Senate Bill sb2722c2

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    Florida Senate - 2004                    CS for CS for SB 2722

    By the Committees on Appropriations; Governmental Oversight
    and Productivity; and Senator Atwater




    309-2686-04

  1                      A bill to be entitled

  2         An act relating to the management of state

  3         financial matters; amending s. 255.248, F.S.;

  4         creating and revising definitions; providing

  5         exceptions; amending s. 255.249, F.S.; removing

  6         a requirement; providing that the Department of

  7         Management Services, rather than agencies

  8         acting on their own behalf, can lease space for

  9         agencies; providing that the department may

10         retain a real estate broker; providing

11         requirements for real estate broker services

12         and for leases negotiated by a broker;

13         providing for review by the Legislative Budget

14         Commission; providing exceptions; authorizing

15         the department to assign an agency to space

16         vacated by another agency; providing conditions

17         under which an agency may reject a proposed

18         move; providing for competitive solicitation of

19         leases; providing procedures; providing

20         exceptions; providing conditions for space

21         allocation; requiring adoption of a quality

22         standard; requiring an annual report for

23         department's enterprise plan; amending s.

24         255.25, F.S.; removing a requirement that the

25         department act as a mediator; authorizing the

26         department to participate in large-scale

27         leases; changing the requirement for

28         competitive bidding for leases of real property

29         for agencies to a requirement for competitive

30         solicitation; specifying requirements for

31         extension of a lease; increasing the bond

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 1         requirement for protests of a lease

 2         solicitation; removing requirements for review

 3         by the State Fire Marshal; removing

 4         requirements for a flood plain analysis;

 5         removing an exception regarding specialized

 6         educational facilities; amending s. 255.25001,

 7         F.S.; changing competitive bidding to

 8         competitive solicitation; amending s. 255.2501,

 9         F.S.; providing criteria for leasing space

10         financed by local government obligations;

11         amending s. 255.2502, F.S.; specifying

12         permissible lengths for contract terms and

13         renewal and extension periods for certain

14         executive agency contracts relating to office

15         space, real property, or improvements; amending

16         s. 255.45, F.S.; requiring the department to

17         submit building plans to the State Fire Marshal

18         for a fire safety review; requiring the

19         department to review building plans for

20         compliance with flood plain management;

21         reenacting s. 633.085(1)(b), F.S., relating to

22         fire safety in state office buildings, to

23         incorporate the amendment to s. 255.45, F.S.,

24         in a reference thereto; specifying that certain

25         amendments made by the act to provisions of ch.

26         255, F.S., shall take effect on the date the

27         Department of Management Services certifies to

28         the Governor and Legislature that the

29         department has no current contracts with

30         respect to the negotiation of leases on behalf

31         of executive agencies; providing that such

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 1         amendments shall take effect only if the

 2         certification is made before a specified date;

 3         repealing s. 270.27, F.S., relating to the sale

 4         of unused public lands; providing for the

 5         future repeal of s. 255.249(2)(b), F.S.,

 6         relating to authorization for the department to

 7         contract for certain real estate broker

 8         services; amending s. 14.2015, F.S.; requiring

 9         the Office of Tourism, Trade, and Economic

10         Development and the Florida Commission on

11         Tourism to advise and consult with the

12         Consensus Estimating Conference principals

13         concerning certain duties; amending s. 45.062,

14         F.S.; requiring that certain legislative

15         officers and the Attorney General receive prior

16         notice concerning settlement negotiations and

17         presettlement agreements or orders; specifying

18         that such notice is a condition precedent to an

19         agency's authority to enter into such an

20         agreement; providing certain exceptions;

21         requiring that moneys paid in settlement of a

22         legal action be placed unobligated into the

23         General Revenue Fund or an appropriate trust

24         fund; prohibiting payment outside the State

25         Treasury except in settlement of a personal

26         injury claim; requiring that certain

27         legislative officers and the Attorney General

28         receive prior notice concerning certain

29         settlements involving a state agency or

30         officer; amending s. 110.1245, F.S., relating

31         to a savings sharing program; correcting a

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 1         reference; amending s. 215.32, F.S.; requiring

 2         state agencies to use trust funds for specified

 3         purposes, to the extent possible; authorizing

 4         an agency to request the creation of a

 5         necessary trust fund; revising requirements and

 6         uses of the Working Capital Fund; amending s.

 7         215.5601, F.S., relating to the Lawton Chiles

 8         Endowment Fund; revising provisions governing

 9         appropriations to the fund; requiring that

10         certain undisbursed balances be retained in the

11         Biomedical Research Trust Fund; amending ss.

12         215.93 and 215.94, F.S., relating to the

13         Florida Financial Management Information

14         System; revising duties of the Financial

15         Management Information Board and the functional

16         owners of the information subsystems; requiring

17         the Auditor General to provide technical

18         advice; amending s. 215.97, F.S., relating to

19         the Florida Single Audit Act; revising and

20         providing definitions; revising the uniform

21         state audit requirements for state financial

22         assistance that is provided by state agencies

23         to nonstate entities; requiring the Department

24         of Financial Services to adopt rules and

25         perform additional duties with respect to the

26         provision of financial assistance to carry out

27         state projects; specifying duties of

28         coordinating agencies; amending s. 216.011,

29         F.S.; revising definitions applicable to the

30         fiscal affairs of the state; defining the terms

31         "mandatory reserve," "budget reserve,"

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 1         "activity," and "statutorily authorized

 2         entity"; amending s. 216.013, F.S.; revising

 3         requirements for the long-range program plans

 4         developed by state agencies; providing for

 5         submitting such plans on an alternate date

 6         under certain circumstances; revising the date

 7         for making adjustments; amending s. 216.023,

 8         F.S., relating to legislative budget requests;

 9         providing alternate dates for submitting such

10         requests under certain circumstances; providing

11         requirements for a request to outsource or

12         privatize agency functions; deleting certain

13         requirements for performance-based program

14         budget requests; amending s. 216.031, F.S.;

15         revising requirements for target budget

16         requests; repealing s. 216.052(2), (3), (8),

17         and (9), F.S., relating to community budget

18         requests and a revolving loan program;

19         repealing s. 216.053(5), F.S., relating to

20         summary information concerning

21         performance-based program budgets; amending s.

22         216.065, F.S.; requiring that a fiscal impact

23         statement provided to the legislative

24         appropriations committees contain information

25         concerning subsequent fiscal years; amending s.

26         216.081, F.S.; providing data requirements for

27         the Governor's recommended budget under certain

28         circumstances; repealing s. 216.136(7) and (8),

29         F.S., relating to the Child Welfare System

30         Estimating Conference and the Juvenile Justice

31         Estimating Conference; amending s. 216.162,

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 1         F.S.; revising the date for the Governor to

 2         submit the recommended budget for the state;

 3         amending s. 216.167, F.S.; deleting references

 4         to the Working Capital Fund to conform to

 5         changes made by the act; amending s. 216.168,

 6         F.S.; deleting provisions exempting the

 7         Governor from a requirement to submit amended

 8         recommendations; amending s. 216.177, F.S.;

 9         revising requirements for a request for

10         additional information concerning the

11         legislative intent of appropriations acts and

12         for notifying the Legislature of actions taken

13         under ch. 216, F.S., and funds expended in

14         settlement of agency litigation; amending s.

15         216.181, F.S.; requiring approval of certain

16         amendments to an approved operating budget by

17         the Legislative Budget Commission; clarifying

18         provisions with respect to the notice required

19         for the transfer of lump-sum appropriations;

20         revising requirements for determining salary

21         rates; authorizing the Legislative Budget

22         Commission to approve salary rates; deleting

23         certain notice requirements; requiring that the

24         legislative appropriations committees approve

25         certain nonoperating budgets; deleting certain

26         notice requirements; deleting a provision

27         authorizing the advancement of specified funds

28         appropriated to the Department of Children and

29         Family Services and the Department of Health;

30         repealing ss. 216.1825 and 216.183, F.S.,

31         relating to the use of zero-based budgeting

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 1         principles and performance-based program

 2         budgets; amending s. 216.192, F.S.; deleting

 3         provisions authorizing the legislative

 4         appropriations committees to provide advice

 5         regarding the release of funds; authorizing the

 6         Executive Office of the Governor and the Chief

 7         Justice to place appropriations in mandatory

 8         reserve or budget reserve; amending s. 216.195,

 9         F.S.; deleting certain notice and review

10         requirements for the impoundment of funds;

11         amending s. 216.221, F.S.; authorizing the

12         Legislature to direct the use of any state

13         funds in an appropriations act; revising

14         requirements for adjusting budgets in order to

15         avoid or eliminate a deficit; revising

16         procedures for certifying a budget deficit;

17         revising requirements for the Governor and the

18         Chief Justice in developing plans of action;

19         requiring that the Legislative Budget

20         Commission implement certain reductions in

21         appropriations; revising requirements for

22         resolving deficits; requiring that certain

23         actions to resolve a deficit be approved by the

24         Legislative Budget Commission; amending s.

25         216.231, F.S., relating to the release of

26         classified appropriations; conforming

27         provisions to changes made by the act; amending

28         s. 216.235, F.S., relating to the Innovation

29         Investment Program; correcting references;

30         limiting the funding of certain proposals under

31         the program; amending s. 216.241, F.S.;

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 1         requiring that the initiation or commencement

 2         of new programs be approved by the Legislative

 3         Budget Commission; deleting certain notice

 4         requirements; limiting certain other actions

 5         and budget adjustments by a state agency or the

 6         judicial branch without the approval of the

 7         Legislature or the Legislative Budget

 8         Commission; amending s. 216.251, F.S.;

 9         correcting a reference; revising requirements

10         for establishing certain salaries; amending s.

11         216.262, F.S.; requiring the Legislative Budget

12         Commission to approve certain increases in the

13         number of positions; deleting provisions

14         authorizing an agency to retain salary dollars

15         under certain circumstances; amending s.

16         216.292, F.S.; revising provisions limiting the

17         transferability of appropriations; prohibiting

18         spending fixed capital outlay for other

19         purposes; prohibiting transferring

20         appropriations except as otherwise provided by

21         law; providing certain exceptions; amending s.

22         216.301, F.S.; revising requirements for

23         continuing unexpended balances of

24         appropriations for fixed capital outlay;

25         requiring approval by the Executive Office of

26         the Governor; authorizing the President of the

27         Senate and the Speaker of the House of

28         Representatives to provide for the retention of

29         certain balances from legislative budget

30         entities; amending s. 216.341, F.S.; exempting

31         certain positions within the Department of

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 1         Health from limitations on the number of

 2         authorized positions; repealing s. 218.60(3),

 3         F.S., relating to estimates made by the revenue

 4         estimating conference and provided to local

 5         governments; amending ss. 252.37 and 265.55,

 6         F.S.; deleting certain references to the

 7         Working Capital Fund to conform to changes made

 8         by the act; repealing s. 288.1234, F.S.,

 9         relating to the Olympic Games Guaranty Account

10         within the Economic Development Trust Fund;

11         amending s. 320.20, F.S.; providing duties of

12         the Chief Financial Officer with respect to the

13         deposit of certain trust fund moneys based on

14         anticipated annual revenues; amending s.

15         339.135, F.S.; revising requirements for the

16         tentative work programs submitted by state

17         agencies; requiring that the Legislative Budget

18         Commission approve certain extensions of

19         spending authority; revising requirements for

20         amending certain work programs; amending s.

21         381.0303, F.S.; authorizing the Department of

22         Health to obtain reimbursement for special

23         needs shelters from unappropriated moneys in

24         the General Revenue Fund; repealing s.

25         393.22(1), F.S., relating to a prohibition on

26         transferring certain funds appropriated for

27         developmental services programs; amending s.

28         409.906, F.S.; deleting provisions authorizing

29         the Department of Children and Family Services

30         to transfer certain funds in excess of the

31         amount specified in the General Appropriations

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 1         Act; repealing s. 409.912(11)(b), F.S.,

 2         relating to the transfer of certain funds from

 3         the Department of Elderly Affairs to the Agency

 4         for Health Care Administration; amending ss.

 5         468.392 and 475.484, F.S.; deleting provisions

 6         exempting funds in the Auctioneer Recovery Fund

 7         and the Real Estate Recovery Fund from

 8         limitations imposed by an appropriation act;

 9         amending s. 921.001, F.S.; requiring the

10         Legislature to make certain determinations with

11         respect to legislation that affects the prison

12         population; amending s. 1009.536, F.S.;

13         deleting duties of the Workforce Estimating

14         Conference with respect to certain career

15         education programs; providing for references to

16         the Working Capital Fund in certain

17         appropriations and proviso language to be

18         replaced with a reference to the General

19         Revenue Fund; providing an appropriation for

20         the reconfiguration of Florida Facilities Pool

21         office space; providing an appropriation for

22         real estate broker commissions; providing

23         effective dates.

24  

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

26  

27         Section 1.  Section 255.248, Florida Statutes, is

28  amended to read:

29         255.248  Definitions, exceptions, and applications of;

30  ss. 255.249 and 255.25.--

31  

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 1         (1)  The following definitions shall apply when used in

 2  ss. 255.249 and 255.25:

 3         (a)(1)  The term "state-owned office building" means

 4  any real property building title to which is vested in the

 5  state and which is used by one or more executive agencies

 6  predominantly for administrative direction and support

 7  functions.

 8         (b)  The term "privately owned building" means any real

 9  property, the title to which is not vested in the state, and

10  which is leased for use by one or more executive agencies

11  predominantly for administrative direction and support

12  functions.

13         (c)  The term "department" means the Department of

14  Management Services. This term excludes:

15         (2) Sections 255.249 and 255.25 do not apply to:

16         (a)  District or area offices established for field

17  operations where law enforcement, military, inspections, road

18  operations, or tourist welcoming functions are performed.

19         (b)  All educational facilities and institutions under

20  the supervision of the Department of Education or the Board of

21  Governors.

22         (c)  All custodial facilities and institutions used

23  primarily for the care, custody, or treatment of inmates or

24  wards of the state.

25         (d)  Buildings or spaces used by the Legislature or the

26  state courts for legislative activities.

27         (e)  Buildings purchased or constructed from

28  agricultural or citrus trust funds.

29         (2)  The term "privately owned building" shall mean any

30  building not owned by a governmental agency.

31  

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 1         Section 2.  Section 255.249, Florida Statutes, is

 2  amended to read:

 3         255.249  Department of Management Services;

 4  responsibility; department rules.--

 5         (1)  The department has of Management Services shall

 6  have responsibility and authority for the custodial and

 7  preventive maintenance, repair, and allocation of space of all

 8  buildings in the Florida Facilities Pool and the grounds

 9  located adjacent thereto.

10         (2)(a)  The department has the responsibility and

11  authority to procure and manage all leases of privately owned

12  buildings on behalf of any executive agency, except as set

13  forth in s. 255.248(2).

14         (b)1.  The department may competitively solicit, under

15  chapter 287, the services of a real estate broker or brokers

16  licensed under chapter 475 to assist the department in

17  negotiating leases for privately owned buildings on behalf of

18  executive agencies. Compensation for a broker's negotiation or

19  renegotiation of any lease executed or renewed by the

20  department or by an executive agency:

21         a.  May only be paid when the department demonstrates

22  in writing that the lease results in a cost savings to the

23  state or otherwise provides value to the state that could not

24  have been achieved without the broker's services and the

25  written determination is approved by the Chief Financial

26  Officer. The department's written determination required by

27  this sub-subparagraph shall not be considered an intended

28  decision or decision subject to protest under s. 120.57(3).

29         b.  May include a market-based commission that

30  constitutes a specified percentage of the lease price and that

31  is paid by the owners of privately owned buildings that are

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 1  leased by the department or other executive agencies. The

 2  department must document in writing the basis for its

 3  determination of the market-based commission percentage. The

 4  market-based commission must provide for a structured schedule

 5  wherein the commission percentage declines as the square

 6  footage leased increases. Commissions to be paid by owners of

 7  privately owned buildings under this sub-subparagraph shall be

 8  remitted to the department and paid to a real estate broker

 9  under an appropriation made by law.

10         2.  Any contract for real estate broker services

11  executed by the department under this paragraph must contain:

12         a.  Methodologies for establishing baselines for

13  performance measures and standards;

14         b.  Performance measures and standards that must

15  include, but are not limited to, expectations for:

16         (I)  The net cost savings to be achieved by a broker

17  for the state;

18         (II)  A reduction in the average price per square foot

19  for full service and less than full service private space

20  leases negotiated by the broker compared to state-procured

21  private space leased by executive agencies;

22         (III)  A reduction in the square footage of private

23  space leased by executive agencies;

24         (IV)  Space per full-time equivalent employee for

25  leases negotiated by the broker compared to state-procured

26  private space leased by executive agencies;

27         (V)  The number of executive agency employees relocated

28  from leased private space to state-owned buildings; and

29         (VI)  Executive agency satisfaction with broker

30  services and with the price, quality, and location of leased

31  private space negotiated by a broker;

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 1         c.  Department procedures for monitoring and evaluating

 2  a broker's performance;

 3         d.  Processes that require monthly reporting by a

 4  broker on its achievement of the performance measures and

 5  standards and on the amount and basis for any compensation

 6  received or to be received by the broker under the contract;

 7  and

 8         e.  Methods for resolving situations in which a broker

 9  fails to achieve the performance measures and standards, which

10  must include, but are not limited to, withholding compensation

11  and contract termination.

12         3.  All cost savings resulting from leases negotiated

13  or renegotiated by a real estate broker under contract with

14  the department shall be deposited in escrow for tenant

15  improvements to the leased space or deposited in the General

16  Revenue Fund.

17         4.  Information on the costs and benefits of any lease

18  that has been negotiated or renegotiated by a real estate

19  broker under contract with the department shall be provided to

20  the chair and vice chair of the Legislative Budget Commission

21  if the annualized cost of the new or renegotiated lease is in

22  excess of $1 million and if it represents a greater than 10

23  percent change in the annualized cost of the department's or

24  other executive agency's original lease. The head of the

25  department or an executive agency that provides information

26  under this subparagraph may be requested to make a

27  presentation at a future Legislative Budget Commission

28  meeting.

29         (c)  This subsection does not apply to the Department

30  of Legal Affairs, the Department of Financial Services, or the

31  Department of Agriculture and Consumer Services, unless the

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 1  cabinet officer requests that the department perform the

 2  service, or part thereof, for the executive agency. The

 3  department shall require any state agency planning to

 4  terminate a lease for the purpose of occupying space in a new

 5  state-owned office building, the funds for which are

 6  appropriated after June 30, 2000, to state why the proposed

 7  relocation is in the best interest of the state.

 8         (3)  The department may assign one or more executive

 9  agencies to move into space vacated by another executive

10  agency. The executive agency that requested space may reject

11  the department's transfer of the executive agency into the

12  space based on excessive cost, unfavorable lease terms or

13  conditions, negative impact on employee productivity, security

14  concerns, poor location, poor building quality, insufficient

15  parking, excessive moving costs, or difficult access for

16  persons served by the executive agency. In order to reject the

17  transfer, the head of the executive agency must state in

18  writing the specific reason or reasons for rejecting the

19  vacated space. The department shall, to the extent feasible,

20  coordinate the vacation of privately owned leased space with

21  the expiration of the lease on that space and, when a lease is

22  terminated before expiration of its base term, will make a

23  reasonable effort to place another state agency in the space

24  vacated. Any state agency may lease the space in any building

25  that was subject to a lease terminated by a state agency for a

26  period of time equal to the remainder of the base term without

27  the requirement of competitive bidding.

28         (4)  The department shall adopt promulgate rules

29  pursuant to chapter 120 providing:

30         (a)  Methods for accomplishing the duties outlined in

31  subsections subsection (1), (2), and (3).

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 1         (b)  Procedures requiring the competitive solicitation

 2  of, and procedures for, evaluating and accepting responses to

 3  competitive solicitations for soliciting and accepting

 4  competitive proposals for, leased space of 5,000 square feet

 5  or more in privately owned buildings., for evaluating the

 6  proposals received, for exemption from competitive bidding

 7  requirements of any However, a lease the purpose of which is

 8  to provide the provision of care and living space for persons

 9  or a lease for emergency space needs as provided in s. 255.25

10  are exempt from the competitive solicitation requirement s.

11  255.25(10), and for the securing of at least three documented

12  quotes for a lease that is not required to be competitively

13  bid. The procedures:

14         1.  May be simplified for a solicitation of less than

15  5,000 square feet;

16         2.  Shall provide evaluation criteria applicable to the

17  evaluation of a bid, proposal, or reply; and

18         3.  Shall provide that an executive agency that

19  requested space may reject the department's selection of space

20  for the executive agency based on excessive cost, unfavorable

21  lease terms or conditions, negative impact on employee

22  productivity, security concerns, poor location, poor building

23  quality, insufficient parking, excessive moving costs, or

24  difficult access for persons served by the executive agency,

25  if the head of the executive agency states in writing the

26  specific reason or reasons for the rejection. If the executive

27  agency rejects the space, the department is not required to

28  solicit new bids, proposals, or replies and may renegotiate

29  with prospective landlords who have previously replied to the

30  solicitation.

31  

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 1         (c)  Adoption of a standard method for determining

 2  square footage or any other measurement used as the basis for

 3  lease payments or other charges or determining space

 4  allocation.

 5         (d)  Methods of allocating space in both state-owned

 6  office buildings and privately owned buildings leased by

 7  executive agencies the state based on use, personnel, and

 8  office equipment. The space allocation method shall define

 9  specific uses and the appropriate space to be allocated to the

10  uses. The space allocation method shall consider:

11         1.  The need to accommodate persons with disabilities;

12         2.  The security of the employees and the public;

13         3.  The accommodation of public visitors of the

14  executive agency;

15         4.  The special needs of executive agencies regarding

16  laboratory, storage, computer, telecommunications, training,

17  and other special needs spaces;

18         5.  The investment in additional space when it can be

19  shown that gains in employee productivity will exceed the cost

20  of the additional space;

21         6.  The allocation of space for employee wellness

22  programs, child care, cafeterias, and break areas; and

23         7.  When applied to state-owned buildings, exceptions

24  to reasonably accommodate an inability to efficiently

25  reconfigure the space because of the design and age of the

26  building.

27         (e)  Acceptable terms and conditions for inclusion in

28  lease agreements.

29         (f)  Maximum rental rates, by geographic areas or by

30  county, for leasing privately owned space.

31  

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 1         (g)  A standard method for the assessment of rent to

 2  executive state agencies and other authorized occupants of

 3  state-owned office space, notwithstanding the source of funds.

 4         (h)  For full disclosure of the names and the extent of

 5  interest of the owners holding a 4-percent or more interest in

 6  any privately owned property leased to the state or in the

 7  entity holding title to the property, for exemption from the

 8  such disclosure of any beneficial interest which is

 9  represented by stock in any corporation registered with the

10  Securities and Exchange Commission or registered under

11  pursuant to chapter 517, which stock is for sale to the

12  general public, and for exemption from the such disclosure of

13  any leasehold interest in property located outside the

14  territorial boundaries of the United States.

15         (i)  For full disclosure of the names of all public

16  officials, agents, or employees holding any interest in any

17  privately owned property leased to the state or in the entity

18  holding title to the property, and the nature and extent of

19  their interest, for exemption from the such disclosure of any

20  beneficial interest which is represented by stock in any

21  corporation registered with the Securities and Exchange

22  Commission or registered under pursuant to chapter 517, which

23  stock is for sale to the general public, and for exemption

24  from the such disclosure of any leasehold interest in property

25  located outside the territorial boundaries of the United

26  States.

27         (j)  A method for reporting leases for nominal or no

28  consideration.

