Senate Bill sb2610

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    Florida Senate - 2005                                  SB 2610

    By Senator Carlton





    23-185C-05

  1                      A bill to be entitled

  2         An act relating to the management of state

  3         financial matters; amending s. 14.2015, F.S.;

  4         requiring the Office of Tourism, Trade, and

  5         Economic Development and the Florida Commission

  6         on Tourism to advise and consult with the

  7         Consensus Estimating Conference principals

  8         concerning certain duties; amending s. 45.062,

  9         F.S.; requiring that certain legislative

10         officers and the Attorney General receive prior

11         notice concerning settlement negotiations and

12         presettlement agreements or orders; specifying

13         that such notice is a condition precedent to an

14         agency's authority to enter into such an

15         agreement; providing certain exceptions;

16         requiring that moneys paid in settlement of a

17         legal action be placed unobligated into the

18         General Revenue Fund or an appropriate trust

19         fund; prohibiting payment outside the State

20         Treasury except in settlement of a personal

21         injury claim; requiring that certain

22         legislative officers and the Attorney General

23         receive prior notice concerning certain

24         settlements involving a state agency or

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

26         to a savings sharing program; correcting a

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

28         state agencies to use trust funds for specified

29         purposes, to the extent possible; authorizing

30         an agency to request the creation of a

31         necessary trust fund; revising requirements and

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 1         uses of the Working Capital Fund; amending s.

 2         215.5601, F.S., relating to the Lawton Chiles

 3         Endowment Fund; revising provisions governing

 4         appropriations to the fund; amending ss. 215.93

 5         and 215.94, F.S., relating to the Florida

 6         Financial Management Information System;

 7         revising duties of the Financial Management

 8         Information Board and the functional owners of

 9         the information subsystems; requiring the

10         Auditor General to provide technical advice;

11         amending s. 215.97, F.S., relating to the

12         Florida Single Audit Act; revising and

13         providing definitions; revising the uniform

14         state audit requirements for state financial

15         assistance that is provided by state agencies

16         to nonstate entities; requiring the Department

17         of Financial Services to adopt rules and

18         perform additional duties with respect to the

19         provision of financial assistance to carry out

20         state projects; specifying duties of

21         coordinating agencies; exempting nonstate

22         entities that act only as a conduit of state

23         financial assistance from the requirements of

24         the Florida Single Audit Act; amending s.

25         216.011, F.S.; revising definitions applicable

26         to the fiscal affairs of the state; defining

27         the terms "mandatory reserve," "budget

28         reserve," "activity," and "statutorily

29         authorized entity"; amending s. 216.013, F.S.;

30         revising requirements for the long-range

31         program plans developed by state agencies;

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 1         providing for submitting such plans on an

 2         alternate date under certain circumstances;

 3         revising the date for making adjustments;

 4         amending s. 216.023, F.S., relating to

 5         legislative budget requests; providing

 6         alternate dates for submitting such requests

 7         under certain circumstances; providing

 8         requirements for a request to outsource or

 9         privatize agency functions; deleting certain

10         requirements for performance-based program

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

12         revising requirements for target budget

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

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

15         requests and a revolving loan program;

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

17         summary information concerning

18         performance-based program budgets; amending s.

19         216.065, F.S.; requiring that a fiscal impact

20         statement provided to the legislative

21         appropriations committees contain information

22         concerning subsequent fiscal years; amending s.

23         216.081, F.S.; providing data requirements for

24         the Governor's recommended budget under certain

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

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

27         Estimating Conference and the Juvenile Justice

28         Estimating Conference; amending s. 216.162,

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

30         submit the recommended budget for the state;

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

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 1         to the Working Capital Fund to conform to

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

 3         F.S.; deleting provisions exempting the

 4         Governor from a requirement to submit amended

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

 6         revising requirements for notifying the

 7         Legislature of actions taken under ch. 216,

 8         F.S., and funds expended in settlement of

 9         agency litigation; amending s. 216.181, F.S.;

10         requiring approval of certain amendments to an

11         approved operating budget by the Legislative

12         Budget Commission; clarifying provisions with

13         respect to the notice required for the transfer

14         of lump-sum appropriations; revising

15         requirements for determining salary rates;

16         authorizing the Legislative Budget Commission

17         to approve salary rates; deleting certain

18         notice requirements; authorizing certain

19         refunds, payments, and transfers pursuant to

20         budget authority within the executive branch

21         and the judicial branch; requiring notice to

22         the chairs of the legislative committees

23         responsible for developing the general

24         appropriations acts; repealing ss. 216.1825 and

25         216.183, F.S., relating to the use of

26         zero-based budgeting principles and

27         performance-based program budgets; amending s.

28         216.192, F.S.; requiring that an agency submit

29         an operational work plan to the Executive

30         Office of the Governor and the chairs of the

31         legislative appropriations committees for

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 1         approval before funds are released for

 2         information technology projects; providing

 3         requirements for the work plan; requiring that

 4         the agency submit project-status reports;

 5         requiring that the frequency of work plans and

 6         status reports be specified in the General

 7         Appropriations Act; deleting provisions

 8         authorizing the legislative appropriations

 9         committees to provide advice regarding the

10         release of funds; authorizing the Executive

11         Office of the Governor and the Chief Justice to

12         place appropriations in mandatory reserve or

13         budget reserve; amending s. 216.195, F.S.;

14         deleting certain notice and review requirements

15         for the impoundment of funds; amending s.

