HB 0547

CS

CHAMBER ACTION

1	The Committee on Procedures recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to local government accountability;
7	amending s. 11.40, F.S.; revising duties of the
8	Legislative Auditing Committee; amending s. 11.45, F.S.;
9	specifying requirements for a petition for a municipal
10	audit; revising reporting requirements of the Auditor
11	General; providing for technical advice by the Auditor
12	General; amending ss. 11.51 and 61.181, F.S.; correcting
13	cross references; amending s. 75.05, F.S.; deleting a
14	requirement for an independent special district to submit
15	a copy of a complaint to the Division of Bond Finance of
16	the State Board of Administration; amending s. 112.08,
17	F.S.; clarifying that local governments are authorized to
18	provide health insurance; amending s. 112.625, F.S.;
19	revising the definition of "governmental entity" to
20	include counties and district school boards; amending s.
21	112.63, F.S.; providing for additional information to be
22	provided to the Department of Management Services in
23	actuarial reports with regard to retirement systems and
24	plans and providing procedures therefor; providing for
25	notification of the Department of Revenue and the
26	Department of Financial Services in cases of noncompliance
27	and authorizing the withholding of certain funds;
28	requiring the Department of Management Services to notify
29	the Department of Community Affairs in the case of
30	affected special districts; correcting a cross reference;
31	amending s. 130.04, F.S.; revising provisions governing
32	notice of bids and disposition of bonds; amending s.
33	132.02, F.S.; revising provisions relating to the
34	authorization to issue refund bonds; amending s. 132.09,
35	F.S.; revising provisions relating to the notice of sale,
36	bids, and awards and private sale of bonds; amending s.
37	163.05, F.S.; revising provisions governing the Small
38	County Technical Assistance Program; amending s. 166.121,
39	F.S.; revising provisions governing the issuance of bonds
40	by a municipality; amending s. 166.241, F.S.; providing a
41	municipal budget amendment process and requirements;
42	amending s. 175.261, F.S.; correcting a cross reference;
43	amending s. 185.221, F.S.; correcting a cross reference;
44	amending s. 189.4044, F.S.; revising special procedures
45	for determination of inactive special districts; amending
46	s. 189.412, F.S.; revising duties of the Special District
47	Information Program of the Department of Community
48	Affairs; amending s. 189.418, F.S.; revising reporting
49	requirements of newly created special districts;
50	authorizing the governing body of a special district to
51	amend its budget; amending s. 189.419, F.S.; revising
52	provisions relating to the failure of special districts to
53	file required reports; amending s. 189.421, F.S.; revising
54	provisions governing the failure of special districts to
55	disclose financial reports; providing for extension of
56	time for the filing of the reports; providing remedies for
57	noncompliance; providing for attorney's fees and costs;
58	amending s. 189.428, F.S.; revising provisions governing
59	the special district oversight review process; amending s.
60	189.439, F.S.; revising provisions governing the issuance
61	of bonds by special districts; amending s. 191.005, F.S.;
62	exempting a candidate from campaign requirements under
63	specified conditions; providing for the removal of a board
64	member upon becoming unqualified; amending s. 218.075,
65	F.S.; revising provisions governing the reduction or
66	waiver of permit processing fees for certain counties;
67	amending s. 218.32, F.S., relating to annual financial
68	reports; requiring the Department of Financial Services to
69	notify the Speaker of the House of Representatives and the
70	President of the Senate of any municipality that has not
71	had financial activity for a specified period of time;
72	providing that such notice is sufficient to initiate
73	dissolution procedures; repealing s. 218.321, F.S.,
74	relating to annual financial statements of local
75	governmental entities; amending s. 218.36, F.S.; revising
76	reporting requirements for boards of county commissioners
77	relating to the failure of a county officer to comply with
78	the provisions of the section; amending s. 218.39, F.S.;
79	providing reporting requirements for certain special
80	districts; amending s. 218.369, F.S.; revising the
81	definition of "unit of local government" to include
82	district school boards; renaming pt. V of ch. 218, F.S.,
83	as "Local Governmental Entity and District School Board
84	Financial Emergencies"; amending s. 218.50, F.S.; renaming
85	ss. 218.50-218.504, F.S., as the "Local Governmental
86	Entity and District School Board Financial Emergencies
87	Act"; amending s. 218.501, F.S.; revising the stated
88	purposes of pt. V of ch. 218, F.S.; amending s. 218.502,
89	F.S.; revising the definition of "local governmental
90	entity"; amending s. 218.503, F.S.; revising provisions
91	governing the determination of a financial emergency for
92	local governments and district school boards; amending s.
93	218.504, F.S.; revising provisions relating to the
94	authority of the Governor and authorizing the Commissioner
95	of Education to terminate all state actions pursuant to
96	ss. 218.50-218.504, F.S.; repealing ch. 131, F.S.,
97	consisting of ss. 131.01, 131.02, 131.03, 131.04, 131.05,
98	and 131.06, F.S., relating to refunding bonds of counties,
99	municipalities, and special districts; repealing s.
100	132.10, F.S., relating to minimum sale price of bonds;
101	repealing s. 165.052, F.S., relating to special
102	dissolution procedures for municipalities; repealing s.
103	189.409, F.S., relating to determination of financial
104	emergencies of special districts; repealing s. 189.422,
105	F.S., relating to actions of the Department of Community
106	Affairs and special districts; repealing s. 200.0684,
107	F.S., relating to an annual compliance report of the
108	Department of Community Affairs regarding special
109	districts; repealing s. 218.37(1)(h), F.S., relating to
110	the requirement that the Division of Bond Finance use a
111	served copy of the complaint for bond validation to verify
112	compliance by special districts with the requirements in
113	s. 218.38, F.S.; amending s. 215.195, F.S., relating to
114	the Statewide Cost Allocation Plan; providing that the
115	Department of Financial Services is responsible for the
116	plan's preparation and the monitoring of agency
117	compliance; amending s. 215.97, F.S., relating to the
118	Florida Single Audit Act; revising and providing
119	definitions; revising the uniform state audit requirements
120	for state financial assistance that is provided by state
121	agencies to nonstate entities; requiring the Department of
122	Financial Services to adopt rules and perform additional
123	duties with respect to the provision of financial
124	assistance to carry out state projects; specifying duties
125	of coordinating agencies; amending s. 288.9610, F.S.;
126	correcting a cross reference; amending s. 1010.47, F.S.;
127	providing that school districts must sell bonds in
128	accordance with the provisions of s. 218.385, F.S.;
129	deleting obsolete provisions relating to the sale of bonds
130	by a school district; repealing s. 373.556, F.S., relating
131	to investment of funds by the governing board of a water
132	management district; transferring a position from the
133	Executive Office of the Governor to the Department of
134	Financial Services; providing an effective date.
135
136	Be It Enacted by the Legislature of the State of Florida:
137
138	Section 1.  Paragraphs (a) and (b) of subsection (5) of
139	section 11.40, Florida Statutes, are amended to read:
140	11.40  Legislative Auditing Committee.--
141	(5)  Following notification by the Auditor General, the
142	Department of Financial Services, or the Division of Bond
143	Finance of the State Board of Administration of the failure of a
144	local governmental entity, district school board, charter
145	school, or charter technical career center to comply with the
146	applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or
147	s. 218.38, the Legislative Auditing Committee may schedule a
148	hearing. If a hearing is scheduled, the committee shall
149	determine if the entity should be subject to further state
150	action.  If the committee determines that the entity should be
151	subject to further state action, the committee shall:
152	(a)  In the case of a local governmental entity or district
153	school board, direct request the Department of Revenue and the
154	Department of Financial Services to withhold any funds not
155	pledged for bond debt service satisfaction which are payable to
156	such entity until the entity complies with the law. The
157	committee, in its request, shall specify the date such action
158	shall begin, and the directive request must be received by the
159	Department of Revenue and the Department of Financial Services
160	30 days before the date of the distribution mandated by law. The
161	Department of Revenue and the Department of Financial Services
162	may implement the provisions of this paragraph.
163	(b)  In the case of a special district, notify the
164	Department of Community Affairs that the special district has
165	failed to comply with the law. Upon receipt of notification, the
166	Department of Community Affairs shall proceed pursuant to the
167	provisions specified in s. ss. 189.421 and 189.422.
168	Section 2.  Paragraph (g) of subsection (2), subsections
169	(3) and (5), paragraph (e) of subsection (7), and subsections
170	(8) and (9) of section 11.45, Florida Statutes, are amended to
171	read:
172	11.45  Definitions; duties; authorities; reports; rules.--
173	(2)  DUTIES.--The Auditor General shall:
174	(g)  At least every 2 years, conduct a performance audit of
175	the local government financial reporting system, which, for the
176	purpose of this chapter, means any statutory provisions related
177	to local government financial reporting. The purpose of such an
178	audit is to determine the accuracy, efficiency, and
179	effectiveness of the reporting system in achieving its goals and
180	to make recommendations to the local governments, the Governor,
181	and the Legislature as to how the reporting system can be
182	improved and how program costs can be reduced. The Auditor
183	General shall determine the scope of such audits. The local
184	government financial reporting system should provide for the
185	timely, accurate, uniform, and cost-effective accumulation of
186	financial and other information that can be used by the members
187	of the Legislature and other appropriate officials to accomplish
188	the following goals:
189	1.  Enhance citizen participation in local government;
190	2.  Improve the financial condition of local governments;
191	3.  Provide essential government services in an efficient
192	and effective manner; and
193	4.  Improve decisionmaking on the part of the Legislature,
194	state agencies, and local government officials on matters
195	relating to local government.
196
197	The Auditor General shall perform his or her duties
198	independently but under the general policies established by the
199	Legislative Auditing Committee. This subsection does not limit
200	the Auditor General's discretionary authority to conduct other
201	audits or engagements of governmental entities as authorized in
202	subsection (3).
203	(3)  AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.-
204	(a)  The Auditor General may, pursuant to his or her own
205	authority, or at the direction of the Legislative Auditing
206	Committee, conduct audits or other engagements as determined
207	appropriate by the Auditor General of:
208	(a)1.  The accounts and records of any governmental entity
209	created or established by law.
210	(b)2.  The information technology programs, activities,
211	functions, or systems of any governmental entity created or
212	established by law.
213	(c)3.  The accounts and records of any charter school
214	created or established by law.
215	(d)4.  The accounts and records of any direct-support
216	organization or citizen support organization created or
217	established by law. The Auditor General is authorized to require
218	and receive any records from the direct-support organization or
219	citizen support organization, or from its independent auditor.
220	(e)5.  The public records associated with any appropriation
221	made by the Legislature General Appropriations Act to a
222	nongovernmental agency, corporation, or person. All records of a
223	nongovernmental agency, corporation, or person with respect to
224	the receipt and expenditure of such an appropriation shall be
225	public records and shall be treated in the same manner as other
226	public records are under general law.
227	(f)6.  State financial assistance provided to any nonstate
228	entity as defined by s. 215.97.
229	(g)7.  The Tobacco Settlement Financing Corporation created
230	pursuant to s. 215.56005.
231	8.  The Florida Virtual School created pursuant to s.
232	1002.37.
233	(h)9.  Any purchases of federal surplus lands for use as
234	sites for correctional facilities as described in s. 253.037.
235	(i)10.  Enterprise Florida, Inc., including any of its
236	boards, advisory committees, or similar groups created by
237	Enterprise Florida, Inc., and programs.  The audit report may
238	not reveal the identity of any person who has anonymously made a
239	donation to Enterprise Florida, Inc., pursuant to this paragraph
240	subparagraph. The identity of a donor or prospective donor to
241	Enterprise Florida, Inc., who desires to remain anonymous and
242	all information identifying such donor or prospective donor are
243	confidential and exempt from the provisions of s. 119.07(1) and
244	s. 24(a), Art. I of the State Constitution. Such anonymity shall
245	be maintained in the auditor's report.
246	(j)11.  The Florida Development Finance Corporation or the
247	capital development board or the programs or entities created by
248	the board. The audit or report may not reveal the identity of
249	any person who has anonymously made a donation to the board
250	pursuant to this paragraph subparagraph. The identity of a donor
251	or prospective donor to the board who desires to remain
252	anonymous and all information identifying such donor or
253	prospective donor are confidential and exempt from the
254	provisions of s. 119.07(1) and s. 24(a), Art. I of the State
255	Constitution. Such anonymity shall be maintained in the
256	auditor's report.
257	(k)12.  The records pertaining to the use of funds from
258	voluntary contributions on a motor vehicle registration
259	application or on a driver's license application authorized
260	pursuant to ss. 320.023 and 322.081.
261	(l)13.  The records pertaining to the use of funds from the
262	sale of specialty license plates described in chapter 320.
