HB 0547 2004
1	A bill to be entitled
2	An act relating to local government accountability;
3	amending s. 11.40, F.S.; revising duties of the
4	Legislative Auditing Committee; amending s. 11.45, F.S.;
5	specifying requirements for a petition for a municipal
6	audit; revising reporting requirements of the Auditor
7	General; providing for technical advice by the Auditor
8	General; amending ss. 11.51 and 61.181, F.S.; correcting
9	cross references; amending s. 75.05, F.S.; deleting a
10	requirement for an independent special district to submit
11	a copy of a complaint to the Division of Bond Finance of
12	the State Board of Administration; amending s. 112.08,
13	F.S.; clarifying that local governments are authorized to
14	provide health insurance; amending s. 112.625, F.S.;
15	revising the definition of "governmental entity" to
16	include counties and district school boards; amending s.
17	112.63, F.S.; providing for additional information to be
18	provided to the Department of Management Services in
19	actuarial reports with regard to retirement systems and
20	plans and providing procedures therefor; providing for
21	notification of the Department of Revenue and the
22	Department of Financial Services in cases of noncompliance
23	and authorizing the withholding of certain funds;
24	requiring the Department of Management Services to notify
25	the Department of Community Affairs in the case of
26	affected special districts; correcting a cross reference;
27	amending s. 130.04, F.S.; revising provisions governing
28	notice of bids and disposition of bonds; amending s.
29	132.02, F.S.; revising provisions relating to the
30	authorization to issue refund bonds; amending s. 132.09,
31	F.S.; revising provisions relating to the notice of sale,
32	bids, and awards and private sale of bonds; amending s.
33	163.05, F.S.; revising provisions governing the Small
34	County Technical Assistance Program; amending s. 166.121,
35	F.S.; revising provisions governing the issuance of bonds
36	by a municipality; amending s. 166.241, F.S.; providing a
37	municipal budget amendment process and requirements;
38	amending s. 175.261, F.S.; correcting a cross reference;
39	amending s. 185.221, F.S.; correcting a cross reference;
40	amending s. 189.4044, F.S.; revising special procedures
41	for determination of inactive special districts; amending
42	s. 189.412, F.S.; revising duties of the Special District
43	Information Program of the Department of Community
44	Affairs; amending s. 189.418, F.S.; revising reporting
45	requirements of newly created special districts;
46	authorizing the governing body of a special district to
47	amend its budget; amending s. 189.419, F.S.; revising
48	provisions relating to the failure of special districts to
49	file required reports; amending s. 189.421, F.S.; revising
50	provisions governing the failure of special districts to
51	disclose financial reports; providing for extension of
52	time for the filing of the reports; providing remedies for
53	noncompliance; providing for attorney's fees and costs;
54	amending s. 189.428, F.S.; revising provisions governing
55	the special district oversight review process; amending s.
56	189.439, F.S.; revising provisions governing the issuance
57	of bonds by special districts; amending s. 191.005, F.S.;
58	exempting a candidate from campaign requirements under
59	specified conditions; providing for the removal of a board
60	member upon becoming unqualified; amending s. 218.075,
61	F.S.; revising provisions governing the reduction or
62	waiver of permit processing fees for certain counties;
63	amending s. 218.32, F.S., relating to annual financial
64	reports; requiring the Department of Financial Services to
65	notify the Speaker of the House of Representatives and the
66	President of the Senate of any municipality that has not
67	had financial activity for a specified period of time;
68	providing that such notice is sufficient to initiate
69	dissolution procedures; repealing s. 218.321, F.S.,
70	relating to annual financial statements of local
71	governmental entities; amending s. 218.36, F.S.; revising
72	reporting requirements for boards of county commissioners
73	relating to the failure of a county officer to comply with
74	the provisions of the section; amending s. 218.39, F.S.;
75	providing reporting requirements for certain special
76	districts; amending s. 218.369, F.S.; revising the
77	definition of "unit of local government" to include
78	district school boards; renaming pt. V of ch. 218, F.S.,
79	as "Local Governmental Entity and District School Board
80	Financial Emergencies"; amending s. 218.50, F.S.; renaming
81	ss. 218.50-218.504, F.S., as the "Local Governmental
82	Entity and District School Board Financial Emergencies
83	Act"; amending s. 218.501, F.S.; revising the stated
84	purposes of pt. V of ch. 218, F.S.; amending s. 218.502,
85	F.S.; revising the definition of "local governmental
86	entity"; amending s. 218.503, F.S.; revising provisions
87	governing the determination of a financial emergency for
88	local governments and district school boards; amending s.
89	218.504, F.S.; revising provisions relating to the
90	authority of the Governor and authorizing the Commissioner
91	of Education to terminate all state actions pursuant to
92	ss. 218.50-218.504, F.S.; repealing ch. 131, F.S.,
93	consisting of ss. 131.01, 131.02, 131.03, 131.04, 131.05,
94	and 131.06, F.S., relating to refunding bonds of counties,
95	municipalities, and special districts; repealing s.
96	132.10, F.S., relating to minimum sale price of bonds;
97	repealing s. 165.052, F.S., relating to special
98	dissolution procedures for municipalities; repealing s.
99	189.409, F.S., relating to determination of financial
100	emergencies of special districts; repealing s. 189.422,
101	F.S., relating to actions of the Department of Community
102	Affairs and special districts; repealing s. 200.0684,
103	F.S., relating to an annual compliance report of the
104	Department of Community Affairs regarding special
105	districts; repealing s. 218.37(1)(h), F.S., relating to
106	the requirement that the Division of Bond Finance use a
107	served copy of the complaint for bond validation to verify
108	compliance by special districts with the requirements in
109	s. 218.38, F.S.; amending s. 215.195, F.S., relating to
110	the Statewide Cost Allocation Plan; providing that the
111	Department of Financial Services is responsible for the
112	plan's preparation and the monitoring of agency
113	compliance; amending s. 215.97, F.S., relating to the
114	Florida Single Audit Act; revising and providing
115	definitions; revising the uniform state audit requirements
116	for state financial assistance that is provided by state
117	agencies to nonstate entities; requiring the Department of
118	Financial Services to adopt rules and perform additional
119	duties with respect to the provision of financial
120	assistance to carry out state projects; specifying duties
121	of coordinating agencies; amending s. 288.9610, F.S.;
122	correcting a cross reference; amending s. 1010.47, F.S.;
123	providing that school districts must sell bonds in
124	accordance with the provisions of s. 218.385, F.S.;
125	deleting obsolete provisions relating to the sale of bonds
126	by a school district; transferring a position from the
127	Executive Office of the Governor to the Department of
128	Financial Services; providing an effective date.
129
130	Be It Enacted by the Legislature of the State of Florida:
131
132	Section 1. Paragraphs (a) and (b) of subsection (5) of
133	section 11.40, Florida Statutes, are amended to read:
134	11.40 Legislative Auditing Committee.--
135	(5) Following notification by the Auditor General, the
136	Department of Financial Services, or the Division of Bond
137	Finance of the State Board of Administration of the failure of a
138	local governmental entity, district school board, charter
139	school, or charter technical career center to comply with the
140	applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or
141	s. 218.38, the Legislative Auditing Committee may schedule a
142	hearing. If a hearing is scheduled, the committee shall
143	determine if the entity should be subject to further state
144	action. If the committee determines that the entity should be
145	subject to further state action, the committee shall:
146	(a) In the case of a local governmental entity or district
147	school board, direct requestthe Department of Revenue and the
148	Department of Financial Services to withhold any funds not
149	pledged for bond debt service satisfaction which are payable to
150	such entity until the entity complies with the law. The
151	committee, in its request,shall specify the date such action
152	shall begin, and the directive requestmust be received by the
153	Department of Revenue and the Department of Financial Services
154	30 days before the date of the distribution mandated by law. The
155	Department of Revenue and the Department of Financial Services
156	may implement the provisions of this paragraph.
157	(b) In the case of a special district, notify the
158	Department of Community Affairs that the special district has
159	failed to comply with the law. Upon receipt of notification, the
160	Department of Community Affairs shall proceed pursuant to the
161	provisions specified in s. ss. 189.421 and 189.422.
162	Section 2. Paragraph (g) of subsection (2), subsections
163	(3) and (5), paragraph (e) of subsection (7), and subsections
164	(8) and (9) of section 11.45, Florida Statutes, are amended to
165	read:
166	11.45 Definitions; duties; authorities; reports; rules.--
167	(2) DUTIES.--The Auditor General shall:
168	(g) At least every 2 years, conduct a performance audit of
169	the local government financial reporting system, which, for the
170	purpose of this chapter, means any statutory provisions related
171	to local government financial reporting. The purpose of such an
172	audit is to determine the accuracy, efficiency, and
173	effectiveness of the reporting system in achieving its goals and
174	to make recommendations to the local governments, the Governor,
175	and the Legislature as to how the reporting system can be
176	improved and how program costs can be reduced. The Auditor
177	General shall determine the scope of such audits.The local
178	government financial reporting system should provide for the
179	timely, accurate, uniform, and cost-effective accumulation of
180	financial and other information that can be used by the members
181	of the Legislature and other appropriate officials to accomplish
182	the following goals:
183	1. Enhance citizen participation in local government;
184	2. Improve the financial condition of local governments;
185	3. Provide essential government services in an efficient
186	and effective manner; and
187	4. Improve decisionmaking on the part of the Legislature,
188	state agencies, and local government officials on matters
189	relating to local government.
190
191	The Auditor General shall perform his or her duties
192	independently but under the general policies established by the
193	Legislative Auditing Committee. This subsection does not limit
194	the Auditor General's discretionary authority to conduct other
195	audits or engagements of governmental entities as authorized in
196	subsection (3).
197	(3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.-
198	(a)The Auditor General may, pursuant to his or her own
199	authority, or at the direction of the Legislative Auditing
200	Committee, conduct audits or other engagements as determined
201	appropriate by the Auditor General of:
202	(a)1.The accounts and records of any governmental entity
203	created or established by law.
204	(b)2.The information technology programs, activities,
205	functions, or systems of any governmental entity created or
206	established by law.
207	(c)3.The accounts and records of any charter school
208	created or established by law.
209	(d)4.The accounts and records of any direct-support
210	organization or citizen support organization created or
211	established by law. The Auditor General is authorized to require
212	and receive any records from the direct-support organization or
213	citizen support organization, or from its independent auditor.
214	(e)5.The public records associated with any appropriation
215	made by the Legislature General Appropriations Actto a
216	nongovernmental agency, corporation, or person. All records of a
217	nongovernmental agency, corporation, or person with respect to
218	the receipt and expenditure of such an appropriation shall be
219	public records and shall be treated in the same manner as other
220	public records are under general law.
221	(f)6.State financial assistance provided to any nonstate
222	entity as defined by s. 215.97.
223	(g)7.The Tobacco Settlement Financing Corporation created
224	pursuant to s. 215.56005.
225	8. The Florida Virtual School created pursuant to s.
226	1002.37.
227	(h)9.Any purchases of federal surplus lands for use as
228	sites for correctional facilities as described in s. 253.037.
229	(i)10.Enterprise Florida, Inc., including any of its
230	boards, advisory committees, or similar groups created by
231	Enterprise Florida, Inc., and programs. The audit report may
232	not reveal the identity of any person who has anonymously made a
233	donation to Enterprise Florida, Inc., pursuant to this paragraph
234	subparagraph. The identity of a donor or prospective donor to
235	Enterprise Florida, Inc., who desires to remain anonymous and
236	all information identifying such donor or prospective donor are
237	confidential and exempt from the provisions of s. 119.07(1) and
238	s. 24(a), Art. I of the State Constitution. Such anonymity shall
239	be maintained in the auditor's report.
240	(j)11.The Florida Development Finance Corporation or the
241	capital development board or the programs or entities created by
242	the board. The audit or report may not reveal the identity of
243	any person who has anonymously made a donation to the board
244	pursuant to this paragraph subparagraph. The identity of a donor
245	or prospective donor to the board who desires to remain
246	anonymous and all information identifying such donor or
247	prospective donor are confidential and exempt from the
248	provisions of s. 119.07(1) and s. 24(a), Art. I of the State
249	Constitution. Such anonymity shall be maintained in the
250	auditor's report.
251	(k)12.The records pertaining to the use of funds from
252	voluntary contributions on a motor vehicle registration
253	application or on a driver's license application authorized
254	pursuant to ss. 320.023 and 322.081.
255	(l)13.The records pertaining to the use of funds from the
256	sale of specialty license plates described in chapter 320.
257	(m)14.The transportation corporations under contract with
258	the Department of Transportation that are acting on behalf of
259	the state to secure and obtain rights-of-way for urgently needed
260	transportation systems and to assist in the planning and design
261	of such systems pursuant to ss. 339.401-339.421.