16         216.221, F.S.; authorizing the Legislature to

17         direct the use of any state funds in an

18         appropriations act; revising requirements for

19         adjusting budgets in order to avoid or

20         eliminate a deficit; revising procedures for

21         certifying a budget deficit; revising

22         requirements for the Governor and the Chief

23         Justice in developing plans of action;

24         requiring that the Legislative Budget

25         Commission implement certain reductions in

26         appropriations; revising requirements for

27         resolving deficits; requiring that certain

28         actions to resolve a deficit be approved by the

29         Legislative Budget Commission; amending s.

30         216.231, F.S., relating to the release of

31         classified appropriations; conforming

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 1         provisions to changes made by the act; amending

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

 3         Investment Program; correcting references;

 4         limiting the funding of certain proposals under

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

 6         requiring that the initiation or commencement

 7         of new programs be approved by the Legislative

 8         Budget Commission; deleting certain notice

 9         requirements; limiting certain other actions

10         and budget adjustments by a state agency or the

11         judicial branch without the approval of the

12         Legislature or the Legislative Budget

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

14         correcting a reference; revising requirements

15         for establishing certain salaries; amending s.

16         216.262, F.S.; requiring the Legislative Budget

17         Commission to approve certain increases in the

18         number of positions; deleting provisions

19         authorizing an agency to retain salary dollars

20         under certain circumstances; amending s.

21         216.292, F.S.; revising provisions limiting the

22         transferability of appropriations; prohibiting

23         spending fixed capital outlay for other

24         purposes; prohibiting transferring

25         appropriations except as otherwise provided by

26         law; providing certain exceptions; amending s.

27         216.301, F.S.; revising requirements for

28         continuing unexpended balances of

29         appropriations for fixed capital outlay;

30         requiring approval by the Executive Office of

31         the Governor; authorizing the President of the

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 1         Senate and the Speaker of the House of

 2         Representatives to provide for the retention of

 3         certain balances from legislative budget

 4         entities; repealing s. 218.60(3), F.S.,

 5         relating to estimates made by the revenue

 6         estimating conference and provided to local

 7         governments; amending ss. 252.37 and 265.55,

 8         F.S.; deleting certain references to the

 9         Working Capital Fund to conform to changes made

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

11         relating to the Olympic Games Guaranty Account

12         within the Economic Development Trust Fund;

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

14         the Chief Financial Officer with respect to the

15         deposit of certain trust fund moneys based on

16         anticipated annual revenues; amending s.

17         339.135, F.S.; revising requirements for the

18         tentative work programs submitted by state

19         agencies; requiring that the Legislative Budget

20         Commission approve certain extensions of

21         spending authority; revising requirements for

22         amending certain work programs; amending s.

23         381.0303, F.S.; authorizing the Department of

24         Health to obtain reimbursement for special

25         needs shelters from unappropriated moneys in

26         the General Revenue Fund; amending s. 409.906,

27         F.S.; deleting provisions authorizing the

28         Department of Children and Family Services to

29         transfer certain funds in excess of the amount

30         specified in the General Appropriations Act;

31         repealing s. 409.912(11)(b), F.S., relating to

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 1         the transfer of certain funds from the

 2         Department of Elderly Affairs to the Agency for

 3         Health Care Administration; amending ss.

 4         468.392 and 475.484, F.S.; deleting provisions

 5         exempting funds in the Auctioneer Recovery Fund

 6         and the Real Estate Recovery Fund from

 7         limitations imposed by an appropriation act;

 8         amending s. 631.141, F.S.; clarifying

 9         provisions requiring the Legislative Budget

10         Commission to approve certain appropriations;

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

12         Legislature to make certain determinations with

13         respect to legislation that affects the prison

14         population; amending s. 943.61, F.S., relating

15         to appropriations to the Capitol Police;

16         deleting provisions requiring approval by the

17         Governor and the Legislative Budget Commission;

18         amending s. 1009.536, F.S.; deleting duties of

19         the Workforce Estimating Conference with

20         respect to certain career education programs;

21         amending s. 1013.512, F.S.; requiring a

22         recommendation by the Governor before placing

23         certain school district funds in reserve;

24         providing for references to the Working Capital

25         Fund in certain appropriations and proviso

26         language to be replaced with a reference to the

27         General Revenue Fund; providing effective

28         dates.

29  

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

31  

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 1         Section 1.  Subsection (8) of section 14.2015, Florida

 2  Statutes, is amended to read:

 3         14.2015  Office of Tourism, Trade, and Economic

 4  Development; creation; powers and duties.--

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

 6  Development shall ensure that the contract between the Florida

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

 8  organization contains a provision to provide the data on the

 9  visitor counts and visitor profiles used in revenue

10  estimating, employing the same methodology used in fiscal year

11  1995-1996 by the Department of Commerce. The Office of

12  Tourism, Trade, and Economic Development and the Florida

13  Commission on Tourism must advise and consult reach agreement

14  with the Consensus Estimating Conference principals before

15  making any changes in methodology used or information

16  gathered.