29         (k)  Adoption of the Building Owners and Managers

30  Association Metropolitan Base Building Classification, or

31  equivalent, as a standard method for rating the quality of

                                  18

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 1  privately owned buildings. When practical, A or B class space

 2  according to Building Owners and Managers Association

 3  standards must be used. For a lease of less than 5,000 square

 4  feet, a method for certification by the agency head or the

 5  agency head's designated representative that all criteria for

 6  leasing have been fully complied with and for the filing of a

 7  copy of such lease and all supporting documents with the

 8  department for its review and approval as to technical

 9  sufficiency.

10         (5)  The department of Management Services shall

11  prepare a form listing all conditions and requirements adopted

12  under pursuant to this chapter which must be met by any

13  executive state agency leasing any building or part thereof.

14  This form shall be certified by the executive agency head or

15  his or her the agency head's designated representative.

16         (6)  On or before January 1, 2005, and annually

17  thereafter, the department shall submit a report to the

18  presiding officers of the Legislature which sets forth the

19  department's enterprise plan for the next 5 years for the use

20  of state-owned and state-leased space and for any acquisition,

21  financing, refinancing, or disposition of state real property

22  and improvements that the department is permitted by law to

23  execute. If the department intends to deviate from the

24  enterprise plan after submission of the annual report, the

25  department must provide notice to the presiding officers of

26  the Legislature at least 30 days prior to the execution of any

27  deviation.

28         Section 3.  Section 255.25, Florida Statutes, is

29  amended to read:

30         255.25  Leasing Approval required prior to construction

31  or lease of buildings.--

                                  19

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 1         (1)(a)  No executive state agency may lease space in a

 2  private building that is to be constructed for state use

 3  unless prior approval of the architectural design and

 4  preliminary construction plans is first obtained from the

 5  department of Management Services.

 6         (b)  During the term of existing leases, each executive

 7  agency that has procured a lease in its name, and the

 8  department for leases executed by the department, shall

 9  monitor market conditions and shall initiate negotiations for

10  each lease of a privately owned building held in the private

11  sector to effect the best overall lease terms reasonably

12  available to the state that agency. Amendments to leases may

13  be permitted to modify any lease provisions or any other terms

14  or conditions, except to the extent specifically prohibited by

15  this chapter. The Department of Management Services shall

16  serve as a mediator in lease renegotiations if the agency and

17  the lessor are unable to reach a compromise within 6 months of

18  renegotiation and if either the agency or lessor requests the

19  Department of Management Services' intervention.

20         (c)  When specifically authorized by the Appropriations

21  Act and in accordance with s. 255.2501, if applicable, the

22  department of Management Services may enter into approve a

23  lease-purchase, sale-leaseback, or tax-exempt leveraged lease

24  contract or other financing technique for the acquisition,

25  renovation, or construction of a state fixed capital outlay

26  project when it is in the best interest of the state.

27         (d)  The department, in order to seek economies of

28  scale and the opportunity to colocate executive agencies, may

29  competitively negotiate to procure new leases, renegotiate

30  existing leases, or otherwise consolidate existing leases into

31  a large scale lease or leases covering one or more privately

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 1  owned buildings. The department may adopt rules establishing

 2  procedures to procure and manage large-scale leases and

 3  provide a method for allocating lease costs among executive

 4  agencies.

 5         (2)(a)  Except as provided in s. 255.2501, an executive

 6  no state agency may not lease or occupy a state-owned building

 7  or privately owned a building or any part thereof unless prior

 8  approval of the lease conditions and of the need therefor is

 9  first obtained from the department of Management Services. A

10  Any approved lease may include an option to purchase or an

11  option to renew the lease, or both, upon such terms and

12  conditions acceptable to as are established by the department

13  subject to final approval by the head of the Department of

14  Management Services and in compliance with s. 255.2502.

15         (b)  The department and an executive agency allowed to

16  directly procure a The approval of the Department of

17  Management Services, except for technical sufficiency, need

18  not be obtained for the lease or an extension of a lease must

19  comply of less than 5,000 square feet of space within a

20  privately owned building, provided the agency head or the

21  agency head's designated representative has certified

22  compliance with applicable leasing criteria as may be provided

23  under this section and pursuant to s. 255.249(4)(k) and shall

24  determine that the has determined such lease is to be in the

25  best interest of the state. Such A lease that which is for a

26  term extending beyond the end of a fiscal year is subject to

27  the provisions of ss. 216.311, 255.2502, and 255.2503.

28         (c)  The department of Management Services shall adopt

29  by as a rule uniform leasing procedures for use by the

30  department and by executive agencies that may directly procure

31  space, which each state agency other than the Department of

                                  21

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 1  Transportation. Each state agency shall ensure that the

 2  leasing practices of that agency are in substantial compliance

 3  with the uniform leasing rules adopted under this section and

 4  ss. 255.249, 255.2502, and 255.2503.

 5         (3)(a)  Except as provided in subsection (10), no state

 6  agency shall enter into a lease as lessee for the use of 5,000

 7  square feet or more of space in a privately owned building

 8  except upon advertisement for and receipt of competitive bids

 9  and award to the lowest and best bidder.  The Department of

10  Management Services shall have the authority to approve a

11  lease for 5,000 square feet or more of space that covers more

12  than 1 fiscal year, subject to the provisions of ss. 216.311,

13  255.2501, 255.2502, and 255.2503, if such lease is, in the

14  judgment of the department, in the best interests of the

15  state. This paragraph does not apply to buildings or

16  facilities of any size leased for the purpose of providing

17  care and living space for persons.

18         (b)  The department or an executive agency that may

19  procure its own space of Management Services may negotiate

20  with the owner of a privately owned building to enter into an

21  extension approve extensions of an existing lease of 5,000

22  square feet or more of space if the extension is such

23  extensions are determined to be in the best interests of the

24  state, but in no case shall the total of such extensions

25  exceed 11 months. When determining the best interests of the

26  state, the department or the executive agency must use an If

27  at the end of the 11th month an agency still needs that space,

28  it shall be procured by competitive bid in accordance with s.

29  255.249(4)(b). However, an agency that determines that it is

30  in its best interest to remain in the space it currently

31  occupies may negotiate a replacement lease with the lessor if

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 1  an independent comparative market analysis to show

 2  demonstrates that the negotiated lease rate for the extension

 3  is rates offered are within market rates for comparable the

 4  space, that and the cost of the extension new lease does not

 5  exceed the cost of a comparable space lease plus documented

 6  moving costs, and that the space will adequately serve the

 7  public. A present-value analysis and the consumer price index

 8  shall be used in the calculation of lease costs. The term of

 9  the replacement lease may not exceed the base term of the

10  expiring lease.

11         (b)(c)  Any person who files an action under s.

12  120.57(3)(b) protesting a decision or intended decision

13  pertaining to a competitive solicitation bid for space to be

14  leased by an executive the agency or the department under

15  pursuant to s. 120.57(3)(b) shall post with the executive

16  state agency or the department, as appropriate, at the time of

17  filing the formal written protest a bond payable to the

18  executive agency or the department in an amount equal to 1

19  percent of the estimated total rental of the basic lease

20  period or $7,500 $5,000, whichever is greater, which bond

21  shall be conditioned upon the payment of all costs which may

22  be adjudged against the protester him or her in the

23  administrative hearing in which the action is brought and in

24  any subsequent appellate court proceeding. If the executive

25  agency or the department prevails after completion of the

26  administrative hearing process and any appellate court

27  proceedings, it shall recover all costs and charges which

28  shall be included in the final order or judgment, excluding

29  attorney's fees.  Upon payment of the such costs and charges

30  by the person protesting the award, the bond shall be returned

31  to the person him or her.  If the person protesting the award

                                  23

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 1  prevails, the bond shall be returned to that person and he or

 2  she shall recover from the executive agency or the department

 3  all costs and charges which shall be included in the final

 4  order of judgment, excluding attorney's fees.

 5         (c)(d)  The executive agency or the department and the

 6  lessor, when entering into a lease for 5,000 or more square

 7  feet of a privately owned building, shall, before the

 8  effective date of the lease, agree upon and separately state

 9  the cost of tenant improvements which may qualify for

10  reimbursement if the lease is terminated before the expiration

11  of its base term. The department shall serve as mediator if

12  the agency and the lessor are unable to agree. The amount

13  agreed upon and stated shall, if appropriated, be amortized

14  over the original base term of the lease on a straight-line

15  basis.

16         (d)(e)  The unamortized portion of tenant improvements,

17  if appropriated, will be paid in equal monthly installments

18  over the remaining term of the lease. If any portion of the

19  original leased premises is occupied after termination but

20  during the original term by a tenant that does not require

21  material changes to the premises, the repayment of the cost of

22  tenant improvements applicable to the occupied but unchanged

23  portion shall be abated during occupancy. The portion of the

24  repayment to be abated shall be based on the ratio of leased

25  space to unleased space.

26         (4)(a)  The department, or any executive agency

27  conducting its own leasing, may of Management Services shall

28  not authorize any state agency to enter into a lease agreement

29  for space in a privately owned building when suitable space is

30  available in a state-owned building located in the same

31  geographic region, unless except upon presentation to the

                                  24

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 1  department or executive agency prepares a of sufficient

 2  written justification of the need for, acceptable to the

 3  department, that a separate space is required in order to

 4  fulfill the statutory duties of the executive agency making

 5  such request. The term "state-owned building" as used in this

 6  subsection means any state-owned facility regardless of use or

 7  control.

 8         (b)  The department State agencies shall cooperate with

 9  local governmental units by using suitable, existing publicly

10  owned facilities, subject to the provisions of ss. 255.2501,

11  255.2502, and 255.2503. Executive agencies may use utilize

12  unexpended funds appropriated for lease payments to pay the

13  local government a reasonable proportion of operating costs

14  attributable to the space used and to renovate space assigned

15  to the executive agency.:

16         1.  Pay their proportion of operating costs.

17         2.  Renovate applicable spaces.

18         (5)  Before construction or renovation of any

19  state-owned building or state-leased space is commenced, the

20  Department of Management Services shall ascertain, by

21  submission of proposed plans to the Division of State Fire

22  Marshal for review, that the proposed construction or

23  renovation plan complies with the uniform firesafety standards

24  required by the Division of State Fire Marshal.  The review of

25  construction or renovation plans for state-leased space shall

26  be completed within 10 calendar days of receipt of the plans

27  by the Division of State Fire Marshal.  The review of

28  construction or renovation plans for a state-owned building

29  shall be completed within 30 calendar days of receipt of the

30  plans by the Division of State Fire Marshal. The

31  responsibility for submission and retrieval of the plans

                                  25

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 1  called for in this subsection shall not be imposed on the

 2  design architect or engineer, but shall be the responsibility

 3  of the two agencies. Whenever the Division of State Fire

 4  Marshal determines that a construction or renovation plan is

 5  not in compliance with such uniform firesafety standards, the

 6  Division of State Fire Marshal may issue an order to cease all

 7  construction or renovation activities until compliance is

 8  obtained, except those activities required to achieve such

 9  compliance.  The Department of Management Services shall

10  withhold approval of any proposed lease until the construction

11  or renovation plan complies with the uniform firesafety

12  standards of the Division of State Fire Marshal.  The cost of

13  all modifications or renovations made for the purpose of

14  bringing leased property into compliance with the uniform

15  firesafety standards shall be borne by the lessor.

16         (6)  Before construction or substantial improvement of

17  any state-owned building is commenced, the Department of

18  Management Services must ascertain that the proposed

19  construction or substantial improvement complies with the

20  flood plain management criteria for mitigation of flood

21  hazards, as prescribed in the October 1, 1986, rules and

22  regulations of the Federal Emergency Management Agency, and

23  the department shall monitor the project to assure compliance

24  with the criteria.  In accordance with chapter 120, the

25  Department of Management Services shall adopt any necessary

26  rules to ensure that all such proposed state construction and

27  substantial improvement of state buildings in designated

28  flood-prone areas complies with the flood plain management

29  criteria.  Whenever the department determines that a

30  construction or substantial improvement project is not in

31  compliance with the established flood plain management

                                  26

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 1  criteria, the department may issue an order to cease all

 2  construction or improvement activities until compliance is

 3  obtained, except those activities required to achieve such

 4  compliance.

 5         (5)(7)  This section does not apply to a any lease

 6  having a term of less than 120 consecutive days for the

 7  purpose of securing the one-time special use of the leased

 8  property or.  This section does not apply to any lease for

 9  nominal or no consideration.

10         (8)  No agency shall enter into more than one lease for

11  space in the same privately owned facility or complex within

12  any 12-month period except upon the solicitation of

13  competitive bids.

14         (9)  Specialized educational facilities, excluding

15  classrooms, shall be exempt from the competitive bid

16  requirements for leasing pursuant to this section if the

17  executive head of any state agency certifies in writing that

18  said facility is available from a single source and that the

19  competitive bid requirements would be detrimental to the

20  state.  Such certification shall include documentation of

21  evidence of steps taken to determine sole-source status.

22         (6)(10)  The department of Management Services may

23  approve emergency acquisition of space without competitive

24  solicitation bids if existing state-owned or state-leased

25  space is destroyed or rendered uninhabitable by an act of God,

26  fire, malicious destruction, or structural failure, or by

27  legal action, if the chief administrator of the executive

28  state agency or the chief administrator's designated

29  representative certifies in writing that no other

30  agency-controlled space is available to meet this emergency

31  need, but in no case shall the lease for such space exceed 11

                                  27

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 1  months. If the lessor elects not to replace or renovate the

 2  destroyed or uninhabitable facility, the executive agency or

 3  department, as applicable, shall procure the needed space by

 4  competitive solicitation bid in accordance with s.

 5  255.249(4)(b).  If the lessor elects to replace or renovate

 6  the destroyed or uninhabitable facility and the construction

 7  or renovations will not be complete at the end of the 11-month

 8  lease, the executive agency or department may modify the lease

 9  to extend the temporary lease it on a month-to-month basis for

10  up to an additional 6 months to allow completion of such

11  construction or renovations.

12         (7)(11)  In any leasing of space that is accomplished

13  without competition, the individuals taking part in the

14  development or selection of criteria for evaluation, in the

15  evaluation, and in the award processes shall attest in writing

16  that they are independent of, and have no conflict of interest

17  in, the entities evaluated and selected.

18         Section 4.  Section 255.25001, Florida Statutes, is

19  amended to read:

20         255.25001  Suspension or delay of specified functions,

21  programs, and requirements relating to governmental

22  operations.--Notwithstanding the provisions of:

23         (1)  Section 946.504(3), as amended by chapter 92-279,

24  Laws of Florida, the Department of Management Services is

25  shall not be required to participate with the Department of

26  Corrections in the correctional work program (PRIDE) leasing

27  process.

28         (2)  Sections 253.025 and 255.25, the Department of

29  Management Services may adopt has the authority to promulgate

30  rules under pursuant to chapter 120 to use when be used in

31  determining whether a lease-purchase of a state-owned office

                                  28

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 1  building is in the best interests of the state, which rules

 2  provide:

 3         (a)  Procedures executive state agencies will follow to

 4  certify the need for a lease-purchase acquisition for a

 5  state-owned office building to the Department of Management

 6  Services and a notification procedure of the department's

 7  decision regarding executive state agencies' requests for a

 8  lease-purchase agreement. The certification process shall

 9  include but not be limited to the following:

10         1.  Current programmatic space requirements of the

11  state agency.

12         2.  Future programmatic space requirements of the

13  executive state agency.

14         3.  Time considerations in providing state-owned office

15  building space.

16         4.  An analysis of existing leases affected by the

17  lease-purchase agreement.

18         (b)  Procedures and document formats for the

19  advertisement, competitive solicitation bid process, including

20  format of submissions, and evaluation of lease-purchase

21  acquisition proposals for state-owned office buildings. The

22  evaluation process shall include but not be limited to the

23  following:

24         1.  A consideration of the cost of comparable operating

25  leases.

26         2.  The appraised value of the facility as required by

27  s. 253.025.

28         3.  A present value analysis of the proposed payment

29  stream.

30         4.  The cost of financing the facility to be acquired.

31         5.  The cost to repair identified physical defects.

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 1         6.  The cost to remove identified hazardous substances.

 2         7.  An energy analysis.

 3         8.  A determination of who is responsible for

 4  management and maintenance activities.

 5  

 6  In order to minimize the cost of the evaluation process, the

 7  Department of Management Services may develop a multistage

 8  evaluation process to identify the most cost-efficient

 9  proposals for extensive evaluation. The studies developed as a

10  result of this evaluation process shall be considered

11  confidential and exempt from the provisions of s. 119.07(1) to

12  the same extent that appraisal reports are considered

13  confidential and exempt from the provisions of s. 119.07(1) as

14  provided in s. 253.025(6)(d).

15         (c)  Acceptable terms and conditions for inclusion in

16  lease-purchase agreements, which shall include but not be

17  limited to:

18         1.  The assignment of the lease-purchase agreement to

19  other governmental entities, including accumulated equity.

20         2.  The ability of the acquiring executive state agency

21  to sublease a portion of the facility, not to exceed 25

22  percent, to other governmental entities. These subleases shall

23  provide for the recovery of the agencies' cost of operations

24  and maintenance.

25  

26  The execution of a lease-purchase is conditioned upon a

27  finding by the Department of Management Services that it would

28  be in the best interests of the state.  The language in this

29  subsection shall be considered specific authorization for a

30  lease-purchase pursuant to s. 255.25(1)(b) upon the Department

31  of Management Services' certification that the lease-purchase

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 1  is in the best interests of the state.  Thereafter, the

 2  executive agency is authorized to enter into a lease-purchase

 3  agreement and to expend operating funds for lease-purchase

 4  payments.  Any facility which is acquired under pursuant to

 5  the processes authorized by this subsection shall be

 6  considered to be a "state-owned office building" and a

 7  "state-owned building" as those terms are applied in ss.

 8  255.248-255.25.

 9         (d)  That any costs resulting from the processes

10  authorized by this subsection, including but not limited to

11  appraisals, environmental analyses, and any other studies

12  which may be required under these provisions, shall be borne

13  by the owner of the property which is the subject of the

14  proposed lease-purchase.

15         (3)  Chapters 253 and 287, the Department of

16  Agriculture and Consumer Services may shall be authorized to

17  sell any tangible personal property, real property, or

18  structures on leased or department-owned real property without

19  complying with other provisions of law or Florida Statutes,

20  with the proceeds being deposited into the Property Trust

21  Account in the General Inspection Trust Fund.  Before Prior to

22  finalizing any such sale, the department's proposed action

23  shall be subject to the notice and review procedures set forth

24  in s. 216.177, as amended by chapter 92-142, Laws of Florida.

25         Section 5.  Subsection (2) of section 255.2501, Florida

26  Statutes, is amended to read:

27         255.2501  Lease of space financed with local government

28  obligations.--

29         (2)  No lease, lease-purchase, sale-leaseback,

30  purchase, or rental of any office space, building, real

31  property and improvements thereto, or any other fixed capital

                                  31

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 1  outlay project that is or is to be financed with local

 2  government obligations of any type shall be requested for

 3  approval in the Appropriations Act unless:

 4         (a)  The construction for the such project is to be or

 5  has been competitively solicited bid unless the certificate of

 6  occupancy for the such project was issued more than 3 years

 7  before prior to the time the such request is made;

 8         (b)  The executive branch agency or department making

 9  the request has competitively solicited bid its space needs

10  before prior to making the such request and the project for

11  which approval is sought was the lowest and best bidder for

12  such needs; and

13         (c)  The rent, lease payment, lease-purchase payment,

14  or other payment for the such project is not greater than an

15  amount equal to the same proportion of the debt service on the

16  local government obligations to be issued to finance or which

17  are outstanding that financed, as the case may be, the

18  facility or project for which approval is sought that the

19  executive agency or department seeking the such approval will

20  use utilize under the lease, lease-purchase, sale-leaseback,

21  purchase, or rental of the project in the facility or project

22  as compared to the entire facility or project that is to be or

23  was financed. This paragraph does shall not apply when the

24  certificate of occupancy for a facility or project was issued

25  more than 3 years before prior to the time the such request is

26  made.

27         Section 6.  Section 255.2502, Florida Statutes, is

28  amended to read:

29         255.2502  Contracts which require annual appropriation;

30  contingency statement.--

31  

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 1         (1)  An No executive branch department or agency,

 2  public officer, or employee may not shall enter into any

 3  contract on behalf of the state, which contract binds the

 4  state or its executive agencies to the lease, rental,

 5  lease-purchase, purchase, or sale-leaseback of office space,

 6  real property or improvements to real property for a period in

 7  excess of 1 fiscal year, including any and all extension and

 8  renewal periods and including all leases which constitute a

 9  series of leases unless the following statement is included in

10  the contract: "The State of Florida's performance and

11  obligation to pay under this contract is contingent upon an

12  annual appropriation by the Legislature."  The foregoing

13  statement shall not be amended, supplemented, or waived, and

14  shall be printed in type at least as large as any other type

15  appearing on the contract.  Any contract in violation of this

16  section shall be null and void.

17         (2)  An executive branch department or agency, public

18  officer, or employee may not enter into any contract on behalf

19  of the state which binds the state or its executive agencies

20  to the lease, rental, lease-purchase, purchase, or

21  sale-leaseback of office space, real property, or improvements

22  to real property for a period in excess of 60 months for the

23  initial term of the lease, with the option to extend or renew

24  the lease no more than two times with each extension or

25  renewal limited to a period no longer than the initial term of

26  the lease.

27         Section 7.  Section 255.45, Florida Statutes, is

28  amended to read:

29         255.45  Safety in Correction of firesafety violations

30  in certain state-owned and state-leased property.--

31  

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 1         (1)  The Department of Management Services is

 2  responsible for ensuring that firesafety violations that are

 3  noted by the State Fire Marshal pursuant to s. 633.085 are

 4  corrected as soon as practicable for all state-owned property

 5  which is leased from the Department of Management Services.

 6         (2)  Before construction or renovation of any

 7  state-owned building, or privately owned building to be

 8  occupied by the state, is begun, the Department of Management

 9  Services shall ascertain, by submission of proposed plans to

10  the Division of State Fire Marshal for review, that the

11  proposed construction or renovation plan complies with the

12  uniform fire safety standards required by the Division of

13  State Fire Marshal. The review of construction or renovation

14  plans for a privately owned building must be completed within

15  10 calendar days of receipt of the plans by the Division of

16  State Fire Marshal. The review of construction or renovation

17  plans for a state-owned building must be completed within 30

18  calendar days of receipt of the plans by the Division of State

19  Fire Marshal. The responsibility for submitting and retrieving

20  the plans called for in this subsection shall not be imposed

21  on the design architect or engineer, but is the responsibility

22  of the Department of Management Services. When the Division of

23  State Fire Marshal determines that a construction or

24  renovation plan is not in compliance with the uniform fire

25  safety standards, the Division of State Fire Marshal may issue

26  an order to cease all construction or renovation activities

27  until compliance is obtained, except those activities required

28  to achieve compliance. The Department of Management Services

29  shall withhold approval of any proposed lease until the

30  construction or renovation plans comply with the uniform fire

31  safety standards of the Division of State Fire Marshal. The

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 1  cost of all modifications or renovations made for the purpose

 2  of bringing leased property into compliance with the uniform

 3  fire safety standards shall be borne by the lessor.

 4         (3)  Before construction or substantial improvement of

 5  any state-owned building is begun, the Department of

 6  Management Services must ascertain that the proposed

 7  construction or substantial improvement complies with the

 8  flood plain management criteria for the mitigation of flood

 9  hazards, as prescribed in the rules and regulations of the

10  Federal Emergency Management Agency issued October 1, 1986.

11  The department shall monitor the project to assure compliance

12  with the criteria. The Department of Management Services shall

13  adopt rules to ensure that all proposed state construction and

14  substantial improvements of state-owned buildings in

15  designated flood-prone areas comply with the flood plain

16  management criteria. If the department determines that a

17  construction or substantial improvement project is not in

18  compliance with the established flood plain management

19  criteria, the department may issue an order to cease all

20  construction or improvement activities until compliance is

21  obtained, except those activities required to achieve such

22  compliance.

