Senate Bill sb1454c1

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    Florida Senate - 2003                           CS for SB 1454

    By the Committee on Comprehensive Planning; and Senators
    Atwater, Dawson, Bennett and Geller




    316-1925-03

  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; providing for interest on

20         certain unpaid funds; requiring agencies to

21         submit annual reports to the Governor and to

22         legislative leaders; providing an effective

23         date.

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

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27         Section 1.  Local Funding Revenue Maximization Act;

28  legislative intent; revenue maximization program.--

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

30  "Local Funding Revenue Maximization Act."

31         (2)  LEGISLATIVE INTENT.--

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    Florida Senate - 2003                           CS for SB 1454
    316-1925-03




 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 or department that is involved in

25  providing health, social, or human services, including, but

26  not limited to, the Agency for Health Care Administration, the

27  Agency for Workforce Innovation, the Department of Children

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

29  Department of Juvenile Justice, and the Florida Board of

30  Education.

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    Florida Senate - 2003                           CS for SB 1454
    316-1925-03




 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 within 30 days after receipt by the

17  agency by the most expedient means possible to the local

18  political subdivision providing such funding, and the local

19  political subdivision must be provided an annual accounting of

20  federal reimbursements received by the state or its agencies

21  as a result of the certification of the local political

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

23  subdivision of such matching funds must not in any way

24  influence or be used as a factor in developing any agency's

25  annual operating budget allocation methodology or formula or

26  any subsequent budget amendment allocations or formulas. If

27  necessary, agreements must be made between an agency and the

28  local political subdivision to accomplish that purpose. Such

29  an agreement may provide that the local political subdivision

30  must: verify the eligibility of the local program or programs

31  and the individuals served thereby to qualify for federal

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    Florida Senate - 2003                           CS for SB 1454
    316-1925-03




 1  matching funds; shall develop and maintain the financial

 2  records necessary for documenting the appropriate use of

 3  federal funds; shall comply with all applicable state and

 4  federal laws, regulations, and rules that regulate such

 5  federal services; and shall reimburse the cost of any

 6  disallowance of federal funding previously provided to a local

 7  political subdivision resulting from the failure of that local

 8  political subdivision to comply with applicable state or

 9  federal laws, rules, or regulations.

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

11  political subdivisions to modify any state plans and to seek

12  and implement any federal waivers necessary to implement this

13  section. If such modifications or waivers require the approval

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

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

16  and the Speaker of the House of Representatives and to the

17  respective committee chairs of the Senate and the House of

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

19  annually thereafter.

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

21  under this section are distributed to any local political

22  subdivision, may deduct the actual administrative cost for

23  implementing and monitoring the local match program; however,

24  such administrative costs may not exceed 5 percent of the

25  total federal reimbursement funding to be provided to the

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

27  that any other provision of state law applies to the

28  certification of local matching funds for a specific program,

29  the provisions of that statute which relate to administrative

30  costs apply in lieu of the provisions of this paragraph. The

31  failure to remit reimbursement to the local political

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    Florida Senate - 2003                           CS for SB 1454
    316-1925-03




 1  subdivision will result in the payment of interest, in

 2  addition to the amount to be reimbursed at a rate pursuant to

 3  section 55.03(1), Florida Statutes, on the unpaid amount from

 4  the expiration of the 30-day period until payment is received.

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

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

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

 8  report that documents the specific activities undertaken

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

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

11  amount of federal matching funds generated by local matching

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

13  the total amount of block grant funds expended during the

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

15  total amount for federal matching fund programs, including,

16  but not limited to, Temporary Assistance for Needy Families

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

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

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

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

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

22  and timeline for spending any unobligated and unliquidated

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

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

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    Florida Senate - 2003                           CS for SB 1454
    316-1925-03




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1454

 3                                 

 4  The Committee Substitute adds the words "or department" to the
    definition of "agency" for purposes of the local funding
 5  maximization act. Also, the committee substitute provides that
    the agency shall return any federal reimbursement, received as
 6  the result of the certification of local matching funds, to
    the local political subdivision within 30 days after receipt
 7  by the most expedient means possible. Finally, the Committee
    Substitute provides that a local political subdivision will
 8  receive interest on any unpaid amount at a rate pursuant to
    s.55.03(1), F.S., from the expiration of the 30-day period
 9  until payment is received.

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