17         Section 2.  Effective July 1, 2006, section 45.062,

18  Florida Statutes, is amended to read:

19         45.062  Settlements, conditions, or orders when an

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

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

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

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

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

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

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

27  requires the expenditure of or the obligation to expend any

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

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

30  establishment of any new program, unless:

31  

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

 2  appropriation or program established by law; and

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

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

 5  Senate, the Speaker of the House of Representatives, the

 6  Senate and House minority leaders, the chairs of the

 7  appropriations committees of the Legislature, and the Attorney

 8  General; and

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

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

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

12  President of the Senate, the Speaker of the House of

13  Representatives, the Senate and House minority leaders, the

14  chairs of the appropriations committees of the Legislature,

15  and the Attorney General. Such notification is a condition

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

17  settlement or presettlement agreement and shall be subject to

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

19  notification shall specify how the agency involved will

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

21  appropriations.

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

23  notification required by this paragraph when settling any

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

25  amount less than $100,000.

26         2.  The notification specified in this paragraph is not

27  required if the only settlement obligation of the state

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

29  less than $10,000.

30  

31  

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

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

 3  action.

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

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

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

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

 8  in excess of current appropriations or to policy changes

 9  inconsistent with current state law shall be contingent upon

10  and subject to legislative appropriation or statutory

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

12  efforts to procure legislative funding or statutory amendment.

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

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

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

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

17  placed unobligated into the General Revenue Fund or the

18  appropriate trust fund. A settlement may not authorize or

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

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

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

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

23  private party to settle a claim independent of the settlement

24  by a public party.

25         (6)(5)  State executive branch agencies and officers

26  shall report to each substantive and fiscal committee of the

27  Legislature having jurisdiction over the reporting agency on

28  all potential settlements that may commit the state to:

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

30         (b)  Make policy changes inconsistent with current

31  state law.

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 1  

 2  The state executive branch agency or officer shall provide

 3  periodic updates to the appropriate legislative committees on

 4  these issues during the settlement process.

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

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

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

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

 9  action if the settlement requires the other party to commit

10  funds to a particular purpose as a condition of the

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

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

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

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

15  chairs of the appropriations committees of the Legislature,

16  and the Attorney General. Such notification is a condition

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

18  settlement and is subject to the review and objection

19  procedures of s. 216.177.

20         Section 3.  Paragraph (b) of subsection (1) of section

21  110.1245, Florida Statutes, is amended to read:

22         110.1245  Savings sharing program; bonus payments;

23  other awards.--

24         (1)

25         (b)  Each agency head shall recommend employees

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

27  which amount shall be directly related to the cost savings

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

29  approved by the Legislative Budget Budgeting Commission.

30         Section 4.  Section 215.32, Florida Statutes, is

31  amended to read:

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 1         215.32  State funds; segregation.--

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

 3  deposited in the State Treasury unless specifically provided

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

 5  by the Chief Financial Officer within the following funds,

 6  which funds are hereby created and established:

 7         (a)  General Revenue Fund.

 8         (b)  Trust funds.

 9         (c)  Working Capital Fund.

10         (c)(d)  Budget Stabilization Fund.

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

12  as follows:

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

14  moneys received by the state from every source whatsoever,

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

16  shall be expended pursuant to General Revenue Fund

17  appropriations acts or transferred as provided in paragraph

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

19  in General Revenue Fund receipts for the upcoming fiscal year

20  over the current year General Revenue Fund effective

21  appropriations shall be appropriated for state-level capital

22  outlay, including infrastructure improvement and general

23  renovation, maintenance, and repairs.

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

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

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

27  or branch of state government receiving or collecting such

28  moneys shall be responsible for their proper expenditure as

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

30  branch of state government responsible for the administration

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

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 1  accounts within the trust fund at a level considered necessary

 2  for proper accountability. Once an account is established

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

 4  payment from that account only upon determining that there is

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

 6         2.  In addition to other trust funds created by law, to

 7  the extent possible, each agency shall use the following trust

 8  funds as described in this subparagraph for day-to-day

 9  operations:

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

11  depository for funds to be used for program operations funded

12  by program revenues, with the exception of administrative

13  activities when the operations or operating trust fund is a

14  proprietary fund.

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

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

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

18  for funds to be used for management activities that are

19  departmental in nature and funded by indirect cost earnings

20  and assessments against trust funds. Proprietary funds are

21  excluded from the requirement of using an administrative trust

22  fund.

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

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

25  agreement activities funded by restricted contractual revenue

26  from private and public nonfederal sources.

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

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

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

30  for funds to account for collections pending distribution to

31  lawful recipients.

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

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

 3  restricted program revenues from federal sources.

 4  

 5  To the extent possible, each agency must adjust its internal

 6  accounting to use existing trust funds consistent with the

 7  requirements of this subparagraph. If an agency does not have

 8  trust funds listed in this subparagraph and cannot make such

 9  adjustment, the agency must recommend the creation of the

10  necessary trust funds to the Legislature no later than the

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

12  s. 215.3206.

13         3.  All such moneys are hereby appropriated to be

14  expended in accordance with the law or trust agreement under

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

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

17  applicable laws relating to the deposit or expenditure of

18  moneys in the State Treasury.