263	(m)14.  The transportation corporations under contract with
264	the Department of Transportation that are acting on behalf of
265	the state to secure and obtain rights-of-way for urgently needed
266	transportation systems and to assist in the planning and design
267	of such systems pursuant to ss. 339.401-339.421.
268	(n)15.  The acquisitions and divestitures related to the
269	Florida Communities Trust Program created pursuant to chapter
270	380.
271	(o)16.  The Florida Water Pollution Control Financing
272	Corporation created pursuant to s. 403.1837.
273	(p)17.  The Florida Partnership for School Readiness
274	created pursuant to s. 411.01.
275	(q)18.  The Florida Special Disability Trust Fund Financing
276	Corporation created pursuant to s. 440.49.
277	(r)19.  Workforce Florida, Inc., or the programs or
278	entities created by Workforce Florida, Inc., created pursuant to
279	s. 445.004.
280	(s)20.  The corporation defined in s. 455.32 that is under
281	contract with the Department of Business and Professional
282	Regulation to provide administrative, investigative,
283	examination, licensing, and prosecutorial support services in
284	accordance with the provisions of s. 455.32 and the practice act
285	of the relevant profession.
286	(t)21.  The Florida Engineers Management Corporation
287	created pursuant to chapter 471.
288	(u)22.  The Investment Fraud Restoration Financing
289	Corporation created pursuant to chapter 517.
290	(v)23.  The books and records of any permitholder that
291	conducts race meetings or jai alai exhibitions under chapter
292	550.
293	(w)24.  The corporation defined in part II of chapter 946,
294	known as the Prison Rehabilitative Industries and Diversified
295	Enterprises, Inc., or PRIDE Enterprises.
296	(x)  The Florida Virtual School pursuant to s. 1002.37.
297	(b)  The Auditor General is also authorized to:
298	1.  Promote the building of competent and efficient
299	accounting and internal audit organizations in the offices
300	administered by governmental entities.
301	2.  Provide consultation services to governmental entities
302	on their financial and accounting systems, procedures, and
303	related matters.
304	(5)  PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.-
305	(a)  The Legislative Auditing Committee shall direct the
306	Auditor General to make an a financial audit of any municipality
307	whenever petitioned to do so by at least 20 percent of the
308	registered electors in the last general election of that
309	municipality pursuant to this subsection. The supervisor of
310	elections of the county in which the municipality is located
311	shall certify whether or not the petition contains the
312	signatures of at least 20 percent of the registered electors of
313	the municipality. After the completion of the audit, the Auditor
314	General shall determine whether the municipality has the fiscal
315	resources necessary to pay the cost of the audit. The
316	municipality shall pay the cost of the audit within 90 days
317	after the Auditor General's determination that the municipality
318	has the available resources. If the municipality fails to pay
319	the cost of the audit, the Department of Revenue shall, upon
320	certification of the Auditor General, withhold from that portion
321	of the distribution pursuant to s. 212.20(6)(d)6. which is
322	distributable to such municipality, a sum sufficient to pay the
323	cost of the audit and shall deposit that sum into the General
324	Revenue Fund of the state.
325	(b)  At least one registered elector in the most recent
326	general election must file a letter of intent with the municipal
327	clerk prior to any petition of the electors of that municipality
328	for the purpose of an audit. Each petition must be submitted to
329	the supervisor of elections and contain, at a minimum:
330	1.  The elector's printed name.
331	2.  The elector's signature.
332	3.  The elector's residence address.
333	4.  The elector's date of birth.
334	5.  The date signed.
335
336	All petitions must be submitted for verification within 1
337	calendar year after the audit petition origination by the
338	municipal electors.
339	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.-
340	(e)  The Auditor General shall notify the Governor or the
341	Commissioner of Education, as appropriate, and the Legislative
342	Auditing Committee of any audit report reviewed by the Auditor
343	General pursuant to paragraph (b) which contains a statement
344	that a the local governmental entity or district school board
345	has met one or more of the conditions specified is in a state of
346	financial emergency as provided in s. 218.503. If the Auditor
347	General requests a clarification regarding information included
348	in an audit report to determine whether a local governmental
349	entity or district school board has met one or more of the
350	conditions specified in s. 218.503 is in a state of financial
351	emergency, the requested clarification must be provided within
352	45 days after the date of the request. If the local governmental
353	entity or district school board does not comply with the Auditor
354	General's request, the Auditor General shall notify the
355	Legislative Auditing Committee. If, after obtaining the
356	requested clarification, the Auditor General determines that the
357	local governmental entity or district school board has met one
358	or more of the conditions specified in s. 218.503 is in a state
359	of financial emergency, he or she shall notify the Governor or
360	the Commissioner of Education, as appropriate, and the
361	Legislative Auditing Committee.
362	(8)  RULES OF THE AUDITOR GENERAL.--The Auditor General, in
363	consultation with the Board of Accountancy, shall adopt rules
364	for the form and conduct of all financial audits performed by
365	independent certified public accountants pursuant to ss.
366	215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
367	audits of local governmental entities and district school boards
368	must include, but are not limited to, requirements for the
369	reporting of information necessary to carry out the purposes of
370	the Local Governmental Entity and District School Board
371	Government Financial Emergencies Act as stated in s. 218.501.
372	(9)  TECHNICAL ADVICE OTHER GUIDANCE PROVIDED BY THE
373	AUDITOR GENERAL.-The Auditor General may provide technical
374	advice to:, in consultation with
375	(a)  The Department of Education in the development of,
376	shall develop a compliance supplement for the financial audit of
377	a district school board conducted by an independent certified
378	public accountant.
379	(b)  Governmental entities on their financial and
380	accounting systems, procedures, and related matters.
381	(c)  Governmental entities on promoting the building of
382	competent and efficient accounting and internal audit
383	organizations in their offices.
384	Section 3.  Subsection (4) of section 11.51, Florida
385	Statutes, is amended to read:
386	11.51  Office of Program Policy Analysis and Government
387	Accountability.--
388	(4)  The Office of Program Policy Analysis and Government
389	Accountability is authorized to examine all entities and records
390	listed in s. 11.45(3)(a).
391	Section 4.  Subsection (10) of section 61.181, Florida
392	Statutes, is amended to read:
393	61.181  Depository for alimony transactions, support,
394	maintenance, and support payments; fees.--
395	(10)  Compliance with the requirements of this section
396	shall be included as part of the annual county audit required
397	pursuant to s. 218.39 11.45.
398	Section 5.  Subsection (3) of section 75.05, Florida
399	Statutes, is amended to read:
400	75.05  Order and service.--
401	(3)  In the case of independent special districts as
402	defined in s. 218.31(7), a copy of the complaint shall be served
403	on the Division of Bond Finance of the State Board of
404	Administration. Notwithstanding any other provision of law,
405	whether a general law or special act, validation of bonds to be
406	issued by a special district, other than a community development
407	district established pursuant to chapter 190, as provided in s.
408	190.016(12), is not mandatory, but is at the option of the
409	issuer. However, the validation of bonds issued by such
410	community development districts shall not be required on
411	refunding issues.
412	Section 6.  Paragraph (a) of subsection (2) of section
413	112.08, Florida Statutes, is amended to read:
414	112.08  Group insurance for public officers, employees, and
415	certain volunteers; physical examinations.--
416	(2)(a)  Notwithstanding any general law or special act to
417	the contrary, every local governmental unit is authorized to
418	provide and pay out of its available funds for all or part of
419	the premium for life, health, accident, hospitalization, legal
420	expense, or annuity insurance, or all or any kinds of such
421	insurance, for the officers and employees of the local
422	governmental unit and for health, accident, hospitalization, and
423	legal expense insurance for the dependents of such officers and
424	employees upon a group insurance plan and, to that end, to enter
425	into contracts with insurance companies or professional
426	administrators to provide such insurance.  Before entering any
427	contract for insurance, the local governmental unit shall
428	advertise for competitive bids; and such contract shall be let
429	upon the basis of such bids. If a contracting health insurance
430	provider becomes financially impaired as determined by the
431	Office of Insurance Regulation of the Financial Services
432	Commission or otherwise fails or refuses to provide the
433	contracted-for coverage or coverages, the local government may
434	purchase insurance, enter into risk management programs, or
435	contract with third-party administrators and may make such
436	acquisitions by advertising for competitive bids or by direct
437	negotiations and contract. The local governmental unit may
438	undertake simultaneous negotiations with those companies which
439	have submitted reasonable and timely bids and are found by the
440	local governmental unit to be fully qualified and capable of
441	meeting all servicing requirements. Each local governmental unit
442	may self-insure any plan for health, accident, and
443	hospitalization coverage or enter into a risk management
444	consortium to provide such coverage, subject to approval based
445	on actuarial soundness by the Office of Insurance Regulation;
446	and each shall contract with an insurance company or
447	professional administrator qualified and approved by the office
448	to administer such a plan.
449	Section 7.  Subsection (5) of section 112.625, Florida
450	Statutes, is amended to read:
451	112.625  Definitions.--As used in this act:
452	(5)  "Governmental entity" means the state, for the Florida
453	Retirement System, and the county, municipality, or special
454	district, or district school board which is the employer of the
455	member of a local retirement system or plan.
456	Section 8.  Subsections (2) and (4) of section 112.63,
457	Florida Statutes, are amended to read:
458	112.63  Actuarial reports and statements of actuarial
459	impact; review.--
460	(2)  The frequency of actuarial reports must be at least
461	every 3 years commencing from the last actuarial report of the
462	plan or system or October 1, 1980, if no actuarial report has
463	been issued within the 3-year period prior to October 1, 1979.
464	The results of each actuarial report shall be filed with the
465	plan administrator within 60 days of certification. Thereafter,
466	the results of each actuarial report shall be made available for
467	inspection upon request. Additionally, each retirement system or
468	plan covered by this act which is not administered directly by
469	the Department of Management Services shall furnish a copy of
470	each actuarial report to the Department of Management Services
471	within 60 days after receipt from the actuary. The requirements
472	of this section are supplemental to actuarial valuations
473	necessary to comply with the requirements of s. ss. 218.321 and
474	218.39.
475	(4)  Upon receipt, pursuant to subsection (2), of an
476	actuarial report, or upon receipt, pursuant to subsection (3),
477	of a statement of actuarial impact, the Department of Management
478	Services shall acknowledge such receipt, but shall only review
479	and comment on each retirement system's or plan's actuarial
480	valuations at least on a triennial basis. If the department
481	finds that the actuarial valuation is not complete, accurate, or
482	based on reasonable assumptions or otherwise materially fails to
483	satisfy the requirements of this part, if the department
484	requires additional material information necessary to complete
485	its review of the actuarial valuation of a system or plan or
486	material information necessary to satisfy the duties of the
487	department pursuant to s. 112.665(1), or if the department does
488	not receive the actuarial report or statement of actuarial
489	impact, the department shall notify the administrator of the
490	affected retirement system or plan and the affected governmental
491	entity local government and request appropriate adjustment, the
492	additional material information, the required report, or the
493	statement. The notification must inform the administrator of the
494	affected retirement system or plan and the affected governmental
495	entity of the consequences for failure to comply with the
496	requirements of this subsection. If, after a reasonable period
497	of time, a satisfactory adjustment is not made, or the
498	additional material information, the report, or the statement is
499	not provided, the department may notify the Department of
500	Revenue and the Department of Financial Services of such
501	noncompliance, in which case the Department of Revenue and the
502	Department of Financial Services shall withhold any funds not
503	pledged for satisfaction of bond debt service which are payable
504	to the affected governmental entity until the adjustment is made
505	or the additional material information, the report, or the
506	statement is provided to the department. The department shall
507	specify the date such action is to begin, and notification by
508	the department must be received by the Department of Revenue,
509	the Department of Financial Services, and the affected
510	governmental entity 30 days before the date the action begins.
511	(a)  Within 21 days after receipt of the notice, the
512	affected governmental entity local government or the department
513	may petition for a hearing under the provisions of ss. 120.569
514	and 120.57 with the Department of Management Services. The
515	Department of Revenue and the Department of Financial Services
516	may not be parties to any such hearing, but may request to
517	intervene if requested by the Department of Management Services
518	or if the Department of Revenue or the Department of Financial
519	Services determines its interests may be adversely affected by
520	the hearing. If the administrative law judge recommends in favor
521	of the department, the department shall perform an actuarial
522	review, or prepare the statement of actuarial impact, or collect
523	the requested material information. The cost to the department
524	of performing such actuarial review, or preparing the such
525	statement, or collecting the requested material information
526	shall be charged to the affected governmental entity of which
527	the employees are covered by the retirement system or plan. If
528	payment of such costs is not received by the department within
529	60 days after receipt by the affected governmental entity of the
530	request for payment, the department shall certify to the
531	Department of Revenue and the Department of Financial Services
532	Chief Financial Officer the amount due, and the Department of
533	Revenue and the Department of Financial Services Chief Financial
534	Officer shall pay such amount to the Department of Management
535	Services from any funds not pledged for satisfaction of bond
536	debt service that are payable to the affected governmental
537	entity of which the employees are covered by the retirement
538	system or plan. If the administrative law judge recommends in
539	favor of the affected governmental entity local retirement
540	system and the department performs an actuarial review, prepares
541	the statement of actuarial impact, or collects the requested
542	material information, the cost to the department of performing
543	the actuarial review, preparing the statement, or collecting the
544	requested material information shall be paid by the Department
545	of Management Services.