23         Section 8.  For the purpose of incorporating the

24  amendment made by this act to section 255.45, Florida

25  Statutes, in a reference thereto, paragraph (b) of subsection

26  (1) of section 633.085, Florida Statutes, is reenacted to

27  read:

28         633.085  Inspections of state buildings and premises;

29  tests of firesafety equipment; building plans to be

30  approved.--

31         (1)

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 1         (b)  Except as provided in s. 255.45, the department

 2  head is responsible for ensuring that deficiencies noted in

 3  the inspection are corrected as soon as practicable.

 4         Section 9.  The amendments made by this act to sections

 5  of chapter 255, Florida Statutes, shall take effect on the

 6  date that the Department of Management Services certifies in

 7  writing to the presiding officers of the Legislature and the

 8  Governor that it has no current contract for the services of a

 9  real estate broker or brokers licensed under chapter 475,

10  Florida Statutes, to assist the department in negotiating

11  leases for privately owned buildings on behalf of executive

12  agencies, except that such amendments shall take effect only

13  if the certification required by this section occurs before

14  July 1, 2005.

15         Section 10.  Effective July 1, 2004, section 270.27,

16  Florida Statutes, is repealed.

17         Section 11.  Effective October 15, 2005, paragraph

18  (2)(b) of section 255.249, Florida Statutes, as created by

19  this act, is repealed.

20         Section 12.  Subsection (8) of section 14.2015, Florida

21  Statutes, is amended to read:

22         14.2015  Office of Tourism, Trade, and Economic

23  Development; creation; powers and duties.--

24         (8)  The Office of Tourism, Trade, and Economic

25  Development shall ensure that the contract between the Florida

26  Commission on Tourism and the commission's direct-support

27  organization contains a provision to provide the data on the

28  visitor counts and visitor profiles used in revenue

29  estimating, employing the same methodology used in fiscal year

30  1995-1996 by the Department of Commerce. The Office of

31  Tourism, Trade, and Economic Development and the Florida

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 1  Commission on Tourism must advise and consult reach agreement

 2  with the Consensus Estimating Conference principals before

 3  making any changes in methodology used or information

 4  gathered.

 5         Section 13.  Effective July 1, 2005, section 45.062,

 6  Florida Statutes, is amended to read:

 7         45.062  Settlements, conditions, or orders when an

 8  agency of the executive branch is a party.--

 9         (1)  In any civil action in which a state executive

10  branch agency or officer is a party in state or federal court,

11  the officer, agent, official, or attorney who represents or is

12  acting on behalf of such agency or officer may not settle such

13  action, consent to any condition, or agree to any order in

14  connection therewith, if the settlement, condition, or order

15  requires the expenditure of or the obligation to expend any

16  state funds or other state resources, the refund or future

17  loss of state revenues exceeding $10 million, or the

18  establishment of any new program, unless:

19         (a)  The expenditure is provided for by an existing

20  appropriation or program established by law; and

21         (b)  At the time settlement negotiations are begun in

22  earnest, written notification is given to the President of the

23  Senate, the Speaker of the House of Representatives, the

24  Senate and House minority leaders, the chairs of the

25  appropriations committees of the Legislature, and the Attorney

26  General; and

27         (c)(b)  Prior written notification is given at least

28  within 5 business days before of the date the settlement or

29  presettlement agreement or order is to be made final to the

30  President of the Senate, the Speaker of the House of

31  Representatives, the Senate and House minority leaders, the

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 1  chairs of the appropriations committees of the Legislature,

 2  and the Attorney General. Such notification is a condition

 3  precedent to the agency's authority to enter into the

 4  settlement or presettlement agreement and shall be subject to

 5  the review and objection procedures of s. 216.177. Such

 6  notification shall specify how the agency involved will

 7  address the costs in future years within the limits of current

 8  appropriations.

 9         1.  The Division of Risk Management need not give the

10  notification required by this paragraph when settling any

11  claim covered by the state self-insurance program for an

12  amount less than $100,000.

13         2.  The notification specified in this paragraph is not

14  required if the only settlement obligation of the state

15  resulting from the claim is to pay court costs in an amount

16  less than $10,000.

17         (2)  The state executive branch agency or officer shall

18  negotiate a closure date as soon as possible for the civil

19  action.

20         (3)  The state executive branch agency or officer may

21  not pledge any current or future action of another branch of

22  state government as a condition for settling the civil action.

23         (4)  Any settlement that commits the state to spending

24  in excess of current appropriations or to policy changes

25  inconsistent with current state law shall be contingent upon

26  and subject to legislative appropriation or statutory

27  amendment. The state agency or officer may agree to use all

28  efforts to procure legislative funding or statutory amendment.

29         (5)  When a state agency or officer settles an action

30  or legal claim in which the state asserted a right to recover

31  money, all moneys paid to the state by a party in full or

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 1  partial exchange for a release of the state's claim shall be

 2  placed unobligated into the General Revenue Fund or the

 3  appropriate trust fund. A settlement may not authorize or

 4  ratify any payment outside the State Treasury, other than to a

 5  person, as defined in s. 1.01, suffering an injury arising out

 6  of the transaction or course of conduct giving rise to the

 7  settled claim. This subsection does not limit the right of a

 8  private party to settle a claim independent of the settlement

 9  by a public party.

10         (6)(5)  State executive branch agencies and officers

11  shall report to each substantive and fiscal committee of the

12  Legislature having jurisdiction over the reporting agency on

13  all potential settlements that may commit the state to:

14         (a)  Spend in excess of current appropriations; or

15         (b)  Make policy changes inconsistent with current

16  state law.

17  

18  The state executive branch agency or officer shall provide

19  periodic updates to the appropriate legislative committees on

20  these issues during the settlement process.

21         (7)  In any civil action in which a state executive

22  branch agency or officer is a party in state or federal court,

23  the officer, agent, official, or attorney who represents or is

24  acting on behalf of such agency or officer may not settle such

25  action if the settlement requires the other party to commit

26  funds to a particular purpose as a condition of the

27  settlement, unless at least 5 business days before the date

28  the settlement agreement is to be made final written notice is

29  given to the President of the Senate, the Speaker of the House

30  of Representatives, the Senate and House minority leaders, the

31  chairs of the appropriations committees of the Legislature,

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 1  and the Attorney General. Such notification is a condition

 2  precedent to the agency's authority to enter into the

 3  settlement and is subject to the review and objection

 4  procedures of s. 216.177.

 5         Section 14.  Paragraph (b) of subsection (1) of section

 6  110.1245, Florida Statutes, is amended to read:

 7         110.1245  Savings sharing program; bonus payments;

 8  other awards.--

 9         (1)

10         (b)  Each agency head shall recommend employees

11  individually or by group to be awarded an amount of money,

12  which amount shall be directly related to the cost savings

13  realized. Each proposed award and amount of money must be

14  approved by the Legislative Budget Budgeting Commission.

15         Section 15.  Section 215.32, Florida Statutes, is

16  amended to read:

17         215.32  State funds; segregation.--

18         (1)  All moneys received by the state shall be

19  deposited in the State Treasury unless specifically provided

20  otherwise by law and shall be deposited in and accounted for

21  by the Chief Financial Officer within the following funds,

22  which funds are hereby created and established:

23         (a)  General Revenue Fund.

24         (b)  Trust funds.

25         1.  In addition to other funds created by law, for each

26  agency, the following trust funds should be used as described

27  in this subparagraph for day-to-day operations:

28         a.  Operations or operating trust fund, for use as a

29  depository for funds to be used for program operations funded

30  by program revenues, with the exception of administrative

31  

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 1  activities if the operations or operating trust fund is a

 2  proprietary fund.

 3         b.  Operations and maintenance trust fund, for use as a

 4  depository for client services funded by third-party payors.

 5         c.  Administrative trust fund, for use as a depository

 6  for funds to be used for management activities that are

 7  departmental in nature and funded by indirect cost earnings

 8  and assessments against trust funds. Proprietary funds are

 9  excluded from the requirement of using an administrative trust

10  fund.

11         d.  Grants and donations trust fund, for use as a

12  depository for funds to be used for allowable grant or donor

13  agreement activities funded by restricted contractual revenue

14  from private and public nonfederal sources.

15         e.  Agency working capital trust fund, for use as a

16  depository for funds to be used pursuant to s. 216.272.

17         f.  Clearing funds trust fund, for use as a depository

18  for funds to account for collections pending distribution to

19  lawful recipients.

20         g.  Federal grant trust fund, for use as a depository

21  for funds to be used for allowable grant activities funded by

22  restricted program revenues from federal sources.

23         2.  To the extent possible, each agency must adjust its

24  internal accounting to use existing trust funds consistent

25  with the requirements of subparagraph 1. If an agency does not

26  have trust funds listed in subparagraph 1. and cannot make

27  such adjustment, the agency must recommend the creation of the

28  necessary trust funds to the Legislature no later than the

29  next scheduled review of the agency's trust funds pursuant to

30  s. 215.3206.

31         (c)  Working Capital Fund.

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 1         (c)(d)  Budget Stabilization Fund.

 2         (2)  The source and use of each of these funds shall be

 3  as follows:

 4         (a)  The General Revenue Fund shall consist of all

 5  moneys received by the state from every source whatsoever,

 6  except as provided in paragraphs (b) and (c).  Such moneys

 7  shall be expended pursuant to General Revenue Fund

 8  appropriations acts or transferred as provided in paragraph

 9  (c).  Annually, at least 5 percent of the estimated increase

10  in General Revenue Fund receipts for the upcoming fiscal year

11  over the current year General Revenue Fund effective

12  appropriations shall be appropriated for state-level capital

13  outlay, including infrastructure improvement and general

14  renovation, maintenance, and repairs.

15         (b)1.  The trust funds shall consist of moneys received

16  by the state which under law or under trust agreement are

17  segregated for a purpose authorized by law. The state agency

18  or branch of state government receiving or collecting such

19  moneys shall be responsible for their proper expenditure as

20  provided by law. Upon the request of the state agency or

21  branch of state government responsible for the administration

22  of the trust fund, the Chief Financial Officer may establish

23  accounts within the trust fund at a level considered necessary

24  for proper accountability. Once an account is established

25  within a trust fund, the Chief Financial Officer may authorize

26  payment from that account only upon determining that there is

27  sufficient cash and releases at the level of the account.

28         2.  In order to maintain a minimum number of trust

29  funds in the State Treasury, each state agency or the judicial

30  branch may consolidate, if permitted under the terms and

31  conditions of their receipt, the trust funds administered by

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 1  it; provided, however, the agency or judicial branch employs

 2  effectively a uniform system of accounts sufficient to

 3  preserve the integrity of such trust funds; and provided,

 4  further, that consolidation of trust funds is approved by the

 5  Governor or the Chief Justice.

 6         3.  All such moneys are hereby appropriated to be

 7  expended in accordance with the law or trust agreement under

 8  which they were received, subject always to the provisions of

 9  chapter 216 relating to the appropriation of funds and to the

10  applicable laws relating to the deposit or expenditure of

11  moneys in the State Treasury.

12         4.a.  Notwithstanding any provision of law restricting

13  the use of trust funds to specific purposes, unappropriated

14  cash balances from selected trust funds may be authorized by

15  the Legislature for transfer to the Budget Stabilization Fund

16  and General Revenue Working Capital Fund in the General

17  Appropriations Act.

18         b.  This subparagraph does not apply to trust funds

19  required by federal programs or mandates; trust funds

20  established for bond covenants, indentures, or resolutions

21  whose revenues are legally pledged by the state or public body

22  to meet debt service or other financial requirements of any

23  debt obligations of the state or any public body; the State

24  Transportation Trust Fund; the trust fund containing the net

25  annual proceeds from the Florida Education Lotteries; the

26  Florida Retirement System Trust Fund; trust funds under the

27  management of the State Board of Education Board of Regents,

28  where such trust funds are for auxiliary enterprises,

29  self-insurance, and contracts, grants, and donations, as those

30  terms are defined by general law; trust funds that serve as

31  clearing funds or accounts for the Chief Financial Officer or

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 1  state agencies; trust funds that account for assets held by

 2  the state in a trustee capacity as an agent or fiduciary for

 3  individuals, private organizations, or other governmental

 4  units; and other trust funds authorized by the State

 5  Constitution.

 6         (c)1.  The Budget Stabilization Fund shall consist of

 7  amounts equal to at least 5 percent of net revenue collections

 8  for the General Revenue Fund during the last completed fiscal

 9  year. The Budget Stabilization Fund's principal balance shall

10  not exceed an amount equal to 10 percent of the last completed

11  fiscal year's net revenue collections for the General Revenue

12  Fund. As used in this paragraph, the term "last completed

13  fiscal year" means the most recently completed fiscal year

14  prior to the regular legislative session at which the

15  Legislature considers the General Appropriations Act for the

16  year in which the transfer to the Budget Stabilization Fund

17  must be made under this paragraph.

18         2.  By September 15 of each year, the Governor shall

19  authorize the Chief Financial Officer to transfer, and the

20  Chief Financial Officer shall transfer pursuant to

21  appropriations made by law, to the Budget Stabilization Fund

22  the amount of money needed for the balance of that fund to

23  equal the amount specified in subparagraph 1., less any

24  amounts expended and not restored. The moneys needed for this

25  transfer may be appropriated by the Legislature from any

26  funds.

27         3.  Unless otherwise provided in this subparagraph, an

28  expenditure from the Budget Stabilization Fund must be

29  restored pursuant to a restoration schedule that provides for

30  making five equal annual transfers from the General Revenue

31  Fund, beginning in the third fiscal year following that in

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 1  which the expenditure was made. For any Budget Stabilization

 2  Fund expenditure, the Legislature may establish by law a

 3  different restoration schedule and such change may be made at

 4  any time during the restoration period. Moneys are hereby

 5  appropriated for transfers pursuant to this subparagraph.

 6         4.  The Budget Stabilization Fund and the Working

 7  Capital Fund may be used as a revolving fund funds for

 8  transfers as provided in s. 215.18 s. 17.61; however, any

 9  interest earned must be deposited in the General Revenue Fund.

10         5.  The Chief Financial Officer and the Department of

11  Management Services shall transfer funds to water management

12  districts to pay eligible water management district employees

13  for all benefits due under s. 373.6065, as long as funds

14  remain available for the program described under s. 100.152.

15         (d)  The Working Capital Fund shall consist of moneys

16  in the General Revenue Fund which are in excess of the amount

17  needed to meet General Revenue Fund appropriations for the

18  current fiscal year. Each year, no later than the publishing

19  date of the annual financial statements for the state by the

20  Chief Financial Officer under s. 216.102, funds shall be

21  transferred between the Working Capital Fund and the General

22  Revenue Fund to establish the balance of the Working Capital

23  Fund for that fiscal year at the amount determined pursuant to

24  this paragraph.

25         Section 16.  Subsection (5) of section 215.5601,

26  Florida Statutes, is amended to read:

27         215.5601  Lawton Chiles Endowment Fund.--

28         (5)  AVAILABILITY OF FUNDS; USES.--

29         (a)  Funds from the endowment which are available for

30  legislative appropriation shall be transferred by the board to

31  the Department of Financial Services Tobacco Settlement

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 1  Clearing Trust Fund, created in s. 17.41, and disbursed in

 2  accordance with the legislative appropriation.

 3         1.  Appropriations by the Legislature to the Department

 4  of Health from endowment earnings from the principal set aside

 5  for biomedical research shall be from a category called the

 6  James and Esther King Biomedical Research Program and shall be

 7  deposited into the Biomedical Research Trust Fund in the

 8  Department of Health established in s. 20.435.

 9         2.  Appropriations by the Legislature to the Department

10  of Children and Family Services, the Department of Health, or

11  the Department of Elderly Affairs from endowment earnings for

12  health and human services programs shall be from a category

13  called the Lawton Chiles Endowment Fund Programs and shall be

14  deposited into each department's respective Tobacco Settlement

15  Trust Fund as appropriated.

16         (b)  In order to ensure that the expenditure of funds

17  earned from the Lawton Chiles Endowment Fund will be used for

18  the purposes intended by the Legislature, the Legislature

19  shall establish line item categories for the state agencies

20  describing the designated use of the appropriated funds as

21  provided in the General Appropriations Act.

22         (c)  The secretaries of the state agencies shall

23  conduct meetings to discuss priorities for endowment funding

24  for health and human services programs for children and elders

25  before submitting their legislative budget requests to the

26  Executive Office of the Governor and the Legislature. The

27  purpose of the meetings is to gain consensus for priority

28  requests and recommended endowment funding levels for those

29  priority requests. No later than September 1 of each year, the

30  secretaries of the state agencies shall also submit their

31  

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 1  consensus priority requests to the Lawton Chiles Endowment

 2  Fund Advisory Council created in subsection (6).

 3         (d)  Subject to legislative appropriations, state

 4  agencies shall use distributions from the endowment to enhance

 5  or support increases in clients served or to meet increases in

 6  program costs in health and human services program areas.

 7  Funds distributed from the endowment may not be used to

 8  supplant existing revenues.

 9         (e)  Notwithstanding s. 216.301 and pursuant to s.

10  216.351, all unencumbered balances of appropriations as of

11  June 30 or undisbursed balances as of December 31 shall revert

12  to the endowment's principal, except that. unencumbered or

13  undisbursed balances appropriated for biomedical research

14  shall be retained in the Biomedical Research Trust Fund and

15  the Department of Health may enter into a trust agreement with

16  the State Board of Administration for the investment of cash

17  balances outside the State Treasury revert to the principal in

18  the separately reserved and accounted-for portion of the

19  endowment established for biomedical research activities.

20         (f)  When advised by the Revenue Estimating Conference

21  that a deficit will occur with respect to the appropriations

22  from the tobacco settlement trust funds of the state agencies

23  in any fiscal year, the Governor shall develop a plan of

24  action to eliminate the deficit. Before implementing the plan

25  of action, the Governor must comply with s. 216.177(2). In

26  developing the plan of action, the Governor shall, to the

27  extent possible, preserve legislative policy and intent, and,

28  absent any specific directions to the contrary in the General

29  Appropriations Act, any reductions in appropriations from the

30  tobacco settlement trust funds of the state agencies for a

31  fiscal year shall be prorated among the specific

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 1  appropriations made from all tobacco settlement trust funds of

 2  the state agencies for that year.

 3         Section 17.  Subsection (3) of section 215.93, Florida

 4  Statutes, is amended to read:

 5         215.93  Florida Financial Management Information

 6  System.--

 7         (3)  The Florida Financial Management Information

 8  System shall include financial management data and utilize the

 9  chart of accounts approved by the Chief Financial Officer.

10  Common financial management data shall include, but not be

11  limited to, data codes, titles, and definitions used by one or

12  more of the functional owner subsystems.  The Florida

13  Financial Management Information System shall utilize common

14  financial management data codes.  The council shall recommend

15  and the board shall adopt policies regarding the approval and

16  publication of the financial management data.  The Chief

17  Financial Officer shall adopt policies regarding the approval

18  and publication of the chart of accounts.  The Chief Financial

19  Officer's chart of accounts shall be consistent with the

20  common financial management data codes established by the

21  coordinating council.  Further, all systems not a part of the

22  Florida Financial Management Information System which provide

23  information to the system shall use the common data codes from

24  the Florida Financial Management Information System and the

25  Chief Financial Officer's chart of accounts. Data codes that

26  cannot be supplied by the Florida Financial Management

27  Information System and the Chief Financial Officer's chart of

28  accounts and that are required for use by the information

29  subsystems shall be approved by the board upon recommendation

30  of the coordinating council. However, board approval shall not

31  

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 1  be required for those data codes specified by the Auditor

 2  General under the provisions of s. 215.94(6)(c).

 3         Section 18.  Subsection (6) of section 215.94, Florida

 4  Statutes, is amended to read:

 5         215.94  Designation, duties, and responsibilities of

 6  functional owners.--

 7         (6)(a)  Consistent with the provisions of s. 215.86,

 8  the respective functional owner of each information subsystem

 9  shall be responsible for ensuring The Auditor General shall be

10  advised by the functional owner of each information subsystem

11  as to the date that the development or significant

12  modification of its functional system specifications is to

13  begin.

14         (b)  Upon such notification, the Auditor General shall

15  participate with each functional owner to the extent necessary

16  to provide assurance that:

17         1.  The accounting information produced by the

18  information subsystem adheres to generally accepted accounting

19  principles.

20         2.  The information subsystem contains the necessary

21  controls to maintain its integrity, within acceptable limits

22  and at an acceptable cost.

23         3.  The information subsystem is auditable.

24         (b)(c)  The Auditor General shall be advised by the

25  functional owner of each information subsystem as to the date

26  that the development or significant modification of its

27  functional system specifications is to begin. The Auditor

28  General shall provide technical advice, as allowed by

29  professional auditing standards, on specific issues relating

30  to the design, implementation, and operation of each

31  information subsystem. specify those additional features,

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 1  characteristics, controls, and internal control measures

 2  deemed necessary to carry out the provisions of this

 3  subsection. Further, it shall be the responsibility of each

 4  functional owner to ensure installation and incorporation of

 5  such specified features, characteristics, controls, and

 6  internal control measures within each information subsystem.

 7         Section 19.  Section 215.97, Florida Statutes, is

 8  amended to read:

 9         215.97  Florida Single Audit Act.--

10         (1)  The purposes of the section are to:

11         (a)  Establish uniform state audit requirements for

12  state financial assistance provided by state agencies to

13  nonstate entities to carry out state projects.

14         (b)  Promote sound financial management, including

15  effective internal controls, with respect to state financial

16  assistance administered by nonstate entities.

17         (c)  Promote audit economy and efficiency by relying to

18  the extent possible on already required audits of federal

19  financial assistance provided to nonstate entities.

20         (d)  Provide for identification of state financial

21  assistance transactions in the appropriations act, state

22  accounting records, and recipient organization records.

23         (e)  Promote improved coordination and cooperation

24  within and between affected state agencies providing state

25  financial assistance and nonstate entities receiving state

26  assistance.

27         (f)  Ensure, to the maximum extent possible, that state

28  agencies monitor, use, and followup on audits of state

29  financial assistance provided to nonstate entities.

30         (2)  Definitions; as used in this section, the term:

31  

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 1         (a)  "Audit threshold" means the threshold amount used

 2  to determine to use in determining when a state single audit

 3  or project-specific audit of a nonstate entity shall be

 4  conducted in accordance with this section. Each nonstate

 5  entity that expends a total amount of state financial

 6  assistance equal to or in excess of $300,000 in any fiscal

 7  year of such nonstate entity shall be required to have a state

 8  single audit, or a project-specific audit performed by an

 9  independent auditor, for such fiscal year in accordance with

10  the requirements of this section. Every 2 years the Auditor

11  General, after consulting with the Executive Office of the

12  Governor, the Department of Financial Services Chief Financial

13  Officer, and all state awarding agencies that provide state

14  financial assistance to nonstate entities, shall review the

15  threshold amount for requiring audits under this section and

16  may adjust such threshold dollar amount consistent with the

17  purposes purpose of this section.

18         (b)  "Auditing standards" means the auditing standards

19  as stated in the rules of the Auditor General as applicable to

20  for-profit organizations, nonprofit organizations, or local

21  governmental entities.

22         (c)  "Catalog of State Financial Assistance" means a

23  comprehensive listing of state projects. The Catalog of State

24  Financial Assistance shall be issued by the Department of

25  Financial Services Executive Office of the Governor after

26  conferring with the Chief Financial Officer and all state

27  awarding agencies that provide state financial assistance to

28  nonstate entities. The Catalog of State Financial Assistance

29  shall include for each listed state project: the responsible

30  state awarding agency; standard state project number

31  identifier; official title; legal authorization; and

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 1  description of the state project, including objectives,

 2  restrictions, application and awarding procedures, and other

 3  relevant information determined necessary.