19         4.a.  Notwithstanding any provision of law restricting

20  the use of trust funds to specific purposes, unappropriated

21  cash balances from selected trust funds may be authorized by

22  the Legislature for transfer to the Budget Stabilization Fund

23  and General Revenue Working Capital Fund in the General

24  Appropriations Act.

25         b.  This subparagraph does not apply to trust funds

26  required by federal programs or mandates; trust funds

27  established for bond covenants, indentures, or resolutions

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

29  to meet debt service or other financial requirements of any

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

31  Transportation Trust Fund; the trust fund containing the net

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 1  annual proceeds from the Florida Education Lotteries; the

 2  Florida Retirement System Trust Fund; trust funds under the

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

 4  where such trust funds are for auxiliary enterprises,

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

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

 7  clearing funds or accounts for the Chief Financial Officer or

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

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

10  individuals, private organizations, or other governmental

11  units; and other trust funds authorized by the State

12  Constitution.

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

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

15  for the General Revenue Fund during the last completed fiscal

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

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

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

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

20  fiscal year" means the most recently completed fiscal year

21  prior to the regular legislative session at which the

22  Legislature considers the General Appropriations Act for the

23  year in which the transfer to the Budget Stabilization Fund

24  must be made under this paragraph.

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

26  authorize the Chief Financial Officer to transfer, and the

27  Chief Financial Officer shall transfer pursuant to

28  appropriations made by law, to the Budget Stabilization Fund

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

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

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

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 1  transfer may be appropriated by the Legislature from any

 2  funds.

 3         3.  Unless otherwise provided in this subparagraph, an

 4  expenditure from the Budget Stabilization Fund must be

 5  restored pursuant to a restoration schedule that provides for

 6  making five equal annual transfers from the General Revenue

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

 8  which the expenditure was made. For any Budget Stabilization

 9  Fund expenditure, the Legislature may establish by law a

10  different restoration schedule and such change may be made at

11  any time during the restoration period. Moneys are hereby

12  appropriated for transfers pursuant to this subparagraph.

13         4.  The Budget Stabilization Fund and the Working

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

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

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

17         5.  The Chief Financial Officer and the Department of

18  Management Services shall transfer funds to water management

19  districts to pay eligible water management district employees

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

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

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

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

24  needed to meet General Revenue Fund appropriations for the

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

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

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

28  transferred between the Working Capital Fund and the General

29  Revenue Fund to establish the balance of the Working Capital

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

31  this paragraph.

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 1         Section 5.  Subsection (5) of section 215.5601, Florida

 2  Statutes, is amended to read:

 3         215.5601  Lawton Chiles Endowment Fund.--

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

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

 6  legislative appropriation shall be transferred by the board to

 7  the Department of Financial Services Tobacco Settlement

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

 9  accordance with the legislative appropriation.

10         1.  Appropriations by the Legislature to the Department

11  of Health from endowment earnings from the principal set aside

12  for biomedical research shall be from a category called the

13  James and Esther King Biomedical Research Program and shall be

14  deposited into the Biomedical Research Trust Fund in the

15  Department of Health established in s. 20.435.

16         2.  Appropriations by the Legislature to the Department

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

18  the Department of Elderly Affairs from endowment earnings for

19  health and human services programs shall be from a category

20  called the Lawton Chiles Endowment Fund Programs and shall be

21  deposited into each department's respective Tobacco Settlement

22  Trust Fund as appropriated.

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

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

25  the purposes intended by the Legislature, the Legislature

26  shall establish line item categories for the state agencies

27  describing the designated use of the appropriated funds as

28  provided in the General Appropriations Act.

29         (c)  The secretaries of the state agencies shall

30  conduct meetings to discuss priorities for endowment funding

31  for health and human services programs for children and elders

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 1  before submitting their legislative budget requests to the

 2  Executive Office of the Governor and the Legislature. The

 3  purpose of the meetings is to gain consensus for priority

 4  requests and recommended endowment funding levels for those

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

 6  secretaries of the state agencies shall also submit their

 7  consensus priority requests to the Lawton Chiles Endowment

 8  Fund Advisory Council created in subsection (6).

 9         (d)  Subject to legislative appropriations, state

10  agencies shall use distributions from the endowment to enhance

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

12  program costs in health and human services program areas.

13  Funds distributed from the endowment may not be used to

14  supplant existing revenues.

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

16  216.351, all unencumbered balances of appropriations from each

17  department's respective Tobacco Settlement Trust Fund as of

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

19  to the endowment's principal. Unencumbered balances in the

20  Biomedical Research Trust Fund shall be managed as provided in

21  s. 20.435(1)(h)2.

22         (f)  When advised by the Revenue Estimating Conference

23  that a deficit will occur with respect to the appropriations

24  from the tobacco settlement trust funds of the state agencies

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

26  action to eliminate the deficit. Before implementing the plan

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

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

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

30  absent any specific directions to the contrary in the General

31  Appropriations Act, any reductions in appropriations from the

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 1  tobacco settlement trust funds of the state agencies for a

 2  fiscal year shall be prorated among the specific

 3  appropriations made from all tobacco settlement trust funds of

 4  the state agencies for that year.

 5         Section 6.  Subsection (3) of section 215.93, Florida

 6  Statutes, is amended to read:

 7         215.93  Florida Financial Management Information

 8  System.--

 9         (3)  The Florida Financial Management Information

10  System shall include financial management data and utilize the

11  chart of accounts approved by the Chief Financial Officer.