546	(b)  In the case of an affected special district, the
547	Department of Management Services shall also notify the
548	Department of Community Affairs. Upon receipt of notification,
549	the Department of Community Affairs shall proceed pursuant to
550	the provisions of s. 189.421 with regard to the special
551	district.
552	Section 9.  Section 130.04, Florida Statutes, is amended to
553	read:
554	130.04  Sale Notice for bids and disposition of bonds.--In
555	case the issuing of bonds shall be authorized by the result of
556	such election, the county commissioners shall sell the bonds in
557	the manner provided in s. 218.385 cause notice to be given by
558	publication in a newspaper published in the county, or in some
559	newspaper published in the same judicial circuit, if there be
560	none published in the county, that they will receive bids for
561	the purchase of county bonds at the clerk's office, on a date
562	not less than 10 days nor more than 60 days from the first
563	publication of such notice. The notice shall specify the amount
564	of bonds offered for sale, the rate of interest, and the time
565	when principal and installments of interest shall be due and
566	payable. Any and all bids shall be rejected if the commissioners
567	shall deem it to the best interest for the county so to do, and
568	they may cause a new notice to be given in like manner inviting
569	other bids for said bonds; provided, that when the rate of
570	interest on said bonds exceeds 5 percent per annum, said bonds
571	shall not be sold for less than 95 cents on the dollar, but when
572	any bonds have heretofore been provided for by election, and the
573	rate of interest is 5 percent per annum, or less, that in such
574	cases the county commissioners may accept less than 95 cents
575	upon the dollar, in the sale of said bonds, or for any portion
576	of said bonds not already sold; provided, however, no bonds
577	shall be sold for less than 90 cents on the dollar.
578	Section 10.  Subsection (1) of section 132.02, Florida
579	Statutes, is amended to read:
580	132.02  Taxing units may refund obligations.--
581	(1)  Each county, municipality, city, town, special road
582	and bridge district, special tax school district, or and other
583	taxing district districts in this state, herein sometimes called
584	a unit, may issue, pursuant to a resolution or resolutions of
585	the governing body thereof (meaning thereby the board or body
586	vested with the power of determining the amount of tax levies
587	required for taxing the taxable property of such unit for the
588	purpose of such unit) and either with or without the approval of
589	such bonds at an election, except as may be required by the
590	Constitution of the state, bonds of such unit for the purpose of
591	refunding any or all bonds, coupons, or interest on any such
592	bonds, or coupons or paving certificates of indebtedness or
593	interest on any such paving certificates of indebtedness, now or
594	hereafter outstanding, or any other funded debt, all of which
595	are herein referred to as bonds, whether such unit created such
596	indebtedness or has assumed, or may become liable therefor, and
597	whether indebtedness to be refunded has matured or to thereafter
598	become matured.
599	Section 11.  Section 132.09, Florida Statutes, is amended
600	to read:
601	132.09  Sale of bonds Notice of sale; bids and award;
602	private sale.--When sold, the refunding bonds (except as
603	otherwise expressly provided) shall be sold in the manner
604	provided in s. 218.385 pursuant to the terms of a notice of sale
605	which shall be published at least twice. The first publication
606	to be not less than 7 days before the date fixed for the sale
607	and to be published in a newspaper published in the unit, or if
608	no newspaper is published in the unit, then in a newspaper
609	published in the county, or if no newspaper is published in the
610	county, then in a newspaper published in Tallahassee, and in the
611	discretion of the governing body of the unit may be published in
612	a financial newspaper in the City of New York.  Such notices
613	shall state the time and place and when and where sealed bids
614	will be received, shall state the amount of bonds, their dates,
615	maturities, denominations and interest rate or rates (which may
616	be a maximum rate), interest payment dates, an outline of the
617	terms, if any, on which they are redeemable or become payable
618	before maturity, the amount which must be deposited with the bid
619	to secure its performance if accepted, and such other pertinent
620	information as the governing body of the unit may determine.
621	The notice of sale may require the bidders to fix the interest
622	rate or rates that the bonds are to bear subject to the terms of
623	the notice and the maximum rate permitted by this chapter.  The
624	award of the bonds shall be made by the governing body of the
625	unit to the bidder making the most advantageous bid which shall
626	be determined by the governing body in its absolute and
627	uncontrolled discretion.  The right to reject all bids shall be
628	reserved to the governing body of the unit.  If no bids are
629	received at such public sale, or if all bids are rejected, the
630	bonds may be sold without notice at private sale at any time
631	within one year thereafter, but such bonds shall not be sold at
632	private sale on terms less favorable to the unit than were
633	contained in the best bid at the prior public sale.
634	Section 12.  Paragraph (a) of subsection (2) of section
635	163.05, Florida Statutes, is amended to read:
636	163.05  Small County Technical Assistance Program.--
637	(2)  Recognizing the findings in subsection (1), the
638	Legislature declares that:
639	(a)  The financial difficulties fiscal emergencies
640	confronting small counties require an investment that will
641	facilitate efforts to improve the productivity and efficiency of
642	small counties' structures and operating procedures.
643	Section 13.  Subsection (2) of section 166.121, Florida
644	Statutes, is amended to read:
645	166.121  Issuance of bonds.--
646	(2)  The governing body of a municipality shall determine
647	the terms and manner of sale and distribution or other
648	disposition of any and all bonds it may issue, consistent with
649	the provisions of s. 218.385, and shall have any and all powers
650	necessary or convenient to such disposition.
651	Section 14.  Section 166.241, Florida Statutes, is amended
652	to read:
653	166.241  Fiscal years, financial reports, appropriations,
654	and budgets, and budget amendments.--
655	(1)  Each municipality shall report its finances annually
656	as provided by general law.
657	(1)(2)  Each municipality shall make provision for
658	establishing a fiscal year beginning October 1 of each year and
659	ending September 30 of the following year.
660	(2)(3)  The governing body of each municipality shall adopt
661	a budget each fiscal year. The budget must be adopted by
662	ordinance or resolution unless otherwise specified in the
663	respective municipality's charter. The amount available from
664	taxation and other sources, including amounts carried over from
665	prior fiscal years, must equal the total appropriations for
666	expenditures and reserves. The budget must regulate expenditures
667	of the municipality, and it is unlawful for any officer of a
668	municipal government to expend or contract for expenditures in
669	any fiscal year except in pursuance of budgeted appropriations.
670	(3)  The governing body of each municipality at any time
671	within a fiscal year or within up to 60 days following the end
672	of the fiscal year may amend a budget for that year as follows:
673	(a)  Appropriations for expenditures within a fund may be
674	decreased or increased by motion recorded in the minutes,
675	provided that the total of the appropriations of the fund is not
676	changed.
677	(b)  The governing body may establish procedures by which
678	the designated budget officer may authorize certain budget
679	amendments within a department, provided that the total of the
680	appropriations of the department is not changed.
681	(c)  If a budget amendment is required for a purpose not
682	specifically authorized in paragraph (a) or paragraph (b), the
683	budget amendment must be adopted in the same manner as the
684	original budget unless otherwise specified in the charter of the
685	respective municipality.
686	Section 15.  Paragraph (b) of subsection (1) of section
687	175.261, Florida Statutes, is amended to read:
688	175.261  Annual report to Division of Retirement; actuarial
689	valuations.--For any municipality, special fire control
690	district, chapter plan, local law municipality, local law
691	special fire control district, or local law plan under this
692	chapter, the board of trustees for every chapter plan and local
693	law plan shall submit the following reports to the division:
694	(1)  With respect to chapter plans:
695	(b)  In addition to annual reports provided under paragraph
696	(a), by February 1 of each triennial year, an actuarial
697	valuation of the chapter plan must be made by the division at
698	least once every 3 years, as provided in s. 112.63, commencing 3
699	years from the last actuarial valuation of the plan or system
700	for existing plans, or commencing 3 years from issuance of the
701	initial actuarial impact statement submitted under s. 112.63 for
702	newly created plans. To that end, the chair of the board of
703	trustees for each firefighters' pension trust fund operating
704	under a chapter plan shall report to the division such data as
705	it needs to complete an actuarial valuation of each fund. The
706	forms for each municipality and special fire control district
707	shall be supplied by the division. The expense of this actuarial
708	valuation shall be borne by the firefighters' pension trust fund
709	established by ss. 175.041 and 175.121. The requirements of this
710	section are supplemental to the actuarial valuations necessary
711	to comply with s. ss. 218.321 and 218.39.
712	Section 16.  Paragraph (b) of subsection (1) of section
713	185.221, Florida Statutes, is amended to read:
714	185.221  Annual report to Division of Retirement; actuarial
715	valuations.--For any municipality, chapter plan, local law
716	municipality, or local law plan under this chapter, the board of
717	trustees for every chapter plan and local law plan shall submit
718	the following reports to the division:
719	(1)  With respect to chapter plans:
720	(b)  In addition to annual reports provided under paragraph
721	(a), by February 1 of each triennial year, an actuarial
722	valuation of the chapter plan must be made by the division at
723	least once every 3 years, as provided in s. 112.63, commencing 3
724	years from the last actuarial valuation of the plan or system
725	for existing plans, or commencing 3 years from the issuance of
726	the initial actuarial impact statement submitted under s. 112.63
727	for newly created plans. To that end, the chair of the board of
728	trustees for each municipal police officers' retirement trust
729	fund operating under a chapter plan shall report to the division
730	such data as the division needs to complete an actuarial
731	valuation of each fund. The forms for each municipality shall be
732	supplied by the division. The expense of the actuarial valuation
733	shall be borne by the municipal police officers' retirement
734	trust fund established by s. 185.10. The requirements of this
735	section are supplemental to the actuarial valuations necessary
736	to comply with s. ss. 218.321 and 218.39.
737	Section 17.  Section 189.4044, Florida Statutes, is amended
738	to read:
739	189.4044  Special procedures for inactive districts.--
740	(1)  The department shall declare inactive any special
741	district in this state by documenting that filing a report with
742	the Speaker of the House of Representatives and the President of
743	the Senate which shows that such special district is no longer
744	active.  The inactive status of the special district must be
745	based upon a finding:
746	(a)  That The special district meets one of the following
747	criteria:
748	1.  The registered agent of the district, the chair of the
749	governing body of the district, or the governing body of the
750	appropriate local general-purpose government notifies the
751	department in writing that the district has taken no action for
752	2 or more calendar years;
753	2.  Following an inquiry from the department, the
754	registered agent of the district, the chair of the governing
755	body of the district, or the governing body of the appropriate
756	local general-purpose government notifies the department in
757	writing that the district has not had a governing board or a
758	sufficient number of governing board members to constitute a
759	quorum for 2 or more years or the registered agent of the
760	district, the chair of the governing body of the district, or
761	the governing body of the appropriate local general-purpose
762	government fails to respond to the department's inquiry within
763	21 days; or 18 or more months;
764	3.  The department determines, pursuant to s. 189.421, that
765	the district has failed to file or make a good faith effort to
766	file any of the reports listed in s. 189.419.; or
767	4.  The district has failed, for 2 consecutive fiscal
768	years, to pay fees assessed by the Special District Information
769	Program pursuant to this chapter.
770	(b)  The department, special district, or local general-
771	purpose government published That a notice of the proposed
772	declaration of inactive status has been published once a week
773	for 2 weeks in a newspaper of general circulation in within the
774	county or municipality in which wherein the territory of the
775	special district is located and sent a copy of such notice by
776	certified mail to the registered agent or chair of the board, if
777	any. Such notice must include, stating the name of the said
778	special district, the law under which it was organized and
779	operating, a general description of the territory included in
780	the said special district, and a statement stating that any
781	objections must be filed pursuant to chapter 120 within 21 days
782	after the publication date. to the proposed declaration or to
783	any claims against the assets of said special district shall be
784	filed not later than 60 days following the date of last
785	publication with the department; and
786	(c)  Twenty-one That 60 days have elapsed from the last
787	publication date of the notice of proposed declaration of
788	inactive status and no administrative appeals were sustained
789	objections have been filed.
790	(2)  If any special district is declared inactive pursuant
791	to this section, the property or assets of the special district
792	are subject to legal process for payment of any debts of the
793	district.  After the payment of all the debts of said inactive
794	special district, the remainder of its property or assets shall
795	escheat to the county or municipality wherein located.  If,
796	however, it shall be necessary, in order to pay any such debt,
797	to levy any tax or taxes on the property in the territory or
798	limits of the inactive special district, the same may be
799	assessed and levied by order of the local general-purpose
800	government wherein the same is situated and shall be assessed by
801	the county property appraiser and collected by the county tax
802	collector.