262	(n)15.The acquisitions and divestitures related to the
263	Florida Communities Trust Program created pursuant to chapter
264	380.
265	(o)16.The Florida Water Pollution Control Financing
266	Corporation created pursuant to s. 403.1837.
267	(p)17.The Florida Partnership for School Readiness
268	created pursuant to s. 411.01.
269	(q)18.The Florida Special Disability Trust Fund Financing
270	Corporation created pursuant to s. 440.49.
271	(r)19.Workforce Florida, Inc., or the programs or
272	entities created by Workforce Florida, Inc., created pursuant to
273	s. 445.004.
274	(s)20.The corporation defined in s. 455.32 that is under
275	contract with the Department of Business and Professional
276	Regulation to provide administrative, investigative,
277	examination, licensing, and prosecutorial support services in
278	accordance with the provisions of s. 455.32 and the practice act
279	of the relevant profession.
280	(t)21.The Florida Engineers Management Corporation
281	created pursuant to chapter 471.
282	(u)22.The Investment Fraud Restoration Financing
283	Corporation created pursuant to chapter 517.
284	(v)23.The books and records of any permitholder that
285	conducts race meetings or jai alai exhibitions under chapter
286	550.
287	(w)24.The corporation defined in part II of chapter 946,
288	known as the Prison Rehabilitative Industries and Diversified
289	Enterprises, Inc., or PRIDE Enterprises.
290	(x) The Florida Virtual School pursuant to s. 1002.37.
291	(b) The Auditor General is also authorized to:
292	1. Promote the building of competent and efficient
293	accounting and internal audit organizations in the offices
294	administered by governmental entities.
295	2. Provide consultation services to governmental entities
296	on their financial and accounting systems, procedures, and
297	related matters.
298	(5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.-
299	(a)The Legislative Auditing Committee shall direct the
300	Auditor General to make an a financialaudit of any municipality
301	whenever petitioned to do so by at least 20 percent of the
302	registered electors in the last general electionof that
303	municipality pursuant to this subsection. The supervisor of
304	elections of the county in which the municipality is located
305	shall certify whether or not the petition contains the
306	signatures of at least 20 percent of the registeredelectors of
307	the municipality. After the completion of the audit, the Auditor
308	General shall determine whether the municipality has the fiscal
309	resources necessary to pay the cost of the audit. The
310	municipality shall pay the cost of the audit within 90 days
311	after the Auditor General's determination that the municipality
312	has the available resources. If the municipality fails to pay
313	the cost of the audit, the Department of Revenue shall, upon
314	certification of the Auditor General, withhold from that portion
315	of the distribution pursuant to s. 212.20(6)(d)6. which is
316	distributable to such municipality, a sum sufficient to pay the
317	cost of the audit and shall deposit that sum into the General
318	Revenue Fund of the state.
319	(b) At least one registered elector in the most recent
320	general election must file a letter of intent with the municipal
321	clerk prior to any petition of the electors of that municipality
322	for the purpose of an audit. Each petition must be submitted to
323	the supervisor of elections and contain, at a minimum:
324	1. The elector's printed name.
325	2. The elector's signature.
326	3. The elector's residence address.
327	4. The elector's date of birth.
328	5. The date signed.
329
330	All petitions must be submitted for verification within 1
331	calendar year after the audit petition origination by the
332	municipal electors.
333	(7) AUDITOR GENERAL REPORTING REQUIREMENTS.-
334	(e) The Auditor General shall notify the Governor or the
335	Commissioner of Education, as appropriate,and the Legislative
336	Auditing Committee of any audit report reviewed by the Auditor
337	General pursuant to paragraph (b) which contains a statement
338	that a the local governmental entity or district school board
339	has met one or more of the conditions specified is in a state of
340	financial emergency as providedin s. 218.503. If the Auditor
341	General requests a clarification regarding information included
342	in an audit report to determine whether a local governmental
343	entity or district school board has met one or more of the
344	conditions specified in s. 218.503 is in a state of financial
345	emergency, the requested clarification must be provided within
346	45 days after the date of the request. If the local governmental
347	entity or district school board does not comply with the Auditor
348	General's request, the Auditor General shall notify the
349	Legislative Auditing Committee. If, after obtaining the
350	requested clarification, the Auditor General determines that the
351	local governmental entity or district school board has met one
352	or more of the conditions specified in s. 218.503 is in a state
353	of financial emergency, he or she shall notify the Governor or
354	the Commissioner of Education, as appropriate,and the
355	Legislative Auditing Committee.
356	(8) RULES OF THE AUDITOR GENERAL.-The Auditor General, in
357	consultation with the Board of Accountancy, shall adopt rules
358	for the form and conduct of all financial audits performed by
359	independent certified public accountants pursuant to ss.
360	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
361	audits of local governmental entities and district school boards
362	must include, but are not limited to, requirements for the
363	reporting of information necessary to carry out the purposes of
364	the Local Governmental Entity and District School Board
365	GovernmentFinancial Emergencies Act as stated in s. 218.501.
366	(9) TECHNICAL ADVICE OTHER GUIDANCEPROVIDED BY THE
367	AUDITOR GENERAL.-The Auditor General may provide technical
368	advice to:, in consultation with
369	(a) The Department of Education in the development of,
370	shall developa compliance supplement for the financial audit of
371	a district school board conducted by an independent certified
372	public accountant.
373	(b) Governmental entities on their financial and
374	accounting systems, procedures, and related matters.
375	(c) Governmental entities on promoting the building of
376	competent and efficient accounting and internal audit
377	organizations in their offices.
378	Section 3. Subsection (4) of section 11.51, Florida
379	Statutes, is amended to read:
380	11.51 Office of Program Policy Analysis and Government
381	Accountability.--
382	(4) The Office of Program Policy Analysis and Government
383	Accountability is authorized to examine all entities and records
384	listed in s. 11.45(3)(a).
385	Section 4. Subsection (10) of section 61.181, Florida
386	Statutes, is amended to read:
387	61.181 Depository for alimony transactions, support,
388	maintenance, and support payments; fees.--
389	(10) Compliance with the requirements of this section
390	shall be included as part of the annual county audit required
391	pursuant to s. 218.39 11.45.
392	Section 5. Subsection (3) of section 75.05, Florida
393	Statutes, is amended to read:
394	75.05 Order and service.--
395	(3) In the case of independent special districts as
396	defined in s. 218.31(7), a copy of the complaint shall be served
397	on the Division of Bond Finance of the State Board of
398	Administration.Notwithstanding any other provision of law,
399	whether a general law or special act, validation of bonds to be
400	issued by a special district, other than a community development
401	district established pursuant to chapter 190, as provided in s.
402	190.016(12), is not mandatory, but is at the option of the
403	issuer. However, the validation of bonds issued by such
404	community development districts shall not be required on
405	refunding issues.
406	Section 6. Paragraph (a) of subsection (2) of section
407	112.08, Florida Statutes, is amended to read:
408	112.08 Group insurance for public officers, employees, and
409	certain volunteers; physical examinations.--
410	(2)(a) Notwithstanding any general law or special act to
411	the contrary,every local governmental unit is authorized to
412	provide and pay out of its available funds for all or part of
413	the premium for life, health, accident, hospitalization, legal
414	expense, or annuity insurance, or all or any kinds of such
415	insurance, for the officers and employees of the local
416	governmental unit and for health, accident, hospitalization, and
417	legal expense insurance for the dependents of such officers and
418	employees upon a group insurance plan and, to that end, to enter
419	into contracts with insurance companies or professional
420	administrators to provide such insurance. Before entering any
421	contract for insurance, the local governmental unit shall
422	advertise for competitive bids; and such contract shall be let
423	upon the basis of such bids. If a contracting health insurance
424	provider becomes financially impaired as determined by the
425	Office of Insurance Regulation of the Financial Services
426	Commission or otherwise fails or refuses to provide the
427	contracted-for coverage or coverages, the local government may
428	purchase insurance, enter into risk management programs, or
429	contract with third-party administrators and may make such
430	acquisitions by advertising for competitive bids or by direct
431	negotiations and contract. The local governmental unit may
432	undertake simultaneous negotiations with those companies which
433	have submitted reasonable and timely bids and are found by the
434	local governmental unit to be fully qualified and capable of
435	meeting all servicing requirements. Each local governmental unit
436	may self-insure any plan for health, accident, and
437	hospitalization coverage or enter into a risk management
438	consortium to provide such coverage, subject to approval based
439	on actuarial soundness by the Office of Insurance Regulation;
440	and each shall contract with an insurance company or
441	professional administrator qualified and approved by the office
442	to administer such a plan.
443	Section 7. Subsection (5) of section 112.625, Florida
444	Statutes, is amended to read:
445	112.625 Definitions.--As used in this act:
446	(5) "Governmental entity" means the state, for the Florida
447	Retirement System, and the county, municipality, orspecial
448	district, or district school boardwhich is the employer of the
449	member of a local retirement system or plan.
450	Section 8. Subsections (2) and (4) of section 112.63,
451	Florida Statutes, are amended to read:
452	112.63 Actuarial reports and statements of actuarial
453	impact; review.--
454	(2) The frequency of actuarial reports must be at least
455	every 3 years commencing from the last actuarial report of the
456	plan or system or October 1, 1980, if no actuarial report has
457	been issued within the 3-year period prior to October 1, 1979.
458	The results of each actuarial report shall be filed with the
459	plan administrator within 60 days of certification. Thereafter,
460	the results of each actuarial report shall be made available for
461	inspection upon request. Additionally, each retirement system or
462	plan covered by this act which is not administered directly by
463	the Department of Management Services shall furnish a copy of
464	each actuarial report to the Department of Management Services
465	within 60 days after receipt from the actuary. The requirements
466	of this section are supplemental to actuarial valuations
467	necessary to comply with the requirements of s. ss. 218.321 and
468	218.39.
469	(4) Upon receipt, pursuant to subsection (2), of an
470	actuarial report, or upon receipt, pursuant to subsection (3),
471	of a statement of actuarial impact, the Department of Management
472	Services shall acknowledge such receipt, but shall only review
473	and comment on each retirement system's or plan's actuarial
474	valuations at least on a triennial basis. If the department
475	finds that the actuarial valuation is not complete, accurate, or
476	based on reasonable assumptions or otherwise fails to satisfy
477	the requirements of this part, if the department requires
478	additional information necessary to complete its review of the
479	actuarial valuation of a system or plan or information necessary
480	to satisfy the duties of the department pursuant to s.
481	112.665(1), or if the department does not receive the actuarial
482	report or statement of actuarial impact, the department shall
483	notify the administrator of the affected retirement system or
484	plan and the affected governmental entity local governmentand
485	request appropriate adjustment, the additional information, the
486	required report, or the statement. The notification must inform
487	the administrator of the affected retirement system or plan and
488	the affected governmental entity of the consequences for failure
489	to comply with the requirements of this subsection.If, after a
490	reasonable period of time, a satisfactory adjustment is not
491	made, or the additional information, the report, or the
492	statement is not provided, the department may notify the
493	Department of Revenue and the Department of Financial Services
494	of such noncompliance, in which case the Department of Revenue
495	and the Department of Financial Services shall withhold any
496	funds not pledged for satisfaction of bond debt service which
497	are payable to the affected governmental entity until the
498	adjustment is made or the additional information, the report, or
499	the statement is provided to the department. The department
500	shall specify the date such action is to begin, and notification
501	by the department must be received by the Department of Revenue,
502	the Department of Financial Services, and the affected
503	governmental entity 30 days before the date the action begins.
504	(a) Within 21 days after receipt of the notice,the
505	affected governmental entity local government or the department
506	may petition for a hearing under the provisions ofss. 120.569
507	and 120.57 with the Department of Management Services. The
508	Department of Revenue and the Department of Financial Services
509	may not be parties to any such hearing, but may request to
510	intervene if requested by the Department of Management Services
511	or if the Department of Revenue or the Department of Financial
512	Services determines its interests may be adversely affected by
513	the hearing.If the administrative law judge recommends in favor
514	of the department, the department shall perform an actuarial
515	review, or prepare the statement of actuarial impact, or collect
516	the requested information. The cost to the department of
517	performing such actuarial review, or preparing the such
518	statement, or collecting the requested informationshall be
519	charged to the affectedgovernmental entity of which the
520	employees are covered by the retirement system or plan. If
521	payment of such costs is not received by the department within
522	60 days after receipt by the affectedgovernmental entity of the
523	request for payment, the department shall certify to the
524	Department of Revenue and the Department of Financial Services
525	Chief Financial Officer the amount due, and the Department of
526	Revenue and the Department of Financial Services Chief Financial
527	Officer shall pay such amount to the Department of Management
528	Services from any funds not pledged for satisfaction of bond
529	debt service that are payable to the affectedgovernmental
530	entity of which the employees are covered by the retirement
531	system or plan. If the administrative law judge recommends in
532	favor of the affected governmental entity local retirement
533	system and the department performs an actuarial review, prepares
534	the statement of actuarial impact, or collects the requested
535	information,the cost to the department of performing the
536	actuarial review, preparing the statement, or collecting the
537	requested information shall be paid by the Department of
538	Management Services.
539	(b) In the case of an affected special district, the
540	Department of Management Services shall also notify the
541	Department of Community Affairs. Upon receipt of notification,
542	the Department of Community Affairs shall proceed pursuant to
543	the provisions of s. 189.421 with regard to the special
544	district.