 4         (d)  "Coordinating agency" means the state awarding

 5  agency that provides the predominant amount of state financial

 6  assistance expended by a recipient, as determined by the

 7  recipient's Schedule of Expenditures of State Financial

 8  Assistance. To provide continuity, the determination of the

 9  predominant amount of state financial assistance shall be

10  based upon state financial assistance expended in the

11  recipient's fiscal years ending in 2004, 2007, and 2010, and

12  every third year thereafter.

13         (e)(d)  "Financial reporting package" means the

14  nonstate entities' financial statements, Schedule of

15  Expenditures of State Financial Assistance, auditor's reports,

16  management letter, auditee's written responses or corrective

17  action plan, correspondence on followup of prior years'

18  corrective actions taken, and such other information

19  determined by the Auditor General to be necessary and

20  consistent with the purposes of this section.

21         (f)(e)  "Federal financial assistance" means financial

22  assistance from federal sources passed through the state and

23  provided to nonstate organizations entities to carry out a

24  federal program. "Federal financial assistance" includes all

25  types of federal assistance as defined in applicable United

26  States Office of Management and Budget circulars.

27         (g)(f)  "For-profit organization" means any

28  organization or sole proprietor but is not a local

29  governmental entity or a nonprofit organization.

30         (h)(g)  "Independent auditor" means an independent

31  external state or local government auditor or a certified

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 1  public accountant licensed under chapter 473 who meets the

 2  independence standards.

 3         (i)(h)  "Internal control over state projects" means a

 4  process, effected by a nonstate an entity's management and

 5  other personnel, designed to provide reasonable assurance

 6  regarding the achievement of objectives in the following

 7  categories:

 8         1.  Effectiveness and efficiency of operations.

 9         2.  Reliability of financial operations.

10         3.  Compliance with applicable laws and regulations.

11         (j)(i)  "Local governmental entity" means a county

12  agency, municipality, or special district or any other entity

13  excluding (other than a district school board, charter school,

14  or community college), or public university, however styled,

15  which independently exercises any type of governmental

16  function within the state.

17         (k)(j)  "Major state project" means any state project

18  meeting the criteria as stated in the rules of the Department

19  of Financial Services Executive Office of the Governor. Such

20  criteria shall be established after consultation with all the

21  Chief Financial Officer and appropriate state awarding

22  agencies that provide state financial assistance and shall

23  consider the amount of state project expenditures and or

24  expenses or inherent risks. Each major state project shall be

25  audited in accordance with the requirements of this section.

26         (l)(k)  "Nonprofit organization" means any corporation,

27  trust, association, cooperative, or other organization that:

28         1.  Is operated primarily for scientific, educational

29  service, charitable, or similar purpose in the public

30  interest;

31         2.  Is not organized primarily for profit;

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 1         3.  Uses net proceeds to maintain, improve, or expand

 2  the operations of the organization; and

 3         4.  Has no part of its income or profit distributable

 4  to its members, directors, or officers.

 5         (m)(l)  "Nonstate entity" means a local governmental

 6  entity, nonprofit organization, or for-profit organization

 7  that receives state financial assistance resources.

 8         (n)(m)  "Recipient" means a nonstate entity that

 9  receives state financial assistance directly from a state

10  awarding agency.

11         (o)(n)  "Schedule of of Expenditures of State Financial

12  Assistance" means a document prepared in accordance with the

13  rules of the Department of Financial Services Chief Financial

14  Officer and included in each financial reporting package

15  required by this section.

16         (p)(o)  "State awarding agency" means a the state

17  agency, as defined in s. 216.011, that provides provided state

18  financial assistance to a the nonstate entity.

19         (q)(p)  "State financial assistance" means financial

20  assistance from state resources, not including federal

21  financial assistance and state matching on federal programs,

22  provided to a nonstate entity entities to carry out a state

23  project. "State financial assistance" includes the all types

24  of state resources assistance as stated in the rules of the

25  Department of Financial Services Executive Office of the

26  Governor established in consultation with all the Chief

27  Financial Officer and appropriate state awarding agencies that

28  provide state financial assistance. It includes State

29  financial assistance may be provided directly by state

30  awarding agencies or indirectly by nonstate entities

31  recipients of state awards or subrecipients. State financial

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 1  assistance It does not include procurement contracts used to

 2  buy goods or services from vendors and . Audits of such

 3  procurement contracts with vendors are outside of the scope of

 4  this section. Also, audits of contracts to operate state-owned

 5  state-government-owned and contractor-operated facilities are

 6  excluded from the audit requirements of this section.

 7         (r)(q)  "State matching" means state resources provided

 8  to a nonstate entity entities to be used to meet federal

 9  financial participation matching requirements of federal

10  programs.

11         (s)  "State program" means a set of special purpose

12  activities undertaken to realize identifiable goals and

13  objectives in order to achieve a state agency's mission and

14  legislative intent requiring accountability for state

15  resources.

16         (t)(r)  "State project" means a state program that

17  provides all state financial assistance to a nonstate

18  organization and that must be entity assigned a single state

19  project number identifier in the Catalog of State Financial

20  Assistance.

21         (u)(s)  "State Projects Compliance Supplement" means a

22  document issued by the Department of Financial Services

23  Executive Office of the Governor, in consultation with the

24  Chief Financial Officer and all state awarding agencies that

25  provide state financial assistance. The State Projects

26  Compliance Supplement shall identify state projects, the

27  significant compliance requirements, eligibility requirements,

28  matching requirements, suggested audit procedures, and other

29  relevant information determined necessary.

30  

31  

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 1         (v)(t)  "State project-specific audit" means an audit

 2  of one state project performed in accordance with the

 3  requirements of subsection (10) (9).

 4         (w)(u)  "State single audit" means an audit of a

 5  nonstate entity's financial statements and state financial

 6  assistance. Such audits shall be conducted in accordance with

 7  the auditing standards as stated in the rules of the Auditor

 8  General.

 9         (x)(v)  "Subrecipient" means a nonstate entity that

10  receives state financial assistance through another nonstate

11  entity.

12         (y)(w)  "Vendor" means a dealer, distributor, merchant,

13  or other seller providing goods or services that are required

14  for the conduct of a state project. These goods or services

15  may be for an organization's own use or for the use of

16  beneficiaries of the state project.

17         (3)  The Executive Office of the Governor shall be

18  responsible for notifying the Department of Financial Services

19  of any actions during the budgetary process which impact the

20  Catalog of State Financial Assistance.:

21         (a)  Upon conferring with the Chief Financial Officer

22  and all state awarding agencies, adopt rules necessary to

23  provide appropriate guidance to state awarding agencies,

24  recipients and subrecipients, and independent auditors of

25  state financial assistance relating to the requirements of

26  this section, including:

27         1.  The types or classes of financial assistance

28  considered to be state financial assistance which would be

29  subject to the requirements of this section. This would

30  include guidance to assist in identifying when the state

31  

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 1  agency or recipient has contracted with a vendor rather than

 2  with a recipient or subrecipient.

 3         2.  The criteria for identifying a major state project.

 4         3.  The criteria for selecting state projects for

 5  audits based on inherent risk.

 6         (b)  Be responsible for coordinating the initial

 7  preparation and subsequent revisions of the Catalog of State

 8  Financial Assistance after consultation with the Chief

 9  Financial Officer and all state awarding agencies.

10         (c)  Be responsible for coordinating the initial

11  preparation and subsequent revisions of the State Projects

12  Compliance Supplement, after consultation with the Chief

13  Financial Officer and all state awarding agencies.

14         (4)  The Department of Financial Services Chief

15  Financial Officer shall:

16         (a)  Upon conferring with the Executive Office of the

17  Governor and all state awarding agencies, adopt rules

18  necessary to provide appropriate guidance to state awarding

19  agencies, nonstate entities, and independent auditors of state

20  financial assistance relating to the requirements of this

21  section, including:

22         1.  The types or classes of state resources considered

23  to be state financial assistance that would be subject to the

24  requirements of this section. This would include guidance to

25  assist in identifying when the state awarding agency or a

26  nonstate entity has contracted with a vendor rather than with

27  a recipient or subrecipient.

28         2.  The criteria for identifying a major state project.

29         3.  The criteria for selecting state projects for

30  audits based on inherent risk.

31  

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 1         (b)  Be responsible for coordinating revisions to the

 2  Catalog of State Financial Assistance after consultation with

 3  the Executive Office of the Governor and all state awarding

 4  agencies.

 5         (c)  Be responsible for coordinating with the Executive

 6  Office of the Governor actions affecting the budgetary process

 7  under paragraph (b).

 8         (d)  Be responsible for coordinating revisions to the

 9  State Projects Compliance Supplement, after consultation with

10  the Executive Office of the Governor and all state awarding

11  agencies.

12         (e)(a)  Make enhancements to the state's accounting

13  system to provide for the:

14         1.  Recording of state financial assistance and federal

15  financial assistance appropriations and expenditures within

16  the state awarding agencies' operating funds.

17         2.  Recording of state project number identifiers, as

18  provided in the Catalog of State Financial Assistance, for

19  state financial assistance.

20         3.  Establishment and recording of an identification

21  code for each financial transaction, including awarding state

22  agencies' disbursements of state financial assistance and

23  federal financial assistance, as to the corresponding type or

24  organization that is party to the transaction (e.g., other

25  governmental agencies, nonprofit organizations, and for-profit

26  organizations), and disbursements of federal financial

27  assistance, as to whether the party to the transaction is or

28  is not a nonstate entity recipient or subrecipient.

29         (f)(b)  Upon conferring with the Executive Office of

30  the Governor and all state awarding agencies, adopt rules

31  necessary to provide appropriate guidance to state awarding

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 1  agencies, nonstate entities recipients and subrecipients, and

 2  independent auditors of state financial assistance relating to

 3  the format for the Schedule of Expenditures of State Financial

 4  Assistance.

 5         (g)(c)  Perform any inspections, reviews,

 6  investigations, or audits of state financial assistance

 7  considered necessary in carrying out the Department of

 8  Financial Services Chief Financial Officer's legal

 9  responsibilities for state financial assistance or to comply

10  with the requirements of this section.

11         (5)  Each state awarding agency shall:

12         (a)  Provide to each a recipient information needed by

13  the recipient to comply with the requirements of this section,

14  including:

15         1.  The audit and accountability requirements for state

16  projects as stated in this section and applicable rules of the

17  Executive Office of the Governor, rules of the Department of

18  Financial Services Chief Financial Officer, and rules of the

19  Auditor General.

20         2.  Information from the Catalog of State Financial

21  Assistance, including the standard state project number

22  identifier; official title; legal authorization; and

23  description of the state project including objectives,

24  restrictions, and other relevant information determined

25  necessary.

26         3.  Information from the State Projects Compliance

27  Supplement, including the significant compliance requirements,

28  eligibility requirements, matching requirements, suggested

29  audit procedures, and other relevant information determined

30  necessary.

31  

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 1         (b)  Require the recipient, as a condition of receiving

 2  state financial assistance, to allow the state awarding

 3  agency, the Department of Financial Services Chief Financial

 4  Officer, and the Auditor General access to the recipient's

 5  records and the recipient's independent auditor's working

 6  papers as necessary for complying with the requirements of

 7  this section.

 8         (c)  Notify the recipient that this section does not

 9  limit the authority of the state awarding agency to conduct or

10  arrange for the conduct of additional audits or evaluations of

11  state financial assistance or limit the authority of any state

12  awarding agency inspector general, the Auditor General, or any

13  other state official.

14         (d)  Be provided one copy of each financial reporting

15  package prepared in accordance with the requirement of this

16  section.

17         (e)  Review the recipient's recipient financial

18  reporting package, including the management letters and

19  corrective action plans, to the extent necessary to determine

20  whether timely and appropriate corrective action has been

21  taken with respect to audit findings and recommendations

22  pertaining to state financial assistance that are specific to

23  provided by the state awarding agency.

24         (f)  Designate within the state awarding agency a

25  division, bureau, or other organizational unit that will be

26  responsible for reviewing financial reporting packages

27  pursuant to paragraph (e).

28  

29  If the state awarding agency is not the coordinating agency as

30  defined in paragraph (2)(d), the state awarding agency's

31  designated division, bureau, or other organizational unit

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 1  shall communicate to the coordinating agency the state

 2  awarding agency's approval of the recipient's corrective

 3  action plan with respect to findings and recommendations that

 4  are not specific to the state awarding agency.

 5         (6)  Each coordinating agency shall:

 6         (a)  Review the recipient's financial reporting

 7  package, including the management letter and corrective action

 8  plan, to identify audit findings and recommendations that

 9  affect state financial assistance which are not specific to a

10  particular state awarding agency.

11         (b)  For any such findings and recommendations

12  determine:

13         1.  Whether timely and appropriate corrective action

14  has been taken.

15         2.  Promptly inform the state awarding agency's

16  contact, as provided in paragraph (5)(f), of actions taken by

17  the recipient to comply with the approved corrective action

18  plan.

19         (c)  Maintain records of followup actions taken for the

20  use of any succeeding coordinating agency.

21         (7)(6)  As a condition of receiving state financial

22  assistance, each nonstate entity recipient that provides state

23  financial assistance to a subrecipient shall:

24         (a)  Provide to each a subrecipient information needed

25  by the subrecipient to comply with the requirements of this

26  section, including:

27         1.  Identification of the state awarding agency.

28         2.  The audit and accountability requirements for state

29  projects as stated in this section and applicable rules of the

30  Executive Office of the Governor, rules of the Department of

31  

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 1  Financial Services Chief Financial Officer, and rules of the

 2  Auditor General.

 3         3.  Information from the Catalog of State Financial

 4  Assistance, including the standard state project number

 5  identifier; official title; legal authorization; and

 6  description of the state project, including objectives,

 7  restrictions, and other relevant information.

 8         4.  Information from the State Projects Compliance

 9  Supplement including the significant compliance requirements,

10  eligibility requirements, matching requirements, and suggested

11  audit procedures, and other relevant information determined

12  necessary.

13         (b)  Review the financial reporting package of the

14  subrecipient audit reports, including the management letter

15  and corrective action plan letters, to the extent necessary to

16  determine whether timely and appropriate corrective action has

17  been taken with respect to audit findings and recommendations

18  pertaining to state financial assistance provided by a the

19  state awarding agency or nonstate entity.

20         (c)  Perform any such other procedures as specified in

21  terms and conditions of the written agreement with the state

22  awarding agency or nonstate entity, including any required

23  monitoring of the subrecipient's use of state financial

24  assistance through onsite visits, limited scope audits, or

25  other specified procedures.

26         (d)  Require subrecipients, as a condition of receiving

27  state financial assistance, to permit the independent auditor

28  of the nonstate entity recipient, the state awarding agency,

29  Department of Financial Services the Chief Financial Officer,

30  and the Auditor General access to the subrecipient's records

31  

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 1  and the subrecipient's independent auditor's working papers as

 2  necessary to comply with the requirements of this section.

 3         (8)(7)  Each recipient or subrecipient of state

 4  financial assistance shall comply with the following:

 5         (a)  Each nonstate entity that receives state financial

 6  assistance and meets the audit threshold requirements, in any

 7  fiscal year of the nonstate entity, as stated in the rules of

 8  the Auditor General, shall have a state single audit conducted

 9  for such fiscal year in accordance with the requirements of

10  this act and with additional requirements established in rules

11  of the Executive Office of the Governor, rules of the

12  Department of Financial Services Chief Financial Officer, and

13  rules of the Auditor General. If only one state project is

14  involved in a nonstate entity's fiscal year, the nonstate

15  entity may elect to have only a state project-specific audit

16  of the state project for that fiscal year.

17         (b)  Each nonstate entity that receives state financial

18  assistance and does not meet the audit threshold requirements,

19  in any fiscal year of the nonstate entity, as stated in this

20  law or the rules of the Auditor General is exempt for such

21  fiscal year from the state single audit requirements of this

22  section. However, such nonstate entity must meet terms and

23  conditions specified in the written agreement with the state

24  awarding agency or nonstate entity.

25         (c)  Regardless of the amount of the state financial

26  assistance, the provisions of this section do not exempt a

27  nonstate entity from compliance with provisions of law

28  relating to maintaining records concerning state financial

29  assistance to such nonstate entity or allowing access and

30  examination of those records by the state awarding agency,

31  

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 1  nonstate entity, the Department of Financial Services Chief

 2  Financial Officer, or the Auditor General.

 3         (d)  Audits conducted pursuant to this section shall be

 4  performed annually.

 5         (e)  Audits conducted pursuant to this section shall be

 6  conducted by independent auditors in accordance with auditing

 7  standards as stated in rules of the Auditor General.

 8         (f)  Upon completion of the audit as required by this

 9  section, a copy of the recipient's financial reporting package

10  shall be filed with the state awarding agency and the Auditor

11  General. Upon completion of the audit as required by this

12  section, a copy of the subrecipient's financial reporting

13  package shall be filed with the nonstate entity recipient that

14  provided the state financial assistance and the Auditor

15  General. The financial reporting package shall be filed in

16  accordance with the rules of the Auditor General.

17         (g)  All financial reporting packages prepared pursuant

18  to the requirements of this section shall be available for

19  public inspection.

20         (h)  If an audit conducted pursuant to this section

21  discloses any significant audit findings relating to state

22  financial assistance, including material noncompliance with

23  individual state project compliance requirements or reportable

24  conditions in internal controls of the nonstate entity, the

25  nonstate entity shall submit as part of the financial

26  reporting audit package to the state awarding agency or

27  nonstate entity a plan for corrective action to eliminate such

28  audit findings or a statement describing the reasons that

29  corrective action is not necessary.

30         (i)  An audit conducted in accordance with this section

31  is in addition to any audit of federal awards required by the

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 1  federal Single Audit Act and other federal laws and

 2  regulations. To the extent that such federally required audits

 3  provide the state awarding agency or nonstate entity with

 4  information it requires to carry out its responsibilities

 5  under state law or other guidance, the a state awarding agency

 6  or nonstate entity shall rely upon and use that information.

 7         (j)  Unless prohibited by law, the costs cost of audits

 8  pursuant to this section are is allowable charges to state

 9  projects. However, any charges to state projects should be

10  limited to those incremental costs incurred as a result of the

11  audit requirements of this section in relation to other audit

12  requirements. The nonstate entity should allocate such

13  incremental costs to all state projects for which it expended

14  state financial assistance.

15         (k)  Audit costs may not be charged to state projects

16  when audits required by this section have not been made or

17  have been made but not in accordance with this section. If a

18  nonstate entity fails to have an audit conducted consistent

19  with this section, a state awarding agency or nonstate entity

20  agencies may take appropriate corrective action to enforce

21  compliance.

22         (l)  This section does not prohibit the state awarding

23  agency or nonstate entity from including terms and conditions

24  in the written agreement which require additional assurances

25  that state financial assistance meets the applicable

26  requirements of laws, regulations, and other compliance rules.

27         (m)  A state awarding agency or nonstate entity that

28  provides state financial assistance to nonstate entities and

29  conducts or arranges for audits of state financial assistance

30  that are in addition to the audits conducted under this act,

31  including audits of nonstate entities that do not meet the

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 1  audit threshold requirements, shall, consistent with other

 2  applicable law, arrange for funding the full cost of such

 3  additional audits.

 4         (9)(8)  The independent auditor when conducting a state

 5  single audit of a nonstate entity recipients or subrecipients

 6  shall:

 7         (a)  Determine whether the nonstate entity's financial

 8  statements are presented fairly in all material respects in

 9  conformity with generally accepted accounting principles.

10         (b)  Determine whether state financial assistance shown

11  on the Schedule of Expenditures of State Financial Assistance

12  is presented fairly in all material respects in relation to

13  the nonstate entity's financial statements taken as a whole.

14         (c)  With respect to internal controls pertaining to

15  each major state project:

16         1.  Obtain an understanding of internal controls;

17         2.  Assess control risk;

18         3.  Perform tests of controls unless the controls are

19  deemed to be ineffective; and

20         4.  Determine whether the nonstate entity has internal

21  controls in place to provide reasonable assurance of

22  compliance with the provisions of laws and rules pertaining to

23  state financial assistance that have a material effect on each

24  major state project.

25         (d)  Determine whether each major state project

26  complied with the provisions of laws, rules, and guidelines as

27  identified in the State Projects Compliance Supplement, or

28  otherwise identified by the state awarding agency, which have

29  a material effect on each major state project. When major

30  state projects are less than 50 percent of the nonstate

31  entity's total expenditures for all state financial

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 1  assistance, the auditor shall select and test additional state

 2  projects as major state projects as necessary to achieve audit

 3  coverage of at least 50 percent of the expenditures for all

 4  state financial assistance provided to the nonstate entity.

 5  Additional state projects needed to meet the 50-percent

 6  requirement may be selected on an inherent risk basis as

 7  stated in the rules of the Department of Financial Services

 8  Executive Office of the Governor.

 9         (e)  Report on the results of any audit conducted

10  pursuant to this section in accordance with the rules of the

11  Executive Office of the Governor, rules of the Department of

12  Financial Services Chief Financial Officer, and rules of the

13  Auditor General. Financial reporting packages must Audit

14  reports shall include summaries of the auditor's results

15  regarding the nonstate entity's financial statements; Schedule

16  of Expenditures of State Financial Assistance; internal

17  controls; and compliance with laws, rules, and guidelines.

18         (f)  Issue a management letter as prescribed in the

19  rules of the Auditor General.

20         (g)  Upon notification by the nonstate entity, make

21  available the working papers relating to the audit conducted

22  pursuant to the requirements of this section to the state

23  awarding agency, the Department of Financial Services Chief

24  Financial Officer, or the Auditor General for review or

25  copying.

26         (10)(9)  The independent auditor, when conducting a

27  state project-specific audit of a nonstate entity recipients

28  or subrecipients, shall:

29         (a)  Determine whether the nonstate entity's Schedule

30  of Expenditure of State Financial Assistance is presented

31  

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 1  fairly in all material respects in conformity with stated

 2  accounting policies.

 3         (b)  Obtain an understanding of internal controls

 4  control and perform tests of internal controls control over

 5  the state project consistent with the requirements of a major

 6  state project.

 7         (c)  Determine whether or not the auditee has complied

 8  with applicable provisions of laws, rules, and guidelines as

 9  identified in the State Projects Compliance Supplement, or

10  otherwise identified by the state awarding agency, which could

11  have a direct and material effect on the state project.

12         (d)  Report on the results of the a state

13  project-specific audit consistent with the requirements of the

14  state single audit and issue a management letter as prescribed

15  in the rules of the Auditor General.

16         (e)  Upon notification by the nonstate entity, make

17  available the working papers relating to the audit conducted

18  pursuant to the requirements of this section to the state

19  awarding agency, the Department of Financial Services Chief

20  Financial Officer, or the Auditor General for review or

21  copying.

22         (11)(10)  The Auditor General shall:

23         (a)  Have the authority to audit state financial

24  assistance provided to any nonstate entity when determined

25  necessary by the Auditor General or when directed by the

26  Legislative Auditing Committee.

27         (b)  Adopt rules that state the auditing standards that

28  independent auditors are to follow for audits of nonstate

29  entities required by this section.

30         (c)  Adopt rules that describe the contents and the

31  filing deadlines for the financial reporting package.

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 1         (d)  Provide technical advice upon request of the

 2  Department of Financial Services Chief Financial Officer,

 3  Executive Office of the Governor, and state awarding agencies

 4  relating to financial reporting and audit responsibilities

 5  contained in this section.

 6         (e)  Be provided one copy of each financial reporting

 7  package prepared in accordance with the requirements of this

 8  section.