803	(3)  In the case of a district created by special act of
804	the Legislature, the department shall send a notice of
805	declaration of inactive status to notify the Speaker of the
806	House of Representatives and the President of the Senate. The
807	notice of declaration of inactive status shall reference of each
808	known special act creating or amending the charter of any
809	special district declared to be inactive under this section.
810	The declaration of inactive status shall be sufficient notice as
811	required by s. 10, Art. III of the State Constitution to
812	authorize the Legislature to repeal any special laws so
813	reported. In the case of a district created by one or more local
814	general-purpose governments, the department shall send a notice
815	of declaration of inactive status to the chair of the governing
816	body of each local general-purpose government that created the
817	district. In the case of a district created by interlocal
818	agreement, the department shall send a notice of declaration of
819	inactive status to the chair of the governing body of each local
820	general-purpose government which entered into the interlocal
821	agreement.
822	(4)  The entity that created a special district declared
823	inactive under this section must dissolve the special district
824	be dissolved by repealing repeal of its enabling laws or by
825	other appropriate means.
826	Section 18.  Subsection (1) of section 189.412, Florida
827	Statutes, is amended, and subsection (8) is added to said
828	section, to read:
829	189.412  Special District Information Program; duties and
830	responsibilities.--The Special District Information Program of
831	the Department of Community Affairs is created and has the
832	following special duties:
833	(1)  The collection and maintenance of special district
834	noncompliance compliance status reports from the Department of
835	Management Services Auditor General, the Department of Financial
836	Services, the Division of Bond Finance of the State Board of
837	Administration, and the Auditor General the Department of
838	Management Services, the Department of Revenue, and the
839	Commission on Ethics for the reporting required in ss. 112.3144,
840	112.3145, 112.3148, 112.3149, 112.63, 200.068, 218.32, 218.38,
841	and 218.39, and 280.17 and chapter 121 and from state agencies
842	administering programs that distribute money to special
843	districts. The noncompliance special district compliance status
844	reports must list those consist of a list of special districts
845	used in that state agency and a list of which special districts
846	that did not comply with the statutory reporting requirements
847	statutorily required by that agency.
848	(8)  The provision of assistance to local general-purpose
849	governments and certain state agencies in collecting delinquent
850	reports or information, helping special districts comply with
851	reporting requirements, declaring special districts inactive
852	when appropriate, and, when directed by the Legislative Auditing
853	Committee, initiating enforcement provisions as provided in ss.
854	189.4044, 189.419, and 189.421.
855	Section 19.  Subsections (1) and (2) of section 189.418,
856	Florida Statutes, are amended, subsection (5) is renumbered as
857	subsection (6), present subsection (6) is renumbered as
858	subsection (7) and amended, and a new subsection (5) is added to
859	said section, to read:
860	189.418  Reports; budgets; audits.--
861	(1)  When a new special district is created, the district
862	must forward to the department, within 30 days after the
863	adoption of the special act, rule, ordinance, resolution, or
864	other document that provides for the creation of the district, a
865	copy of the document and a written statement that includes a
866	reference to the status of the special district as dependent or
867	independent and the basis for such classification. In addition
868	to the document or documents that create the district, the
869	district must also submit a map of the district, showing any
870	municipal boundaries that cross the district's boundaries, and
871	any county lines if the district is located in more than one
872	county. The department must notify the local government or other
873	entity and the district within 30 days after receipt of the
874	document or documents that create the district as to whether the
875	district has been determined to be dependent or independent.
876	(2)  Any amendment, modification, or update of the document
877	by which the district was created, including changes in
878	boundaries, must be filed with the department within 30 days
879	after adoption. The department may initiate proceedings against
880	special districts as provided in s. ss. 189.421 and 189.422 for
881	failure to file the information required by this subsection.
882	(5)  The governing body of each special district at any
883	time within a fiscal year or within up to 60 days following the
884	end of the fiscal year may amend a budget for that year. The
885	budget amendment must be adopted by resolution.
886	(7)(6)  All reports or information required to be filed
887	with a local governing authority under ss. 189.415, 189.416, and
888	189.417, 218.32, and 218.39 and this section shall:
889	(a)  When the local governing authority is a county, be
890	filed with the clerk of the board of county commissioners.
891	(b)  When the district is a multicounty district, be filed
892	with the clerk of the county commission in each county.
893	(c)  When the local governing authority is a municipality,
894	be filed at the place designated by the municipal governing
895	body.
896	Section 20.  Section 189.419, Florida Statutes, is amended
897	to read:
898	189.419  Effect of failure to file certain reports or
899	information.--
900	(1)  If a special district fails to file the reports or
901	information required under s. 189.415, s. 189.416, or s.
902	189.417, s. 189.418, s. 218.32, or s. 218.39 and a description
903	of all new bonds as provided in s. 218.38(1) with the local
904	governing authority, the person authorized to receive and read
905	the reports or information shall notify the district's
906	registered agent and the appropriate local governing authority
907	or authorities. If requested by the district At any time, the
908	governing authority shall may grant an extension of time of up
909	to 30 days for filing the required reports or information,
910	except that an extension may not exceed 30 days.
911	(2)  If at any time the local governing authority or
912	authorities or the board of county commissioners determines that
913	there has been an unjustified failure to file the reports or
914	information described in subsection (1), it may notify petition
915	the department and the department may proceed pursuant to
916	initiate proceedings against the special district in the manner
917	provided in s. 189.421.
918	(3)  If a special district fails to file the reports or
919	information required under s. 112.63, s. 218.32, s. 218.38, or
920	s. 218.39 with the appropriate state agency, the agency shall
921	notify the department, and the department shall proceed pursuant
922	to s. 189.421 may initiate proceedings against the special
923	district in the manner provided in s. 189.421 or assess fines of
924	not more than $25, with an aggregate total not to exceed $50,
925	when formal inquiries do not resolve the noncompliance.
926	Section 21.  Section 189.421, Florida Statutes, is amended
927	to read:
928	(Substantial rewording of section. See
929	s. 189.421, F.S., for present text.)
930	189.421  Failure of district to disclose financial
931	reports.--
932	(1)  When notified pursuant to s. 189.419, the department
933	shall attempt to assist a special district to comply with its
934	financial reporting requirements by sending a certified letter
935	to the special district, and a copy of the letter to the chair
936	of the governing body of the local general-purpose government,
937	which includes the following: a description of the required
938	report, including statutory submission deadlines, a contact
939	telephone number for technical assistance to help the special
940	district comply, a 60-day extension of time for filing the
941	required report with the appropriate entity, the address where
942	the report must be filed, and an explanation of the penalties
943	for noncompliance. The department may grant an additional 30-day
944	extension of time if requested to do so in writing by the
945	special district. The department shall notify the appropriate
946	entity of the new extension of time. In the case of a special
947	district that did not timely file the reports or information
948	required by s. 218.38, the department shall send a certified
949	technical assistance letter to the special district that
950	summarizes the requirements and encourages the special district
951	to take steps to prevent the noncompliance from reoccurring.
952	(2)  Failure of a special district to comply with the
953	financial reporting requirements after the procedures of
954	subsection (1) are exhausted shall be deemed final action of the
955	special district. The financial reporting requirements are
956	declared to be essential requirements of law. Remedy for
957	noncompliance shall be by writ of certiorari as set forth in
958	subsection (3).
959	(3)  Pursuant to s. 11.40(5)(b), the Legislative Auditing
960	Committee shall notify the department of those districts that
961	failed to file the required report. Within 30 days after
962	receiving this notice or within 30 days after the extension date
963	provided in subsection (1), whichever occurs later, the
964	department shall proceed as follows: notwithstanding the
965	provisions of chapter 120, the department shall file a petition
966	for writ of certiorari with the circuit court. Venue for all
967	actions pursuant to this subsection shall be in Leon County. The
968	court shall award the prevailing party attorney's fees and costs
969	in all cases filed pursuant to this section unless affirmatively
970	waived by all parties. A writ of certiorari shall be issued
971	unless a respondent establishes that the notification of the
972	Legislative Auditing Committee was issued as a result of
973	material error. Proceedings under this subsection shall
974	otherwise be governed by the Rules of Appellate Procedure.
975	Section 22.  Subsection (5) of section 189.428, Florida
976	Statutes, is amended to read:
977	189.428  Special districts; oversight review process.--
978	(5)  Those conducting the oversight review process shall,
979	at a minimum, consider the listed criteria for evaluating the
980	special district, but may also consider any additional factors
981	relating to the district and its performance.  If any of the
982	listed criteria does do not apply to the special district being
983	reviewed, it they need not be considered. The criteria to be
984	considered by the reviewer include:
985	(a)  The degree to which the service or services offered by
986	the special district are essential or contribute to the well-
987	being of the community.
988	(b)  The extent of continuing need for the service or
989	services currently provided by the special district.
990	(c)  The extent of municipal annexation or incorporation
991	activity occurring or likely to occur within the boundaries of
992	the special district and its impact on the delivery of services
993	by the special district.
994	(d)  Whether there is a less costly alternative method of
995	delivering the service or services that would adequately provide
996	the district residents with the services provided by the
997	district.
998	(e)  Whether transfer of the responsibility for delivery of
999	the service or services to an entity other than the special
1000	district being reviewed could be accomplished without
1001	jeopardizing the district's existing contracts, bonds, or
1002	outstanding indebtedness.
1003	(f)  Whether the Auditor General has notified the
1004	Legislative Auditing Committee that the special district's audit
1005	report, reviewed pursuant to s. 11.45(7), indicates that the
1006	district has met any of the conditions specified in s.
1007	218.503(1) or that a deteriorating financial condition exists
1008	that may cause a condition described in s. 218.503(1) to occur
1009	if actions are not taken to address such condition.
1010	(g)  Whether the Auditor General has determined that the
1011	special district is in a state of financial emergency as
1012	provided in s. 218.503(1), and has notified the Governor and the
1013	Legislative Auditing Committee.
1014	(g)(h)  Whether the district is inactive according to the
1015	official list of special districts, and whether the district is
1016	meeting and discharging its responsibilities as required by its
1017	charter, as well as projected increases or decreases in district
1018	activity.
1019	(h)(i)  Whether the special district has failed to comply
1020	with any of the reporting requirements in this chapter,
1021	including preparation of the public facilities report.
1022	(i)(j)  Whether the special district has designated a
1023	registered office and agent as required by s. 189.416, and has
1024	complied with all open public records and meeting requirements.
1025	Section 23.  Paragraph (a) of subsection (1) of section
1026	189.439, Florida Statutes, is amended to read:
1027	189.439  Bonds.--
1028	(1)  AUTHORIZATION AND FORM OF BONDS.-
1029	(a)  The authority may issue and sell bonds for any purpose
1030	for which the authority has the power to expend money,
1031	including, without limitation, the power to obtain working
1032	capital loans to finance the costs of any project and to refund
1033	any bonds or other indebtedness at the time outstanding at or
1034	before maturity. Bonds may be sold in the manner provided in s.
1035	218.385 and by public or negotiated sale after advertisement, if
1036	any, as the board considers advisable.  Bonds may be authorized
1037	by resolution of the board.
1038	Section 24.  Subsections (1) and (2) of section 191.005,
1039	Florida Statutes, are amended to read:
1040	191.005  District boards of commissioners; membership,
1041	officers, meetings.--
1042	(1)(a)  With the exception of districts whose governing
1043	boards are appointed collectively by the Governor, the county
1044	commission, and any cooperating city within the county, the
1045	business affairs of each district shall be conducted and
1046	administered by a five-member board. All three-member boards
1047	existing on the effective date of this act shall be converted to
1048	five-member boards, except those permitted to continue as a
1049	three-member board by special act adopted in 1997 or thereafter.
1050	The board shall be elected in nonpartisan elections by the
1051	electors of the district.  Except as provided in this act, such
1052	elections shall be held at the time and in the manner prescribed
1053	by law for holding general elections in accordance with s.
1054	189.405(2)(a) and (3), and each member shall be elected for a
1055	term of 4 years and serve until the member's successor assumes
1056	office. Candidates for the board of a district shall qualify
1057	with the county supervisor of elections in whose jurisdiction
1058	the district is located.  If the district is a multicounty
1059	district, candidates shall qualify with the Department of State.
1060	All candidates may qualify by paying a filing fee of $25 or by
1061	obtaining the signatures of at least 25 registered electors of
1062	the district on petition forms provided by the supervisor of
1063	elections which petitions shall be submitted and checked in the
1064	same manner as petitions filed by nonpartisan judicial
1065	candidates pursuant to s. 105.035. Notwithstanding s. 106.021, a
1066	candidate who does not collect contributions and whose only
1067	expense is the filing fee is not required to appoint a campaign
1068	treasurer or designate a primary campaign depository.