12  Common financial management data shall include, but not be

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

14  more of the functional owner subsystems.  The Florida

15  Financial Management Information System shall utilize common

16  financial management data codes.  The council shall recommend

17  and the board shall adopt policies regarding the approval and

18  publication of the financial management data.  The Chief

19  Financial Officer shall adopt policies regarding the approval

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

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

22  common financial management data codes established by the

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

24  Florida Financial Management Information System which provide

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

26  the Florida Financial Management Information System and the

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

28  cannot be supplied by the Florida Financial Management

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

30  accounts and that are required for use by the information

31  subsystems shall be approved by the board upon recommendation

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

 2  be required for those data codes specified by the Auditor

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

 4         Section 7.  Subsection (6) of section 215.94, Florida

 5  Statutes, is amended to read:

 6         215.94  Designation, duties, and responsibilities of

 7  functional owners.--

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

 9  the respective functional owner of each information subsystem

10  shall be responsible for ensuring The Auditor General shall be

11  advised by the functional owner of each information subsystem

12  as to the date that the development or significant

13  modification of its functional system specifications is to

14  begin.

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

16  participate with each functional owner to the extent necessary

17  to provide assurance that:

18         1.  The accounting information produced by the

19  information subsystem adheres to generally accepted accounting

20  principles.

21         2.  The information subsystem contains the necessary

22  controls to maintain its integrity, within acceptable limits

23  and at an acceptable cost.

24         3.  The information subsystem is auditable.

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

26  functional owner of each information subsystem as to the date

27  that the development or significant modification of its

28  functional system specifications is to begin. The Auditor

29  General shall provide technical advice, as allowed by

30  professional auditing standards, on specific issues relating

31  to the design, implementation, and operation of each

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 1  information subsystem. specify those additional features,

 2  characteristics, controls, and internal control measures

 3  deemed necessary to carry out the provisions of this

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

 5  functional owner to ensure installation and incorporation of

 6  such specified features, characteristics, controls, and

 7  internal control measures within each information subsystem.

 8         Section 8.  Section 215.97, Florida Statutes, is

 9  amended to read:

10         215.97  Florida Single Audit Act.--

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

12         (a)  Establish uniform state audit requirements for

13  state financial assistance provided by state agencies to

14  nonstate entities to carry out state projects.

15         (b)  Promote sound financial management, including

16  effective internal controls, with respect to state financial

17  assistance administered by nonstate entities.

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

19  the extent possible on already required audits of federal

20  financial assistance provided to nonstate entities.

21         (d)  Provide for identification of state financial

22  assistance transactions in the appropriations act, state

23  accounting records, and recipient organization records.

24         (e)  Promote improved coordination and cooperation

25  within and between affected state agencies providing state

26  financial assistance and nonstate entities receiving state

27  assistance.

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

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

30  financial assistance provided to nonstate entities.

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

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

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

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

 4  conducted in accordance with this section. Each nonstate

 5  entity that expends a total amount of state financial

 6  assistance equal to or in excess of $500,000 $300,000 in any

 7  fiscal year of such nonstate entity shall be required to have

 8  a state single audit, or a project-specific audit, for such

 9  fiscal year in accordance with the requirements of this

10  section. Every 2 years the Auditor General, after consulting

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

12  Financial Services Chief Financial Officer, and all state

13  awarding agencies that provide state financial assistance to

14  nonstate entities, shall review the threshold amount for

15  requiring audits under this section and may adjust such

16  threshold dollar amount consistent with the purposes purpose

17  of this section.

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

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

20  for-profit organizations, nonprofit organizations, or local

21  governmental entities.

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

23  comprehensive listing of state projects. The Catalog of State

24  Financial Assistance shall be issued by the Department of

25  Financial Services Executive Office of the Governor after

26  conferring with the Executive Office of the Governor Chief

27  Financial Officer and all state awarding agencies that provide

28  state financial assistance to nonstate entities. The Catalog

29  of State Financial Assistance shall include for each listed

30  state project: the responsible state awarding agency; standard

31  state project number identifier; official title; legal

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 1  authorization; and description of the state project, including

 2  objectives, restrictions, application and awarding procedures,

 3  and other relevant information determined necessary.

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

 5  agency that provides the predominant amount of state financial

 6  assistance expended by a recipient, as determined by the

 7  recipient's Schedule of Expenditures of State Financial

 8  Assistance. To provide continuity, the determination of the

 9  predominant amount of state financial assistance shall be

10  based upon state financial assistance expended in the

11  recipient's fiscal years ending in 2006, 2009, and 2012, and

12  every third year thereafter.

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

14  nonstate entities' financial statements, Schedule of

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

16  management letter, auditee's written responses or corrective

17  action plan, correspondence on followup of prior years'

18  corrective actions taken, and such other information

19  determined by the Auditor General to be necessary and

20  consistent with the purposes of this section.

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

22  assistance from federal sources passed through the state and

23  provided to nonstate organizations entities to carry out a

24  federal program. "Federal financial assistance" includes all

25  types of federal assistance as defined in applicable United

26  States Office of Management and Budget circulars.

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

28  organization or sole proprietor that but is not a local

29  governmental entity or a nonprofit organization.

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

31  external state or local government auditor or a certified

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 1  public accountant licensed under chapter 473 who meets the

 2  independence standards.

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

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

 5  other personnel, designed to provide reasonable assurance

 6  regarding the achievement of objectives in the following

 7  categories:

 8         1.  Effectiveness and efficiency of operations.

 9         2.  Reliability of financial operations.

10         3.  Compliance with applicable laws and regulations.

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

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

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

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

15  styled, which independently exercises any type of governmental

16  function within the state.

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

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

19  of Financial Services Executive Office of the Governor. Such

20  criteria shall be established after consultation with all the

21  Chief Financial Officer and appropriate state awarding

22  agencies that provide state financial assistance and shall

23  consider the amount of state project expenditures and or

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

25  audited in accordance with the requirements of this section.