 9         (f)  Perform ongoing reviews of a sample of financial

10  reporting packages filed pursuant to the requirements of this

11  section to determine compliance with the reporting

12  requirements of this section and applicable rules of the

13  Executive Office of the Governor, rules of the Department of

14  Financial Services Chief Financial Officer, and rules of the

15  Auditor General.

16         Section 20.  Paragraphs (a), (b), (n), (gg), (hh), and

17  (jj) of subsection (1) of section 216.011, Florida Statutes,

18  are amended, paragraph (rr) is added to that subsection, and

19  paragraph (c) is added to subsection (3) of that section, to

20  read:

21         216.011  Definitions.--

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

23  appropriations acts, legislative budgets, and approved

24  budgets, each of the following terms has the meaning

25  indicated:

26         (a)  "Annual salary rate" means the monetary

27  compensation authorized to be paid a position on an annualized

28  basis. The term does not include moneys authorized for

29  benefits associated with the position. In calculating salary

30  rate, a vacant position shall be calculated at the minimum of

31  the pay grade for that position.

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

 2  make expenditures for specific purposes within the amounts

 3  authorized by law in the appropriations act.

 4         (n)  "Expense" means the appropriation category used to

 5  fund the usual, ordinary, and incidental expenditures by an

 6  agency or the judicial branch, including such items as

 7  contractual services, commodities, and supplies of a

 8  consumable nature, current obligations, and fixed charges, and

 9  excluding expenditures classified as operating capital outlay.

10  Payments to other funds or local, state, or federal agencies

11  may be included in this category.

12         (gg)  "Mandatory reserve" means the reduction of an

13  appropriation by the Governor or the Legislative Budget

14  Commission due to an anticipated deficit in a fund, pursuant

15  to s. 216.221. No action may be taken to restore a mandatory

16  reserve either directly or indirectly. "Performance-based

17  program appropriation" means the appropriation category used

18  to fund a specific set of activities or classification of

19  expenditure within an approved performance-based program.

20         (hh)  "Budget reserve" means the withholding of an

21  appropriation, or portion thereof, as authorized by the

22  Legislature. The need for a budget reserve may exist until

23  certain conditions set by the Legislature are met by the

24  affected agency, or such need may exist due to financial or

25  program changes that have occurred since, and were unforeseen

26  at the time of, passage of the General Appropriations Act.

27  "Performance-based program budget" means a budget that

28  incorporates approved programs and performance measures.

29         (jj)  "Program" means a set of services and activities

30  undertaken in accordance with a plan of action organized to

31  

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 1  realize identifiable goals and objectives based on legislative

 2  authorization.

 3         (rr)  "Activity" means a unit of work which has

 4  identifiable starting and ending points, consumes resources,

 5  and produces outputs.

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

 7         (c)  "Statutorily authorized entity" means any entity

 8  primarily acting as an instrumentality of the state, any

 9  regulatory or governing body, or any other governmental or

10  quasi-governmental organization that receives, disburses,

11  expends, administers, awards, recommends expenditure of,

12  handles, manages, or has custody or control of funds

13  appropriated by the Legislature and:

14         1.  Is created, organized, or specifically authorized

15  to be created or established by general law; or

16         2.  Assists a department, as defined in s. 20.03(2), or

17  other unit of state government in providing programs or

18  services on a statewide basis with a statewide service area or

19  population.

20         Section 21.  Subsections (1), (2), (3), and (9) of

21  section 216.013, Florida Statutes, are amended to read:

22         216.013  Long-range program plan.--

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

24  plans to achieve state goals using an interagency planning

25  process that includes the development of integrated agency

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

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

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

29  development of agency budget requests and shall:

30  

31  

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 1         (a)  Identify agency programs and address how agency

 2  programs will be used to implement state policy and achieve

 3  state goals and program component objectives;

 4         (b)  Identify and describe agency services and

 5  activities functions and how they will be used to achieve

 6  designated outcomes;

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

 8  costs for each activity function;

 9         (d)  Provide information regarding performance

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

11  is collected, the methodology used to measure a performance

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

13  appropriateness of a measure, and whether the agency inspector

14  general has assessed the reliability and validity of agency

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

16         (e)  Identify and justify facility and fixed capital

17  outlay projects and their associated costs; and

18         (f)  Identify and justify information technology

19  infrastructure and applications and their associated costs for

20  information technology projects or initiatives.

21         (2)  All agency activities functions and their costs

22  shall be carefully evaluated and justified by the agency.  The

23  justification must clearly demonstrate the needs of agency

24  customers and clients and why the agency is proposing

25  functions and their associated costs to address the needs

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

27  authorization.  Further, the justification must show how

28  agency functions are integrated and contribute to the overall

29  achievement of state goals.  Facilities, fixed capital outlay

30  and information technology infrastructure, and applications

31  

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

 2  216.0446, respectively.

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

 4  Executive Office of the Governor by August 1 of each year,

 5  unless an alternative date is approved by the Governor and the

 6  chairs of the legislative appropriations committees, in a form

 7  and manner prescribed by the Executive Office of the Governor

 8  and the chairs of the legislative appropriations committees.

 9  Such long-range program plans for the Judicial Branch shall be

10  submitted by the Chief Justice of the Supreme Court to the

11  President of the Senate and the Speaker of the House of

12  Representatives, and a copy shall be provided to the Executive

13  Office of the Governor.

14         (9)  Agencies and the judicial branch shall make

15  appropriate adjustments to their long-range program plans to

16  be consistent with the appropriations and performance measures

17  in the General Appropriations Act and legislation implementing

18  the General Appropriations Act. Agencies and the judicial

19  branch have until June 30 15 to make adjustments to their

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

21  the Governor for review.

22         Section 22.  Section 216.023, Florida Statutes, is

23  amended to read:

24         216.023  Legislative budget requests to be furnished to

25  Legislature by agencies.--

26         (1)  The head of each state agency, except as provided

27  in subsection (2), shall submit a final legislative budget

28  request to the Legislature and to the Governor, as chief

29  budget officer of the state, in the form and manner prescribed

30  in the budget instructions and at such time as specified by

31  the Executive Office of the Governor, based on the agency's

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 1  independent judgment of its needs.  However, no state agency

 2  shall submit its complete legislative budget request,

 3  including all supporting forms and schedules required by this

 4  chapter, later than September 15 of each year, unless an

 5  alternative date is approved by the Governor and the chairs of

 6  the legislative appropriations committees.

 7         (2)  The judicial branch and the Division of

 8  Administrative Hearings shall submit their complete

 9  legislative budget requests directly to the Legislature with a

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

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

12  However, the complete legislative budget requests, including

13  all supporting forms and schedules required by this chapter,

14  shall be submitted no later than September 15 of each year,

15  unless an alternative date is approved by the Governor and the

16  chairs of the legislative appropriations committees.

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

18  appropriations committees of the Legislature shall jointly

19  develop legislative budget instructions for preparing the

20  exhibits and schedules that make up the agency budget from

21  which each agency and the judicial branch shall prepare their

22  budget request.  The budget instructions shall be consistent

23  with s. 216.141 and shall be transmitted to each agency and to

24  the judicial branch no later than June 15 of each year, unless

25  an alternative date is approved by the Governor and the chairs

26  of the legislative appropriations committees.  In the event

27  that agreement cannot be reached between the Executive Office

28  of the Governor and the appropriations committees of the

29  Legislature regarding legislative budget instructions, the

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

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

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 1         (4)(a)  The legislative budget request must contain for

 2  each program:

 3         1.  The constitutional or statutory authority for a

 4  program, a brief purpose statement, and approved program

 5  components.

 6         2.  Information on expenditures for 3 fiscal years

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

 8  expenditures, and agency budget requested expenditures for the

 9  next fiscal year) by appropriation category.

10         3.  Details on trust funds and fees.

11         4.  The total number of positions (authorized, fixed,

12  and requested).

13         5.  An issue narrative describing and justifying

14  changes in amounts and positions requested for current and

15  proposed programs for the next fiscal year.

16         6.  Information resource requests.

17         7.  Legislatively approved output and outcome

18  performance measures and any proposed revisions to measures.

19         8.  Proposed performance standards for each performance

20  measure and justification for the standards and the sources of

21  data to be used for measurement.

22         9.  Prior-year performance data on approved performance

23  measures and an explanation of deviation from expected

24  performance. Performance data must be assessed for reliability

25  in accordance with s. 20.055.

26         10.  Proposed performance incentives and disincentives.

27         11.  Supporting information, including applicable

28  cost-benefit analyses, business case analyses, performance

29  contracting procedures, service comparisons, and impacts to

30  performance standards for any requests to outsource or

31  privatize agency functions.

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 1         12.  An evaluation of current outsourcing and

 2  privatization initiatives, if any, including an assessment of

 3  contractor performance, a comparison of anticipated service

 4  levels to actual service levels, and a comparison of estimated

 5  savings to actual savings achieved. Consolidated reports

 6  issued by the Department of Management Services may be used to

 7  satisfy this requirement.

 8         (b)  It is the intent of the Legislature that total

 9  accountability measures, including unit-cost data, serve not

10  only as a budgeting tool but also as a policymaking tool and

11  an accountability tool. Therefore, each state agency and the

12  judicial branch must submit a one-page summary of information

13  for the preceding year in accordance with the legislative

14  budget instructions. Each one-page summary must contain:

15         1.  The final budget for the agency and the judicial

16  branch.

17         2.  Total funds from the General Appropriations Act.

18         3.  Adjustments to the General Appropriations Act.

19         4.  The line-item listings of all activities.

20         5.  The number of activity units performed or

21  accomplished.

22         6.  Total expenditures for each activity, including

23  amounts paid to contractors and subordinate entities.

24  Expenditures related to administrative activities not aligned

25  with output measures must consistently be allocated to

26  activities with output measures prior to computing unit costs.

27         7.  The cost per unit for each activity, including the

28  costs allocated to contractors and subordinate entities.

29         8.  The total amount of reversions and pass-through

30  expenditures omitted from unit-cost calculations.

31  

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 1  At the regular session immediately following the submission of

 2  the agency unit cost summary, the Legislature shall reduce in

 3  the General Appropriations Act for the ensuing fiscal year, by

 4  an amount equal to at least 10 percent of the allocation for

 5  the fiscal year preceding the current fiscal year, the funding

 6  of each state agency that fails to submit the report required

 7  under this paragraph.

 8         (5)  At the time specified in the legislative budget

 9  instructions and in sufficient time to be included in the

10  Governor's recommended budget, the judicial branch is required

11  to submit a performance-based program budget request. The

12  Chief Justice of the Supreme Court shall identify and, after

13  consultation with the Office of Program Policy Analysis and

14  Government Accountability, submit to the President of the

15  Senate and the Speaker of the House of Representatives a list

16  of proposed programs and associated performance measures. The

17  judicial branch shall provide documentation to accompany the

18  list of proposed programs and performance measures as provided

19  under subsection (4). The judicial branch shall submit a

20  performance-based program agency budget request using the

21  programs and performance measures adopted by the Legislature.

22  The Chief Justice may propose revisions to approved programs

23  or performance measures for the judicial branch. The

24  Legislature shall have final approval of all programs and

25  associated performance measures and standards for the judicial

26  branch through the General Appropriations Act or legislation

27  implementing the General Appropriations Act. By September 15,

28  2001, the Chief Justice of the Supreme Court shall submit to

29  the President of the Senate and the Speaker of the House of

30  Representatives a performance-based program budget request for

31  

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 1  programs of the judicial branch approved by the Legislature

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

 3         (5)(6)  Agencies must maintain a comprehensive

 4  performance accountability system and provide a list of

 5  performance measures maintained by the agency which are in

 6  addition to the measures approved by the Legislature.

 7         (6)(7)  Annually, by June 30, executive agencies shall

 8  submit to the Executive Office of the Governor adjustments to

 9  their performance standards based on the amounts appropriated

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

11  is made, all performance standards, including any adjustments

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

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

14  to the Legislature pursuant to the review and approval process

15  provided in s. 216.177. The Senate and the House of

16  Representatives appropriations committees Senate Committee on

17  Fiscal Policy and the House of Representatives Fiscal

18  Responsibility Council shall advise Senate substantive

19  committees and House of Representatives substantive

20  committees, respectively, of all adjustments made to

21  performance standards or measures. The Executive Office of the

22  Governor shall maintain both the official record of

23  adjustments to the performance standards as part of the

24  agency's approved operating budget and the official

25  performance ledger. As used in this section, the term

26  "official record" "performance ledger" means the official

27  compilation of information about state agency

28  performance-based programs and measures, including approved

29  programs, approved outputs and outcomes, baseline data,

30  approved standards for each performance measure and any

31  

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 1  approved adjustments thereto, as well as actual agency

 2  performance for each measure.

 3         (7)(8)  As a part of the legislative budget request,

 4  the head of each state agency and the Chief Justice of the

 5  Supreme Court for the judicial branch shall include an

 6  inventory of all litigation in which the agency is involved

 7  that may require additional appropriations to the agency, that

 8  may significantly affect revenues received or anticipated to

 9  be received by the state, or that may require or amendments to

10  the law under which the agency operates.  No later than March

11  1 following the submission of the legislative budget request,

12  the head of the state agency and the Chief Justice of the

13  Supreme Court shall provide an update of any additions or

14  changes to the inventory.  Such inventory shall include

15  information specified annually in the legislative budget

16  instructions.

17         (8)(9)  Annually, by June 30, the judicial branch shall

18  make adjustments to any performance standards for approved

19  programs based on the amount appropriated for each program,

20  which shall be submitted to the Legislature pursuant to the

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

22  and the House of Representatives appropriations committees

23  Senate Committee on Fiscal Policy and the House Fiscal

24  Responsibility Council shall advise Senate substantive

25  committees and House substantive committees, respectively, of

26  all adjustments made to performance standards or measures.

27         (9)(10)  The Executive Office of the Governor shall

28  review the legislative budget request for technical compliance

29  with the budget format provided for in the budget

30  instructions. The Executive Office of the Governor shall

31  notify the agency or the judicial branch of any adjustment

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 1  required. The agency or judicial branch shall make the

 2  appropriate corrections as requested. If the appropriate

 3  technical corrections are not made as requested, the Executive

 4  Office of the Governor shall adjust the budget request to

 5  incorporate the appropriate technical corrections in the

 6  format of the request.

 7         (10)(11)  At any time after the Governor submits his or

 8  her and the Chief Justice submit their recommended budget

 9  budgets to the Legislature, the head of the agency or judicial

10  branch may amend his or her request by transmitting to the

11  Governor and the Legislature an amended request in the form

12  and manner prescribed in the legislative budget instructions.

13         (11)(12)  The legislative budget request from each

14  agency and from the judicial branch shall be reviewed by the

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

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

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

18  Government Accountability, the Governor's Office of Planning

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

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

21         (12)(13)  In order to ensure an integrated state

22  planning and budgeting process, the agency long-range plan

23  should be reviewed by the Legislature.

24         Section 23.  Section 216.031, Florida Statutes, is

25  amended to read:

26         216.031  Target budget request.--Either chair of a

27  legislative appropriations committee, or the Executive Office

28  of the Governor for state agencies, may require the agency or

29  the Chief Justice to address major issues separate from those

30  outlined in s. 216.023, this section, and s. 216.043 for

31  inclusion in the requests of the agency or of the judicial

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 1  branch.  The issues shall be submitted to the agency no later

 2  than July 30 of each year and shall be displayed in its

 3  requests as provided in the budget instructions.  The

 4  Executive Office of the Governor may request an agency, or the

 5  chair of the appropriations committees of the Senate or House

 6  of Representatives may request any agency or the judicial

 7  branch, to submit no later than September 30 of each year a

 8  budget plan with respect to targets established by the

 9  Governor or either chair. The target budget shall require each

10  entity to establish an order of priorities for its budget

11  issues and may include requests for multiple options for the

12  budget issues.  The target budget may also require each entity

13  to submit a program budget or a performance-based budget in

14  the format prescribed by the Executive Office of the Governor

15  or either chair; provided, however, The target budget format

16  shall be compatible with the planning and budgeting system

17  requirements set out in s. 216.141. Such a request shall not

18  influence the agencies' or judicial branch's independent

19  judgment in making legislative budget requests, as required by

20  law.

21         Section 24.  Subsections (2), (3), (8), and (9) of

22  section 216.052, Florida Statutes, are repealed.

23         Section 25.  Subsection (5) of section 216.053, Florida

24  Statutes, is repealed.

25         Section 26.  Section 216.065, Florida Statutes, is

26  amended to read:

27         216.065  Fiscal impact statements on actions affecting

28  the budget.--In addition to the applicable requirements of

29  chapter 120, before the Governor, or Governor and Cabinet as a

30  body, performing any constitutional or statutory duty, or

31  before any state agency or statutorily authorized entity takes

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 1  take any final action that will affect revenues, directly

 2  require a request for an increased or new appropriation in the

 3  following fiscal year, or that will transfer current year

 4  funds, it they shall first provide the legislative

 5  appropriations committees with a fiscal impact statement that

 6  details the effects of such action on the budget. The fiscal

 7  impact statement must specify the estimated budget and revenue

 8  impacts for the current year and the 2 subsequent fiscal years

 9  at the same level of detail required to support a legislative

10  budget request, including amounts by appropriation category

11  and fund.

12         Section 27.  Subsection (3) is added to section

13  216.081, Florida Statutes, to read:

14         216.081  Data on legislative and judicial branch

15  expenses.--

16         (3)  If the Governor does not receive timely estimates

17  of the financial needs of the legislative branch, the

18  Governor's recommended budget must include the amounts

19  appropriated and budget entity structure established in the

20  most recent General Appropriations Act.

21         Section 28.  Subsections (7) and (8) of section

22  216.136, Florida Statutes, are repealed.

23         Section 29.  Subsection (1) of section 216.162, Florida

24  Statutes, is amended to read:

25         216.162  Governor's recommended budget to be furnished

26  Legislature; copies to members.--

27         (1)  At least 40 45 days before the scheduled annual

28  legislative session, the Governor shall furnish each senator

29  and representative a copy of his or her recommended balanced

30  budget for the state, based on the Governor's own conclusions

31  and judgment; provided, however, that in his or her first year

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 1  in office a new Governor may request, subject to approval of

 2  the President of the Senate and the Speaker of the House of

 3  Representatives, that his or her recommended balanced budget

 4  be submitted at a later time prior to the Governor's first

 5  regular legislative session.

 6         Section 30.  Subsections (1), (2), (3), and (4) of

 7  section 216.167, Florida Statutes, are amended to read:

 8         216.167  Governor's recommendations.--The Governor's

 9  recommendations shall include a financial schedule that

10  provides:

11         (1)  The Governor's estimate of the recommended

12  recurring revenues available in the Budget Stabilization Fund,

13  the Working Capital Fund, and the General Revenue Fund.

14         (2)  The Governor's estimate of the recommended

15  nonrecurring revenues available in the Budget Stabilization

16  Fund, the Working Capital Fund, and the General Revenue Fund.

17         (3)  The Governor's recommended recurring and

18  nonrecurring appropriations from the Budget Stabilization

19  Fund, the Working Capital Fund, and the General Revenue Fund.

20         (4)  The Governor's estimates of any interfund loans or

21  temporary obligations of the Budget Stabilization Fund, the

22  General Revenue Working Capital Fund, or trust funds, which

23  loans or obligations are needed to implement his or her

24  recommended budget.

25         Section 31.  Subsection (4) of section 216.168, Florida

26  Statutes, is amended to read:

27         216.168  Governor's amended revenue or budget

28  recommendations; optional and mandatory.--

29         (4)  If the Governor determines, at any time after he

30  or she has furnished the Legislature with his or her

31  recommendations or amended recommendations, that the revenue

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 1  estimates upon which the Governor's recommendations were based

 2  are insufficient to fund these recommendations, the Governor

 3  shall amend his or her revenues or appropriations

 4  recommendations to bring the Governor's recommended budget

 5  into balance.  On or after March 1, if the Governor determines

 6  that there is insufficient time to provide the information for

 7  the amended recommendations required in ss. 216.164 and

 8  216.166, he or she shall be exempt from such requirement.

 9         Section 32.  Subsections (1), (2), and (3) of section

10  216.177, Florida Statutes, are amended to read:

11         216.177  Appropriations acts, statement of intent,

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

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

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

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

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

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

18  legislative appropriations committees shall jointly transmit:

19         (a)  The official list of General Revenue Fund

20  appropriations determined in consultation with the Executive

21  Office of the Governor to be nonrecurring; and

22         (b)  The documents set forth in s. 216.0442(2)(a) and

23  (c),

24  

25  to the Executive Office of the Governor, the Chief Financial

26  Officer, the Auditor General, the director of the Office of

27  Program Policy Analysis and Government Accountability, the

28  Chief Justice of the Supreme Court, and each state agency. A

29  request for additional explanation and direction regarding the

30  legislative intent of the General Appropriations Act during

31  the fiscal year may be made to the chairs of the

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 1  appropriations committees of the Legislature chair and vice

 2  chair of the Legislative Budget Commission or the President of

 3  the Senate and the Speaker of the House of Representatives

 4  only by and through the Executive Office of the Governor for

 5  state agencies, and by and through the Chief Justice of the

 6  Supreme Court for the judicial branch, as is deemed necessary.

 7  However, the Chief Financial Officer may also request further

 8  clarification of legislative intent pursuant to the Chief

 9  Financial Officer's responsibilities related to his or her

10  preaudit function of expenditures.

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

12  Executive Office of the Governor or the Chief Justice of the

13  Supreme Court is required by this chapter, such notice shall

14  be given to the chairs of the appropriations committees of the

15  Legislature chair and vice chair of the Legislative Budget

16  Commission in writing, and shall be delivered at least 14 days

17  prior to the action referred to, unless a shorter period is

18  approved in writing by the chairs chair. If the action is

19  solely for the release of funds appropriated by the

20  Legislature, the notice shall be delivered at least 3 days

21  before the effective date of the action. Action shall not be

22  taken on any budget item for which this chapter requires

23  notice to the Legislative Budget Commission or the

24  appropriations committees without such notice having been

25  provided, even though there may be good cause for considering

26  such item.

27         (b)  If the chairs of the appropriations committees of

28  the Legislature chair and vice chair of the Legislative Budget

29  Commission or the President of the Senate and the Speaker of

30  the House of Representatives timely advise, in writing, the

31  Executive Office of the Governor or the Chief Justice of the

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 1  Supreme Court that an action or a proposed action, including

 2  any expenditure of funds resulting from the settlement of

 3  litigation involving a state agency or officer, whether

 4  subject to the notice and review requirements of this chapter

 5  or not, exceeds the delegated authority of the Executive

 6  Office of the Governor for the executive branch or the Chief

 7  Justice for the judicial branch, respectively, or is contrary

 8  to legislative policy and intent, the Governor or the Chief

 9  Justice of the Supreme Court shall void such action and

10  instruct the affected state agency or entity of the judicial

11  branch to change immediately its spending action or spending

12  proposal until the Legislative Budget Commission or the

13  Legislature addresses the issue.  The written documentation

14  shall indicate the specific reasons that an action or proposed

15  action exceeds the delegated authority or is contrary to

16  legislative policy and intent.

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

18  provide by rule that any member of the House of

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

20  the President of the Senate or the Speaker of the House of

21  Representatives to initiate the procedures of paragraph (b).

22         (3)  The Legislature may annually specify any

23  incentives and disincentives for agencies operating programs

24  under performance-based program budgets pursuant to this

25  chapter in the General Appropriations Act or legislation

26  implementing the General Appropriations Act.

27         Section 33.  Subsections (1), (2), (4), (6), (12), and

28  (16) of section 216.181, Florida Statutes, are amended to

29  read:

30         216.181  Approved budgets for operations and fixed

31  capital outlay.--

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

 2  containing appropriations shall be considered the original

 3  approved operating budgets for operational and fixed capital

 4  expenditures. Amendments to the approved operating budgets for

 5  operational and fixed capital outlay expenditures from state

 6  agencies may be requested only through the Executive Office of

 7  the Governor and approved by the Governor and the Legislative

 8  Budget Commission as provided in this chapter. Amendments from

 9  the judicial branch may be requested only through, and

10  approved by, the Chief Justice of the Supreme Court and must

11  be approved by the Chief Justice and the Legislative Budget

12  Commission as provided in this chapter. This includes

13  amendments which are necessary to implement the provisions of

14  s. 216.212 or s. 216.221.