545	Section 9. Section 130.04, Florida Statutes, is amended to
546	read:
547	130.04 Sale Notice for bids and dispositionof bonds.--In
548	case the issuing of bonds shall be authorized by the result of
549	such election, the county commissioners shall sell the bonds in
550	the manner provided in s. 218.385 cause notice to be given by
551	publication in a newspaper published in the county, or in some
552	newspaper published in the same judicial circuit, if there be
553	none published in the county, that they will receive bids for
554	the purchase of county bonds at the clerk's office, on a date
555	not less than 10 days nor more than 60 days from the first
556	publication of such notice. The notice shall specify the amount
557	of bonds offered for sale, the rate of interest, and the time
558	when principal and installments of interest shall be due and
559	payable. Any and all bids shall be rejected if the commissioners
560	shall deem it to the best interest for the county so to do, and
561	they may cause a new notice to be given in like manner inviting
562	other bids for said bonds; provided, that when the rate of
563	interest on said bonds exceeds 5 percent per annum, said bonds
564	shall not be sold for less than 95 cents on the dollar, but when
565	any bonds have heretofore been provided for by election, and the
566	rate of interest is 5 percent per annum, or less, that in such
567	cases the county commissioners may accept less than 95 cents
568	upon the dollar, in the sale of said bonds, or for any portion
569	of said bonds not already sold; provided, however, no bonds
570	shall be sold for less than 90 cents on the dollar.
571	Section 10. Subsection (1) of section 132.02, Florida
572	Statutes, is amended to read:
573	132.02 Taxing units may refund obligations.--
574	(1) Each county, municipality, city, town, special road
575	and bridge district, special tax school district, or andother
576	taxing district districtsin this state, herein sometimes called
577	a unit, may issue, pursuant to a resolution or resolutions of
578	the governing body thereof (meaning thereby the board or body
579	vested with the power of determining the amount of tax levies
580	required for taxing the taxable property of such unit for the
581	purpose of such unit) and either with or without the approval of
582	such bonds at an election, except as may be required by the
583	Constitution of the state, bonds of such unit for the purpose of
584	refunding any or all bonds, coupons, or interest on any such
585	bonds, or coupons or paving certificates of indebtedness or
586	interest on any such paving certificates of indebtedness,now or
587	hereafter outstanding, or any other funded debt, all of which
588	are herein referred to as bonds, whether such unit created such
589	indebtedness or has assumed, or may become liable therefor, and
590	whether indebtedness to be refunded has matured or to thereafter
591	become matured.
592	Section 11. Section 132.09, Florida Statutes, is amended
593	to read:
594	132.09 Sale of bonds Notice of sale; bids and award;
595	private sale.--When sold, the refunding bonds (except as
596	otherwise expressly provided) shall be sold in the manner
597	provided in s. 218.385 pursuant to the terms of a notice of sale
598	which shall be published at least twice. The first publication
599	to be not less than 7 days before the date fixed for the sale
600	and to be published in a newspaper published in the unit, or if
601	no newspaper is published in the unit, then in a newspaper
602	published in the county, or if no newspaper is published in the
603	county, then in a newspaper published in Tallahassee, and in the
604	discretion of the governing body of the unit may be published in
605	a financial newspaper in the City of New York. Such notices
606	shall state the time and place and when and where sealed bids
607	will be received, shall state the amount of bonds, their dates,
608	maturities, denominations and interest rate or rates (which may
609	be a maximum rate), interest payment dates, an outline of the
610	terms, if any, on which they are redeemable or become payable
611	before maturity, the amount which must be deposited with the bid
612	to secure its performance if accepted, and such other pertinent
613	information as the governing body of the unit may determine.
614	The notice of sale may require the bidders to fix the interest
615	rate or rates that the bonds are to bear subject to the terms of
616	the notice and the maximum rate permitted by this chapter. The
617	award of the bonds shall be made by the governing body of the
618	unit to the bidder making the most advantageous bid which shall
619	be determined by the governing body in its absolute and
620	uncontrolled discretion. The right to reject all bids shall be
621	reserved to the governing body of the unit. If no bids are
622	received at such public sale, or if all bids are rejected, the
623	bonds may be sold without notice at private sale at any time
624	within one year thereafter, but such bonds shall not be sold at
625	private sale on terms less favorable to the unit than were
626	contained in the best bid at the prior public sale.
627	Section 12. Paragraph (a) of subsection (2) of section
628	163.05, Florida Statutes, is amended to read:
629	163.05 Small County Technical Assistance Program.--
630	(2) Recognizing the findings in subsection (1), the
631	Legislature declares that:
632	(a) The financial difficulties fiscal emergencies
633	confronting small counties require an investment that will
634	facilitate efforts to improve the productivity and efficiency of
635	small counties' structures and operating procedures.
636	Section 13. Subsection (2) of section 166.121, Florida
637	Statutes, is amended to read:
638	166.121 Issuance of bonds.--
639	(2) The governing body of a municipality shall determine
640	the terms and manner of sale and distribution or other
641	disposition of any and all bonds it may issue, consistent with
642	the provisions of s. 218.385,and shall have any and all powers
643	necessary or convenient to such disposition.
644	Section 14. Section 166.241, Florida Statutes, is amended
645	to read:
646	166.241 Fiscal years, financial reports, appropriations,
647	and budgets, and budget amendments.--
648	(1) Each municipality shall report its finances annually
649	as provided by general law.
650	(1)(2)Each municipality shall make provision for
651	establishing a fiscal year beginning October 1 of each year and
652	ending September 30 of the following year.
653	(2)(3)The governing body of each municipality shall adopt
654	a budget each fiscal year. The budget must be adopted by
655	ordinance or resolutionunless otherwise specified in the
656	respective municipality's charter. The amount available from
657	taxation and other sources, including amounts carried over from
658	prior fiscal years, must equal the total appropriations for
659	expenditures and reserves. The budget must regulate expenditures
660	of the municipality, and it is unlawful for any officer of a
661	municipal government to expend or contract for expenditures in
662	any fiscal year except in pursuance of budgeted appropriations.
663	(3) The governing body of each municipality at any time
664	within a fiscal year or within up to 60 days following the end
665	of the fiscal year may amend a budget for that year as follows:
666	(a) Appropriations for expenditures within a fund may be
667	decreased or increased by motion recorded in the minutes,
668	provided that the total of the appropriations of the fund is not
669	changed.
670	(b) The governing body may establish procedures by which
671	the designated budget officer may authorize certain budget
672	amendments within a department, provided that the total of the
673	appropriations of the department is not changed.
674	(c) If a budget amendment is required for a purpose not
675	specifically authorized in paragraph (a) or paragraph (b), the
676	budget amendment must be adopted in the same manner as the
677	original budget unless otherwise specified in the charter of the
678	respective municipality.
679	Section 15. Paragraph (b) of subsection (1) of section
680	175.261, Florida Statutes, is amended to read:
681	175.261 Annual report to Division of Retirement; actuarial
682	valuations.--For any municipality, special fire control
683	district, chapter plan, local law municipality, local law
684	special fire control district, or local law plan under this
685	chapter, the board of trustees for every chapter plan and local
686	law plan shall submit the following reports to the division:
687	(1) With respect to chapter plans:
688	(b) In addition to annual reports provided under paragraph
689	(a), by February 1 of each triennial year, an actuarial
690	valuation of the chapter plan must be made by the division at
691	least once every 3 years, as provided in s. 112.63, commencing 3
692	years from the last actuarial valuation of the plan or system
693	for existing plans, or commencing 3 years from issuance of the
694	initial actuarial impact statement submitted under s. 112.63 for
695	newly created plans. To that end, the chair of the board of
696	trustees for each firefighters' pension trust fund operating
697	under a chapter plan shall report to the division such data as
698	it needs to complete an actuarial valuation of each fund. The
699	forms for each municipality and special fire control district
700	shall be supplied by the division. The expense of this actuarial
701	valuation shall be borne by the firefighters' pension trust fund
702	established by ss. 175.041 and 175.121. The requirements of this
703	section are supplemental to the actuarial valuations necessary
704	to comply with s. ss. 218.321 and218.39.
705	Section 16. Paragraph (b) of subsection (1) of section
706	185.221, Florida Statutes, is amended to read:
707	185.221 Annual report to Division of Retirement; actuarial
708	valuations.--For any municipality, chapter plan, local law
709	municipality, or local law plan under this chapter, the board of
710	trustees for every chapter plan and local law plan shall submit
711	the following reports to the division:
712	(1) With respect to chapter plans:
713	(b) In addition to annual reports provided under paragraph
714	(a), by February 1 of each triennial year, an actuarial
715	valuation of the chapter plan must be made by the division at
716	least once every 3 years, as provided in s. 112.63, commencing 3
717	years from the last actuarial valuation of the plan or system
718	for existing plans, or commencing 3 years from the issuance of
719	the initial actuarial impact statement submitted under s. 112.63
720	for newly created plans. To that end, the chair of the board of
721	trustees for each municipal police officers' retirement trust
722	fund operating under a chapter plan shall report to the division
723	such data as the division needs to complete an actuarial
724	valuation of each fund. The forms for each municipality shall be
725	supplied by the division. The expense of the actuarial valuation
726	shall be borne by the municipal police officers' retirement
727	trust fund established by s. 185.10. The requirements of this
728	section are supplemental to the actuarial valuations necessary
729	to comply with s. ss. 218.321 and218.39.
730	Section 17. Section 189.4044, Florida Statutes, is amended
731	to read:
732	189.4044 Special procedures for inactive districts.--
733	(1) The department shall declare inactive any special
734	district in this state by documenting that filing a report with
735	the Speaker of the House of Representatives and the President of
736	the Senate which shows that such special district is no longer
737	active. The inactive status of the special district must be
738	based upon a finding:
739	(a) ThatThe special district meets one of the following
740	criteria:
741	1. The registered agent of the district, the chair of the
742	governing body of the district, or the governing body of the
743	appropriate local general-purpose government notifies the
744	department in writing that thedistrict has taken no action for
745	2 or more calendaryears;
746	2. Following an inquiry from the department, the
747	registered agent of the district, the chair of the governing
748	body of the district, or the governing body of the appropriate
749	local general-purpose government notifies the department in
750	writing thatthe district has not had a governing board or a
751	sufficient number of governing board members to constitute a
752	quorum for 2 or more years or the registered agent of the
753	district, the chair of the governing body of the district, or
754	the governing body of the appropriate local general-purpose
755	government fails to respond to the department's inquiry within
756	21 days; or 18 or more months;
757	3. The department determines, pursuant to s. 189.421, that
758	the district has failed to file or make a good faith effort to
759	file any of the reports listed in s. 189.419.; or
760	4. The district has failed, for 2 consecutive fiscal
761	years, to pay fees assessed by the Special District Information
762	Program pursuant to this chapter.
763	(b) The department, special district, or local general-
764	purpose government published That a notice of theproposed
765	declaration of inactive status has been published once a week
766	for 2 weeks in a newspaper of general circulation in withinthe
767	county or municipality in which whereinthe territory of the
768	special district is located and sent a copy of such notice by
769	certified mail to the registered agent or chair of the board, if
770	any. Such notice must include, stating the name of the said
771	special district, the law under which it was organized and
772	operating, a general description of the territory included in
773	the said special district, and a statement statingthat any
774	objections must be filed pursuant to chapter 120 within 21 days
775	after the publication date. to the proposed declaration or to
776	any claims against the assets of said special district shall be
777	filed not later than 60 days following the date of last
778	publication with the department; and
779	(c) Twenty-one That 60 days have elapsed from the last
780	publication date of the notice of proposed declaration of
781	inactive status and no administrative appeals were sustained
782	objections have beenfiled.
783	(2) If any special district is declared inactive pursuant
784	to this section, the property or assets of the special district
785	are subject to legal process for payment of any debts of the
786	district. After the payment of all the debts of said inactive
787	special district, the remainder of its property or assets shall
788	escheat to the county or municipality wherein located. If,
789	however, it shall be necessary, in order to pay any such debt,
790	to levy any tax or taxes on the property in the territory or
791	limits of the inactive special district, the same may be
792	assessed and levied by order of the local general-purpose
793	government wherein the same is situated and shall be assessed by
794	the county property appraiser and collected by the county tax
795	collector.