1069	(b)1.  At the next general election following the effective
1070	date of this act, or on or after the effective date of a special
1071	act or general act of local application creating a new district,
1072	the members of the board shall be elected by the electors of the
1073	district in the manner provided in this section.  The office of
1074	each member of the board is designated as being a seat on the
1075	board, distinguished from each of the other seats by a numeral:
1076	1, 2, 3, 4, or 5.  The numerical seat designation does not
1077	designate a geographical subdistrict unless such subdistrict
1078	exists on the effective date of this act, in which case the
1079	candidates must reside in the subdistrict, and only electors of
1080	the subdistrict may vote in the election for the member from
1081	that subdistrict.  Each candidate for a seat on the board shall
1082	designate, at the time the candidate qualifies, the seat on the
1083	board for which the candidate is qualifying.  The name of each
1084	candidate who qualifies for election to a seat on the board
1085	shall be included on the ballot in a way that clearly indicates
1086	the seat for which the candidate is a candidate.  The candidate
1087	for each seat who receives the most votes cast for a candidate
1088	for the seat shall be elected to the board.
1089	2.  If, on the effective date of this act, a district
1090	presently in existence elects members of its board, the next
1091	election shall be conducted in accordance with this section, but
1092	this section does not require the early expiration of any
1093	member's term of office by more than 60 days.
1094	3.  If, on the effective date of this act, a district does
1095	not elect the members of its board, the entire board shall be
1096	elected in accordance with this section.  However, in the first
1097	election following the effective date of this act, seats 1, 3,
1098	and 5 shall be designated for 4-year terms and seats 2 and 4
1099	shall be designated for 2-year terms.
1100	4.  If, on the effective date of this act, the district has
1101	an elected three-member board, one of the two seats added by
1102	this act shall, for the first election following the effective
1103	date of this act, be designated for a 4-year term and the other
1104	for a 2-year term, unless the terms of the three existing seats
1105	all expire within 6 months of the first election following the
1106	effective date of this act, in which case seats 1, 3, and 5
1107	shall be designated for 4-year terms and seats 2 and 4 shall be
1108	designated for 2-year terms.
1109	5.  If the district has an elected three-member board
1110	designated to remain three members by special act adopted in
1111	1997 or thereafter, the terms of the board members shall be
1112	staggered. In the first election following the effective date of
1113	this act, seats 1 and 3 shall be designated for 4-year terms,
1114	and seat 2 for a 2-year term.
1115	(c)  The board of any district may request the local
1116	legislative delegation that represents the area within the
1117	district to create by special law geographical subdistricts for
1118	board seats.  Any board of five members or larger elected on a
1119	subdistrict basis as of the effective date of this act shall
1120	continue to elect board members from such previously designated
1121	subdistricts, and this act shall not require the elimination of
1122	board seats from such boards.
1123	(2)  Each member of the board must be a qualified elector
1124	at the time he or she qualifies and continually throughout his
1125	or her term. Any board member who ceases to be a qualified
1126	elector is automatically removed pursuant to this act.
1127	Section 25.  Section 218.075, Florida Statutes, is amended
1128	to read:
1129	218.075  Reduction or waiver of permit processing
1130	fees.--Notwithstanding any other provision of law, the
1131	Notwithstanding any other provision of law, the Department of
1132	Environmental Protection and the water management districts
1133	shall reduce or waive permit processing fees for counties with a
1134	population of 50,000 or less on April 1, 1994, until such
1135	counties exceed a population of 75,000 and municipalities with a
1136	population of 25,000 or less, or any county or municipality not
1137	included within a metropolitan statistical area. Fee reductions
1138	or waivers shall be approved on the basis of fiscal hardship or
1139	environmental need for a particular project or activity. The
1140	governing body must certify that the cost of the permit
1141	processing fee is a fiscal hardship due to one of the following
1142	factors:
1143	(1)  Per capita taxable value is less than the statewide
1144	average for the current fiscal year;
1145	(2)  Percentage of assessed property value that is exempt
1146	from ad valorem taxation is higher than the statewide average
1147	for the current fiscal year;
1148	(3)  Any condition specified in s. 218.503(1) that results
1149	in the county or municipality being in s. 218.503, that
1150	determines a state of financial emergency;
1151	(4)  Ad valorem operating millage rate for the current
1152	fiscal year is greater than 8 mills; or
1153	(5)  A financial condition that is documented in annual
1154	financial statements at the end of the current fiscal year and
1155	indicates an inability to pay the permit processing fee during
1156	that fiscal year.
1157
1158	The permit applicant must be the governing body of a county or
1159	municipality or a third party under contract with a county or
1160	municipality and the project for which the fee reduction or
1161	waiver is sought must serve a public purpose. If a permit
1162	processing fee is reduced, the total fee shall not exceed $100.
1163	Section 26.  Subsection (3) is added to section 218.32,
1164	Florida Statutes, to read:
1165	218.32  Annual financial reports; local governmental
1166	entities.--
1167	(3)  The department shall notify the President of the
1168	Senate and the Speaker of the House of Representatives of any
1169	municipality that has not reported any financial activity for
1170	the last 4 fiscal years. Such notice must be sufficient to
1171	initiate dissolution procedures as described in s.
1172	165.051(1)(a). Any special law authorizing the incorporation or
1173	creation of the municipality must be included within the
1174	notification.
1175	Section 27.  Section 218.321, Florida Statutes, is
1176	repealed.
1177	Section 28.  Subsection (3) of section 218.36, Florida
1178	Statutes, is amended to read:
1179	218.36  County officers; record and report of fees and
1180	disposition of same.--
1181	(3)  The board of county commissioners may shall, on the
1182	32nd day following the close of the fiscal year, notify the
1183	Governor of the failure of any county officer to comply with the
1184	provisions of this section.  Such notification shall specify the
1185	name of the officer and the office held by him or her at the
1186	time of such failure and shall subject said officer to
1187	suspension from office at the Governor's discretion.
1188	Section 29.  Subsection (3) of section 218.39, Florida
1189	Statutes, is amended to read:
1190	218.39  Annual financial audit reports.--
1191	(3)(a)  A dependent special district may make provision for
1192	an annual financial audit by being included within the audit of
1193	another local governmental entity upon which it is dependent.
1194	An independent special district may not make provision for an
1195	annual financial audit by being included within the audit of
1196	another local governmental entity.
1197	(b)  A special district that is a component unit, as
1198	defined by generally accepted accounting principles, of a local
1199	governmental entity shall provide the local governmental entity,
1200	within a reasonable time period as established by the local
1201	governmental entity, with financial information necessary to
1202	comply with this section. The failure of a component unit to
1203	provide this financial information must be noted in the annual
1204	financial audit report of the local governmental entity.
1205	Section 30.  Section 218.369, Florida Statutes, is amended
1206	to read:
1207	218.369  Definitions applicable to ss. 218.37-218.386.--As
1208	used in this section and in ss. 218.37, 218.38, 218.385, and
1209	218.386, the term "unit of local government," except where
1210	exception is made, means a county, municipality, special
1211	district, district school board, local agency, authority, or
1212	consolidated city-county government or any other local
1213	governmental body or public body corporate and politic
1214	authorized or created by general or special law and granted the
1215	power to issue general obligation or revenue bonds; and the
1216	words "general obligation or revenue bonds" shall be interpreted
1217	to include within their scope general obligation bonds, revenue
1218	bonds, special assessment bonds, limited revenue bonds, special
1219	obligation bonds, debentures, and other similar instruments, but
1220	not bond anticipation notes.
1221	Section 31.  Part V of chapter 218, Florida Statutes,
1222	entitled "Financial Emergencies" is renamed "Local Governmental
1223	Entity and District School Board Financial Emergencies."
1224	Section 32.  Section 218.50, Florida Statutes, is amended
1225	to read:
1226	218.50  Short title.--Sections 218.50-218.504 may be cited
1227	shall be known as the "Local Governmental Entity and District
1228	School Board Government Financial Emergencies Act."
1229	Section 33.  Section 218.501, Florida Statutes, is amended
1230	to read:
1231	218.501  Purposes.--The purposes of ss. 218.50-218.504 are:
1232	(1)  To promote preserve and protect the fiscal
1233	responsibility solvency of local governmental entities and
1234	district school boards.
1235	(2)  To assist local governmental entities and district
1236	school boards in providing essential services without
1237	interruption and in meeting their financial obligations.
1238	(3)  To assist local governmental entities and district
1239	school boards through the improvement of local financial
1240	management procedures.
1241	Section 34.  Section 218.502, Florida Statutes, is amended
1242	to read:
1243	218.502  Definition.--As used in ss. 218.50-218.504, the
1244	term "local governmental entity" means a county, municipality,
1245	or special district, or district school board.
1246	Section 35.  Section 218.503, Florida Statutes, is amended
1247	to read:
1248	218.503  Determination of financial emergency.--
1249	(1)  A Local governmental entities and district school
1250	boards shall be subject to review and oversight by the Governor
1251	or the Commissioner of Education entity is in a state of
1252	financial emergency when any one of the following conditions
1253	occurs:
1254	(a)  Failure within the same fiscal year in which due to
1255	pay short-term loans from banks or failure to make bond debt
1256	service or other long-term debt payments when due, as a result
1257	of a lack of funds.
1258	(b)  Failure to pay uncontested claims from creditors
1259	within 90 days after the claim is presented, as a result of a
1260	lack of funds.
1261	(c)(b)  Failure to transfer at the appropriate time, due to
1262	lack of funds:
1263	1.  Taxes withheld on the income of employees; or
1264	2.  Employer and employee contributions for:
1265	a.  Federal social security; or
1266	b.  Any pension, retirement, or benefit plan of an
1267	employee.
1268	(d)(c)  Failure for one pay period to pay, due to lack of
1269	funds:
1270	1.  Wages and salaries owed to employees; or
1271	2.  Retirement benefits owed to former employees.
1272	(e)(d)  An unreserved or total fund balance or retained
1273	earnings deficit, or unrestricted or total net assets deficit,
1274	as reported on the balance sheet or statement of net assets on
1275	the general purpose or fund financial statements, for which
1276	sufficient resources of the local governmental entity, as
1277	reported on the balance sheet or statement of net assets on the
1278	general purpose or fund financial statements, are not available
1279	to cover the deficit for 2 successive years. Resources available
1280	to cover reported deficits include net assets that are not
1281	otherwise restricted by federal, state, or local laws, bond
1282	covenants, contractual agreements, or other legal constraints.
1283	Fixed or capital assets, the disposal of which would impair the
1284	ability of a local governmental entity to carry out its
1285	functions, are not considered resources available to cover
1286	reported deficits.
1287	(e)  Noncompliance of the local government retirement
1288	system with actuarial conditions provided by law.
1289	(2)  A local governmental entity shall notify the Governor
1290	and the Legislative Auditing Committee, and a district school
1291	board shall notify the Commissioner of Education and the
1292	Legislative Auditing Committee, when one or more of the
1293	conditions specified in subsection (1) have occurred or will
1294	occur if action is not taken to assist the local governmental
1295	entity or the district school board.  In addition, any state
1296	agency must, within 30 days after a determination that one or
1297	more of the conditions specified in subsection (1) have occurred
1298	or will occur if action is not taken to assist the local
1299	governmental entity or the district school board the
1300	identification of the financial emergency, notify the Governor
1301	or the Commissioner of Education, as appropriate, and the
1302	Legislative Auditing Committee when one or more of the
1303	conditions specified in subsection (1) have occurred or will
1304	occur if action is not taken to assist a local governmental
1305	entity.
1306	(3)  Upon notification that one or more of the conditions
1307	in subsection (1) exist, the Governor or his or her designee
1308	shall contact the local governmental entity or the Commissioner
1309	of Education or his or her designee shall contact the district
1310	school board to determine what actions have been taken by the
1311	local governmental entity or the district school board to
1312	resolve the condition financial emergency. The Governor or the
1313	Commissioner of Education, as appropriate, shall determine
1314	whether the local governmental entity or the district school
1315	board needs state assistance to resolve the condition. If state
1316	assistance is needed, the local governmental entity or the
1317	district school board is considered to be in a state of
1318	financial emergency. The Governor or the Commissioner of
1319	Education, as appropriate, has the authority to implement
1320	measures as set forth in ss. 218.50-218.504 to assist the local
1321	governmental entity or the district school board in resolving
1322	resolve the financial emergency.  Such measures may include, but
1323	are not limited to:
1324	(a)  Requiring approval of the local governmental entity's
1325	budget by the Governor or approval of the district school
1326	board's budget by the Commissioner of Education.
1327	(b)  Authorizing a state loan to a the local governmental
1328	entity and providing for repayment of same.