15         (2)  Amendments to the original approved operating

16  budgets for operational and fixed capital outlay expenditures

17  must comply with the following guidelines in order to be

18  approved by the Governor and the Legislative Budget Commission

19  as provided in this chapter for the executive branch and the

20  Chief Justice and the Legislative Budget Commission for the

21  judicial branch:

22         (a)  The amendment must be consistent with legislative

23  policy and intent.

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

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

26  existing program.

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

28  provisions of this chapter, the amendment may not provide

29  funding or increased funding for items which were funded by

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

31  agency or Governor in the legislative budget request or

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 1  recommended by the Governor, or which were vetoed by the

 2  Governor.

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

 4  must be adequate and appropriate revenues available in the

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

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

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

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

 9  provided in subsection (11).

10         (e)  The amendment shall not conflict with any

11  provision of law.

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

13  issue which was requested by the agency or branch in its

14  legislative budget request and not funded in the General

15  Appropriations Act.

16         (g)  The amendment must include a written description

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

18  interim budget action is necessary, and the intended recipient

19  of any funds for contracted services.

20         (h)  The amendment must not provide general salary

21  increases which the Legislature has not authorized in the

22  General Appropriations Act or other laws.

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

24  Senate and the House of Representatives should be advised of

25  budget amendments requested by the executive branch and

26  judicial branch.

27         (6)(a)  The Executive Office of the Governor or the

28  Chief Justice of the Supreme Court may require the submission

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

30  branch affected, consistent with the General Appropriations

31  Act, special appropriations acts, and statements the statement

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 1  of intent before transferring and releasing the balance of a

 2  lump-sum appropriation. The provisions of this paragraph are

 3  subject to the notice and review procedures set forth in s.

 4  216.177.

 5         (b)  The Executive Office of the Governor and the Chief

 6  Justice of the Supreme Court may amend, without approval of

 7  the Legislative Budget Commission, state agency and judicial

 8  branch entity budgets, respectively, to reflect the

 9  transferred funds and to provide the associated increased

10  salary rate based on the approved plans for lump-sum

11  appropriations. The provisions of this paragraph are subject

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

13  

14  The Executive Office of the Governor shall transmit to each

15  state agency and the Chief Financial Officer, and the Chief

16  Justice shall transmit to each judicial branch component and

17  the Chief Financial Officer, any approved amendments to the

18  approved operating budgets.

19         (12)  There is appropriated nonoperating budget for

20  refunds, payments to the United States Treasury, payments of

21  the service charge to the General Revenue Fund, and transfers

22  of funds specifically required by law. Such authorized budget,

23  together with related releases, shall be transmitted by the

24  state agency or by the judicial branch to the Chief Financial

25  Officer for entry in his or her records in the manner and

26  format prescribed by the Executive Office of the Governor in

27  consultation with the Chief Financial Officer. A copy of such

28  authorized budgets shall be furnished to the Executive Office

29  of the Governor or the Chief Justice, the chairs of the

30  legislative committees responsible for developing the general

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

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 1  withhold approval of nonoperating investment authority for

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

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

 4  Justice for the judicial branch, may establish nonoperating

 5  budgets, with the approval of the chairs of the Senate and the

 6  House of Representatives appropriations committees, for

 7  transfers, purchase of investments, special expenses,

 8  distributions, and any other nonoperating budget categories

 9  they deem necessary and in the best interest of the state and

10  consistent with legislative intent and policy. The provisions

11  of this subsection are subject to the notice, review, and

12  objection procedures set forth in s. 216.177. For purposes of

13  this section, the term "nonoperating budgets" means

14  nonoperating disbursement authority for purchase of

15  investments, refunds, payments to the United States Treasury,

16  transfers of funds specifically required by law, distributions

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

18  of fiduciary, special expenses, and other nonoperating budget

19  categories as determined necessary by the Executive Office of

20  the Governor and the chairs of the Senate and the House of

21  Representatives appropriations committees, not otherwise

22  appropriated in the General Appropriations Act.

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

24  in the General Appropriations Act may be advanced if the

25  General Appropriations Act specifically so provides.

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

27  authorized by the General Appropriations Act or expressly

28  authorized by other law to make advances for program startup

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

30  shall limit such disbursements to other governmental entities

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

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 1  advanced shall not exceed the expected cash needs of the

 2  contractor or recipient within the initial 3 months.

 3  Thereafter, disbursements shall only be made on a

 4  reimbursement basis.  Any agreement that provides for

 5  advancements may contain a clause that permits the contractor

 6  or recipient to temporarily invest the proceeds, provided that

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

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

 9  amount.  This paragraph does not constitute lawful authority

10  to make any advance payment not otherwise authorized by laws

11  relating to a particular agency or general laws relating to

12  the expenditure or disbursement of public funds. The Chief

13  Financial Officer may, after consultation with the legislative

14  appropriations committees, advance funds beyond a 3-month

15  requirement if it is determined to be consistent with the

16  intent of the approved operating budget.

17         (c)  Unless specifically prohibited in the General

18  Appropriations Act, funds appropriated to the Department of

19  Children and Family Services and the Department of Health may

20  be advanced for those contracted services that were approved

21  for advancement by the Comptroller in fiscal year 1993-1994,

22  including those services contracted on a fixed-price or

23  unit-cost basis.

24         Section 34.  Effective July 1, 2005, subsections (8),

25  (9), and (10) of section 216.181, Florida Statutes, are

26  amended to read:

27         216.181  Approved budgets for operations and fixed

28  capital outlay.--

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

30  Executive Office of the Governor shall furnish to each state

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

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

 2  annual salary rate for each budget entity containing a salary

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

 4  rate and shall be consistent with the General Appropriations

 5  Act or special appropriations acts.  The annual salary rate

 6  shall be:

 7         (a)  Determined by Calculated based on the actual

 8  salary rate in effect on June 30, and the salary policy and

 9  the number of authorized positions as specified in the General

10  Appropriations Act and adjusted for reorganizations authorized

11  by law, for any other appropriations made by law, and, subject

12  to s. 216.177, for distributions of lump sum appropriations

13  and administered funds special appropriations acts, or as

14  provided pursuant to s. 216.177.

15         (b)  Controlled by the budget entity department or

16  agency; except for the Department of Education, which shall be

17  controlled by division and for the judicial branch, which

18  shall be controlled at the branch level.

19         (c)  Assigned to the number of authorized positions.

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

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

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

23  as provided in the General Appropriations Act.

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

25  maximum approved annual salary rate for the fiscal year.

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

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

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

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

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

31  

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

 2  for that budget entity.

 3         (10)(a)  The Legislative Budget Commission Executive

 4  Office of the Governor and the Chief Justice of the Supreme

 5  Court may authorize increases or decreases in increase or

 6  decrease the approved salary rate for positions for the

 7  purpose of implementing the General Appropriations Act,

 8  special appropriations acts, and actions pursuant to s.

 9  216.262 consistent with legislative intent and policy. Other

10  adjustments to approved salary rate must be approved by the

11  Legislative Budget Commission pursuant to the request of the

12  agency filed with the Executive Office of the Governor or

13  pursuant to the request of an entity of the judicial branch

14  filed with the Chief Justice of the Supreme Court, if deemed

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

16  with legislative policy and intent. The provisions of this

17  paragraph are subject to the notice and review procedures set

18  forth in s. 216.177.

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

20  specifically appropriated or provided pursuant to s. 110.1245

21  or s. 216.1815.

22         (c)  State agencies and the judicial branch shall

23  report, each fiscal quarter, the number of filled positions,

24  the number of vacant positions, and the salary rate associated

25  with each category to the Legislative Budget Commission in a

26  form and manner prescribed by the commission.

27         (d)  The salary rate provisions of subsections (8) and

28  (9) and this subsection do not apply to the general office

29  program of the Executive Office of the Governor.

30         Section 35.  Sections 216.1825 and 216.183, Florida

31  Statutes, are repealed.

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 1         Section 36.  Section 216.192, Florida Statutes, is

 2  amended to read:

 3         216.192  Release of appropriations; revision of

 4  budgets.--

 5         (1)  Unless otherwise provided in the General

 6  Appropriations Act, on July 1 of each fiscal year, up to 25

 7  percent of the original approved operating budget of each

 8  agency and of the judicial branch may be released until such

 9  time as annual plans for quarterly releases for all

10  appropriations have been developed, approved, and furnished to

11  the Chief Financial Officer by the Executive Office of the

12  Governor for state agencies and by the Chief Justice of the

13  Supreme Court for the judicial branch.  The plans, including

14  appropriate plans of releases for fixed capital outlay

15  projects that correspond with each project schedule, shall

16  attempt to maximize the use of trust funds and shall be

17  transmitted to the Chief Financial Officer by August 1 of each

18  fiscal year. Such releases shall at no time exceed the total

19  appropriations available to a state agency or to the judicial

20  branch, or the approved budget for such agency or the judicial

21  branch if less. The Chief Financial Officer shall enter such

22  releases in his or her records in accordance with the release

23  plans prescribed by the Executive Office of the Governor and

24  the Chief Justice, unless otherwise amended as provided by

25  law. The Executive Office of the Governor and the Chief

26  Justice shall transmit a copy of the approved annual releases

27  to the head of the state agency, the chair and vice chair of

28  the Legislative Budget Commission, and the Auditor General.

29  The Chief Financial Officer shall authorize all expenditures

30  to be made from the appropriations on the basis of such

31  releases and in accordance with the approved budget, and not

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 1  otherwise. Expenditures shall be authorized only in accordance

 2  with legislative authorizations. Nothing herein precludes

 3  periodic reexamination and revision by the Executive Office of

 4  the Governor or by the Chief Justice of the annual plans for

 5  release of appropriations and the notifications of the parties

 6  of all such revisions.

 7         (2)  Any department under the direct supervision of a

 8  member of the Cabinet or of a board consisting of the Governor

 9  and members of the Cabinet which contends that the plan for

10  releases of funds appropriated to it is contrary to the

11  approved operating budget shall have the right to have the

12  issue reviewed by the Administration Commission which shall

13  decide such issue by majority vote.  The appropriations

14  committees of the Legislature may advise the Administration

15  Commission on the issue.

16         (3)  The Executive Office of the Governor shall make

17  releases within the amounts appropriated and as requested for

18  all appropriations to the legislative branch, and the

19  provisions of subsections (1) and (2) shall not apply to the

20  legislative branch.

21         (4)  The legislative appropriations committees may

22  advise the Chief Financial Officer, the Executive Office of

23  the Governor, or the Chief Justice relative to the release of

24  any funds under this section.

25         (4)(5)  The annual plans of releases authorized by this

26  section may be considered by the Revenue Estimating Conference

27  in preparation of the statement of financial outlook.

28         (5)  In order to implement directives contained in the

29  General Appropriations Act or to prevent deficits pursuant to

30  s. 216.221, the Executive Office of the Governor for the

31  executive branch and the Chief Justice for the judicial branch

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 1  may place appropriations in budget reserve or mandatory

 2  reserve.

 3         (6)  The provisions of this section are subject to the

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

 5         Section 37.  Section 216.195, Florida Statutes, is

 6  amended to read:

 7         216.195  Impoundment of funds; restricted.--The

 8  Executive Office of the Governor, the Chief Justice of the

 9  Supreme Court, any member of the Cabinet, or any state agency

10  shall not impound any appropriation except as necessary to

11  avoid or eliminate a deficit pursuant to the provisions of s.

12  216.221.  As used in this section, the term "impoundment"

13  means the omission of any appropriation or part of an

14  appropriation in the approved operating plan prepared pursuant

15  to s. 216.181 or in the schedule of releases prepared pursuant

16  to s. 216.192 or the failure of any state agency or the

17  judicial branch to spend an appropriation for the stated

18  purposes authorized in the approved operating budget. The

19  provisions of this section are subject to the notice and

20  review procedures of s. 216.177.  The Governor or either house

21  of the Legislature may seek judicial review of any action or

22  proposed action which violates the provisions of this section.

23         Section 38.  Subsections (2), (3), (5), (7), (9), and

24  (10) of section 216.221, Florida Statutes, are amended to

25  read:

26         216.221  Appropriations as maximum appropriations;

27  adjustment of budgets to avoid or eliminate deficits.--

28         (2)  The Legislature may annually provide direction in

29  the General Appropriations Act regarding use of any state

30  funds the Budget Stabilization Fund and Working Capital Fund

31  to offset General Revenue Fund deficits.

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 1         (3)  For purposes of preventing a deficit in the

 2  General Revenue Fund, all branches and agencies of government

 3  that receive General Revenue Fund appropriations shall

 4  participate in deficit reduction efforts.  Absent specific

 5  legislative direction in the General Appropriations Act, when

 6  budget reductions are required in order to prevent a deficit

 7  under the provisions of subsection (7), each branch shall

 8  reduce its General Revenue Fund appropriations by a

 9  proportional amount.

10         (5)(a)  If, in the opinion of the Governor, after

11  consultation with the Revenue Estimating Conference, a deficit

12  will occur in the General Revenue Fund, he or she shall so

13  certify to the commission and to the Chief Justice of the

14  Supreme Court.  No more than 30 days after certifying that a

15  deficit will occur in the General Revenue Fund, the Governor

16  shall develop for the executive branch, and the Chief Justice

17  of the Supreme Court shall develop for the judicial branch,

18  and provide to the commission and to the Legislature plans of

19  action to eliminate the deficit.

20         (b)  If, in the opinion of the President of the Senate

21  and the Speaker of the House of Representatives, after

22  consultation with the Revenue Estimating Conference, a deficit

23  will occur in the General Revenue Fund and the Governor has

24  not certified the deficit, the President of the Senate and the

25  Speaker of the House of Representatives shall so certify.

26  Within 30 days after such certification, the Governor shall

27  develop for the executive branch and the Chief Justice of the

28  Supreme Court shall develop for the judicial branch, and

29  provide to the commission and to the Legislature, plans of

30  action to eliminate the deficit.

31  

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 1         (c)(b)  In developing a plan of action to prevent

 2  deficits in accordance with subsection (7), the Governor and

 3  Chief Justice shall, to the extent possible, preserve

 4  legislative policy and intent, and, absent any specific

 5  direction to the contrary in the General Appropriations Act,

 6  the Governor and Chief Justice shall comply with the following

 7  guidelines for reductions in the approved operating budgets of

 8  the executive branch and the judicial branch:

 9         1.  Entire statewide programs previously established by

10  the Legislature should not be eliminated.

11         1.2.  Education budgets should not be reduced more than

12  provided for in s. 215.16(2).

13         2.3.  The use of nonrecurring funds to solve recurring

14  deficits should be minimized.

15         3.4.  Newly created programs that are not fully

16  implemented and programs with critical audits, evaluations,

17  and reviews should receive first consideration for reductions.

18         4.5.  No agencies or branches of government receiving

19  appropriations should be exempt from reductions.

20         5.6.  When reductions in positions are required, the

21  focus should be initially on vacant positions.

22         7.  Any reductions applied to all agencies and branches

23  should be uniformly applied.

24         6.8.  Reductions that would cause substantial losses of

25  federal funds should be minimized.

26         9.  To the greatest extent possible, across-the-board,

27  prorated reductions should be considered.

28         7.10.  Reductions to statewide programs should occur

29  only after review of programs that provide only local

30  benefits.

31  

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 1         8.11.  Reductions in administrative and support

 2  functions should be considered before reductions in

 3  direct-support services.

 4         9.12.  Maximum reductions should be considered in

 5  budgets for expenses including travel and in budgets for

 6  equipment replacement, outside consultants, and contracts.

 7         10.13.  Reductions in salaries for elected state

 8  officials should be considered.

 9         11.14.  Reductions that adversely affect the public

10  health, safety, and welfare should be minimized.

11         12.15.  The Budget Stabilization Fund should not be

12  reduced to a level that would impair the financial stability

13  of this state.

14         13.16.  Reductions in programs that are traditionally

15  funded by the private sector and that may be assumed by

16  private enterprise should be considered.

17         14.17.  Reductions in programs that are duplicated

18  among state agencies or branches of government should be

19  considered.

20         (7)  Deficits in the General Revenue Fund that do not

21  meet the amounts specified by subsection (6) shall be resolved

22  by the Governor Commission for the executive branch and the

23  Chief Justice of the Supreme Court for the judicial branch.

24  The Governor commission and Chief Justice shall implement any

25  directions provided in the General Appropriations Act related

26  to eliminating deficits and to reducing agency and judicial

27  branch budgets, including the use of those legislative

28  appropriations voluntarily placed in reserve.  In addition,

29  the Governor commission shall implement any directions in the

30  General Appropriations Act relating to the resolution of

31  deficit situations.  When reducing state agency or judicial

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 1  branch budgets, the Governor commission or the Chief Justice,

 2  respectively, shall use the guidelines prescribed in

 3  subsection (5). The Executive Office of the Governor for the

 4  commission, and the Chief Justice for the judicial branch,

 5  shall implement the deficit reduction plans through amendments

 6  to the approved operating budgets in accordance with s.

 7  216.181.

 8         (9)  If, in the opinion of the Chief Financial Officer,

 9  after consultation with the Revenue Estimating Conference, a

10  deficit will occur, he or she shall report his or her opinion

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

12  of the House of Representatives in writing. In the event the

13  Governor does not certify a deficit, or the President of the

14  Senate and the Speaker of the House of Representatives do not

15  certify a deficit, within 10 days after the Chief Financial

16  Officer's report, the Chief Financial Officer shall report his

17  or her findings and opinion to the commission and the Chief

18  Justice of the Supreme Court.

19         (10)  When advised by the Revenue Estimating

20  Conference, the Chief Financial Officer, or any agency

21  responsible for a trust fund that a deficit will occur with

22  respect to the appropriations from a specific trust fund in

23  the current fiscal year, the Governor for the executive

24  branch, or the Chief Justice for the judicial branch, shall

25  develop a plan of action to eliminate the deficit. Before

26  implementing the plan of action, the Governor or the Chief

27  Justice must comply with the provisions of s. 216.177(2), and

28  actions to resolve deficits in excess of $1 million must be

29  approved by the Legislative Budget Commission. In developing

30  the plan of action, the Governor or the Chief Justice shall,

31  to the extent possible, preserve legislative policy and

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 1  intent, and, absent any specific directions to the contrary in

 2  the General Appropriations Act, any reductions in

 3  appropriations from the trust fund for the fiscal year shall

 4  be prorated among the specific appropriations made from the

 5  trust fund for the current fiscal year.

 6         Section 39.  Subsection (2) of section 216.231, Florida

 7  Statutes, is amended to read:

 8         216.231  Release of certain classified

 9  appropriations.--

10         (2)  The release of appropriated funds classified as

11  "deficiency" shall be approved only when a General Revenue

12  Fund appropriation for operations of a state agency or of the

13  judicial branch is inadequate because the workload or cost of

14  the operation exceeds that anticipated by the Legislature and

15  a determination has been made by the Governor commission that

16  the deficiency will result in an impairment of the activities

17  of an agency or of the judicial branch to the extent that the

18  agency is unable to carry out its program as provided by the

19  Legislature in the general appropriations acts. These funds

20  may not be used for creation of any new agency or program, for

21  increases of salary, or for the construction or equipping of

22  additional buildings.

23         Section 40.  Subsections (3), (6), and (11) of section

24  216.235, Florida Statutes, are amended to read:

25         216.235  Innovation Investment Program.--

26         (3)  For purposes of this section:

27         (a)  "Agency" means an official, officer, commission,

28  authority, council, committee, department, division, bureau,

29  board, section, or other unit or entity of the executive

30  branch.

31  

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 1         (b)  "Commission" means the Information Resource

 2  Commission.

 3         (b)(c)  "Committee" means the State Innovation

 4  Committee.

 5         (c)(d)  "Office" means the Office of Tourism, Trade,

 6  and Economic Development within the Executive Office of the

 7  Governor.

 8         (d)(e)  "Review board" means a nonpartisan board

 9  composed of private citizens and public employees who evaluate

10  the projects and make funding recommendations to the

11  committee.

12         (6)  Any agency developing an innovative investment

13  project proposal that involves information technology

14  resources may consult with and seek technical assistance from

15  the state technology office commission. The office shall

16  consult with the state technology office commission for any

17  project proposal that involves information resource

18  technology. The state technology office commission is

19  responsible for evaluating these projects and for advising the

20  committee and review board of the technical feasibility and

21  any transferable benefits of the proposed technology. In

22  addition to the requirements of subsection (5), the agencies

23  shall provide to the state technology office commission any

24  information requested by the state technology office

25  commission to aid in determining that the proposed technology

26  is appropriate for the project's success.

27         (11)  Funds appropriated for the Innovation Investment

28  Program shall be distributed by the Executive Office of the

29  Governor subject to notice, review, and objection procedures

30  set forth in s. 216.177. The office may transfer funds from

31  the annual appropriation as necessary to administer the

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 1  program. Proposals considered but not funded by the

 2  Legislature as part of an agency legislative budget request or

 3  the Governor's budget recommendation are not eligible to

 4  receive funding under the Innovation Investment Program.

 5         Section 41.  Section 216.241, Florida Statutes, is

 6  amended to read:

 7         216.241  Initiation or commencement of new programs;

 8  approval; expenditure of certain revenues.--

 9         (1)  A state agency or the judicial branch may not

10  initiate or commence any new program, including any new

11  federal program or initiative, or make changes in its current

12  programs, as provided for in the appropriations act, that

13  require additional financing unless funds have been

14  specifically appropriated by the Legislature or unless the

15  Legislative Budget Commission or the Chief Justice of the

16  Supreme Court expressly approves such new program or changes.

17  The commission and the Chief Justice shall give notice as

18  provided in s. 216.177 prior to approving such new program or

19  changes.

20         (2)  No Changes that which are inconsistent with the

21  approved operating budget may not shall be made to existing

22  programs unless such changes are recommended to the

23  Legislative Budget Commission by the Governor or the Chief

24  Justice and the Legislative Budget Commission expressly

25  approves such program changes.  The provisions of this

26  subsection are subject to the notice, review, and objection

27  procedures set forth in s. 216.177.

28         (3)  Any revenues generated by any tax or fee imposed

29  by amendment to the State Constitution after October 1, 1999,

30  shall not be expended by any agency, as defined in s.

31  

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 1  120.52(1), except pursuant to appropriation by the

 2  Legislature.

 3         (4)  A state agency or the judicial branch may not

 4  shift functions or responsibilities from agency staff to the

 5  private sector or to another agency's staff, including

 6  outsourcing, public-private partnerships, or shared-savings

 7  initiatives, without specific approval by the Legislature or,

 8  absent such specific approval but consistent with legislative

 9  intent and policy, without specific approval by the

10  Legislative Budget Commission. A request for such approval,

11  including a recommendation submitted in an agency's

12  legislative budget request or the Governor's budget

13  recommendation, must include, but need not be limited to,

14  applicable supporting cost-benefit analyses, business case

15  analyses, proposed performance contracting procedures,

16  detailed service comparisons, and impacts to approved

17  performance standards. Adjustments to the approved budget

18  which are not reflected in the General Appropriations Act and

19  which are necessary to implement such shifts of functions and

20  responsibilities must be approved by the Legislative Budget

21  Commission prior to the execution of any related contracts or

22  other agreements.

23         Section 42.  Subsection (2) of section 216.251, Florida

24  Statutes, is amended to read:

25         216.251  Salary appropriations; limitations.--

26         (2)(a)  The salary for each position not specifically

27  indicated in the appropriations acts shall be as provided in

28  one of the following subparagraphs:

29         1.  Within the classification and pay plans provided

30  for in chapter 110.

31  

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 1         2.  Within the classification and pay plans established

 2  by the Board of Trustees for the Florida School for the Deaf

 3  and the Blind of the Department of Education and approved by

 4  the State Board of Education for academic and academic

 5  administrative personnel.