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

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

28         1.  Is operated primarily for scientific, educational

29  service, charitable, or similar purpose in the public

30  interest;

31         2.  Is not organized primarily for profit;

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

 2  the operations of the organization; and

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

 4  to its members, directors, or officers.

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

 6  entity, nonprofit organization, or for-profit organization

 7  that receives state financial assistance resources.

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

 9  receives state financial assistance directly from a state

10  awarding agency.

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

12  Assistance" means a document prepared in accordance with the

13  rules of the Department of Financial Services Chief Financial

14  Officer and included in each financial reporting package

15  required by this section.

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

17  agency, as defined in s. 216.011, that is primarily

18  responsible for the operations and outcomes of a state

19  project, regardless of the state agency that actually provides

20  provided state financial assistance to a the nonstate entity.

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

22  assistance from state resources, not including federal

23  financial assistance and state matching on federal programs,

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

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

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

27  Department of Financial Services Executive Office of the

28  Governor established in consultation with all the Chief

29  Financial Officer and appropriate state awarding agencies that

30  provide state financial assistance. It includes State

31  financial assistance may be provided directly by state

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 1  awarding agencies or indirectly by nonstate entities

 2  recipients of state awards or subrecipients. State financial

 3  assistance It does not include procurement contracts used to

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

 5  procurement contracts with vendors are outside of the scope of

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

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

 8  excluded from the audit requirements of this section.

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

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

11  financial participation matching requirements of federal

12  programs.

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

14  activities undertaken to realize identifiable goals and

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

16  legislative intent requiring accountability for state

17  resources.

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

19  provides all state financial assistance to a nonstate

20  organization and that must be entity assigned a single state

21  project number identifier in the Catalog of State Financial

22  Assistance.

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

24  document issued by the Department of Financial Services

25  Executive Office of the Governor, in consultation with the

26  Chief Financial Officer and all state awarding agencies that

27  provide state financial assistance. The State Projects

28  Compliance Supplement shall identify state projects, the

29  significant compliance requirements, eligibility requirements,

30  matching requirements, suggested audit procedures, and other

31  relevant information determined necessary.

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

 2  of one state project performed in accordance with the

 3  requirements of subsection (10) (9).

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

 5  nonstate entity's financial statements and state financial

 6  assistance. Such audits shall be conducted in accordance with

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

 8  General.

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

10  receives state financial assistance through another nonstate

11  entity.

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

13  or other seller providing goods or services that are required

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

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

16  beneficiaries of the state project.

17         (3)  The Executive Office of the Governor is

18  responsible for notifying the Department of Financial Services

19  of any actions during the budgetary process which impact the

20  Catalog of State Financial Assistance. shall:

21         (a)  Upon conferring with the Chief Financial Officer

22  and all state awarding agencies, adopt rules necessary to

23  provide appropriate guidance to state awarding agencies,

24  recipients and subrecipients, and independent auditors of

25  state financial assistance relating to the requirements of

26  this section, including:

27         1.  The types or classes of financial assistance

28  considered to be state financial assistance which would be

29  subject to the requirements of this section. This would

30  include guidance to assist in identifying when the state

31  

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 1  agency or recipient has contracted with a vendor rather than

 2  with a recipient or subrecipient.

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

 4         3.  The criteria for selecting state projects for

 5  audits based on inherent risk.

 6         (b)  Be responsible for coordinating the initial

 7  preparation and subsequent revisions of the Catalog of State

 8  Financial Assistance after consultation with the Chief

 9  Financial Officer and all state awarding agencies.

10         (c)  Be responsible for coordinating the initial

11  preparation and subsequent revisions of the State Projects

12  Compliance Supplement, after consultation with the Chief

13  Financial Officer and all state awarding agencies.

14         (4)  The Department of Financial Services Chief

15  Financial Officer shall:

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

17  Governor and all state awarding agencies, adopt rules

18  necessary to provide appropriate guidance to state awarding

19  agencies, nonstate entities, and independent auditors of state

20  financial assistance relating to the requirements of this

21  section, including:

22         1.  The types or classes of state resources considered

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

24  requirements of this section. This would include guidance to

25  assist in identifying when the state awarding agency or a

26  nonstate entity has contracted with a vendor rather than with

27  a recipient or subrecipient.

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

29         3.  The criteria for selecting state projects for

30  audits based on inherent risk.

31  

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 1         (b)  Be responsible for coordinating revisions to the

 2  Catalog of State Financial Assistance after consultation with

 3  the Executive Office of the Governor and all state awarding

 4  agencies.

 5         (c)  Be responsible for coordinating with the Executive

 6  Office of the Governor actions affecting the budgetary process

 7  under paragraph (b).

 8         (d)  Be responsible for coordinating revisions to the

 9  State Projects Compliance Supplement, after consultation with

10  the Executive Office of the Governor and all state awarding

11  agencies.

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

13  system to provide for the:

14         1.  Recording of state financial assistance and federal

15  financial assistance appropriations and expenditures within

16  the state awarding agencies' operating funds.

17         2.  Recording of state project number identifiers, as

18  provided in the Catalog of State Financial Assistance, for

19  state financial assistance.