1329	(c)  Prohibiting a local governmental entity or a district
1330	school board from issuing bonds, notes, certificates of
1331	indebtedness, or any other form of debt until such time as it is
1332	no longer subject to this section.
1333	(d)  Making such inspections and reviews of records,
1334	information, reports, and assets of the local governmental
1335	entity or the district school board. The appropriate local
1336	officials shall cooperate in such, in which inspections and
1337	reviews the appropriate local officials shall cooperate.
1338	(e)  Consulting with the officials and auditors of the
1339	local governmental entity or the district school board and the
1340	appropriate state officials agency regarding any steps necessary
1341	to bring the books of account, accounting systems, financial
1342	procedures, and reports into compliance with state requirements.
1343	(f)  Providing technical assistance to the local
1344	governmental entity or the district school board.
1345	(g)1.  Establishing a financial emergency emergencies board
1346	to oversee the activities of the local governmental entity or
1347	the district school board. If a financial emergency The board
1348	is, if established for a local governmental entity, shall be
1349	appointed by the Governor shall appoint board members and select
1350	a chair. If a financial emergency board is established for a
1351	district school board, the State Board of Education shall
1352	appoint board members and select a chair. The Governor shall
1353	select a chair and such other officers as are necessary. The
1354	financial emergency board shall adopt such rules as are
1355	necessary for conducting board business. The board may:
1356	a.  Make such reviews of records, reports, and assets of
1357	the local governmental entity or the district school board as
1358	are needed.
1359	b.  Consult with the officials and auditors of the local
1360	governmental entity or the district school board and the
1361	appropriate state officials regarding any steps necessary to
1362	bring the books of account, accounting systems, financial
1363	procedures, and reports of the local governmental entity or the
1364	district school board into compliance with state requirements.
1365	c.  Review the operations, management, efficiency,
1366	productivity, and financing of functions and operations of the
1367	local governmental entity or the district school board.
1368	2.  The recommendations and reports made by the financial
1369	emergency board must be submitted to the Governor for local
1370	governmental entities or to the Commissioner of Education and
1371	the State Board of Education for district school boards for
1372	appropriate action.
1373	(h)  Requiring and approving a plan, to be prepared by
1374	officials of the appropriate state agency in conjunction with
1375	the local governmental entity or the district school board in
1376	consultation with the appropriate state officials, prescribing
1377	actions that will cause the local governmental entity or the
1378	district school board to no longer be subject to this section.
1379	The plan must include, but need not be limited to:
1380	1.  Provision for payment in full of obligations outlined
1381	in subsection (1), designated as priority items, that are
1382	currently all payments due or will to come due on debt
1383	obligations, pension payments, and all payments and charges
1384	imposed or mandated by federal or state law and for all
1385	judgments and past due accounts, as priority items of
1386	expenditures.
1387	2.  Establishment of a basis of priority budgeting or zero-
1388	based budgeting in order, so as to eliminate low-priority items
1389	that are not affordable.
1390	3.  The prohibition of a level of operations which can be
1391	sustained only with nonrecurring revenues.
1392	(4)  A During the financial emergency period, the local
1393	governmental entity or a district school board may not seek
1394	application of laws under the bankruptcy provisions of the
1395	United States Constitution except with the prior approval of the
1396	Governor for local governmental entities or the Commissioner of
1397	Education for district school boards.
1398	(5)(a)  The governing authority of any municipality having
1399	a resident population of 300,000 or more on or after April 1,
1400	1999, which has been declared in a state of financial emergency
1401	pursuant to this section may impose a discretionary per-vehicle
1402	surcharge of up to 20 percent on the gross revenues of the sale,
1403	lease, or rental of space at parking facilities within the
1404	municipality which are open for use to the general public.
1405	(b)  A municipal governing authority that imposes the
1406	surcharge authorized by this subsection may use the proceeds of
1407	such surcharge for the following purposes only:
1408	1.  No less than 60 percent and no more than 80 percent of
1409	the surcharge proceeds shall be used by the governing authority
1410	to reduce its ad valorem tax millage rate or to reduce or
1411	eliminate non-ad valorem assessments.
1412	2.  A portion of the balance of the surcharge proceeds
1413	shall be used by the governing authority to increase its budget
1414	reserves; however, the governing authority shall not reduce the
1415	amount it allocates for budget reserves from other sources below
1416	the amount allocated for reserves in the fiscal year prior to
1417	the year in which the surcharge is initially imposed. When a 15-
1418	percent budget reserve is achieved, based on the average gross
1419	revenue for the most recent 3 prior fiscal years, the remaining
1420	proceeds from this subparagraph shall be used for the payment of
1421	annual debt service related to outstanding obligations backed or
1422	secured by a covenant to budget and appropriate from non-ad
1423	valorem revenues.
1424	(c)  This subsection expires June 30, 2006.
1425	Section 36.  Section 218.504, Florida Statutes, is amended
1426	to read:
1427	218.504  Cessation of state action.--The Governor or the
1428	Commissioner of Education, as appropriate, has the authority to
1429	terminate all state actions pursuant to ss. 218.50-218.504.
1430	Cessation of state action must not occur until the Governor or
1431	the Commissioner of Education, as appropriate, has determined
1432	that:
1433	(1)  The local governmental entity or the district school
1434	board:
1435	(a)  Has established and is operating an effective
1436	financial accounting and reporting system.
1437	(b)  Has resolved corrected or eliminated the fiscal
1438	emergency conditions outlined in s. 218.503(1).
1439	(2)  None of the No new fiscal emergency conditions
1440	outlined in s. 218.503(1) exists exist.
1441	Section 37.  Chapter 131, Florida Statutes, consisting of
1442	sections 131.01, 131.02, 131.03, 131.04, 131.05, and 131.06,
1443	Florida Statutes, is repealed.
1444	Section 38.  Section 132.10, Florida Statutes, is repealed.
1445	Section 39.  Section 165.052, Florida Statutes, is
1446	repealed.
1447	Section 40.  Section 189.409, Florida Statutes, is
1448	repealed.
1449	Section 41.  Section 189.422, Florida Statutes, is
1450	repealed.
1451	Section 42.  Section 200.0684, Florida Statutes, is
1452	repealed.
1453	Section 43.  Paragraph (h) of subsection (1) of section
1454	218.37, Florida Statutes, is repealed.
1455	Section 44.  Section 215.195, Florida Statutes, is amended
1456	to read:
1457	215.195  Agency deposits relating to the Statewide Cost
1458	Allocation Plan.--
1459	(1)  APPLICATION FOR ALLOCABLE STATEWIDE OVERHEAD.-Each
1460	state agency, and the judicial branch, making application for
1461	federal grant or contract funds shall, in accordance with the
1462	Statewide Cost Allocation Plan, include in its application a
1463	prorated share of the cost of services provided by state central
1464	service agencies which are reimbursable to the state pursuant to
1465	the provisions of Office of Management and Budget Circular A-87.
1466	Preparation of the plan and coordination thereof with all
1467	applicable parties is the responsibility of the Department of
1468	Financial Services. The Department of Financial Services shall
1469	ensure that the plan presents the most favorable allocation of
1470	such costs allowable to the state by the Federal Government.
1471	(2)  DEPOSIT OF OVERHEAD IN THE GENERAL REVENUE FUND.-If an
1472	application for federal grant or contract funds is approved, the
1473	state agency or judicial branch receiving the federal grant or
1474	contract shall identify that portion representing reimbursement
1475	of allocable statewide overhead and deposit that amount into the
1476	General Revenue Fund unallocated as directed by the Department
1477	of Financial Services Executive Office of the Governor. The
1478	Department of Financial Services shall be responsible for
1479	monitoring agency compliance with this section.
1480	Section 45.  Section 215.97, Florida Statutes, is amended
1481	to read:
1482	215.97  Florida Single Audit Act.--
1483	(1)  The purposes of the section are to:
1484	(a)  Establish uniform state audit requirements for state
1485	financial assistance provided by state agencies to nonstate
1486	entities to carry out state projects.
1487	(b)  Promote sound financial management, including
1488	effective internal controls, with respect to state financial
1489	assistance administered by nonstate entities.
1490	(c)  Promote audit economy and efficiency by relying to the
1491	extent possible on already required audits of federal financial
1492	assistance provided to nonstate entities.
1493	(d)  Provide for identification of state financial
1494	assistance transactions in the appropriations act, state
1495	accounting records, and recipient organization records.
1496	(e)  Promote improved coordination and cooperation within
1497	and between affected state agencies providing state financial
1498	assistance and nonstate entities receiving state assistance.
1499	(f)  Ensure, to the maximum extent possible, that state
1500	agencies monitor, use, and follow up followup on audits of state
1501	financial assistance provided to nonstate entities.
1502	(2)  Definitions; as used in this section, the term:
1503	(a)  "Audit threshold" means the threshold amount used to
1504	determine to use in determining when a state single audit or
1505	project-specific audit of a nonstate entity shall be conducted
1506	in accordance with this section. Each nonstate entity that
1507	expends a total amount of state financial assistance equal to or
1508	in excess of $300,000 in any fiscal year of such nonstate entity
1509	shall be required to have a state single audit, or a project-
1510	specific audit performed by an independent auditor, for such
1511	fiscal year in accordance with the requirements of this section.
1512	Every 2 years the Auditor General, after consulting with the
1513	Executive Office of the Governor, the Department of Financial
1514	Services Chief Financial Officer, and all state awarding
1515	agencies that provide state financial assistance to nonstate
1516	entities, shall review the threshold amount for requiring audits
1517	under this section and may adjust such threshold dollar amount
1518	consistent with the purposes purpose of this section.
1519	(b)  "Auditing standards" means the auditing standards as
1520	stated in the rules of the Auditor General as applicable to for-
1521	profit organizations, nonprofit organizations, or local
1522	governmental entities.
1523	(c)  "Catalog of State Financial Assistance" means a
1524	comprehensive listing of state projects. The Catalog of State
1525	Financial Assistance shall be issued by the Department of
1526	Financial Services Executive Office of the Governor after
1527	conferring with the Chief Financial Officer and all state
1528	awarding agencies that provide state financial assistance to
1529	nonstate entities. The Catalog of State Financial Assistance
1530	shall include for each listed state project: the responsible
1531	state awarding agency; standard state project number identifier;
1532	official title; legal authorization; and description of the
1533	state project, including objectives, restrictions, application
1534	and awarding procedures, and other relevant information
1535	determined necessary.
1536	(d)  "Coordinating agency" means the state awarding agency
1537	that provides the predominant amount of state financial
1538	assistance expended by a recipient, as determined by the
1539	recipient's Schedule of Expenditures of State Financial
1540	Assistance. To provide continuity, the determination of the
1541	predominant amount of state financial assistance shall be based
1542	upon state financial assistance expended in the recipient's
1543	fiscal years ending in 2004, 2007, and 2010, and every third
1544	year thereafter.
1545	(e)(d)  "Financial reporting package" means the nonstate
1546	entities' financial statements, Schedule of Expenditures of
1547	State Financial Assistance, auditor's reports, management
1548	letter, auditee's written responses or corrective action plan,
1549	correspondence on followup of prior years' corrective actions
1550	taken, and such other information determined by the Auditor
1551	General to be necessary and consistent with the purposes of this
1552	section.
1553	(f)(e)  "Federal financial assistance" means financial
1554	assistance from federal sources passed through the state and
1555	provided to nonstate organizations entities to carry out a
1556	federal program. "Federal financial assistance" includes all
1557	types of federal assistance as defined in applicable United
1558	States Office of Management and Budget circulars.
1559	(g)(f)  "For-profit organization" means any organization or
1560	sole proprietor but is not a local governmental entity or a
1561	nonprofit organization.
1562	(h)(g)  "Independent auditor" means an independent external
1563	state or local government auditor or a certified public
1564	accountant licensed under chapter 473 who meets the independence
1565	standards.
1566	(i)(h)  "Internal control over state projects" means a
1567	process, effected by a nonstate an entity's management and other
1568	personnel, designed to provide reasonable assurance regarding
1569	the achievement of objectives in the following categories:
1570	1.  Effectiveness and efficiency of operations.
1571	2.  Reliability of financial operations.
1572	3.  Compliance with applicable laws and regulations.
1573	(j)(i)  "Local governmental entity" means a county agency,
1574	municipality, or special district or any other entity excluding
1575	(other than a district school board, charter school, or
1576	community college), or public university, however styled, which
1577	independently exercises any type of governmental function within
1578	the state.
1579	(k)(j)  "Major state project" means any state project
1580	meeting the criteria as stated in the rules of the Department of
1581	Financial Services Executive Office of the Governor. Such
1582	criteria shall be established after consultation with all the
1583	Chief Financial Officer and appropriate state awarding agencies
1584	that provide state financial assistance and shall consider the
1585	amount of state project expenditures and or expenses or inherent
1586	risks. Each major state project shall be audited in accordance
1587	with the requirements of this section.