 6         3.  Within the classification and pay plan approved and

 7  administered by the State Board of Education Board of Regents

 8  for those positions in the State University System.

 9         4.  Within the classification and pay plan approved by

10  the President of the Senate and the Speaker of the House of

11  Representatives, as the case may be, for employees of the

12  Legislature.

13         5.  Within the approved classification and pay plan for

14  the judicial branch.

15         6.  The salary of all positions not specifically

16  included in this subsection shall be set by the commission or

17  by the Chief Justice for the judicial branch.

18         (b)  Salary payments shall be made only to employees

19  filling established positions included in the agency's or in

20  the judicial branch's approved budgets and amendments thereto

21  as may be provided by law; provided, however:

22         1.  Reclassification of established positions may be

23  accomplished when justified in accordance with the established

24  procedures for reclassifying positions; or

25         2.  When the Division of Risk Management of the

26  Department of Financial Services has determined that an

27  employee is entitled to receive a temporary partial disability

28  benefit or a temporary total disability benefit pursuant to

29  the provisions of s. 440.15 and there is medical certification

30  that the employee cannot perform the duties of the employee's

31  regular position, but the employee can perform some type of

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 1  work beneficial to the agency, the agency may return the

 2  employee to the payroll, at his or her regular rate of pay, to

 3  perform such duties as the employee is capable of performing,

 4  even if there is not an established position in which the

 5  employee can be placed.  Nothing in this subparagraph shall

 6  abrogate an employee's rights under chapter 440 or chapter

 7  447, nor shall it adversely affect the retirement credit of a

 8  member of the Florida Retirement System in the membership

 9  class he or she was in at the time of, and during, the

10  member's disability.

11         Section 43.  Paragraphs (a) and (c) of subsection (1)

12  of section 216.262, Florida Statutes, are amended to read:

13         216.262  Authorized positions.--

14         (1)(a)  Unless otherwise expressly provided by law, the

15  total number of authorized positions may not exceed the total

16  provided in the appropriations acts.  In the event any state

17  agency or entity of the judicial branch finds that the number

18  of positions so provided is not sufficient to administer its

19  authorized programs, it may file an application with the

20  Executive Office of the Governor or the Chief Justice; and, if

21  the Executive Office of the Governor or Chief Justice

22  certifies that there are no authorized positions available for

23  addition, deletion, or transfer within the agency as provided

24  in paragraph (c) and recommends an increase in the number of

25  positions, the Governor or the Chief Justice may recommend,

26  after a public hearing, authorize an increase in the number of

27  positions for the following reasons only:

28         1.  To implement or provide for continuing federal

29  grants or changes in grants not previously anticipated;

30         2.  To meet emergencies pursuant to s. 252.36;

31  

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 1         3.  To satisfy new federal regulations or changes

 2  therein;

 3         4.  To take advantage of opportunities to reduce

 4  operating expenditures or to increase the revenues of the

 5  state or local government; and

 6         5.  To authorize positions which were not fixed by the

 7  Legislature through error in drafting the appropriations acts.

 8  

 9  Actions recommended pursuant to the provisions of this

10  paragraph are subject to approval by the Legislative Budget

11  Commission the notice and review procedures set forth in s.

12  216.177. A copy of the application, The certification, and the

13  final authorization shall be provided to filed with the

14  Legislative Budget Commission, the appropriations committees,

15  and with the Auditor General.

16         (c)1.  The Executive Office of the Governor, under such

17  procedures and qualifications as it deems appropriate, shall,

18  upon agency request, delegate to any state agency authority to

19  add and delete authorized positions or transfer authorized

20  positions from one budget entity to another budget entity

21  within the same division, and may approve additions and

22  deletions of authorized positions or transfers of authorized

23  positions within the state agency when such changes would

24  enable the agency to administer more effectively its

25  authorized and approved programs.  The additions or deletions

26  must be consistent with the intent of the approved operating

27  budget, must be consistent with legislative policy and intent,

28  and must not conflict with specific spending policies

29  specified in the General Appropriations Act.

30         2.  The Chief Justice of the Supreme Court shall have

31  the authority to establish procedures for the judicial branch

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 1  to add and delete authorized positions or transfer authorized

 2  positions from one budget entity to another budget entity, and

 3  to add and delete authorized positions within the same budget

 4  entity, when such changes are consistent with legislative

 5  policy and intent and do not conflict with spending policies

 6  specified in the General Appropriations Act.

 7         3.a.  A state agency may be eligible to retain salary

 8  dollars for authorized positions eliminated after July 1,

 9  2001. The agency must certify the eliminated positions to the

10  Legislative Budgeting Commission.

11         b.  The Legislative Budgeting Commission shall

12  authorize the agency to retain 20 percent of the salary

13  dollars associated with the eliminated positions and may

14  authorize retention of a greater percentage. All such salary

15  dollars shall be used for permanent salary increases.

16         Section 44.  Section 216.292, Florida Statutes, is

17  amended to read:

18         (Substantial rewording of section. See

19         s. 216.292, F.S., for present text.)

20         216.292  Appropriations nontransferable; exceptions.--

21         (1)(a)  Funds provided in the General Appropriations

22  Act or as otherwise expressly provided by law shall be

23  expended only for the purpose for which appropriated, except

24  that such moneys may be transferred as provided in this

25  section when it is determined to be in the best interest of

26  the state. Appropriations for fixed capital outlay may not be

27  expended for any other purpose. Appropriations may not be

28  transferred between state agencies, or between a state agency

29  and the judicial branch, unless specifically authorized by

30  law.

31  

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 1         (b)1.  Authorized revisions of the original approved

 2  operating budget, together with related changes in the plan

 3  for release of appropriations, if any, shall be transmitted by

 4  the state agency or by the judicial branch to the Executive

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

 6  chairs of the Senate and the House of Representatives

 7  appropriations committees, the Office of Program Policy

 8  Analysis and Government Accountability, and the Auditor

 9  General. Such authorized revisions must be consistent with the

10  intent of the approved operating budget, must be consistent

11  with legislative policy and intent, and may not conflict with

12  specific spending policies specified in the General

13  Appropriations Act.

14         2.  Authorized revisions, together with related

15  changes, if any, in the plan for release of appropriations,

16  shall be transmitted by the state agency or by the judicial

17  branch to the Chief Financial Officer for entry in the Chief

18  Financial Officer's records in the manner and format

19  prescribed by the Executive Office of the Governor in

20  consultation with the Chief Financial Officer.

21         3.  The Executive Office of the Governor or the Chief

22  Justice shall forward a copy of the revisions within 7 working

23  days to the Chief Financial Officer for entry in his or her

24  records in the manner and format prescribed by the Executive

25  Office of the Governor in consultation with the Chief

26  Financial Officer.

27         (2)  The following transfers are authorized to be made

28  by the head of each department or the Chief Justice of the

29  Supreme Court:

30         (a)  The transfer of appropriations funded from

31  identical funding sources, except appropriations for fixed

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 1  capital outlay, and the transfer of amounts included within

 2  the total original approved budget and releases as furnished

 3  pursuant to ss. 216.181 and 216.192, as follows:

 4         1.  Between categories of appropriations within a

 5  budget entity, if no category of appropriation is increased or

 6  decreased by more than 5 percent of the original approved

 7  budget or $250,000, whichever is greater, by all action taken

 8  under this subsection.

 9         2.  Additionally, between budget entities within

10  identical categories of appropriations, if no category of

11  appropriation is increased or decreased by more than 5 percent

12  of the original approved budget or $250,000, whichever is

13  greater, by all action taken under this subsection.

14         (b)  After providing notice at least 5 working days

15  prior to implementation:

16         1.  The transfer of funds within programs identified in

17  the General Appropriations Act from identical funding sources

18  between the following appropriation categories without

19  limitation so long as such a transfer does not result in an

20  increase to the total recurring general revenue or trust fund

21  cost of the agency or entity of the judicial branch in the

22  subsequent fiscal year: other personal services, expenses,

23  operating capital outlay, food products, state attorney and

24  public defender operations, acquisition of motor vehicles,

25  data processing services, operating and maintenance of patrol

26  vehicles, overtime payments, salary incentive payments,

27  compensation to retired judges, law libraries, and juror and

28  witness payments.

29         2.  The transfer of funds and positions from identical

30  funding sources between salaries and benefits appropriation

31  categories within programs identified in the General

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 1  Appropriations Act. Such transfers must be consistent with

 2  legislative policy and intent and may not adversely affect

 3  achievement of approved performance outcomes or outputs in any

 4  program.

 5         (c)  The transfer of funds appropriated to accounts

 6  established for disbursement purposes upon release of such

 7  appropriation upon request of a department and approval by the

 8  Chief Financial Officer. Such transfer may only be made to the

 9  same appropriation category and the same funding source from

10  which the funds are transferred.

11         (d)  The transfer by the Executive Office of the

12  Governor of funds from appropriations for public school

13  operations to a fixed capital outlay appropriation for class

14  size reduction based on recommendations of the Florida

15  Education Finance Program Appropriation Allocation Conference

16  or the Legislative Budget Commission pursuant to s.

17  1003.03(4)(a). Actions by the Governor under this subsection

18  are subject to the notice and review provisions of s. 216.177.

19         (e)  The transfer by the Department of Children and

20  Family Services of general revenue funds appropriated for

21  targeted case management services to the Agency for Health

22  Care Administration to fund state match requirements exceeding

23  the amount specified in the General Appropriations Act for

24  Medicaid targeted case management services.

25         (f)  The transfer by the Department of Elderly Affairs

26  of funds that are appropriated for the Assisted Living for the

27  Elderly Medicaid waiver and not expended to the agency to fund

28  Medicaid-reimbursed nursing home care.

29         (g)  The transfer of funds appropriated to the

30  Department of Children and Family Services for developmental

31  services programs only if the secretary finds that treatment

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 1  programs for developmental disabilities will not be adversely

 2  affected.

 3         (3)  The following transfers are authorized with the

 4  approval of the Executive Office of the Governor, subject to

 5  the notice and review provisions of s. 216.177:

 6         (a)  The transfer of appropriations for operations from

 7  trust funds in excess of those provided in subsection (2), up

 8  to $1 million.

 9         (b)  The transfer of positions between budget entities.

10         (4)  The following transfers are authorized with the

11  approval of the Legislative Budget Commission. Unless waived

12  by the chair and vice chair of the commission, notice of such

13  transfers must be provided 14 days before the commission

14  meeting:

15         (a)  The transfer of appropriations for operations from

16  the General Revenue Fund in excess of those provided in this

17  section but within a state agency or within the judicial

18  branch, as recommended by the Executive Office of the Governor

19  or the Chief Justice of the Supreme Court.

20         (b)  The transfer of appropriations for operations from

21  trust funds in excess of those provided in this section which

22  exceed the greater of 5 percent of the original approved

23  budget or $1 million, as recommended by the Executive Office

24  of the Governor or the Chief Justice of the Supreme Court.

25         (c)  The transfer of the portion of an appropriation

26  for a named fixed capital outlay project found to be in excess

27  of that needed to complete the project to another project for

28  which there has been an appropriation in the same fiscal year

29  from the same fund and within the same department where a

30  deficiency is found to exist, at the request of the Executive

31  Office of the Governor for state agencies or the Chief Justice

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 1  of the Supreme Court for the judicial branch. The scope of a

 2  fixed capital outlay project may not be changed by any

 3  transfer of funds made pursuant to this subsection.

 4         (d)  The transfers necessary to accomplish the purposes

 5  of reorganization within state agencies or the judicial branch

 6  authorized by the Legislature when the necessary adjustments

 7  of appropriations and positions have not been provided in the

 8  General Appropriations Act.

 9         (5)  No transfer of funds may result in the initiation

10  of a fixed capital outlay project that has not received a

11  specific legislative appropriation; except that federal funds

12  for fixed capital outlay projects for the Department of

13  Military Affairs, which do not carry a continuing commitment

14  on future appropriations by the Legislature, may be approved

15  by the Executive Office of the Governor for the purpose

16  received, subject to the notice, review, and objection

17  procedures set forth in s. 216.177.

18         (6)  The Chief Financial Officer shall transfer from

19  any available funds of an agency or the judicial branch the

20  following amounts and shall report all such transfers and the

21  reasons therefor to the legislative appropriations committees

22  and the Executive Office of the Governor:

23         (a)  The amount due to the Unemployment Compensation

24  Trust Fund which is more than 90 days delinquent on

25  reimbursements due to the Unemployment Compensation Trust

26  Fund. The amount transferred shall be that certified by the

27  state agency providing unemployment tax collection services

28  under contract with the Agency for Workforce Innovation

29  through an interagency agreement pursuant to s. 443.1316.

30         (b)  The amount due to the Division of Risk Management

31  which is more than 90 days delinquent in payment to the

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 1  Division of Risk Management of the Department of Financial

 2  Services for insurance coverage. The amount transferred shall

 3  be that certified by the division.

 4         (c)  The amount due to the Communications Working

 5  Capital Trust Fund from moneys appropriated in the General

 6  Appropriations Act for the purpose of paying for services

 7  provided by the state communications system in the Department

 8  of Management Services which is unpaid 45 days after the

 9  billing date. The amount transferred shall be that billed by

10  the department.

11         Section 45.  Section 216.301, Florida Statutes, is

12  amended to read:

13         216.301  Appropriations; undisbursed balances.--

14         (1)(a)  Any balance of any appropriation, except an

15  appropriation for fixed capital outlay, which is not disbursed

16  but which is expended or contracted to be expended shall, at

17  the end of each fiscal year, be certified by the head of the

18  affected state agency or the judicial or legislative branches,

19  on or before August 1 of each year, to the Executive Office of

20  the Governor, showing in detail the obligees to whom obligated

21  and the amounts of such obligations. On or before September 1

22  of each year, the Executive Office of the Governor shall

23  review and approve or disapprove, consistent with legislative

24  policy and intent, any or all of the items and amounts

25  certified by the head of the affected state agency and shall

26  approve all items and amounts certified by the Chief Justice

27  of the Supreme Court for the judicial branch and by the

28  legislative branch and shall furnish the Chief Financial

29  Officer, the legislative appropriations committees, and the

30  Auditor General a detailed listing of the items and amounts

31  approved as legal encumbrances against the undisbursed balance

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 1  of such appropriation. The review shall assure that trust

 2  funds have been fully maximized. Any such encumbered balance

 3  remaining undisbursed on December 31 of the same calendar year

 4  in which such certification was made shall revert to the fund

 5  from which appropriated, except as provided in subsection (3),

 6  and shall be available for reappropriation by the Legislature.

 7  In the event such certification is not made and an obligation

 8  is proven to be legal, due, and unpaid, then the obligation

 9  shall be paid and charged to the appropriation for the current

10  fiscal year of the state agency or the legislative or judicial

11  branch affected.

12         (b)  Any balance of any appropriation, except an

13  appropriation for fixed capital outlay, for any given fiscal

14  year remaining after charging against it any lawful

15  expenditure shall revert to the fund from which appropriated

16  and shall be available for reappropriation by the Legislature.

17         (c)  Each department and the judicial branch shall

18  maintain the integrity of the General Revenue Fund.

19  Appropriations from the General Revenue Fund contained in the

20  original approved budget may be transferred to the proper

21  trust fund for disbursement. Any reversion of appropriation

22  balances from programs which receive funding from the General

23  Revenue Fund and trust funds shall be transferred to the

24  General Revenue Fund within 15 days after such reversion,

25  unless otherwise provided by federal or state law, including

26  the General Appropriations Act. The Executive Office of the

27  Governor or the Chief Justice of the Supreme Court shall

28  determine the state agency or judicial branch programs which

29  are subject to this paragraph. This determination shall be

30  subject to the legislative consultation and objection process

31  

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 1  in this chapter. The Education Enhancement Trust Fund shall

 2  not be subject to the provisions of this section.

 3         (2)(a)  The balance of any appropriation for fixed

 4  capital outlay which is not disbursed but expended,

 5  contracted, or committed to be expended prior to February 1 of

 6  the second fiscal year of the appropriation, or the third

 7  fiscal year if it is for an educational facility as defined in

 8  chapter 1013 or for a construction project of a state

 9  university, shall be certified by the head of the affected

10  state agency or the legislative or judicial branch on February

11  1 to the Executive Office of the Governor, showing in detail

12  the commitment or to whom obligated and the amount of the

13  commitment or obligation. The Executive Office of the Governor

14  shall review and approve or disapprove, consistent with

15  criteria jointly developed by the Executive Office of the

16  Governor and the legislative appropriations committees, the

17  continuation of such unexpended balances. The Executive Office

18  of the Governor shall, not later than February 20 of each

19  year, furnish the Chief Financial Officer, the legislative

20  appropriations committees, and the Auditor General a report

21  listing in detail the items and amounts reverting under the

22  authority of this subsection, including the fund to which

23  reverted and the agency affected.

24         (b)  The certification required in this subsection must

25  be in the form and on the date approved by the Executive

26  Office of the Governor. Any balance that is not certified

27  shall revert to the fund from which it was appropriated and be

28  available for reappropriation.

29         (c)  The balance of any appropriation for fixed capital

30  outlay certified forward under paragraph (a) which is not

31  disbursed but expended, contracted, or committed to be

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 1  expended prior to the end of the second fiscal year of the

 2  appropriation, or the third fiscal year if it is for an

 3  educational facility as defined in chapter 1013 or for a

 4  construction project of a state university, and any subsequent

 5  fiscal year, shall be certified by the head of the affected

 6  state agency or the legislative or judicial branch on or

 7  before August 1 of each year to the Executive Office of the

 8  Governor, showing in detail the commitment or to whom

 9  obligated and the amount of such commitment or obligation. On

10  or before September 1 of each year, the Executive Office of

11  the Governor shall review and approve or disapprove,

12  consistent with legislative policy and intent, any or all of

13  the items and amounts certified by the head of the affected

14  state agency and shall approve all items and amounts certified

15  by the Chief Justice of the Supreme Court and by the

16  legislative branch and shall furnish the Chief Financial

17  Officer, the legislative appropriations committees, and the

18  Auditor General a detailed listing of the items and amounts

19  approved as legal encumbrances against the undisbursed

20  balances of such appropriations. If such certification is not

21  made and the balance of the appropriation has reverted and the

22  obligation is proven to be legal, due, and unpaid, the

23  obligation shall be presented to the Legislature for its

24  consideration.

25         (3)  The President of the Senate and the Speaker of the

26  House of Representatives may notify the Executive Office of

27  the Governor to retain certified-forward balances from

28  legislative budget entities until June 30 of the following

29  fiscal year.

30         (2)(a)  Any balance of any appropriation for fixed

31  capital outlay not disbursed but expended or contracted or

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 1  committed to be expended shall, at the end of each fiscal

 2  year, be certified by the head of the affected state agency or

 3  the legislative or judicial branch, on or before August 1 of

 4  each year, to the Executive Office of the Governor, showing in

 5  detail the commitment or to whom obligated and the amount of

 6  such commitment or obligation. On or before September 1 of

 7  each year, the Executive Office of the Governor shall review

 8  and approve or disapprove, consistent with legislative policy

 9  and intent, any or all of the items and amounts certified by

10  the head of the affected state agency and shall approve all

11  items and amounts certified by the Chief Justice of the

12  Supreme Court and by the legislative branch and shall furnish

13  the Chief Financial Officer, the legislative appropriations

14  committees, and the Auditor General a detailed listing of the

15  items and amounts approved as legal encumbrances against the

16  undisbursed balances of such appropriations. In the event such

17  certification is not made and the balance of the appropriation

18  has reverted and the obligation is proven to be legal, due,

19  and unpaid, then the same shall be presented to the

20  Legislature for its consideration.

21         (b)  Such certification as herein required shall be in

22  the form and on the date approved by the Executive Office of

23  the Governor. Any balance not so certified shall revert to the

24  fund from which appropriated and shall be available for

25  reappropriation.

26         (3)  Notwithstanding the provisions of subsection (2),

27  the unexpended balance of any appropriation for fixed capital

28  outlay subject to but not under the terms of a binding

29  contract or a general construction contract prior to February

30  1 of the second fiscal year, or the third fiscal year if it is

31  for an educational facility as defined in chapter 1013 or a

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 1  construction project of a state university, of the

 2  appropriation shall revert on February 1 of such year to the

 3  fund from which appropriated and shall be available for

 4  reappropriation. The Executive Office of the Governor shall,

 5  not later than February 20 of each year, furnish the Chief

 6  Financial Officer, the legislative appropriations committees,

 7  and the Auditor General a report listing in detail the items

 8  and amounts reverting under the authority of this subsection,

 9  including the fund to which reverted and the agency affected.

10         Section 46.  Effective July 1, 2005, subsection (1) of

11  section 216.301, Florida Statutes, as amended by this act, is

12  amended to read:

13         216.301  Appropriations; undisbursed balances.--

14         (1)(a)  Any balance of any appropriation, except an

15  appropriation for fixed capital outlay, which is not disbursed

16  but which is expended or contracted to be expended shall, at

17  the end of each fiscal year, be certified by the head of the

18  affected state agency or the judicial or legislative branches,

19  on or before August 1 of each year, to the Executive Office of

20  the Governor, showing in detail the obligees to whom obligated

21  and the amounts of such obligations. On or before September 1

22  of each year, the Executive Office of the Governor shall

23  review and approve or disapprove, consistent with legislative

24  policy and intent, any or all of the items and amounts

25  certified by the head of the affected state agency and shall

26  approve all items and amounts certified by the Chief Justice

27  of the Supreme Court for the judicial branch and by the

28  legislative branch and shall furnish the Chief Financial

29  Officer, the legislative appropriations committees, and the

30  Auditor General a detailed listing of the items and amounts

31  approved as legal encumbrances against the undisbursed balance

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 1  of such appropriation. The review shall assure that trust

 2  funds have been fully maximized. Any such encumbered balance

 3  remaining undisbursed on September 30 December 31 of the same

 4  calendar year in which such certification was made shall

 5  revert to the fund from which appropriated, except as provided

 6  in subsection (3), and shall be available for reappropriation

 7  by the Legislature. In the event such certification is not

 8  made and an obligation is proven to be legal, due, and unpaid,

 9  then the obligation shall be paid and charged to the

10  appropriation for the current fiscal year of the state agency

11  or the legislative or judicial branch affected.

12         (b)  Any balance of any appropriation, except an

13  appropriation for fixed capital outlay, for any given fiscal

14  year remaining after charging against it any lawful

15  expenditure shall revert to the fund from which appropriated

16  and shall be available for reappropriation by the Legislature.

17         (c)  Each department and the judicial branch shall

18  maintain the integrity of the General Revenue Fund.

19  Appropriations from the General Revenue Fund contained in the

20  original approved budget may be transferred to the proper

21  trust fund for disbursement. Any reversion of appropriation

22  balances from programs which receive funding from the General

23  Revenue Fund and trust funds shall be transferred to the

24  General Revenue Fund within 15 days after such reversion,

25  unless otherwise provided by federal or state law, including

26  the General Appropriations Act. The Executive Office of the

27  Governor or the Chief Justice of the Supreme Court shall

28  determine the state agency or judicial branch programs which

29  are subject to this paragraph. This determination shall be

30  subject to the legislative consultation and objection process

31  

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 1  in this chapter. The Education Enhancement Trust Fund shall

 2  not be subject to the provisions of this section.

 3         Section 47.  Section 216.341, Florida Statutes, is

 4  amended to read:

 5         216.341  Disbursement of Department of Health county

 6  health department trust funds; appropriation of authorized

 7  positions.--

 8         (1)  County health department trust funds may be

 9  expended by the Department of Health for the respective county

10  health departments in accordance with budgets and plans agreed

11  upon by the county authorities of each county and the

12  Department of Health.

13         (2)  The requirement limitations on appropriations

14  provided in s. 216.262(1) does shall not apply to positions

15  within the Department of Health funded by:

16         (a)  County health department trust funds; or

17         (b)  The United States Trust Fund county health

18  department trust funds.