796	(3) In the case of a district created by special act of
797	the Legislature, the department shall send a notice of
798	declaration of inactive status to notifythe Speaker of the
799	House of Representatives and the President of the Senate. The
800	notice of declaration of inactive status shall reference of each
801	knownspecial act creating or amending the charter of any
802	special district declared to be inactive under this section.
803	The declaration of inactive status shall be sufficient notice as
804	required by s. 10, Art. III of the State Constitution to
805	authorize the Legislature to repeal any special laws so
806	reported. In the case of a district created by one or more local
807	general-purpose governments, the department shall send a notice
808	of declaration of inactive status to the chair of the governing
809	body of each local general-purpose government that created the
810	district. In the case of a district created by interlocal
811	agreement, the department shall send a notice of declaration of
812	inactive status to the chair of the governing body of each local
813	general-purpose government which entered into the interlocal
814	agreement.
815	(4) The entity that createda special district declared
816	inactive under this section must dissolve the special district
817	be dissolved by repealing repeal of its enabling laws or by
818	other appropriate means.
819	Section 18. Subsection (1) of section 189.412, Florida
820	Statutes, is amended, and subsection (8) is added to said
821	section, to read:
822	189.412 Special District Information Program; duties and
823	responsibilities.--The Special District Information Program of
824	the Department of Community Affairs is created and has the
825	following special duties:
826	(1) The collection and maintenance of special district
827	noncompliance compliance status reports from the Department of
828	Management Services Auditor General, the Department of Financial
829	Services, the Division of Bond Finance of the State Board of
830	Administration, and the Auditor General the Department of
831	Management Services, the Department of Revenue, and the
832	Commission on Ethics for the reporting required in ss. 112.3144,
833	112.3145, 112.3148, 112.3149, 112.63, 200.068, 218.32, 218.38,
834	and 218.39, and 280.17 and chapter 121 and from state agencies
835	administering programs that distribute money to special
836	districts. The noncompliance special district compliance status
837	reports must list those consist of a list of special districts
838	used in that state agency and a list of which special districts
839	that did not comply with the statutory reporting requirements
840	statutorily required by that agency.
841	(8) The provision of assistance to local general-purpose
842	governments and certain state agencies in collecting delinquent
843	reports or information, helping special districts comply with
844	reporting requirements, declaring special districts inactive
845	when appropriate, and, when directed by the Legislative Auditing
846	Committee, initiating enforcement provisions as provided in ss.
847	189.4044, 189.419, and 189.421.
848	Section 19. Subsections (1) and (2) of section 189.418,
849	Florida Statutes, are amended, subsection (5) is renumbered as
850	subsection (6), present subsection (6) is renumbered as
851	subsection (7) and amended, and a new subsection (5) is added to
852	said section, to read:
853	189.418 Reports; budgets; audits.--
854	(1) When a new special district is created, the district
855	must forward to the department, within 30 days after the
856	adoption of the special act, rule, ordinance, resolution, or
857	other document that provides for the creation of the district, a
858	copy of the document and a written statement that includes a
859	reference to the status of the special district as dependent or
860	independent and the basis for such classification. In addition
861	to the document or documents that create the district, the
862	district must also submit a map of the district, showing any
863	municipal boundaries that cross the district's boundaries, and
864	any county lines if the district is located in more than one
865	county. The department must notify the local government or other
866	entity and the district within 30 days after receipt of the
867	document or documents that create the district as to whether the
868	district has been determined to be dependent or independent.
869	(2) Any amendment, modification, or update of the document
870	by which the district was created, including changes in
871	boundaries, must be filed with the department within 30 days
872	after adoption. The department may initiate proceedings against
873	special districts as provided in s. ss. 189.421 and 189.422for
874	failure to file the information required by this subsection.
875	(5) The governing body of each special district at any
876	time within a fiscal year or within up to 60 days following the
877	end of the fiscal year may amend a budget for that year. The
878	budget amendment must be adopted by resolution.
879	(7)(6)All reports or information required to be filed
880	with a local governing authority under ss. 189.415, 189.416, and
881	189.417, 218.32, and 218.39and this section shall:
882	(a) When the local governing authority is a county, be
883	filed with the clerk of the board of county commissioners.
884	(b) When the district is a multicounty district, be filed
885	with the clerk of the county commission in each county.
886	(c) When the local governing authority is a municipality,
887	be filed at the place designated by the municipal governing
888	body.
889	Section 20. Section 189.419, Florida Statutes, is amended
890	to read:
891	189.419 Effect of failure to file certain reports or
892	information.--
893	(1) If a special district fails to file the reports or
894	information required under s. 189.415, s. 189.416, ors.
895	189.417, s. 189.418, s. 218.32, or s. 218.39 and a description
896	of all new bonds as provided in s. 218.38(1)with the local
897	governing authority, the person authorized to receive and read
898	the reports or information shall notify the district's
899	registered agent and the appropriate local governing authority
900	or authorities. If requested by the district At any time, the
901	governing authority shall may grant an extension of time of up
902	to 30 days for filing the required reports or information,
903	except that an extension may not exceed 30 days.
904	(2) If at any time the local governing authority or
905	authorities or the board of county commissioners determines that
906	there has been an unjustified failure to file the reports or
907	information described in subsection (1), it may notify petition
908	the department and the department may proceed pursuant to
909	initiate proceedings against the special district in the manner
910	provided ins. 189.421.
911	(3) If a special district fails to file the reports or
912	information required under s. 112.63,s. 218.32, s. 218.38, or
913	s. 218.39 with the appropriate state agency, the agency shall
914	notify the department, and the department shall proceed pursuant
915	to s. 189.421 may initiate proceedings against the special
916	district in the manner provided in s. 189.421 or assess fines of
917	not more than $25, with an aggregate total not to exceed $50,
918	when formal inquiries do not resolve the noncompliance.
919	Section 21. Section 189.421, Florida Statutes, is amended
920	to read:
921	(Substantial rewording of section. See
922	s. 189.421, F.S., for present text.)
923	189.421 Failure of district to disclose financial
924	reports.--
925	(1) When notified pursuant to s. 189.419, the department
926	shall attempt to assist a special district to comply with its
927	financial reporting requirements by sending a certified letter
928	to the special district, and a copy of the letter to the chair
929	of the governing body of the local general-purpose government,
930	which includes the following: a description of the required
931	report, including statutory submission deadlines, a contact
932	telephone number for technical assistance to help the special
933	district comply, a 60-day extension of time for filing the
934	required report with the appropriate entity, the address where
935	the report must be filed, and an explanation of the penalties
936	for noncompliance. The department may grant an additional 30-day
937	extension of time if requested to do so in writing by the
938	special district. The department shall notify the appropriate
939	entity of the new extension of time. In the case of a special
940	district that did not timely file the reports or information
941	required by s. 218.38, the department shall send a certified
942	technical assistance letter to the special district that
943	summarizes the requirements and encourages the special district
944	to take steps to prevent the noncompliance from reoccurring.
945	(2) Failure of a special district to comply with the
946	financial reporting requirements after the procedures of
947	subsection (1) are exhausted shall be deemed final action of the
948	special district. The financial reporting requirements are
949	declared to be essential requirements of law. Remedy for
950	noncompliance shall be by writ of certiorari as set forth in
951	subsection (3).
952	(3) Pursuant to s. 11.40(5)(b), the Legislative Auditing
953	Committee shall notify the department of those districts that
954	failed to file the required report. Within 30 days after
955	receiving this notice or within 30 days after the extension date
956	provided in subsection (1), whichever occurs later, the
957	department shall proceed as follows: notwithstanding the
958	provisions of chapter 120, the department shall file a petition
959	for writ of certiorari with the circuit court. Venue for all
960	actions pursuant to this subsection shall be in Leon County. The
961	court shall award the prevailing party attorney's fees and costs
962	in all cases filed pursuant to this section unless affirmatively
963	waived by all parties. A writ of certiorari shall be issued
964	unless a respondent establishes that the notification of the
965	Legislative Auditing Committee was issued as a result of
966	material error. Proceedings under this subsection shall
967	otherwise be governed by the Rules of Appellate Procedure.
968	Section 22. Subsection (5) of section 189.428, Florida
969	Statutes, is amended to read:
970	189.428 Special districts; oversight review process.--
971	(5) Those conducting the oversight review process shall,
972	at a minimum, consider the listed criteria for evaluating the
973	special district, but may also consider any additional factors
974	relating to the district and its performance. If any of the
975	listed criteria does donot apply to the special district being
976	reviewed, it theyneed not be considered. The criteria to be
977	considered by the reviewer include:
978	(a) The degree to which the service or services offered by
979	the special district are essential or contribute to the well-
980	being of the community.
981	(b) The extent of continuing need for the service or
982	services currently provided by the special district.
983	(c) The extent of municipal annexation or incorporation
984	activity occurring or likely to occur within the boundaries of
985	the special district and its impact on the delivery of services
986	by the special district.
987	(d) Whether there is a less costly alternative method of
988	delivering the service or services that would adequately provide
989	the district residents with the services provided by the
990	district.
991	(e) Whether transfer of the responsibility for delivery of
992	the service or services to an entity other than the special
993	district being reviewed could be accomplished without
994	jeopardizing the district's existing contracts, bonds, or
995	outstanding indebtedness.
996	(f) Whether the Auditor General has notified the
997	Legislative Auditing Committee that the special district's audit
998	report, reviewed pursuant to s. 11.45(7), indicates that the
999	district has met any of the conditions specified in s.
1000	218.503(1) or thata deteriorating financial condition exists
1001	that may cause a condition described in s. 218.503(1) to occur
1002	if actions are not taken to address such condition.
1003	(g) Whether the Auditor General has determined that the
1004	special district is in a state of financial emergency as
1005	provided in s. 218.503(1), and has notified the Governor and the
1006	Legislative Auditing Committee.
1007	(g)(h)Whether the district is inactive according to the
1008	official list of special districts, and whether the district is
1009	meeting and discharging its responsibilities as required by its
1010	charter, as well as projected increases or decreases in district
1011	activity.
1012	(h)(i)Whether the special district has failed to comply
1013	with any of the reporting requirements in this chapter,
1014	including preparation of the public facilities report.
1015	(i)(j)Whether the special district has designated a
1016	registered office and agent as required by s. 189.416, and has
1017	complied with all open public records and meeting requirements.
1018	Section 23. Paragraph (a) of subsection (1) of section
1019	189.439, Florida Statutes, is amended to read:
1020	189.439 Bonds.--
1021	(1) AUTHORIZATION AND FORM OF BONDS.-
1022	(a) The authority may issue and sell bonds for any purpose
1023	for which the authority has the power to expend money,
1024	including, without limitation, the power to obtain working
1025	capital loans to finance the costs of any project and to refund
1026	any bonds or other indebtedness at the time outstanding at or
1027	before maturity. Bonds may be sold in the manner provided in s.
1028	218.385 and by public or negotiated sale after advertisement, if
1029	any, as the board considers advisable. Bondsmay be authorized
1030	by resolution of the board.
1031	Section 24. Subsections (1) and (2) of section 191.005,
1032	Florida Statutes, are amended to read:
1033	191.005 District boards of commissioners; membership,
1034	officers, meetings.--
1035	(1)(a) With the exception of districts whose governing
1036	boards are appointed collectively by the Governor, the county
1037	commission, and any cooperating city within the county, the
1038	business affairs of each district shall be conducted and
1039	administered by a five-member board. All three-member boards
1040	existing on the effective date of this act shall be converted to
1041	five-member boards, except those permitted to continue as a
1042	three-member board by special act adopted in 1997 or thereafter.
1043	The board shall be elected in nonpartisan elections by the
1044	electors of the district. Except as provided in this act, such
1045	elections shall be held at the time and in the manner prescribed
1046	by law for holding general elections in accordance with s.
1047	189.405(2)(a) and (3), and each member shall be elected for a
1048	term of 4 years and serve until the member's successor assumes
1049	office. Candidates for the board of a district shall qualify
1050	with the county supervisor of elections in whose jurisdiction
1051	the district is located. If the district is a multicounty
1052	district, candidates shall qualify with the Department of State.
1053	All candidates may qualify by paying a filing fee of $25 or by
1054	obtaining the signatures of at least 25 registered electors of
1055	the district on petition forms provided by the supervisor of
1056	elections which petitions shall be submitted and checked in the
1057	same manner as petitions filed by nonpartisan judicial
1058	candidates pursuant to s. 105.035. Notwithstanding s. 106.021, a
1059	candidate who does not collect contributions and whose only
1060	expense is the filing fee is not required to appoint a campaign
1061	treasurer or designate a primary campaign depository.