1588	(l)(k)  "Nonprofit organization" means any corporation,
1589	trust, association, cooperative, or other organization that:
1590	1.  Is operated primarily for scientific, educational
1591	service, charitable, or similar purpose in the public interest;
1592	2.  Is not organized primarily for profit;
1593	3.  Uses net proceeds to maintain, improve, or expand the
1594	operations of the organization; and
1595	4.  Has no part of its income or profit distributable to
1596	its members, directors, or officers.
1597	(m)(l)  "Nonstate entity" means a local governmental
1598	entity, nonprofit organization, or for-profit organization that
1599	receives state financial assistance resources.
1600	(n)(m)  "Recipient" means a nonstate entity that receives
1601	state financial assistance directly from a state awarding
1602	agency.
1603	(o)(n)  "Schedule of Expenditures of State Financial
1604	Assistance" means a document prepared in accordance with the
1605	rules of the Department of Financial Services Chief Financial
1606	Officer and included in each financial reporting package
1607	required by this section.
1608	(p)(o)  "State awarding agency" means a the state agency,
1609	as defined in s. 216.011, that provides provided state financial
1610	assistance to a the nonstate entity.
1611	(q)(p)  "State financial assistance" means financial
1612	assistance from state resources, not including federal financial
1613	assistance and state matching funds for federal programs,
1614	provided to a nonstate entity entities to carry out a state
1615	project. "State financial assistance" includes the all types of
1616	state resources assistance as stated in the rules of the
1617	Department of Financial Services Executive Office of the
1618	Governor established in consultation with all the Chief
1619	Financial Officer and appropriate state awarding agencies that
1620	provide state financial assistance. It includes State financial
1621	assistance may be provided directly by state awarding agencies
1622	or indirectly by nonstate entities recipients of state awards or
1623	subrecipients. State financial assistance It does not include
1624	procurement contracts used to buy goods or services from vendors
1625	and. Audits of such procurement contracts with vendors are
1626	outside of the scope of this section. Also, audits of contracts
1627	to operate state-owned state-government-owned and contractor-
1628	operated facilities are excluded from the audit requirements of
1629	this section.
1630	(r)(q)  "State matching" means state resources provided to
1631	a nonstate entity entities to be used to meet federal financial
1632	participation matching requirements of federal programs.
1633	(s)  "State program" means a set of special purpose
1634	activities undertaken to realize identifiable goals and
1635	objectives in order to achieve a state agency's mission and
1636	legislative intent requiring accountability for state resources.
1637	(t)(r)  "State project" means a state program that provides
1638	all state financial assistance to a nonstate organization and
1639	that must be entity assigned a single state project number
1640	identifier in the Catalog of State Financial Assistance.
1641	(u)(s)  "State Projects Compliance Supplement" means a
1642	document issued by the Department of Financial Services
1643	Executive Office of the Governor, in consultation with the Chief
1644	Financial Officer and all state awarding agencies that provide
1645	state financial assistance. The State Projects Compliance
1646	Supplement shall identify state projects, the significant
1647	compliance requirements, eligibility requirements, matching
1648	requirements, suggested audit procedures, and other relevant
1649	information determined necessary.
1650	(v)(t)  "State project-specific audit" means an audit of
1651	one state project performed in accordance with the requirements
1652	of subsection (10) (9).
1653	(w)(u)  "State single audit" means an audit of a nonstate
1654	entity's financial statements and state financial assistance.
1655	Such audits shall be conducted in accordance with the auditing
1656	standards as stated in the rules of the Auditor General.
1657	(x)(v)  "Subrecipient" means a nonstate entity that
1658	receives state financial assistance through another nonstate
1659	entity.
1660	(y)(w)  "Vendor" means a dealer, distributor, merchant, or
1661	other seller providing goods or services that are required for
1662	the conduct of a state project. These goods or services may be
1663	for an organization's own use or for the use of beneficiaries of
1664	the state project.
1665	(3)  The Executive Office of the Governor shall be
1666	responsible for notifying the Department of Financial Services
1667	of any actions during the budgetary process which impact the
1668	Catalog of State Financial Assistance.:
1669	(a)  Upon conferring with the Chief Financial Officer and
1670	all state awarding agencies, adopt rules necessary to provide
1671	appropriate guidance to state awarding agencies, recipients and
1672	subrecipients, and independent auditors of state financial
1673	assistance relating to the requirements of this section,
1674	including:
1675	1.  The types or classes of financial assistance considered
1676	to be state financial assistance which would be subject to the
1677	requirements of this section. This would include guidance to
1678	assist in identifying when the state agency or recipient has
1679	contracted with a vendor rather than with a recipient or
1680	subrecipient.
1681	2.  The criteria for identifying a major state project.
1682	3.  The criteria for selecting state projects for audits
1683	based on inherent risk.
1684	(b)  Be responsible for coordinating the initial
1685	preparation and subsequent revisions of the Catalog of State
1686	Financial Assistance after consultation with the Chief Financial
1687	Officer and all state awarding agencies.
1688	(c)  Be responsible for coordinating the initial
1689	preparation and subsequent revisions of the State Projects
1690	Compliance Supplement, after consultation with the Chief
1691	Financial Officer and all state awarding agencies.
1692	(4)  The Department of Financial Services Chief Financial
1693	Officer shall:
1694	(a)  Upon conferring with the Executive Office of the
1695	Governor and all state awarding agencies, adopt rules necessary
1696	to provide appropriate guidance to state awarding agencies,
1697	nonstate entities, and independent auditors of state financial
1698	assistance relating to the requirements of this section,
1699	including:
1700	1.  The types or classes of state resources considered to
1701	be state financial assistance that would be subject to the
1702	requirements of this section. This would include guidance to
1703	assist in identifying when the state awarding agency or a
1704	nonstate entity has contracted with a vendor rather than with a
1705	recipient or subrecipient.
1706	2.  The criteria for identifying a major state project.
1707	3.  The criteria for selecting state projects for audits
1708	based on inherent risk.
1709	(b)  Be responsible for coordinating revisions to the
1710	Catalog of State Financial Assistance after consultation with
1711	the Executive Office of the Governor and all state awarding
1712	agencies.
1713	(c)  Be responsible for coordinating with the Executive
1714	Office of the Governor actions affecting the budgetary process
1715	under paragraph (b).
1716	(d)  Be responsible for coordinating revisions to the State
1717	Projects Compliance Supplement, after consultation with the
1718	Executive Office of the Governor and all state awarding
1719	agencies.
1720	(e)(a)  Make enhancements to the state's accounting system
1721	to provide for the:
1722	1.  Recording of state financial assistance and federal
1723	financial assistance appropriations and expenditures within the
1724	state awarding agencies' operating funds.
1725	2.  Recording of state project number identifiers, as
1726	provided in the Catalog of State Financial Assistance, for state
1727	financial assistance.
1728	3.  Establishment and recording of an identification code
1729	for each financial transaction, including awarding state
1730	agencies' disbursements of state financial assistance and
1731	federal financial assistance, as to the corresponding type or
1732	organization that is party to the transaction (e.g., other
1733	governmental agencies, nonprofit organizations, and for-profit
1734	organizations), and disbursements of federal financial
1735	assistance, as to whether the party to the transaction is or is
1736	not a nonstate entity recipient or subrecipient.
1737	(f)(b)  Upon conferring with the Executive Office of the
1738	Governor and all state awarding agencies, adopt rules necessary
1739	to provide appropriate guidance to state awarding agencies,
1740	nonstate entities recipients and subrecipients, and independent
1741	auditors of state financial assistance relating to the format
1742	for the Schedule of Expenditures of State Financial Assistance.
1743	(g)(c)  Perform any inspections, reviews, investigations,
1744	or audits of state financial assistance considered necessary in
1745	carrying out the Department of Financial Services Chief
1746	Financial Officer's legal responsibilities for state financial
1747	assistance or to comply with the requirements of this section.
1748	(5)  Each state awarding agency shall:
1749	(a)  Provide to each a recipient information needed by the
1750	recipient to comply with the requirements of this section,
1751	including:
1752	1.  The audit and accountability requirements for state
1753	projects as stated in this section and applicable rules of the
1754	Executive Office of the Governor, rules of the Department of
1755	Financial Services Chief Financial Officer, and rules of the
1756	Auditor General.
1757	2.  Information from the Catalog of State Financial
1758	Assistance, including the standard state project number
1759	identifier; official title; legal authorization; and description
1760	of the state project including objectives, restrictions, and
1761	other relevant information determined necessary.
1762	3.  Information from the State Projects Compliance
1763	Supplement, including the significant compliance requirements,
1764	eligibility requirements, matching requirements, suggested audit
1765	procedures, and other relevant information determined necessary.
1766	(b)  Require the recipient, as a condition of receiving
1767	state financial assistance, to allow the state awarding agency,
1768	the Department of Financial Services Chief Financial Officer,
1769	and the Auditor General access to the recipient's records and
1770	the recipient's independent auditor's working papers as
1771	necessary for complying with the requirements of this section.
1772	(c)  Notify the recipient that this section does not limit
1773	the authority of the state awarding agency to conduct or arrange
1774	for the conduct of additional audits or evaluations of state
1775	financial assistance or limit the authority of any state
1776	awarding agency inspector general, the Auditor General, or any
1777	other state official.
1778	(d)  Be provided one copy of each financial reporting
1779	package prepared in accordance with the requirement of this
1780	section.
1781	(e)  Review the recipient's recipient financial reporting
1782	package, including the management letters and corrective action
1783	plans, to the extent necessary to determine whether timely and
1784	appropriate corrective action has been taken with respect to
1785	audit findings and recommendations pertaining to state financial
1786	assistance that are specific to provided by the state awarding
1787	agency.
1788	(f)  Designate within the state awarding agency a division,
1789	bureau, or other organizational unit that will be responsible
1790	for reviewing financial reporting packages pursuant to paragraph
1791	(e).
1792
1793	If the state awarding agency is not the coordinating agency as
1794	defined in paragraph (2)(d), the state awarding agency's
1795	designated division, bureau, or other organizational unit shall
1796	communicate to the coordinating agency the state awarding
1797	agency's approval of the recipient's corrective action plan with
1798	respect to findings and recommendations that are not specific to
1799	the state awarding agency.
1800	(6)  Each coordinating agency shall:
1801	(a)  Review the recipient's financial reporting package,
1802	including the management letter and corrective action plan, to
1803	identify audit findings and recommendations that affect state
1804	financial assistance and that are not specific to a particular
1805	state awarding agency.
1806	(b)  For any such findings and recommendations determine:
1807	1.  Whether timely and appropriate corrective action has
1808	been taken.
1809	2.  Promptly inform the state awarding agency's contact, as
1810	provided in paragraph (5)(f), of actions taken by the recipient
1811	to comply with the approved corrective action plan.
1812	(c)  Maintain records of followup actions taken for the use
1813	of any succeeding coordinating agency.
1814	(7)(6)  As a condition of receiving state financial
1815	assistance, each nonstate entity recipient that provides state
1816	financial assistance to a subrecipient shall:
1817	(a)  Provide to each a subrecipient information needed by
1818	the subrecipient to comply with the requirements of this
1819	section, including:
1820	1.  Identification of the state awarding agency.
1821	2.  The audit and accountability requirements for state
1822	projects as stated in this section and applicable rules of the
1823	Executive Office of the Governor, rules of the Department of
1824	Financial Services Chief Financial Officer, and rules of the
1825	Auditor General.
1826	3.  Information from the Catalog of State Financial
1827	Assistance, including the standard state project number
1828	identifier; official title; legal authorization; and description
1829	of the state project, including objectives, restrictions, and
1830	other relevant information.
1831	4.  Information from the State Projects Compliance
1832	Supplement including the significant compliance requirements,
1833	eligibility requirements, matching requirements, and suggested
1834	audit procedures, and other relevant information determined
1835	necessary.
1836	(b)  Review the financial reporting package of the
1837	subrecipient audit reports, including the management letter and
1838	corrective action plan letters, to the extent necessary to
1839	determine whether timely and appropriate corrective action has
1840	been taken with respect to audit findings and recommendations
1841	pertaining to state financial assistance provided by a the state
1842	awarding agency or a nonstate entity.
1843	(c)  Perform any such other procedures as specified in
1844	terms and conditions of the written agreement with the state
1845	awarding agency or the nonstate entity, including any required
1846	monitoring of the subrecipient's use of state financial
1847	assistance through onsite visits, limited scope audits, or other
1848	specified procedures.
1849	(d)  Require subrecipients, as a condition of receiving
1850	state financial assistance, to permit the independent auditor of
1851	the nonstate entity recipient, the state awarding agency, the
1852	Department of Financial Services the Chief Financial Officer,
1853	and the Auditor General access to the subrecipient's records and
1854	the subrecipient's independent auditor's working papers as
1855	necessary to comply with the requirements of this section.