19         Section 48.  Subsection (3) of section 218.60, Florida

20  Statutes, is repealed.

21         Section 49.  Subsection (2) of section 252.37, Florida

22  Statutes, is amended to read:

23         252.37  Financing.--

24         (2)  It is the legislative intent that the first

25  recourse be made to funds regularly appropriated to state and

26  local agencies.  If the Governor finds that the demands placed

27  upon these funds in coping with a particular disaster declared

28  by the Governor as a state of emergency are unreasonably

29  great, she or he may make funds available by transferring and

30  expending moneys appropriated for other purposes, by

31  transferring and expending moneys out of any unappropriated

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 1  surplus funds, or from the Budget Stabilization Fund or

 2  Working Capital Fund.  Following the expiration or termination

 3  of the state of emergency, the Governor may process a budget

 4  amendment under the notice and review procedures set forth in

 5  s. 216.177 to transfer moneys to satisfy the budget authority

 6  granted for such emergency.

 7         Section 50.  Subsection (3) of section 265.55, Florida

 8  Statutes, is amended to read:

 9         265.55  Claims.--

10         (3)  The authorization for payment delineated in

11  subsection (2) shall be forwarded to the Chief Financial

12  Officer. The Chief Financial Officer shall take appropriate

13  action to execute authorized payment of the claim from

14  unobligated, unappropriated moneys in the General Revenue

15  Working Capital Fund, as defined in s. 215.32.

16         Section 51.  Section 288.1234, Florida Statutes, is

17  repealed.

18         Section 52.  Subsection (5) of section 320.20, Florida

19  Statutes, is amended to read:

20         320.20  Disposition of license tax moneys.--The revenue

21  derived from the registration of motor vehicles, including any

22  delinquent fees and excluding those revenues collected and

23  distributed under the provisions of s. 320.081, must be

24  distributed monthly, as collected, as follows:

25         (5)(a)  Except as provided in paragraph (c), the

26  remainder of such revenues must be deposited in the State

27  Transportation Trust Fund.

28         (b)  The Chief Financial Officer each month shall

29  deposit in the State Transportation Trust Fund an amount,

30  drawn from other funds in the State Treasury which are not

31  immediately needed or are otherwise in excess of the amount

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 1  necessary to meet the requirements of the State Treasury,

 2  which when added to such remaining revenues each month will

 3  equal one-twelfth of the amount of the anticipated annual

 4  revenues to be deposited in the State Transportation Trust

 5  Fund under paragraph (a) as determined by the Chief Financial

 6  Officer after consultation with the estimated by the most

 7  recent revenue estimating conference held pursuant to s.

 8  216.136(3).  The transfers required hereunder may be suspended

 9  by action of the Legislative Budget Commission in the event of

10  a significant shortfall of state revenues.

11         (c)  In any month in which the remaining revenues

12  derived from the registration of motor vehicles exceed

13  one-twelfth of those anticipated annual remaining revenues as

14  determined by the Chief Financial Officer after consultation

15  with the revenue estimating conference, the excess shall be

16  credited to those state funds in the State Treasury from which

17  the amount was originally drawn, up to the amount which was

18  deposited in the State Transportation Trust Fund under

19  paragraph (b).  A final adjustment must be made in the last

20  months of a fiscal year so that the total revenue deposited in

21  the State Transportation Trust Fund each year equals the

22  amount derived from the registration of motor vehicles, less

23  the amount distributed under subsection (1).  For the purposes

24  of this paragraph and paragraph (b), the term "remaining

25  revenues" means all revenues deposited into the State

26  Transportation Trust Fund under paragraph (a) and subsections

27  (2) and (3). In order that interest earnings continue to

28  accrue to the General Revenue Fund, the Department of

29  Transportation may not invest an amount equal to the

30  cumulative amount of funds deposited in the State

31  Transportation Trust Fund under paragraph (b) less funds

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 1  credited under this paragraph as computed on a monthly basis.

 2  The amounts to be credited under this and the preceding

 3  paragraph must be calculated and certified to the Chief

 4  Financial Officer by the Executive Office of the Governor.

 5         Section 53.  Paragraph (a) of subsection (2) and

 6  subsections (6) and (7) of section 339.135, Florida Statutes,

 7  are amended to read:

 8         339.135  Work program; legislative budget request;

 9  definitions; preparation, adoption, execution, and

10  amendment.--

11         (2)  SUBMISSION OF LEGISLATIVE BUDGET REQUEST AND

12  REQUEST FOR LIST OF ADDITIONAL TRANSPORTATION PROJECTS.--

13         (a)  The department shall file the legislative budget

14  request in the manner required by chapter 216, setting forth

15  the department's proposed revenues and expenditures for

16  operational and fixed capital outlay needs to accomplish the

17  objectives of the department in the ensuing fiscal year.  The

18  right-of-way, construction, preliminary engineering,

19  maintenance, and all grants and aids programs of the

20  department shall be set forth only in program totals.  The

21  legislative budget request must include a balanced 36-month

22  forecast of cash and expenditures and a 5-year finance plan.

23  The legislative budget request shall be amended to conform to

24  the tentative work program. The department may not amend its

25  legislative budget request and the tentative work program to

26  include increased revenues based on the most recent estimating

27  conference estimate of revenues and the most recent federal

28  aid apportionments until such increased amounts are

29  appropriated by the Legislature.

30         (6)  EXECUTION OF THE BUDGET.--

31  

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 1         (a)  The department, during any fiscal year, shall not

 2  expend money, incur any liability, or enter into any contract

 3  which, by its terms, involves the expenditure of money in

 4  excess of the amounts budgeted as available for expenditure

 5  during such fiscal year.  Any contract, verbal or written,

 6  made in violation of this subsection is null and void, and no

 7  money may be paid on such contract.  The department shall

 8  require a statement from the comptroller of the department

 9  that funds are available prior to entering into any such

10  contract or other binding commitment of funds.  Nothing herein

11  contained shall prevent the making of contracts for periods

12  exceeding 1 year, but any contract so made shall be executory

13  only for the value of the services to be rendered or agreed to

14  be paid for in succeeding fiscal years; and this paragraph

15  shall be incorporated verbatim in all contracts of the

16  department which are for an amount in excess of $25,000 and

17  which have a term for a period of more than 1 year.

18         (b)  In the operation of the State Transportation Trust

19  Fund, the department shall have on hand at the close of

20  business, which closing shall not be later than the 10th

21  calendar day of the month following the end of each quarter of

22  the fiscal year, an available cash balance (which shall

23  include cash on deposit with the treasury and short-term

24  investments of the department) equivalent to not less than $50

25  million, or 5 percent of the unpaid balance of all State

26  Transportation Trust Fund obligations at the close of such

27  quarter, whichever amount is less.  In the event that this

28  cash position is not maintained, no further contracts or other

29  fund commitments shall be approved, entered into, awarded, or

30  executed until the cash balance, as defined above, has been

31  regained.

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 1         (c)  Notwithstanding the provisions of ss. 216.301(3)

 2  and 216.351, any unexpended balance remaining at the end of

 3  the fiscal year in the appropriations to the department for

 4  special categories; aid to local governments; lump sums for

 5  project phases which are part of the adopted work program, and

 6  for which contracts have been executed or bids have been let;

 7  and for right-of-way land acquisition and relocation

 8  assistance for parcels from project phases in the adopted work

 9  program for which appraisals have been completed and approved,

10  may be certified forward as fixed capital outlay under the

11  provisions of s. 216.301(2)(a).  Any project phases in the

12  adopted work program not certified forward under the

13  provisions of s. 216.301(2)(a) shall be available for roll

14  forward for the next fiscal year of the adopted work program.

15  Spending authority associated with such project phases may be

16  rolled forward to the next fiscal year upon approval by the

17  Legislative Budget Commission pursuant to paragraph (f).

18  Increases in spending authority shall be limited to amounts of

19  unexpended balances by appropriation category. Any project

20  phase certified forward for which bids have been let but

21  subsequently rejected shall be available for roll forward in

22  the adopted work program for the next fiscal year.  Spending

23  authority associated with such project phases may be rolled

24  forward into the current year from funds certified forward

25  pursuant to paragraph (f).  The amount certified forward may

26  include contingency allowances for right-of-way acquisition

27  and relocation, asphalt and petroleum product escalation

28  clauses, and contract overages, which allowances shall be

29  separately identified in the certification detail.

30  Right-of-way acquisition and relocation and contract overages

31  contingency allowances shall be based on documented historical

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 1  patterns.  These contingency amounts shall be incorporated in

 2  the certification for each specific category, but when a

 3  category has an excess and another category has a deficiency,

 4  the Executive Office of the Governor is authorized to transfer

 5  the excess to the deficient account.

 6         (d)  The department shall allocate resources provided

 7  in the General Appropriations Act to the districts prior to

 8  July 31 of each year. The allocation shall be promptly

 9  reported to the Executive Office of the Governor and the

10  legislative appropriations committees, and all subsequent

11  amendments shall be reported promptly to the secretary of the

12  department.

13         (e)  This subsection does not apply to any bonds issued

14  on behalf of the department pursuant to the State Bond Act.

15         (f)  Notwithstanding the provisions of ss. 216.181(1),

16  216.292, and 216.351, the Executive Office of the Governor may

17  amend that portion of the department's original approved fixed

18  capital outlay budget which comprises the work program

19  pursuant to subsection (7).  Increase in spending authority in

20  paragraph (c) shall be limited to amounts of unexpended

21  balances by appropriation category.

22         (7)  AMENDMENT OF THE ADOPTED WORK PROGRAM.--

23         (a)  Notwithstanding the provisions of ss. 216.181(1),

24  216.292, and 216.351, the adopted work program may be amended

25  only pursuant to the provisions of this subsection.

26         (a)(b)  The department may not transfer any funds for

27  any project or project phase between department districts.

28  However, a district secretary may agree to a loan of funds to

29  another district, if:

30         1.  The funds are used solely to maximize the use or

31  amount of funds available to the state;

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 1         2.  The loan agreement is executed in writing and is

 2  signed by the district secretaries of the respective

 3  districts;

 4         3.  Repayment of the loan is to be made within 3 years

 5  after the date on which the agreement was entered into; and

 6         4.  The adopted work program of the district loaning

 7  the funds would not be substantially impaired if the loan were

 8  made, according to the district secretary.

 9  

10  The loan constitutes an amendment to the adopted work program

11  and is subject to the procedures specified in paragraph (b)

12  (c).

13         (b)(c)  The department may amend the adopted work

14  program to transfer appropriations within the department,

15  except that the following amendments shall be subject to the

16  procedures in paragraph (c) (d):

17         1.  Any amendment which deletes any project or project

18  phase;

19         2.  Any amendment which adds a project estimated to

20  cost over $150,000 in funds appropriated by the Legislature;

21         3.  Any amendment which advances or defers to another

22  fiscal year, a right-of-way phase, a construction phase, or a

23  public transportation project phase estimated to cost over

24  $500,000 in funds appropriated by the Legislature, except an

25  amendment advancing or deferring a phase for a period of 90

26  days or less; or

27         4.  Any amendment which advances or defers to another

28  fiscal year, any preliminary engineering phase or design phase

29  estimated to cost over $150,000 in funds appropriated by the

30  Legislature, except an amendment advancing or deferring a

31  phase for a period of 90 days or less.

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 1         (c)(d)1.  Whenever the department proposes any

 2  amendment to the adopted work program, which amendment is

 3  defined in subparagraph (b)1. (c)1., subparagraph (b)2. (c)2.,

 4  subparagraph (b)3. (c)3., or subparagraph (b)4. (c)4., it

 5  shall submit the proposed amendment to the Governor for

 6  approval and shall immediately notify the chairs of the

 7  legislative appropriations committees, the chairs of the

 8  legislative transportation committees, each member of the

 9  Legislature who represents a district affected by the proposed

10  amendment, each metropolitan planning organization affected by

11  the proposed amendment, and each unit of local government

12  affected by the proposed amendment.  Such proposed amendment

13  shall provide a complete justification of the need for the

14  proposed amendment.

15         2.  The Governor shall not approve a proposed amendment

16  until 14 days following the notification required in

17  subparagraph 1.

18         3.  If either of the chairs of the legislative

19  appropriations committees or the President of the Senate or

20  the Speaker of the House of Representatives objects in writing

21  to a proposed amendment within 14 days following notification

22  and specifies the reasons for such objection, the Governor

23  shall disapprove the proposed amendment or shall submit the

24  proposed amendment to the Administration Commission. The

25  proposed amendment may be approved by the Administration

26  Commission by a two-thirds vote of the members present with

27  the Governor voting in the affirmative.  In the absence of

28  approval by the commission, the proposed amendment shall be

29  automatically disapproved.

30         (d)(e)  Notwithstanding the requirements in paragraph

31  (c) (d) and ss. 216.177(2) and 216.351, the secretary may

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 1  request the Executive Office of the Governor to amend the

 2  adopted work program when an emergency exists, as defined in

 3  s. 252.34(3), and the emergency relates to the repair or

 4  rehabilitation of any state transportation facility.  The

 5  Executive Office of the Governor may approve the amendment to

 6  the adopted work program and amend that portion of the

 7  department's approved budget in the event that the delay

 8  incident to the notification requirements in paragraph (c) (d)

 9  would be detrimental to the interests of the state.  However,

10  the department shall immediately notify the parties specified

11  in paragraph (c) (d) and shall provide such parties written

12  justification for the emergency action within 7 days of the

13  approval by the Executive Office of the Governor of the

14  amendment to the adopted work program and the department's

15  budget.  In no event may the adopted work program be amended

16  under the provisions of this subsection without the

17  certification by the comptroller of the department that there

18  are sufficient funds available pursuant to the 36-month cash

19  forecast and applicable statutes.

20         (e)(f)  The department may authorize the investment of

21  the earnings accrued and collected upon the investment of the

22  minimum balance of funds required to be maintained in the

23  State Transportation Trust Fund pursuant to paragraph (a) (b).

24  Such investment shall be limited as provided in s.

25  288.9607(7).

26         Section 54.  Subsection (3) of section 381.0303,

27  Florida Statutes, is amended to read:

28         381.0303  Health practitioner recruitment for special

29  needs shelters.--

30         (3)  REIMBURSEMENT TO HEALTH CARE PRACTITIONERS.--The

31  Department of Health shall reimburse, subject to the

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 1  availability of funds for this purpose, health care

 2  practitioners, as defined in s. 456.001, provided the

 3  practitioner is not providing care to a patient under an

 4  existing contract, and emergency medical technicians and

 5  paramedics licensed pursuant to chapter 401 for medical care

 6  provided at the request of the department in special needs

 7  shelters or at other locations during times of emergency or

 8  major disaster. Reimbursement for health care practitioners,

 9  except for physicians licensed pursuant to chapter 458 or

10  chapter 459, shall be based on the average hourly rate that

11  such practitioners were paid according to the most recent

12  survey of Florida hospitals conducted by the Florida Hospital

13  Association. Reimbursement shall be requested on forms

14  prepared by the Department of Health. If a Presidential

15  Disaster Declaration has been made, and the Federal Government

16  makes funds available, the department shall use such funds for

17  reimbursement of eligible expenditures. In other situations,

18  or if federal funds do not fully compensate the department for

19  reimbursement made pursuant to this section, the department

20  shall process submit to the Cabinet or Legislature, as

21  appropriate, a budget amendment to obtain reimbursement from

22  unobligated, unappropriated moneys in the General Revenue

23  working capital Fund. Travel expense and per diem costs shall

24  be reimbursed pursuant to s. 112.061.

25         Section 55.  Subsection (1) of section 393.22, Florida

26  Statutes, is repealed.

27         Section 56.  Subsection (5) of section 409.906, Florida

28  Statutes, is amended to read:

29         409.906  Optional Medicaid services.--Subject to

30  specific appropriations, the agency may make payments for

31  services which are optional to the state under Title XIX of

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 1  the Social Security Act and are furnished by Medicaid

 2  providers to recipients who are determined to be eligible on

 3  the dates on which the services were provided.  Any optional

 4  service that is provided shall be provided only when medically

 5  necessary and in accordance with state and federal law.

 6  Optional services rendered by providers in mobile units to

 7  Medicaid recipients may be restricted or prohibited by the

 8  agency. Nothing in this section shall be construed to prevent

 9  or limit the agency from adjusting fees, reimbursement rates,

10  lengths of stay, number of visits, or number of services, or

11  making any other adjustments necessary to comply with the

12  availability of moneys and any limitations or directions

13  provided for in the General Appropriations Act or chapter 216.

14  If necessary to safeguard the state's systems of providing

15  services to elderly and disabled persons and subject to the

16  notice and review provisions of s. 216.177, the Governor may

17  direct the Agency for Health Care Administration to amend the

18  Medicaid state plan to delete the optional Medicaid service

19  known as "Intermediate Care Facilities for the Developmentally

20  Disabled."  Optional services may include:

21         (5)  CASE MANAGEMENT SERVICES.--The agency may pay for

22  primary care case management services rendered to a recipient

23  pursuant to a federally approved waiver, and targeted case

24  management services for specific groups of targeted

25  recipients, for which funding has been provided and which are

26  rendered pursuant to federal guidelines. The agency is

27  authorized to limit reimbursement for targeted case management

28  services in order to comply with any limitations or directions

29  provided for in the General Appropriations Act.

30  Notwithstanding s. 216.292, the Department of Children and

31  Family Services may transfer general funds to the Agency for

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 1  Health Care Administration to fund state match requirements

 2  exceeding the amount specified in the General Appropriations

 3  Act for targeted case management services.

 4         Section 57.  Paragraph (b) of subsection (11) of

 5  section 409.912, Florida Statutes, is repealed.

 6         Section 58.  Subsection (2) of section 468.392, Florida

 7  Statutes, is amended to read:

 8         468.392  Auctioneer Recovery Fund.--There is created

 9  the Auctioneer Recovery Fund as a separate account in the

10  Professional Regulation Trust Fund.  The fund shall be

11  administered by the Florida Board of Auctioneers.

12         (2)  All payments and disbursements from the Auctioneer

13  Recovery Fund shall be made by the Chief Financial Officer

14  upon a voucher signed by the Secretary of Business and

15  Professional Regulation or the secretary's designee. Amounts

16  transferred to the Auctioneer Recovery Fund shall not be

17  subject to any limitation imposed by an appropriation act of

18  the Legislature.

19         Section 59.  Subsection (6) of section 475.484, Florida

20  Statutes, is amended to read:

21         475.484  Payment from the fund.--

22         (6)  All payments and disbursements from the Real

23  Estate Recovery Fund shall be made by the Chief Financial

24  Officer upon a voucher signed by the secretary of the

25  department. Amounts transferred to the Real Estate Recovery

26  Fund shall not be subject to any limitation imposed by an

27  appropriation act of the Legislature.

28         Section 60.  Paragraph (b) of subsection (9) of section

29  921.001, Florida Statutes, is amended to read:

30         921.001  Sentencing Commission and sentencing

31  guidelines generally.--

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 1         (9)

 2         (b)  On or after January 1, 1994, any legislation

 3  which:

 4         1.  Creates a felony offense;

 5         2.  Enhances a misdemeanor offense to a felony offense;

 6         3.  Moves a felony offense from a lesser offense

 7  severity level to a higher offense severity level in the

 8  offense severity ranking chart in s. 921.0012; or

 9         4.  Reclassifies an existing felony offense to a

10  greater felony classification

11  

12  must provide that such a change result in a net zero sum

13  impact in the overall prison population, as determined by the

14  Legislature, considering the most recent estimates of the

15  Criminal Justice Estimating Conference, unless the legislation

16  contains a funding source sufficient in its base or rate to

17  accommodate such change or a provision which specifically

18  abrogates the application of this paragraph.

19         Section 61.  Paragraph (a) of subsection (1) of section

20  1009.536, Florida Statutes, is amended to read:

21         1009.536  Florida Gold Seal Vocational Scholars

22  award.--The Florida Gold Seal Vocational Scholars award is

23  created within the Florida Bright Futures Scholarship Program

24  to recognize and reward academic achievement and career and

25  technical preparation by high school students who wish to

26  continue their education.

27         (1)  A student is eligible for a Florida Gold Seal

28  Vocational Scholars award if the student meets the general

29  eligibility requirements for the Florida Bright Futures

30  Scholarship Program and the student:

31  

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 1         (a)  Completes the secondary school portion of a

 2  sequential program of studies that requires at least three

 3  secondary school career and technical credits taken over at

 4  least 2 academic years, and is continued in a planned, related

 5  postsecondary education program. If the student's school does

 6  not offer such a two-plus-two or tech-prep program, the

 7  student must complete a job-preparatory career education

 8  program selected by the Workforce Estimating Conference or

 9  Workforce Florida, Inc., for its ability to provide high-wage

10  employment in an occupation with high potential for employment

11  opportunities. On-the-job training may not be substituted for

12  any of the three required career and technical credits.

13         Section 62.  Any undisbursed appropriations made from

14  the Working Capital Fund, previously created in section

15  215.32, Florida Statutes, are reappropriated from unallocated

16  moneys in the General Revenue Fund; any appropriations made to

17  the Working Capital Fund are reappropriated to the General

18  Revenue Fund; and any references to the Working Capital Fund

19  in proviso language or in House Bill 1837, or similar

20  legislation, shall be replaced with "the General Revenue

21  Fund." This section expires July 1, 2005.

22         Section 63.  For the 2004-2005 fiscal year, the sum of

23  $2 million is appropriated from the General Revenue Fund to

24  the Department of Management Services for the purpose of

25  reconfiguring the Florida Facilities Pool office space.

26         Section 64.  For the 2004-2005 fiscal year, the sum of

27  $1 million is appropriated from the Working Capital Trust Fund

28  in the special appropriation category entitled "Real Estate

29  Broker Commissions" to the Department of Management Services

30  for the purpose of paying real estate broker commissions under

31  section 255.249(2)(b)1.b., Florida Statutes. A payment may not

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 1  be made until the Chief Financial Officer approves the

 2  Department of Management Services' written determination under

 3  section 255.249(2)(b)1.a., Florida Statutes.

 4         Section 65.  Except as otherwise expressly provided in

 5  this act, this act shall take effect upon becoming a law.

 6  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                          CS for SB 2722

 3                                 

 4  
      -  Requires real estate broker's commissions paid by private
 5       landlords to first be remitted to Department of
         Management Services (DMS). Requires the Chief Financial
 6       Officer to approve a written determination by the DMS of
         a broker negotiated lease's value prior to payment of the
 7       broker's commission.  Provides that the written
         determination of the broker negotiated lease's value is
 8       not subject to protest.

 9    -  Removes a requirement that the DMS survey landlord
         satisfaction with broker services.
10  
      -  Provides that the state may not be bound to a lease that
11       exceeds an initial term of five years and two subsequent
         renewals with each renewal not to exceed the initial term
12       of the lease.

13    -  Provides that the act's provisions which amend ch.  255,
         F.S., are effective when the DMS certifies that it does
14       not have specified real estate broker contracts.

15    -  For Fiscal Year 2004-2005, appropriates $2,000,000 from
         the General Revenue Fund for reconfiguration of Florida
16       Facilities Pool office space and $1,000,000 from the
         Working Capital Trust Fund for payment of real estate
17       broker commissions.

18    -  Adds the content of CS/SB 1248 which include:

19    -  Clarification of the necessary approval for various
         agency interim budget amendment requests by providing a
20       separate list of amendments that require Executive Office
         of the Governor and Legislative Budget Commission
21       approval.

22    -  Provides for alternative due dates for Legislative Budget
         Requests and Long Range Program Plans with House and
23       Senate approval.

24    -  Removes unnecessary requirements for community budget
         requests.
25  
      -  Describes standard trust funds to be consistent across
26       agencies.

27    -  Eliminates obsolete zero based budgeting and
         performance-based program budgeting requirements.
28  

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