1062	(b)1. At the next general election following the effective
1063	date of this act, or on or after the effective date of a special
1064	act or general act of local application creating a new district,
1065	the members of the board shall be elected by the electors of the
1066	district in the manner provided in this section. The office of
1067	each member of the board is designated as being a seat on the
1068	board, distinguished from each of the other seats by a numeral:
1069	1, 2, 3, 4, or 5. The numerical seat designation does not
1070	designate a geographical subdistrict unless such subdistrict
1071	exists on the effective date of this act, in which case the
1072	candidates must reside in the subdistrict, and only electors of
1073	the subdistrict may vote in the election for the member from
1074	that subdistrict. Each candidate for a seat on the board shall
1075	designate, at the time the candidate qualifies, the seat on the
1076	board for which the candidate is qualifying. The name of each
1077	candidate who qualifies for election to a seat on the board
1078	shall be included on the ballot in a way that clearly indicates
1079	the seat for which the candidate is a candidate. The candidate
1080	for each seat who receives the most votes cast for a candidate
1081	for the seat shall be elected to the board.
1082	2. If, on the effective date of this act, a district
1083	presently in existence elects members of its board, the next
1084	election shall be conducted in accordance with this section, but
1085	this section does not require the early expiration of any
1086	member's term of office by more than 60 days.
1087	3. If, on the effective date of this act, a district does
1088	not elect the members of its board, the entire board shall be
1089	elected in accordance with this section. However, in the first
1090	election following the effective date of this act, seats 1, 3,
1091	and 5 shall be designated for 4-year terms and seats 2 and 4
1092	shall be designated for 2-year terms.
1093	4. If, on the effective date of this act, the district has
1094	an elected three-member board, one of the two seats added by
1095	this act shall, for the first election following the effective
1096	date of this act, be designated for a 4-year term and the other
1097	for a 2-year term, unless the terms of the three existing seats
1098	all expire within 6 months of the first election following the
1099	effective date of this act, in which case seats 1, 3, and 5
1100	shall be designated for 4-year terms and seats 2 and 4 shall be
1101	designated for 2-year terms.
1102	5. If the district has an elected three-member board
1103	designated to remain three members by special act adopted in
1104	1997 or thereafter, the terms of the board members shall be
1105	staggered. In the first election following the effective date of
1106	this act, seats 1 and 3 shall be designated for 4-year terms,
1107	and seat 2 for a 2-year term.
1108	(c) The board of any district may request the local
1109	legislative delegation that represents the area within the
1110	district to create by special law geographical subdistricts for
1111	board seats. Any board of five members or larger elected on a
1112	subdistrict basis as of the effective date of this act shall
1113	continue to elect board members from such previously designated
1114	subdistricts, and this act shall not require the elimination of
1115	board seats from such boards.
1116	(2) Each member of the board must be a qualified elector
1117	at the time he or she qualifies and continually throughout his
1118	or her term. Any board member who ceases to be a qualified
1119	elector is automatically removed pursuant to this act.
1120	Section 25. Section 218.075, Florida Statutes, is amended
1121	to read:
1122	218.075 Reduction or waiver of permit processing fees.--
1123	Notwithstanding any other provision of law, the Department of
1124	Environmental Protection and the water management districts
1125	shall reduce or waive permit processing fees for counties with a
1126	population of 50,000 or less on April 1, 1994, until such
1127	counties exceed a population of 75,000 and municipalities with a
1128	population of 25,000 or less, or any county or municipality not
1129	included within a metropolitan statistical area. Fee reductions
1130	or waivers shall be approved on the basis of fiscal hardship or
1131	environmental need for a particular project or activity. The
1132	governing body must certify that the cost of the permit
1133	processing fee is a fiscal hardship due to one of the following
1134	factors:
1135	(1) Per capita taxable value is less than the statewide
1136	average for the current fiscal year;
1137	(2) Percentage of assessed property value that is exempt
1138	from ad valorem taxation is higher than the statewide average
1139	for the current fiscal year;
1140	(3) Any condition specified in s. 218.503(1) that results
1141	in the county or municipality being in s. 218.503, that
1142	determinesa state of financial emergency;
1143	(4) Ad valorem operating millage rate for the current
1144	fiscal year is greater than 8 mills; or
1145	(5) A financial condition that is documented in annual
1146	financial statements at the end of the current fiscal year and
1147	indicates an inability to pay the permit processing fee during
1148	that fiscal year.
1149
1150	The permit applicant must be the governing body of a county or
1151	municipality or a third party under contract with a county or
1152	municipality and the project for which the fee reduction or
1153	waiver is sought must serve a public purpose. If a permit
1154	processing fee is reduced, the total fee shall not exceed $100.
1155	Section 26. Subsection (3) is added to section 218.32,
1156	Florida Statutes, to read:
1157	218.32 Annual financial reports; local governmental
1158	entities.--
1159	(3) The department shall notify the President of the
1160	Senate and the Speaker of the House of Representatives of any
1161	municipality that has not reported any financial activity for
1162	the last 4 fiscal years. Such notice must be sufficient to
1163	initiate dissolution procedures as described in s.
1164	165.051(1)(a). Any special law authorizing the incorporation or
1165	creation of the municipality must be included within the
1166	notification.
1167	Section 27. Section 218.321, Florida Statutes, is
1168	repealed.
1169	Section 28. Subsection (3) of section 218.36, Florida
1170	Statutes, is amended to read:
1171	218.36 County officers; record and report of fees and
1172	disposition of same.--
1173	(3) The board of county commissioners may shall, on the
1174	32nd day following the close of the fiscal year,notify the
1175	Governor of the failure of any county officer to comply with the
1176	provisions of this section. Such notification shall specify the
1177	name of the officer and the office held by him or her at the
1178	time of such failure and shall subject said officer to
1179	suspension from office at the Governor's discretion.
1180	Section 29. Subsection (3) of section 218.39, Florida
1181	Statutes, is amended to read:
1182	218.39 Annual financial audit reports.--
1183	(3)(a)A dependent special district may make provision for
1184	an annual financial audit by being included within the audit of
1185	another local governmental entity upon which it is dependent.
1186	An independent special district may not make provision for an
1187	annual financial audit by being included within the audit of
1188	another local governmental entity.
1189	(b) A special district that is a component unit, as
1190	defined by generally accepted accounting principles, of a local
1191	governmental entity shall provide the local governmental entity,
1192	within a reasonable time period as established by the local
1193	governmental entity, with financial information necessary to
1194	comply with this section. The failure of a component unit to
1195	provide this financial information must be noted in the annual
1196	financial audit report of the local governmental entity.
1197	Section 30. Section 218.369, Florida Statutes, is amended
1198	to read:
1199	218.369 Definitions applicable to ss. 218.37-218.386.--As
1200	used in this section and in ss. 218.37, 218.38, 218.385, and
1201	218.386, the term "unit of local government," except where
1202	exception is made, means a county, municipality, special
1203	district, district school board,local agency, authority, or
1204	consolidated city-county government or any other local
1205	governmental body or public body corporate and politic
1206	authorized or created by general or special law and granted the
1207	power to issue general obligation or revenue bonds; and the
1208	words "general obligation or revenue bonds" shall be interpreted
1209	to include within their scope general obligation bonds, revenue
1210	bonds, special assessment bonds, limited revenue bonds, special
1211	obligation bonds, debentures, and other similar instruments, but
1212	not bond anticipation notes.
1213	Section 31. Part V of chapter 218, Florida Statutes,
1214	entitled "Financial Emergencies" is renamed "Local Governmental
1215	Entity and District School Board Financial Emergencies."
1216	Section 32. Section 218.50, Florida Statutes, is amended
1217	to read:
1218	218.50 Short title.--Sections 218.50-218.504 may be cited
1219	shall be known as the "Local Governmental Entity and District
1220	School Board GovernmentFinancial Emergencies Act."
1221	Section 33. Section 218.501, Florida Statutes, is amended
1222	to read:
1223	218.501 Purposes.--The purposes of ss. 218.50-218.504 are:
1224	(1) To promote preserve and protect the fiscal
1225	responsibility solvency of local governmental entities and
1226	district school boards.
1227	(2) To assist local governmental entities and district
1228	school boardsin providing essential services without
1229	interruption and in meeting their financial obligations.
1230	(3) To assist local governmental entities and district
1231	school boardsthrough the improvement of local financial
1232	management procedures.
1233	Section 34. Section 218.502, Florida Statutes, is amended
1234	to read:
1235	218.502 Definition.--As used in ss. 218.50-218.504, the
1236	term "local governmental entity" means a county, municipality,
1237	or special district, or district school board.
1238	Section 35. Section 218.503, Florida Statutes, is amended
1239	to read:
1240	218.503 Determination of financial emergency.--
1241	(1) A Local governmental entities and district school
1242	boards shall be subject to review and oversight by the Governor
1243	or the Commissioner of Education entity is in a state of
1244	financial emergency when any oneof the following conditions
1245	occurs:
1246	(a) Failure within the same fiscal year in which due to
1247	pay short-term loans from banksor failure to make bond debt
1248	service or other long-term debt payments when due, as a result
1249	of a lack of funds.
1250	(b) Failure to pay uncontested claims from creditors
1251	within 90 days after the claim is presented, as a result of a
1252	lack of funds.
1253	(c)(b)Failure to transfer at the appropriate time, due to
1254	lack of funds:
1255	1. Taxes withheld on the income of employees; or
1256	2. Employer and employee contributions for:
1257	a. Federal social security; or
1258	b. Any pension, retirement, or benefit plan of an
1259	employee.
1260	(d)(c)Failure for one pay period to pay, due to lack of
1261	funds:
1262	1. Wages and salaries owed to employees; or
1263	2. Retirement benefits owed to former employees.
1264	(e)(d)An unreserved or total fund balance or retained
1265	earnings deficit, or unrestricted or total net assets deficit,
1266	as reported on the balance sheet or statement of net assets on
1267	the general purpose or basic financial statements,for which
1268	sufficient resources of the local governmental entity, as
1269	reported on the balance sheet or statement of net assets on the
1270	general purpose or basic financial statements,are not available
1271	to cover the deficit for 2 successive years. Resources available
1272	to cover reported deficits include net assets that are not
1273	otherwise restricted by federal, state, or local laws, bond
1274	covenants, contractual agreements, or other legal constraints.
1275	Fixed or capital assets, the disposal of which would impair the
1276	ability of a local governmental entity to carry out its
1277	functions, are not considered resources available to cover
1278	reported deficits.
1279	(e) Noncompliance of the local government retirement
1280	system with actuarial conditions provided by law.
1281	(2) A local governmental entity shall notify the Governor
1282	and the Legislative Auditing Committee, and a district school
1283	board shall notify the Commissioner of Education and the
1284	Legislative Auditing Committee,when one or more of the
1285	conditions specified in subsection (1) have occurred or will
1286	occur if action is not taken to assist the local governmental
1287	entity or the district school board. In addition, any state
1288	agency must, within 30 days after a determination that one or
1289	more of the conditions specified in subsection (1) have occurred
1290	or will occur if action is not taken to assist the local
1291	governmental entity or the district school board the
1292	identification of the financial emergency, notify the Governor
1293	or the Commissioner of Education, as appropriate,and the
1294	Legislative Auditing Committee when one or more of the
1295	conditions specified in subsection (1) have occurred or will
1296	occur if action is not taken to assist a local governmental
1297	entity.
1298	(3) Upon notification that one or more of the conditions
1299	in subsection (1) exist, the Governor or his or her designee
1300	shall contact the local governmental entity or the Commissioner
1301	of Education or his or her designee shall contact the district
1302	school boardto determine what actions have been taken by the
1303	local governmental entity or the district school boardto
1304	resolve the condition financial emergency. The Governor or the
1305	Commissioner of Education, as appropriate, shall determine
1306	whether the local governmental entity or the district school
1307	board needs state assistance to resolve the condition. If state
1308	assistance is needed, the local governmental entity or the
1309	district school board is considered to be in a state of
1310	financial emergency. The Governor or the Commissioner of
1311	Education, as appropriate,has the authority to implement
1312	measures as set forth in ss. 218.50-218.504 to assist the local
1313	governmental entity or the district school board in resolving
1314	resolvethe financial emergency. Such measures may include, but
1315	are not limited to:
1316	(a) Requiring approval of the local governmental entity's
1317	budget by the Governor or approval of the district school
1318	board's budget by the Commissioner of Education.
1319	(b) Authorizing a state loan to a thelocal governmental
1320	entity and providing for repayment of same.
1321	(c) Prohibiting a local governmental entity or a district
1322	school boardfrom issuing bonds, notes, certificates of
1323	indebtedness, or any other form of debt until such time as it is
1324	no longer subject to this section.
