer to the

17  local political subdivision providing such funding, and the

18  local political subdivision must be provided an annual

19  accounting of federal reimbursements received by the state or

20  its agencies as a result of the certification of the local

21  political subdivision's matching funds. The receipt by a local

22  political subdivision of such matching funds must not in any

23  way influence or be used as a factor in developing any

24  agency's annual operating budget allocation methodology or

25  formula or any subsequent budget amendment allocations or

26  formulas. If necessary, agreements must be made between an

27  agency and the local political subdivision to accomplish that

28  purpose. Such an agreement may provide that the local

29  political subdivision must: verify the eligibility of the

30  local program or programs and the individuals served thereby

31  to qualify for federal matching funds; shall develop and

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    Florida Senate - 2003                                  SB 1454
    25-772A-03




  1  maintain the financial records necessary for documenting the

  2  appropriate use of federal funds; shall comply with all

  3  applicable state and federal laws, regulations, and rules that

  4  regulate such federal services; and shall reimburse the cost

  5  of any disallowance of federal funding previously provided to

  6  a local political subdivision resulting from the failure of

  7  that local political subdivision to comply with applicable

  8  state or federal laws, rules, or regulations.

  9         (e)  Each agency, as applicable, shall work with local

10  political subdivisions to modify any state plans and to seek

11  and implement any federal waivers necessary to implement this

12  section. If such modifications or waivers require the approval

13  of the Legislature, the agency, as applicable, shall draft

14  such legislation and present it to the President of the Senate

15  and the Speaker of the House of Representatives and to the

16  respective committee chairs of the Senate and the House of

17  Representatives by January 1, 2004, and, as applicable,

18  annually thereafter.

19         (f)  Each agency, as applicable, before funds generated

20  under this section are distributed to any local political

21  subdivision, may deduct the actual administrative cost for

22  implementing and monitoring the local match program; however,

23  such administrative costs may not exceed 5 percent of the

24  total federal reimbursement funding to be provided to the

25  local political subdivision under paragraph (d). To the extent

26  that any other provision of state law applies to the

27  certification of local matching funds for a specific program,

28  the provisions of that statute which relate to administrative

29  costs apply in lieu of the provisions of this paragraph.

30         (g)  Each agency, respectively, shall annually submit

31  to the Governor, the President of the Senate, and the Speaker

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    Florida Senate - 2003                                  SB 1454
    25-772A-03




  1  of the House of Representatives, no later than January 1, a

  2  report that documents the specific activities undertaken

  3  during the previous fiscal year under this section. The report

  4  must include, but is not limited to, a statement of the total

  5  amount of federal matching funds generated by local matching

  6  funds under this section, reported by federal funding source;

  7  the total amount of block grant funds expended during the

  8  previous fiscal year, reported by federal funding source; the

  9  total amount for federal matching fund programs, including,

10  but not limited to, Temporary Assistance for Needy Families

11  and Child Care and Development Fund, of unobligated funds and

12  unliquidated funds, both as of the close of the previous

13  federal fiscal year; the amount of unliquidated funds that is

14  in danger of being returned to the Federal Government at the

15  end of the current federal fiscal year; and a detailed plan

16  and timeline for spending any unobligated and unliquidated

17  funds by the end of the current federal fiscal year.

18         Section 2.  This act shall take effect July 1, 2003.

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20            *****************************************

21                          SENATE SUMMARY

22    Creates the "Local Funding Revenue Maximization Act."
      Provides legislative intent. Defines the term "agency,"
23    as used in the act. Provides requirements for state
      agencies that provide health services, social services,
24    or human services. Provides requirements for the use of
      certain public revenues as local matching funds and for
25    the uses of federal reimbursements received as a result
      of the certification of local matching funds. Provides
26    for agreements between agencies and local political
      subdivisions. Requires agencies and local political
27    subdivisions to cooperate in modifying state plans and in
      seeking and implementing any necessary federal waivers.
28    Provides for administrative costs. Requires agencies to
      submit annual reports to the Governor and to legislative
29    leaders.

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