20         3.  Establishment and recording of an identification

21  code for each financial transaction, including awarding state

22  agencies' disbursements of state financial assistance and

23  federal financial assistance, as to the corresponding type or

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

25  governmental agencies, nonprofit organizations, and for-profit

26  organizations), and disbursements of federal financial

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

28  is not a nonstate entity recipient or subrecipient.

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

30  the Governor and all state awarding agencies, adopt rules

31  necessary to provide appropriate guidance to state awarding

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 1  agencies, nonstate entities recipients and subrecipients, and

 2  independent auditors of state financial assistance relating to

 3  the format for the Schedule of Expenditures of State Financial

 4  Assistance.

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

 6  investigations, or audits of state financial assistance

 7  considered necessary in carrying out the Department of

 8  Financial Services' Chief Financial Officer's legal

 9  responsibilities for state financial assistance or to comply

10  with the requirements of this section.

11         (5)  Each state awarding agency shall:

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

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

14  including:

15         1.  The audit and accountability requirements for state

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

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

18  Financial Services Chief Financial Officer, and rules of the

19  Auditor General.

20         2.  Information from the Catalog of State Financial

21  Assistance, including the standard state project number

22  identifier; official title; legal authorization; and

23  description of the state project including objectives,

24  restrictions, and other relevant information determined

25  necessary.

26         3.  Information from the State Projects Compliance

27  Supplement, including the significant compliance requirements,

28  eligibility requirements, matching requirements, suggested

29  audit procedures, and other relevant information determined

30  necessary.

31  

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

 2  state financial assistance, to allow the state awarding

 3  agency, the Department of Financial Services Chief Financial

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

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

 6  papers as necessary for complying with the requirements of

 7  this section.

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

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

10  arrange for the conduct of additional audits or evaluations of

11  state financial assistance or limit the authority of any state

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

13  other state official.

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

15  package prepared in accordance with the requirement of this

16  section.

17         (e)  Review the recipient's recipient financial

18  reporting package, including the management letters and

19  corrective action plans, to the extent necessary to determine

20  whether timely and appropriate corrective action has been

21  taken with respect to audit findings and recommendations

22  pertaining to state financial assistance that are specific to

23  provided by the state awarding agency.

24         (f)  Designate within the state awarding agency an

25  organizational unit that will be responsible for reviewing

26  financial reporting packages pursuant to paragraph (e).

27  

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

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

30  designated organizational unit shall communicate to the

31  coordinating agency the state awarding agency's approval of

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 1  the recipient's corrective action plan with respect to

 2  findings and recommendations that are not specific to the

 3  state awarding agency.

 4         (6)  Each coordinating agency shall:

 5         (a)  Review the recipient's financial reporting

 6  package, including the management letter and corrective action

 7  plan, to identify audit findings and recommendations that

 8  affect state financial assistance which are not specific to a

 9  particular state awarding agency.

10         (b)  For any such findings and recommendations,

11  determine:

12         1.  Whether timely and appropriate corrective action

13  has been taken.

14         2.  Promptly inform the state awarding agency's

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

16  the recipient to comply with the approved corrective action

17  plan.

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

19  use of any succeeding coordinating agency.

20         (7)(6)  As a condition of receiving state financial

21  assistance, each nonstate entity recipient that provides state

22  financial assistance to a subrecipient shall:

23         (a)  Provide to each a subrecipient information needed

24  by the subrecipient to comply with the requirements of this

25  section, including:

26         1.  Identification of the state awarding agency.

27         2.  The audit and accountability requirements for state

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

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

30  Financial Services Chief Financial Officer, and rules of the

31  Auditor General.

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 1         3.  Information from the Catalog of State Financial

 2  Assistance, including the standard state project number

 3  identifier; official title; legal authorization; and

 4  description of the state project, including objectives,

 5  restrictions, and other relevant information.

 6         4.  Information from the State Projects Compliance

 7  Supplement including the significant compliance requirements,

 8  eligibility requirements, matching requirements, and suggested

 9  audit procedures, and other relevant information determined

10  necessary.

11         (b)  Review the financial reporting package of the

12  subrecipient audit reports, including the management letter

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

14  determine whether timely and appropriate corrective action has

15  been taken with respect to audit findings and recommendations

16  pertaining to state financial assistance provided by a the

17  state awarding agency or nonstate entity.

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

19  terms and conditions of the written agreement with the state

20  awarding agency or nonstate entity, including any required

21  monitoring of the subrecipient's use of state financial

22  assistance through onsite visits, limited scope audits, or

23  other specified procedures.

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

25  state financial assistance, to permit the independent auditor

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

27  the Department of Financial Services Chief Financial Officer,

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

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

30  necessary to comply with the requirements of this section.

31  

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 1         (8)(7)  Each recipient or subrecipient of state

 2  financial assistance shall comply with the following:

 3         (a)  Each nonstate entity that receives state financial

 4  assistance and meets the audit threshold requirements, in any

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

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

 7  for such fiscal year in accordance with the requirements of

 8  this act and with additional requirements established in rules

 9  of the Executive Office of the Governor, rules of the

10  Department of Financial Services Chief Financial Officer, and

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

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

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

14  of the state project for that fiscal year.

15         (b)  Each nonstate entity that receives state financial

16  assistance and does not meet the audit threshold requirements,

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

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

19  fiscal year from the state single audit requirements of this

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

21  conditions specified in the written agreement with the state

22  awarding agency or nonstate entity.