1325	(d) Making such inspections and reviews of records,
1326	information, reports, and assets of the local governmental
1327	entity or the district school board. The appropriate local
1328	officials shall cooperate in such, in whichinspections and
1329	reviews the appropriate local officials shall cooperate.
1330	(e) Consulting with the officials and auditorsof the
1331	local governmental entity or the district school boardand the
1332	appropriate state officials agencyregarding any steps necessary
1333	to bring the books of account, accounting systems, financial
1334	procedures, and reports into compliance with state requirements.
1335	(f) Providing technical assistance to the local
1336	governmental entity or the district school board.
1337	(g)1. Establishing a financial emergency emergenciesboard
1338	to oversee the activities of the local governmental entity or
1339	the district school board. If a financial emergency The board
1340	is, if established for a local governmental entity, shall be
1341	appointed by the Governor shall appoint board members and select
1342	a chair. If a financial emergency board is established for a
1343	district school board, the State Board of Education shall
1344	appoint board members and select a chair. The Governor shall
1345	select a chair and such other officers as are necessary. The
1346	financial emergencyboard shall adopt such rules as are
1347	necessary for conducting board business. The board may:
1348	a. Make such reviews of records, reports, and assets of
1349	the local governmental entity or the district school boardas
1350	are needed.
1351	b. Consult with the officials and auditorsof the local
1352	governmental entity or the district school board and the
1353	appropriate state officials regarding any steps necessary to
1354	bring the books of account, accounting systems, financial
1355	procedures, and reports of the local governmental entity or the
1356	district school boardinto compliance with state requirements.
1357	c. Review the operations, management, efficiency,
1358	productivity, and financing of functions and operations of the
1359	local governmental entity or the district school board.
1360	2. The recommendations and reports made by the financial
1361	emergency board must be submitted to the Governor for local
1362	governmental entities or to the Commissioner of Education and
1363	the State Board of Education for district school boards for
1364	appropriate action.
1365	(h) Requiring and approving a plan, to be prepared by
1366	officials of the appropriate state agency in conjunction with
1367	the local governmental entity or the district school board in
1368	consultation with the appropriate state officials, prescribing
1369	actions that will cause the local governmental entity or the
1370	district school boardto no longer be subject to this section.
1371	The plan must include, but need not be limited to:
1372	1. Provision for payment in full of obligations outlined
1373	in subsection (1), designated as priority items, that are
1374	currently all payments due or will to come due on debt
1375	obligations, pension payments, and all payments and charges
1376	imposed or mandated by federal or state law and for all
1377	judgments and past due accounts, as priority items of
1378	expenditures.
1379	2. Establishment of a basis ofpriority budgeting or zero-
1380	based budgeting in order, so as to eliminate low-priorityitems
1381	that are not affordable.
1382	3. The prohibition of a level of operations which can be
1383	sustained only with nonrecurring revenues.
1384	(4) A During the financial emergency period, thelocal
1385	governmental entity or a district school boardmay not seek
1386	application of laws under the bankruptcy provisions of the
1387	United States Constitution except with the prior approval of the
1388	Governor for local governmental entities or the Commissioner of
1389	Education for district school boards.
1390	(5)(a) The governing authority of any municipality having
1391	a resident population of 300,000 or more on or after April 1,
1392	1999, which has been declared in a state of financial emergency
1393	pursuant to this section may impose a discretionary per-vehicle
1394	surcharge of up to 20 percent on the gross revenues of the sale,
1395	lease, or rental of space at parking facilities within the
1396	municipality which are open for use to the general public.
1397	(b) A municipal governing authority that imposes the
1398	surcharge authorized by this subsection may use the proceeds of
1399	such surcharge for the following purposes only:
1400	1. No less than 60 percent and no more than 80 percent of
1401	the surcharge proceeds shall be used by the governing authority
1402	to reduce its ad valorem tax millage rate or to reduce or
1403	eliminate non-ad valorem assessments.
1404	2. A portion of the balance of the surcharge proceeds
1405	shall be used by the governing authority to increase its budget
1406	reserves; however, the governing authority shall not reduce the
1407	amount it allocates for budget reserves from other sources below
1408	the amount allocated for reserves in the fiscal year prior to
1409	the year in which the surcharge is initially imposed. When a 15-
1410	percent budget reserve is achieved, based on the average gross
1411	revenue for the most recent 3 prior fiscal years, the remaining
1412	proceeds from this subparagraph shall be used for the payment of
1413	annual debt service related to outstanding obligations backed or
1414	secured by a covenant to budget and appropriate from non-ad
1415	valorem revenues.
1416	(c) This subsection expires June 30, 2006.
1417	Section 36. Section 218.504, Florida Statutes, is amended
1418	to read:
1419	218.504 Cessation of state action.--The Governor or the
1420	Commissioner of Education, as appropriate,has the authority to
1421	terminate all state actions pursuant to ss. 218.50-218.504.
1422	Cessation of state action must not occur until the Governor or
1423	the Commissioner of Education, as appropriate,has determined
1424	that:
1425	(1) The local governmental entity or the district school
1426	board:
1427	(a) Has established and is operating an effective
1428	financial accounting and reporting system.
1429	(b) Has resolved corrected or eliminated the fiscal
1430	emergency conditions outlined in s. 218.503(1).
1431	(2) None of the No new fiscal emergency conditions
1432	outlined in s. 218.503(1) exists exist.
1433	Section 37. Chapter 131, Florida Statutes, consisting of
1434	sections 131.01, 131.02, 131.03, 131.04, 131.05, and 131.06,
1435	Florida Statutes, is repealed.
1436	Section 38. Section 132.10, Florida Statutes, is repealed.
1437	Section 39. Section 165.052, Florida Statutes, is
1438	repealed.
1439	Section 40. Section 189.409, Florida Statutes, is
1440	repealed.
1441	Section 41. Section 189.422, Florida Statutes, is
1442	repealed.
1443	Section 42. Section 200.0684, Florida Statutes, is
1444	repealed.
1445	Section 43. Paragraph (h) of subsection (1) of section
1446	218.37, Florida Statutes, is repealed.
1447	Section 44. Section 215.195, Florida Statutes, is amended
1448	to read:
1449	215.195 Agency deposits relating to the Statewide Cost
1450	Allocation Plan.--
1451	(1) APPLICATION FOR ALLOCABLE STATEWIDE OVERHEAD.-Each
1452	state agency, and the judicial branch, making application for
1453	federal grant or contract funds shall, in accordance with the
1454	Statewide Cost Allocation Plan, include in its application a
1455	prorated share of the cost of services provided by state central
1456	service agencies which are reimbursable to the state pursuant to
1457	the provisions of Office of Management and Budget Circular A-87.
1458	Preparation of the plan and coordination thereof with all
1459	applicable parties is the responsibility of the Department of
1460	Financial Services. The Department of Financial Services shall
1461	ensure that the plan presents the most favorable allocation of
1462	such costs allowable to the state by the Federal Government.
1463	(2) DEPOSIT OF OVERHEAD IN THE GENERAL REVENUE FUND.-If an
1464	application for federal grant or contract funds is approved, the
1465	state agency or judicial branch receiving the federal grant or
1466	contract shall identify that portion representing reimbursement
1467	of allocable statewide overhead and deposit that amount into the
1468	General Revenue Fund unallocated as directed by the Department
1469	of Financial Services Executive Office of the Governor. The
1470	Department of Financial Services shall be responsible for
1471	monitoring agency compliance with this section.
1472	Section 45. Section 215.97, Florida Statutes, is amended
1473	to read:
1474	215.97 Florida Single Audit Act.--
1475	(1) The purposes of the section are to:
1476	(a) Establish uniform state audit requirements for state
1477	financial assistance provided by state agencies to nonstate
1478	entities to carry out state projects.
1479	(b) Promote sound financial management, including
1480	effective internal controls, with respect to state financial
1481	assistance administered by nonstate entities.
1482	(c) Promote audit economy and efficiency by relying to the
1483	extent possible on already required audits of federal financial
1484	assistance provided to nonstate entities.
1485	(d) Provide for identification of state financial
1486	assistance transactions in the appropriations act, state
1487	accounting records, and recipient organization records.
1488	(e) Promote improved coordination and cooperation within
1489	and between affected state agencies providing state financial
1490	assistance and nonstate entities receiving state assistance.
1491	(f) Ensure, to the maximum extent possible, that state
1492	agencies monitor, use, and follow up followupon audits of state
1493	financial assistance provided to nonstate entities.
1494	(2) Definitions; as used in this section, the term:
1495	(a) "Audit threshold" means the threshold amount used to
1496	determine to use in determining when a state single audit or
1497	project-specific auditof a nonstate entity shall be conducted
1498	in accordance with this section. Each nonstate entity that
1499	expends a total amount of state financial assistance equal to or
1500	in excess of $300,000 in any fiscal year of such nonstate entity
1501	shall be required to have a state single audit, or a project-
1502	specific audit performed by an independent auditor,for such
1503	fiscal year in accordance with the requirements of this section.
1504	Every 2 years the Auditor General, after consulting with the
1505	Executive Office of the Governor, the Department of Financial
1506	Services Chief Financial Officer, and all state awarding
1507	agencies that provide state financial assistance to nonstate
1508	entities, shall review the thresholdamount for requiring audits
1509	under this section and may adjust such threshold dollaramount
1510	consistent with the purposes purposeof this section.
1511	(b) "Auditing standards" means the auditing standards as
1512	stated in the rules of the Auditor General as applicable to for-
1513	profit organizations, nonprofit organizations, or local
1514	governmental entities.
1515	(c) "Catalog of State Financial Assistance" means a
1516	comprehensive listing of state projects. The Catalog of State
1517	Financial Assistance shall be issued by the Department of
1518	Financial Services Executive Office of the Governorafter
1519	conferring with the Chief Financial Officer and all state
1520	awarding agencies that provide state financial assistance to
1521	nonstate entities. The Catalog of State Financial Assistance
1522	shall include for each listed state project: the responsible
1523	state awardingagency; standard state project number identifier;
1524	official title; legal authorization; and description of the
1525	state project, including objectives, restrictions, application
1526	and awarding procedures, and other relevant information
1527	determined necessary.
1528	(d) "Coordinating agency" means the state awarding agency
1529	that provides the predominant amount of state financial
1530	assistance expended by a recipient, as determined by the
1531	recipient's Schedule of Expenditures of State Financial
1532	Assistance. To provide continuity, the determination of the
1533	predominant amount of state financial assistance shall be based
1534	upon state financial assistance expended in the recipient's
1535	fiscal years ending in 2004, 2007, and 2010, and every third
1536	year thereafter.
1537	(e)(d)"Financial reporting package" means the nonstate
1538	entities' financial statements, Schedule of Expenditures of
1539	State Financial Assistance, auditor's reports, management
1540	letter, auditee's written responses or corrective action plan,
1541	correspondence on followup of prior years' corrective actions
1542	taken, and such other information determined by the Auditor
1543	General to be necessary and consistent with the purposes of this
1544	section.
1545	(f)(e)"Federal financial assistance" means financial
1546	assistance from federal sources passed through the state and
1547	provided to nonstate organizations entitiesto carry out a
1548	federal program. "Federal financial assistance" includes all
1549	types of federal assistance as defined in applicable United
1550	States Office of Management and Budget circulars.
1551	(g)(f)"For-profit organization" means any organization or
1552	sole proprietor but is not a local governmental entity or a
1553	nonprofit organization.
1554	(h)(g) "Independent auditor" means an independent external
1555	state or local government auditor or acertified public
1556	accountant licensed under chapter 473 who meets the independence
1557	standards.
1558	(i)(h)"Internal control over state projects" means a
1559	process, effected by a nonstate anentity's management and other
1560	personnel, designed to provide reasonable assurance regarding
1561	the achievement of objectives in the following categories:
1562	1. Effectiveness and efficiency of operations.
1563	2. Reliability of financial operations.
1564	3. Compliance with applicable laws and regulations.
1565	(j)(i)"Local governmental entity" means a county agency,
1566	municipality, or special district or any other entity excluding
1567	(other than a district school board, charter school, or
1568	community college), or public university,however styled, which
1569	independently exercises any type of governmental function within
1570	the state.
1571	(k)(j)"Major state project" means any state project
1572	meeting the criteria as stated in the rules of the Department of
1573	Financial Services Executive Office of the Governor. Such
1574	criteria shall be established after consultation with all the
1575	Chief Financial Officer and appropriate state awarding agencies
1576	that provide state financial assistanceand shall consider the
1577	amount of state project expenditures and orexpenses or inherent
1578	risks. Each major state project shall be audited in accordance
1579	with the requirements of this section.