1856	(8)(7)  Each recipient or subrecipient of state financial
1857	assistance shall comply with the following:
1858	(a)  Each nonstate entity that receives state financial
1859	assistance and meets the audit threshold requirements, in any
1860	fiscal year of the nonstate entity, as stated in the rules of
1861	the Auditor General, shall have a state single audit conducted
1862	for such fiscal year in accordance with the requirements of this
1863	act and with additional requirements established in rules of the
1864	Executive Office of the Governor, rules of the Department of
1865	Financial Services Chief Financial Officer, and rules of the
1866	Auditor General. If only one state project is involved in a
1867	nonstate entity's fiscal year, the nonstate entity may elect to
1868	have only a state project-specific audit of the state project
1869	for that fiscal year.
1870	(b)  Each nonstate entity that receives state financial
1871	assistance and does not meet the audit threshold requirements,
1872	in any fiscal year of the nonstate entity, as stated in this law
1873	or the rules of the Auditor General is exempt for such fiscal
1874	year from the state single audit requirements of this section.
1875	However, such nonstate entity must meet terms and conditions
1876	specified in the written agreement with the state awarding
1877	agency or the nonstate entity.
1878	(c)  Regardless of the amount of the state financial
1879	assistance, the provisions of this section do not exempt a
1880	nonstate entity from compliance with provisions of law relating
1881	to maintaining records concerning state financial assistance to
1882	such nonstate entity or allowing access and examination of those
1883	records by the state awarding agency, the nonstate entity, the
1884	Department of Financial Services Chief Financial Officer, or the
1885	Auditor General.
1886	(d)  Audits conducted pursuant to this section shall be
1887	performed annually.
1888	(e)  Audits conducted pursuant to this section shall be
1889	conducted by independent auditors in accordance with auditing
1890	standards as stated in rules of the Auditor General.
1891	(f)  Upon completion of the audit as required by this
1892	section, a copy of the recipient's financial reporting package
1893	shall be filed with the state awarding agency and the Auditor
1894	General. Upon completion of the audit as required by this
1895	section, a copy of the subrecipient's financial reporting
1896	package shall be filed with the nonstate entity recipient that
1897	provided the state financial assistance and the Auditor General.
1898	The financial reporting package shall be filed in accordance
1899	with the rules of the Auditor General.
1900	(g)  All financial reporting packages prepared pursuant to
1901	the requirements of this section shall be available for public
1902	inspection.
1903	(h)  If an audit conducted pursuant to this section
1904	discloses any significant audit findings relating to state
1905	financial assistance, including material noncompliance with
1906	individual state project compliance requirements or reportable
1907	conditions in internal controls of the nonstate entity, the
1908	nonstate entity shall submit as part of the financial reporting
1909	audit package to the state awarding agency or the nonstate
1910	entity a plan for corrective action to eliminate such audit
1911	findings or a statement describing the reasons that corrective
1912	action is not necessary.
1913	(i)  An audit conducted in accordance with this section is
1914	in addition to any audit of federal awards required by the
1915	federal Single Audit Act and other federal laws and regulations.
1916	To the extent that such federally required audits provide the
1917	state awarding agency or the nonstate entity with information it
1918	requires to carry out its responsibilities under state law or
1919	other guidance, the a state awarding agency or the nonstate
1920	entity shall rely upon and use that information.
1921	(j)  Unless prohibited by law, the costs cost of audits
1922	pursuant to this section are is allowable charges to state
1923	projects. However, any charges to state projects should be
1924	limited to those incremental costs incurred as a result of the
1925	audit requirements of this section in relation to other audit
1926	requirements. The nonstate entity should allocate such
1927	incremental costs to all state projects for which it expended
1928	state financial assistance.
1929	(k)  Audit costs may not be charged to state projects when
1930	audits required by this section have not been made or have been
1931	made but not in accordance with this section. If a nonstate
1932	entity fails to have an audit conducted consistent with this
1933	section, a state awarding agency or a nonstate entity agencies
1934	may take appropriate corrective action to enforce compliance.
1935	(l)  This section does not prohibit the state awarding
1936	agency or the nonstate entity from including terms and
1937	conditions in the written agreement which require additional
1938	assurances that state financial assistance meets the applicable
1939	requirements of laws, regulations, and other compliance rules.
1940	(m)  A state awarding agency or a nonstate entity that
1941	provides state financial assistance to nonstate entities and
1942	conducts or arranges for audits of state financial assistance
1943	that are in addition to the audits conducted under this act,
1944	including audits of nonstate entities that do not meet the audit
1945	threshold requirements, shall, consistent with other applicable
1946	law, arrange for funding the full cost of such additional
1947	audits.
1948	(9)(8)  The independent auditor when conducting a state
1949	single audit of a nonstate entity recipients or subrecipients
1950	shall:
1951	(a)  Determine whether the nonstate entity's financial
1952	statements are presented fairly in all material respects in
1953	conformity with generally accepted accounting principles.
1954	(b)  Determine whether state financial assistance shown on
1955	the Schedule of Expenditures of State Financial Assistance is
1956	presented fairly in all material respects in relation to the
1957	nonstate entity's financial statements taken as a whole.
1958	(c)  With respect to internal controls pertaining to each
1959	major state project:
1960	1.  Obtain an understanding of internal controls;
1961	2.  Assess control risk;
1962	3.  Perform tests of controls unless the controls are
1963	deemed to be ineffective; and
1964	4.  Determine whether the nonstate entity has internal
1965	controls in place to provide reasonable assurance of compliance
1966	with the provisions of laws and rules pertaining to state
1967	financial assistance that have a material effect on each major
1968	state project.
1969	(d)  Determine whether each major state project complied
1970	with the provisions of laws, rules, and guidelines as identified
1971	in the State Projects Compliance Supplement, or otherwise
1972	identified by the state awarding agency, which have a material
1973	effect on each major state project. When major state projects
1974	are less than 50 percent of the nonstate entity's total
1975	expenditures for all state financial assistance, the auditor
1976	shall select and test additional state projects as major state
1977	projects as necessary to achieve audit coverage of at least 50
1978	percent of the expenditures for all state financial assistance
1979	provided to the nonstate entity. Additional state projects
1980	needed to meet the 50-percent requirement may be selected on an
1981	inherent risk basis as stated in the rules of the Department of
1982	Financial Services Executive Office of the Governor.
1983	(e)  Report on the results of any audit conducted pursuant
1984	to this section in accordance with the rules of the Executive
1985	Office of the Governor, rules of the Department of Financial
1986	Services Chief Financial Officer, and rules of the Auditor
1987	General. Financial reporting packages must Audit reports shall
1988	include summaries of the auditor's results regarding the
1989	nonstate entity's financial statements; Schedule of Expenditures
1990	of State Financial Assistance; internal controls; and compliance
1991	with laws, rules, and guidelines.
1992	(f)  Issue a management letter as prescribed in the rules
1993	of the Auditor General.
1994	(g)  Upon notification by the nonstate entity, make
1995	available the working papers relating to the audit conducted
1996	pursuant to the requirements of this section to the state
1997	awarding agency, the Department of Financial Services Chief
1998	Financial Officer, or the Auditor General for review or copying.
1999	(10)(9)  The independent auditor, when conducting a state
2000	project-specific audit of a nonstate entity recipients or
2001	subrecipients, shall:
2002	(a)  Determine whether the nonstate entity's Schedule of
2003	Expenditure of State Financial Assistance is presented fairly in
2004	all material respects in conformity with stated accounting
2005	policies.
2006	(b)  Obtain an understanding of internal controls control
2007	and perform tests of internal controls control over the state
2008	project consistent with the requirements of a major state
2009	project.
2010	(c)  Determine whether or not the auditee has complied with
2011	applicable provisions of laws, rules, and guidelines as
2012	identified in the State Projects Compliance Supplement, or
2013	otherwise identified by the state awarding agency, which could
2014	have a direct and material effect on the state project.
2015	(d)  Report on the results of the a state project-specific
2016	audit consistent with the requirements of the state single audit
2017	and issue a management letter as prescribed in the rules of the
2018	Auditor General.
2019	(e)  Upon notification by the nonstate entity, make
2020	available the working papers relating to the audit conducted
2021	pursuant to the requirements of this section to the state
2022	awarding agency, the Department of Financial Services Chief
2023	Financial Officer, or the Auditor General for review or copying.
2024	(11)(10)  The Auditor General shall:
2025	(a)  Have the authority to audit state financial assistance
2026	provided to any nonstate entity when determined necessary by the
2027	Auditor General or when directed by the Legislative Auditing
2028	Committee.
2029	(b)  Adopt rules that state the auditing standards that
2030	independent auditors are to follow for audits of nonstate
2031	entities required by this section.
2032	(c)  Adopt rules that describe the contents and the filing
2033	deadlines for the financial reporting package.
2034	(d)  Provide technical advice upon request of the
2035	Department of Financial Services Chief Financial Officer,
2036	Executive Office of the Governor, and state awarding agencies
2037	relating to financial reporting and audit responsibilities
2038	contained in this section.
2039	(e)  Be provided one copy of each financial reporting
2040	package prepared in accordance with the requirements of this
2041	section.
2042	(f)  Perform ongoing reviews of a sample of financial
2043	reporting packages filed pursuant to the requirements of this
2044	section to determine compliance with the reporting requirements
2045	of this section and applicable rules of the Executive Office of
2046	the Governor, rules of the Department of Financial Services
2047	Chief Financial Officer, and rules of the Auditor General.
2048	Section 46.  Subsection (1) of section 288.9610, Florida
2049	Statutes, is amended to read:
2050	288.9610  Annual reports of Florida Development Finance
2051	Corporation.--By December 1 of each year, the Florida
2052	Development Finance Corporation shall submit to the Governor,
2053	the President of the Senate, the Speaker of the House of
2054	Representatives, the Senate Minority Leader, the House Minority
2055	Leader, and the city or county activating the Florida
2056	Development Finance Corporation a complete and detailed report
2057	setting forth:
2058	(1)  The evaluation required in s. 11.45(3)(j)(a)11.
2059	Section 47.  Section 373.556, Florida Statutes, is
2060	repealed.
2061	Section 48.  Section 1010.47, Florida Statutes, is amended
2062	to read:
2063	1010.47  Receiving bids and sale of bonds.--
2064	(1)  If the issuance of bonds is authorized at the
2065	election, or if any bonds outstanding against the district are
2066	being refunded, the district school board shall sell the bonds
2067	in the manner provided in s. 218.385. cause notice to be given
2068	by publication in some newspaper published in the district that
2069	the board will receive bids for the purchase of the bonds at the
2070	office of the district school superintendent. The notice shall
2071	be published twice, and the first publication shall be given not
2072	less than 30 days prior to the date set for receiving the bids.
2073	The notice shall specify the amount of the bonds offered for
2074	sale, shall state whether the bids shall be sealed bids or
2075	whether the bonds are to be sold at auction, and shall give the
2076	schedule of maturities of the proposed bonds and such other
2077	pertinent information as may be prescribed by rules of the State
2078	Board of Education. Bidders may be invited to name the rate of
2079	interest that the bonds are to bear or the district school board
2080	may name rates of interest and invite bids thereon. In addition
2081	to publication of notice of the proposed sale as set forth in
2082	this subsection, the district school board shall notify in
2083	writing at least three recognized bond dealers in the state,
2084	and, at the same time, notify the Department of Education
2085	concerning the proposed sale and enclose a copy of the
2086	advertisement.
2087	(2)  All bonds and refunding bonds issued as provided by
2088	law shall be sold to the highest and best bidder at such public
2089	sale unless sold at a better price or yield basis within 30 days
2090	after failure to receive an acceptable bid at a duly advertised
2091	public sale, provided that at no time shall bonds or refunding
2092	bonds be sold or exchanged at less than par value except as
2093	specifically authorized by the Department of Education; and
2094	provided, further, that the district school board shall have the
2095	right to reject all bids and cause a new notice to be given in
2096	like manner inviting other bids for such bonds, or to sell all
2097	or any part of such bonds to the State Board of Education at a
2098	price and yield basis that shall not be less advantageous to the
2099	district school board than that represented by the highest and
2100	best bid received. In the marketing of the bonds, the district
2101	school board shall be entitled to have such assistance as can be
2102	rendered by the Division of Bond Finance, the Commissioner of
2103	Education, or any other public state officer or agency. In
2104	determining the highest and best bidder for bonds offered for
2105	sale, the net interest cost to the school board as shown in
2106	standard bond tables shall govern, provided that the
2107	determination of the district school board as to the highest and
2108	best bidder shall be final.
2109	Section 49.  Effective July 1, 2004, one full-time
2110	equivalent position is transferred from the Executive Office of
2111	the Governor to the Department of Financial Services.
2112	Section 50.  This act shall take effect upon becoming a
2113	law.

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