1580	(l)(k)"Nonprofit organization" means any corporation,
1581	trust, association, cooperative, or other organization that:
1582	1. Is operated primarily for scientific, educational
1583	service, charitable, or similar purpose in the public interest;
1584	2. Is not organized primarily for profit;
1585	3. Uses net proceeds to maintain, improve, or expand the
1586	operations of the organization; and
1587	4. Has no part of its income or profit distributable to
1588	its members, directors, or officers.
1589	(m)(l)"Nonstate entity" means a local governmental
1590	entity, nonprofit organization, or for-profit organization that
1591	receives state financial assistance resources.
1592	(n) "Nonstate organization" means a local governmental
1593	entity, nonprofit organization, or for-profit organization that
1594	receives state resources.
1595	(o)(m)"Recipient" means a nonstate entity that receives
1596	state financial assistance directly from a state awarding
1597	agency.
1598	(p)(n) "Schedule of Expenditures ofState Financial
1599	Assistance" means a document prepared in accordance with the
1600	rules of the Department of Financial Services Chief Financial
1601	Officerand included in each financial reporting package
1602	required by this section.
1603	(q)(o) "State awarding agency" means a the state agency,
1604	as defined in s. 216.011, that provides providedstate financial
1605	assistance to a thenonstate entity.
1606	(r)(p) "State financial assistance" means financial
1607	assistance fromstate resources, not including federal financial
1608	assistance and state matching funds for federal programs,
1609	provided to a nonstate entity entitiesto carry out a state
1610	project. "State financial assistance" includes the alltypes of
1611	state resources assistance as stated in the rules of the
1612	Department of Financial Services Executive Office of the
1613	Governor established in consultation with all the Chief
1614	Financial Officer and appropriate state awarding agencies that
1615	provide state financial assistance. It includesState financial
1616	assistance may beprovided directly by state awarding agencies
1617	or indirectly by nonstate entities recipients of state awards or
1618	subrecipients. State financial assistance Itdoes not include
1619	procurement contracts used to buy goods or services from vendors
1620	and. Audits of such procurement contracts with vendors are
1621	outside of the scope of this section. Also, audits ofcontracts
1622	to operate state-owned state-government-ownedand contractor-
1623	operated facilities are excluded from the audit requirements of
1624	this section.
1625	(s)(q) "State matching" means state resources provided to
1626	a nonstate entity entities to be usedto meet federal financial
1627	participation matching requirements of federal programs.
1628	(t) "State program" means a set of special purpose
1629	activities undertaken to realize identifiable goals and
1630	objectives in order to achieve a state agency's mission and
1631	legislative intent requiring accountability for state resources.
1632	(u)(r) "State project" means a state program that provides
1633	all state financial assistance to a nonstate organization and
1634	that must be entity assigned a singlestate project number
1635	identifier in the Catalog of State Financial Assistance.
1636	(v)(s)"State Projects Compliance Supplement" means a
1637	document issued by the Department of Financial Services
1638	Executive Office of the Governor, in consultation with the Chief
1639	Financial Officer and all state awarding agencies that provide
1640	state financial assistance. The State Projects Compliance
1641	Supplement shall identify state projects, the significant
1642	compliance requirements, eligibility requirements, matching
1643	requirements, suggested audit procedures, and other relevant
1644	information determined necessary.
1645	(w)(t)"State project-specific audit" means an audit of
1646	one state project performed in accordance with the requirements
1647	of subsection (10) (9).
1648	(x)(u)"State single audit" means an audit of a nonstate
1649	entity's financial statements and state financial assistance.
1650	Such audits shall be conducted in accordance with the auditing
1651	standards as stated in the rules of the Auditor General.
1652	(y)(v)"Subrecipient" means a nonstate entity that
1653	receives state financial assistance through another nonstate
1654	entity.
1655	(z)(w)"Vendor" means a dealer, distributor, merchant, or
1656	other seller providing goods or services that are required for
1657	the conduct of a state project. These goods or services may be
1658	for an organization's own use or for the use of beneficiaries of
1659	the state project.
1660	(3) The Executive Office of the Governor shall be
1661	responsible for notifying the Department of Financial Services
1662	of any actions during the budgetary process which impact the
1663	Catalog of State Financial Assistance.:
1664	(a) Upon conferring with the Chief Financial Officer and
1665	all state awarding agencies, adopt rules necessary to provide
1666	appropriate guidance to state awarding agencies, recipients and
1667	subrecipients, and independent auditors of state financial
1668	assistance relating to the requirements of this section,
1669	including:
1670	1. The types or classes of financial assistance considered
1671	to be state financial assistance which would be subject to the
1672	requirements of this section. This would include guidance to
1673	assist in identifying when the state agency or recipient has
1674	contracted with a vendor rather than with a recipient or
1675	subrecipient.
1676	2. The criteria for identifying a major state project.
1677	3. The criteria for selecting state projects for audits
1678	based on inherent risk.
1679	(b) Be responsible for coordinating the initial
1680	preparation and subsequent revisions of the Catalog of State
1681	Financial Assistance after consultation with the Chief Financial
1682	Officer and all state awarding agencies.
1683	(c) Be responsible for coordinating the initial
1684	preparation and subsequent revisions of the State Projects
1685	Compliance Supplement, after consultation with the Chief
1686	Financial Officer and all state awarding agencies.
1687	(4) The Department of Financial Services Chief Financial
1688	Officershall:
1689	(a) Upon conferring with the Executive Office of the
1690	Governor and all state awarding agencies, adopt rules necessary
1691	to provide appropriate guidance to state awarding agencies,
1692	nonstate entities, and independent auditors of state financial
1693	assistance relating to the requirements of this section,
1694	including:
1695	1. The types or classes of state resources considered to
1696	be state financial assistance that would be subject to the
1697	requirements of this section. This would include guidance to
1698	assist in identifying when the state awarding agency or a
1699	nonstate entity has contracted with a vendor rather than with a
1700	recipient or subrecipient.
1701	2. The criteria for identifying a major state project.
1702	3. The criteria for selecting state projects for audits
1703	based on inherent risk.
1704	(b) Be responsible for coordinating revisions to the
1705	Catalog of State Financial Assistance after consultation with
1706	the Executive Office of the Governor and all state awarding
1707	agencies.
1708	(c) Be responsible for coordinating with the Executive
1709	Office of the Governor actions affecting the budgetary process
1710	under paragraph (b).
1711	(d) Be responsible for coordinating revisions to the State
1712	Projects Compliance Supplement, after consultation with the
1713	Executive Office of the Governor and all state awarding
1714	agencies.
1715	(e)(a)Make enhancements to the state's accounting system
1716	to provide for the:
1717	1. Recording of state financial assistance and federal
1718	financial assistance appropriations and expenditures within the
1719	state awarding agencies' operating funds.
1720	2. Recording of state project number identifiers, as
1721	provided in the Catalog of State Financial Assistance, for state
1722	financial assistance.
1723	3. Establishment and recording of an identification code
1724	for each financial transaction, including awardingstate
1725	agencies' disbursements of state financial assistance and
1726	federal financial assistance, as to the corresponding type or
1727	organization that is party to the transaction (e.g., other
1728	governmental agencies, nonprofit organizations, and for-profit
1729	organizations), and disbursements of federal financial
1730	assistance, as to whether the party to the transaction is or is
1731	not a nonstate entity recipient or subrecipient.
1732	(f)(b)Upon conferring with the Executive Office of the
1733	Governor and all state awarding agencies, adopt rules necessary
1734	to provide appropriate guidance to state awarding agencies,
1735	nonstate entities recipients and subrecipients, and independent
1736	auditors of state financial assistance relating to the format
1737	for the Schedule of Expenditures ofState Financial Assistance.
1738	(g)(c)Perform any inspections, reviews, investigations,
1739	or audits of state financial assistance considered necessary in
1740	carrying out the Department of Financial Services Chief
1741	Financial Officer'slegal responsibilities for state financial
1742	assistance or to comply with the requirements of this section.
1743	(5) Each state awarding agency shall:
1744	(a) Provide to each arecipient information needed by the
1745	recipient to comply with the requirements of this section,
1746	including:
1747	1. The audit and accountability requirements for state
1748	projects as stated in this section and applicable rules of the
1749	Executive Office of the Governor, rules of the Department of
1750	Financial Services Chief Financial Officer,and rules of the
1751	Auditor General.
1752	2. Information from the Catalog of State Financial
1753	Assistance, including the standard state project number
1754	identifier; official title; legal authorization; and description
1755	of the state project including objectives, restrictions, and
1756	other relevant information determined necessary.
1757	3. Information from the State Projects Compliance
1758	Supplement, including the significant compliance requirements,
1759	eligibility requirements, matching requirements, suggested audit
1760	procedures, and other relevant information determined necessary.
1761	(b) Require the recipient, as a condition of receiving
1762	state financial assistance, to allow the state awarding agency,
1763	the Department of Financial Services Chief Financial Officer,
1764	and the Auditor General access to the recipient's records and
1765	the recipient's independent auditor's working papers as
1766	necessary for complying with the requirements of this section.
1767	(c) Notify the recipient that this section does not limit
1768	the authority of the state awarding agency to conduct or arrange
1769	for the conduct of additional audits or evaluations of state
1770	financial assistance or limit the authority of any state
1771	awardingagency inspector general, the Auditor General, or any
1772	other state official.
1773	(d) Be provided one copy of each financial reporting
1774	package prepared in accordance with the requirement of this
1775	section.
1776	(e) Review the recipient's recipientfinancial reporting
1777	package, including the management letters and corrective action
1778	plans, to the extent necessary to determine whether timely and
1779	appropriate corrective action has been taken with respect to
1780	audit findings and recommendations pertaining to state financial
1781	assistance that are specific to provided by the state awarding
1782	agency.
1783	(f) Designate within the state awarding agency a division,
1784	bureau, or other organizational unit that will be responsible
1785	for reviewing financial reporting packages pursuant to paragraph
1786	(e).
1787
1788	If the state awarding agency is not the coordinating agency as
1789	defined in paragraph (2)(d), the state awarding agency's
1790	designated division, bureau, or other organizational unit shall
1791	communicate to the coordinating agency the state awarding
1792	agency's approval of the recipient's corrective action plan with
1793	respect to findings and recommendations that are not specific to
1794	the state awarding agency.
1795	(6) Each coordinating agency shall:
1796	(a) Review the recipient's financial reporting package,
1797	including the management letter and corrective action plan, to
1798	identify audit findings and recommendations that affect state
1799	financial assistance and that are not specific to a particular
1800	state awarding agency.
1801	(b) For any such findings and recommendations determine:
1802	1. Whether timely and appropriate corrective action has
1803	been taken.
1804	2. Promptly inform the state awarding agency's contact, as
1805	provided in paragraph (5)(f), of actions taken by the recipient
1806	to comply with the approved corrective action plan.
1807	(c) Maintain records of followup actions taken for the use
1808	of any succeeding coordinating agency.
1809	(7)(6)As a condition of receiving state financial
1810	assistance, each nonstate entity recipientthat provides state
1811	financial assistance to a subrecipient shall:
1812	(a) Provide to each asubrecipient information needed by
1813	the subrecipient to comply with the requirements of this
1814	section, including:
1815	1. Identification of the state awarding agency.
1816	2. The audit and accountability requirements for state
1817	projects as stated in this section and applicable rules of the
1818	Executive Office of the Governor, rules of the Department of
1819	Financial Services Chief Financial Officer,and rules of the
1820	Auditor General.
1821	3. Information from the Catalog of State Financial
1822	Assistance, including the standard state project number
1823	identifier; official title; legal authorization; and description
1824	of the state project, including objectives, restrictions, and
1825	other relevant information.
1826	4. Information from the State Projects Compliance
1827	Supplement including the significant compliance requirements,
1828	eligibility requirements, matching requirements, and suggested
1829	audit procedures, and other relevant information determined
1830	necessary.
1831	(b) Review the financial reporting package of the
1832	subrecipient audit reports, including the management letter and
1833	corrective action plan letters, to the extent necessary to
1834	determine whether timely and appropriate corrective action has
1835	been taken with respect to audit findings and recommendations
1836	pertaining to state financial assistance provided by a the state
1837	awarding agency or a nonstate entity.
1838	(c) Perform any such other procedures asspecified in
1839	terms and conditions of the written agreement with the state
1840	awarding agency or the nonstate entity,including any required
1841	monitoring of the subrecipient's use of state financial
1842	assistance through onsite visits, limited scope audits, or other
1843	specified procedures.
1844	(d) Require subrecipients, as a condition of receiving
1845	state financial assistance, to permit the independent auditor of
1846	the nonstate entity recipient, the state awarding agency, the
1847	Department of Financial Services the Chief Financial Officer,
1848	and the Auditor General access to the subrecipient's records and
1849	the subrecipient's independent auditor's working papers as
1850	necessary to comply with the requirements of this section.
1851	(8)(7)Each recipient or subrecipient of state financial
1852	assistance shall comply with the following:
1853	(a) Each nonstate entity that receives state financial
1854	assistance and meets theaudit threshold requirements, in any
1855	fiscal year of the nonstate entity, as stated in the rules of
1856	the Auditor General, shall have a state single audit conducted
1857	for such fiscal year in accordance with the requirements of this
1858	act and with additional requirements established in rules of the
1859	Executive Office of the Governor, rules of the Department of
1860	Financial Services Chief Financial Officer,and rules of the
1861	Auditor General. If only one state project is involved in a
1862	nonstate entity's fiscal year, the nonstate entity may elect to
1863	have only a state project-specific audit of the state project
1864	for that fiscal year.
1865	(b) Each nonstate entity that receives state financial
1866	assistance and does not meet the auditthreshold requirements,
1867	in any fiscal year of the nonstate entity, as stated in this law
1868	or the rules of the Auditor General is exempt for such fiscal
1869	year from the state single audit requirements of this section.
1870	However, such nonstate entity must meet terms and conditions
1871	specified in the written agreement with the state awarding
1872	agency or the nonstate entity.
1873	(c) Regardless of the amount of the state financial
1874	assistance, the provisions of this section do not exempt a
1875	nonstate entity from compliance with provisions of law relating
1876	to maintaining records concerning state financial assistance to
1877	such nonstate entity or allowing access and examination of those
1878	records by the state awarding agency, the nonstate entity, the
1879	Department of Financial Services Chief Financial Officer, or the
1880	Auditor General.
1881	(d) Audits conducted pursuant to this section shall be
1882	performed annually.
1883	(e) Audits conducted pursuant to this section shall be
1884	conducted by independent auditors in accordance with auditing
1885	standards as stated in rules of the Auditor General.
1886	(f) Upon completion of the audit as required by this
1887	section, a copy of the recipient's financial reporting package
1888	shall be filed with the state awarding agency and the Auditor
1889	General. Upon completion of the audit as required by this
1890	section, a copy of the subrecipient's financial reporting
1891	package shall be filed with the nonstate entity recipientthat
1892	provided the state financial assistance and the Auditor General.
1893	The financial reporting package shall be filed in accordance
1894	with the rules of the Auditor General.
1895	(g) All financial reporting packages prepared pursuant to
1896	the requirements of this section shall be available for public
1897	inspection.
1898	(h) If an audit conducted pursuant to this section
1899	discloses any significant audit findings relating to state
1900	financial assistance, including material noncompliance with
1901	individual state project compliance requirements or reportable
1902	conditions in internal controls of the nonstate entity, the
1903	nonstate entity shall submit as part of the financial reporting
1904	audit package to the state awarding agency or the nonstate
1905	entitya plan for corrective action to eliminate such audit
1906	findings or a statement describing the reasons that corrective
1907	action is not necessary.
1908	(i) An audit conducted in accordance with this section is
1909	in addition to any audit of federal awards required by the
1910	federal Single Audit Act and other federal laws and regulations.
1911	To the extent that such federally required audits provide the
1912	state awarding agency or the nonstate entitywith information it
1913	requires to carry out its responsibilities under state law or
1914	other guidance, the a state awarding agency or the nonstate
1915	entityshall rely upon and use that information.
1916	(j) Unless prohibited by law, the costs costof audits
1917	pursuant to this section are isallowable charges to state
1918	projects. However, any charges to state projects should be
1919	limited to those incremental costs incurred as a result of the
1920	audit requirements of this section in relation to other audit
1921	requirements. The nonstate entity should allocate such
1922	incremental costs to all state projects for which it expended
1923	state financial assistance.
1924	(k) Audit costs may not be charged to state projects when
1925	audits required by this section have not been made or have been
1926	made but not in accordance with this section. If a nonstate
1927	entity fails to have an audit conducted consistent with this
1928	section, a state awarding agency or a nonstate entity agencies
1929	may take appropriate corrective action to enforce compliance.
1930	(l) This section does not prohibit the state awarding
1931	agency or the nonstate entityfrom including terms and
1932	conditions in the written agreement which require additional
1933	assurances that state financial assistance meets the applicable
1934	requirements of laws, regulations, and other compliance rules.
1935	(m) A state awarding agency or a nonstate entity that
1936	provides state financial assistance to nonstate entities and
1937	conducts or arranges for audits of state financial assistance
1938	that are in addition to the audits conducted under this act,
1939	including audits of nonstate entities that do not meet the audit
1940	threshold requirements,shall, consistent with other applicable
1941	law, arrange for funding the full cost of such additional
1942	audits.
1943	(9)(8)The independent auditor when conducting a state
1944	single audit of a nonstate entity recipients or subrecipients
1945	shall:
1946	(a) Determine whether the nonstate entity's financial
1947	statements are presented fairly in all material respects in
1948	conformity with generally accepted accounting principles.
1949	(b) Determine whether state financial assistance shown on
1950	the Schedule of Expenditures ofState Financial Assistance is
1951	presented fairly in all material respects in relation to the
1952	nonstate entity's financial statements taken as a whole.
1953	(c) With respect to internal controls pertaining to each
1954	major state project:
1955	1. Obtain an understanding of internal controls;
1956	2. Assess control risk;
1957	3. Perform tests of controls unless the controls are
1958	deemed to be ineffective; and
1959	4. Determine whether the nonstate entity has internal
1960	controls in place to provide reasonable assurance of compliance
1961	with the provisions of laws and rules pertaining to state
1962	financial assistance that have a material effect on each major
1963	state project.
1964	(d) Determine whether each major state project complied
1965	with the provisions of laws, rules, and guidelines as identified
1966	in the State Projects Compliance Supplement, or otherwise
1967	identified by the state awarding agency, which have a material
1968	effect on each major state project. When major state projects
1969	are less than 50 percent of the nonstate entity's total
1970	expenditures for all state financial assistance, the auditor
1971	shall select and test additional state projects as major state
1972	projects as necessary to achieve audit coverage of at least 50
1973	percent of the expenditures for all state financial assistance
1974	provided to the nonstate entity. Additional state projects
1975	needed to meet the 50-percent requirement may be selected on an
1976	inherent risk basis as stated in the rules of the Department of
1977	Financial Services Executive Office of the Governor.
1978	(e) Report on the results of any audit conducted pursuant
1979	to this section in accordance with the rules of the Executive
1980	Office of the Governor, rules of the Department of Financial
1981	Services Chief Financial Officer,and rules of the Auditor
1982	General. Financial reporting packages must Audit reports shall
1983	include summaries of the auditor's results regarding the
1984	nonstate entity's financial statements; Schedule of Expenditures
1985	ofState Financial Assistance; internal controls; and compliance
1986	with laws, rules, and guidelines.
1987	(f) Issue a management letter as prescribed in the rules
1988	of the Auditor General.
1989	(g) Upon notification by the nonstate entity, make
1990	available the working papers relating to the audit conducted
1991	pursuant to the requirements of this section to the state
1992	awarding agency, the Department of Financial Services Chief
1993	Financial Officer, or the Auditor General for review or copying.
1994	(10)(9)The independent auditor, when conducting a state
1995	project-specific audit of a nonstate entity recipients or
1996	subrecipients, shall:
1997	(a) Determine whether the nonstate entity's Schedule of
1998	Expenditure ofState Financial Assistance is presented fairly in
1999	all material respects in conformity with stated accounting
2000	policies.
2001	(b) Obtain an understanding of internal controls control
2002	and perform tests of internal controls controlover the state
2003	project consistent with the requirements of a major state
2004	project.
2005	(c) Determine whether or not the auditee has complied with
2006	applicable provisions of laws, rules, and guidelines as
2007	identified in the State Projects Compliance Supplement, or
2008	otherwise identified by the state awarding agency, which could
2009	have a direct and material effect on the state project.
2010	(d) Report on the results of the astate project-specific
2011	audit consistent with the requirements of the state single audit
2012	and issue a management letter as prescribed in the rules of the
2013	Auditor General.
2014	(e) Upon notification by the nonstate entity, make
2015	available the working papers relating to the audit conducted
2016	pursuant to the requirements of this section to the state
2017	awarding agency, the Department of Financial Services Chief
2018	Financial Officer, or the Auditor General for review or copying.
2019	(11)(10)The Auditor General shall:
2020	(a) Have the authority to audit state financial assistance
2021	provided to any nonstate entity when determined necessary by the
2022	Auditor General or when directed by the Legislative Auditing
2023	Committee.
2024	(b) Adopt rules that state the auditing standards that
2025	independent auditors are to follow for audits of nonstate
2026	entities required by this section.
2027	(c) Adopt rules that describe the contents and the filing
2028	deadlines for the financial reporting package.
2029	(d) Provide technical advice upon request of the
2030	Department of Financial Services Chief Financial Officer,
2031	Executive Office of the Governor, and state awardingagencies
2032	relating to financial reporting and audit responsibilities
2033	contained in this section.
2034	(e) Be provided one copy of each financial reporting
2035	package prepared in accordance with the requirements of this
2036	section.
2037	(f) Perform ongoing reviews of a sample of financial
2038	reporting packages filed pursuant to the requirements of this
2039	section to determine compliance with the reporting requirements
2040	of this section and applicable rules of the Executive Office of
2041	the Governor, rules of the Department of Financial Services
2042	Chief Financial Officer,and rules of the Auditor General.
2043	Section 46. Subsection (1) of section 288.9610, Florida
2044	Statutes, is amended to read:
2045	288.9610 Annual reports of Florida Development Finance
2046	Corporation.--By December 1 of each year, the Florida
2047	Development Finance Corporation shall submit to the Governor,
2048	the President of the Senate, the Speaker of the House of
2049	Representatives, the Senate Minority Leader, the House Minority
2050	Leader, and the city or county activating the Florida
2051	Development Finance Corporation a complete and detailed report
2052	setting forth:
2053	(1) The evaluation required in s. 11.45(3)(j)(a)11.
2054	Section 47. Section 1010.47, Florida Statutes, is amended
2055	to read:
2056	1010.47 Receiving bids and sale of bonds.--
2057	(1) If the issuance of bonds is authorized at the
2058	election, or if any bonds outstanding against the district are
2059	being refunded, the district school board shall sell the bonds
2060	in the manner provided in s. 218.385. cause notice to be given
2061	by publication in some newspaper published in the district that
2062	the board will receive bids for the purchase of the bonds at the
2063	office of the district school superintendent. The notice shall
2064	be published twice, and the first publication shall be given not
2065	less than 30 days prior to the date set for receiving the bids.
2066	The notice shall specify the amount of the bonds offered for
2067	sale, shall state whether the bids shall be sealed bids or
2068	whether the bonds are to be sold at auction, and shall give the
2069	schedule of maturities of the proposed bonds and such other
2070	pertinent information as may be prescribed by rules of the State
2071	Board of Education. Bidders may be invited to name the rate of
2072	interest that the bonds are to bear or the district school board
2073	may name rates of interest and invite bids thereon. In addition
2074	to publication of notice of the proposed sale as set forth in
2075	this subsection, the district school board shall notify in
2076	writing at least three recognized bond dealers in the state,
2077	and, at the same time, notify the Department of Education
2078	concerning the proposed sale and enclose a copy of the
2079	advertisement.
2080	(2) All bonds and refunding bonds issued as provided by
2081	law shall be sold to the highest and best bidder at such public
2082	sale unless sold at a better price or yield basis within 30 days
2083	after failure to receive an acceptable bid at a duly advertised
2084	public sale, provided that at no time shall bonds or refunding
2085	bonds be sold or exchanged at less than par value except as
2086	specifically authorized by the Department of Education; and
2087	provided, further, that the district school board shall have the
2088	right to reject all bids and cause a new notice to be given in
2089	like manner inviting other bids for such bonds, or to sell all
2090	or any part of such bonds to the State Board of Education at a
2091	price and yield basis that shall not be less advantageous to the
2092	district school board than that represented by the highest and
2093	best bid received.In the marketing of the bonds, the district
2094	school board shall be entitled to have such assistance as can be
2095	rendered by the Division of Bond Finance, the Commissioner of
2096	Education, or any other public state officer or agency. In
2097	determining the highest and best bidder for bonds offered for
2098	sale, the net interest cost to the school board as shown in
2099	standard bond tables shall govern, provided that the
2100	determination of the district school board as to the highest and
2101	best bidder shall be final.
2102	Section 48. Effective July 1, 2004, one full-time
2103	equivalent position is transferred from the Executive Office of
2104	the Governor to the Department of Financial Services.
2105	Section 49. This act shall take effect upon becoming a
2106	law.