23         (c)  If a nonstate entity has no, or extremely limited,

24  required activities related to the administration of a state

25  project, and only acts as a conduit of state financial

26  assistance, none of the requirements of the Florida Single

27  Audit Act apply to the conduit nonstate entity. However, the

28  nonstate entity that is provided state financial assistance by

29  the conduit nonstate entity is subject to the requirements of

30  the Florida Single Audit Act.

31  

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 1         (d)(c)  Regardless of the amount of the state financial

 2  assistance, the provisions of this section does do not exempt

 3  a nonstate entity from compliance with provisions of law

 4  relating to maintaining records concerning state financial

 5  assistance to such nonstate entity or allowing access and

 6  examination of those records by the state awarding agency, the

 7  nonstate entity, the Department of Financial Services Chief

 8  Financial Officer, or the Auditor General.

 9         (e)(d)  Audits conducted pursuant to this section shall

10  be performed annually.

11         (f)(e)  Audits conducted pursuant to this section shall

12  be conducted by independent auditors in accordance with

13  auditing standards as stated in rules of the Auditor General.

14         (g)(f)  Upon completion of the audit as required by

15  this section, a copy of the recipient's financial reporting

16  package shall be filed with the state awarding agency and the

17  Auditor General. Upon completion of the audit as required by

18  this section, a copy of the subrecipient's financial reporting

19  package shall be filed with the nonstate entity recipient that

20  provided the state financial assistance and the Auditor

21  General. The financial reporting package shall be filed in

22  accordance with the rules of the Auditor General.

23         (h)(g)  All financial reporting packages prepared

24  pursuant to the requirements of this section shall be

25  available for public inspection.

26         (i)(h)  If an audit conducted pursuant to this section

27  discloses any significant audit findings relating to state

28  financial assistance, including material noncompliance with

29  individual state project compliance requirements or reportable

30  conditions in internal controls of the nonstate entity, the

31  nonstate entity shall submit as part of the financial

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 1  reporting audit package to the state awarding agency or

 2  nonstate entity a plan for corrective action to eliminate such

 3  audit findings or a statement describing the reasons that

 4  corrective action is not necessary.

 5         (j)(i)  An audit conducted in accordance with this

 6  section is in addition to any audit of federal awards required

 7  by the federal Single Audit Act and other federal laws and

 8  regulations. To the extent that such federally required audits

 9  provide the state awarding agency or nonstate entity with

10  information it requires to carry out its responsibilities

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

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

13         (k)(j)  Unless prohibited by law, the costs cost of

14  audits pursuant to this section are is allowable charges to

15  state projects. However, any charges to state projects should

16  be limited to those incremental costs incurred as a result of

17  the audit requirements of this section in relation to other

18  audit requirements. The nonstate entity should allocate such

19  incremental costs to all state projects for which it expended

20  state financial assistance.

21         (l)(k)  Audit costs may not be charged to state

22  projects when audits required by this section have not been

23  made or have been made but not in accordance with this

24  section. If a nonstate entity fails to have an audit conducted

25  consistent with this section, a state awarding agency or

26  nonstate entity agencies may take appropriate corrective

27  action to enforce compliance.

28         (m)(l)  This section does not prohibit the state

29  awarding agency or nonstate entity from including terms and

30  conditions in the written agreement which require additional

31  assurances that state financial assistance meets the

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 1  applicable requirements of laws, regulations, and other

 2  compliance rules.

 3         (n)(m)  A state awarding agency or nonstate entity that

 4  provides state financial assistance to nonstate entities and

 5  conducts or arranges for audits of state financial assistance

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

 7  including audits of nonstate entities that do not meet the

 8  audit threshold requirements, shall, consistent with other

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

10  additional audits.

11         (9)(8)  The independent auditor when conducting a state

12  single audit of a nonstate entity recipients or subrecipients

13  shall:

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

15  statements are presented fairly in all material respects in

16  conformity with generally accepted accounting principles.

17         (b)  Determine whether state financial assistance shown

18  on the Schedule of Expenditures of State Financial Assistance

19  is presented fairly in all material respects in relation to

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

21         (c)  With respect to internal controls pertaining to

22  each major state project:

23         1.  Obtain an understanding of internal controls;

24         2.  Assess control risk;

25         3.  Perform tests of controls unless the controls are

26  deemed to be ineffective; and

27         4.  Determine whether the nonstate entity has internal

28  controls in place to provide reasonable assurance of

29  compliance with the provisions of laws and rules pertaining to

30  state financial assistance that have a material effect on each

31  major state project.

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 1         (d)  Determine whether each major state project

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

 3  identified in the State Projects Compliance Supplement, or

 4  otherwise identified by the state awarding agency, which have

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

 6  state projects are less than 50 percent of the nonstate

 7  entity's total expenditures for all state financial

 8  assistance, the auditor shall select and test additional state

 9  projects as major state projects as necessary to achieve audit

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

11  state financial assistance provided to the nonstate entity.

12  Additional state projects needed to meet the 50-percent

13  requirement may be selected on an inherent risk basis as

14  stated in the rules of the Department of Financial Services

15  Executive Office of the Governor.

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

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

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

19  Financial Services Chief Financial Officer, and rules of the

20  Auditor General. Financial reporting packages must Audit

21  reports shall include summaries of the auditor's results

22  regarding the nonstate entity's financial statements; Schedule

23  of Expenditures of State Financial Assistance; internal

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

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

26  rules of the Auditor General.

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

28  available the working papers relating to the audit conducted

29  pursuant to the requirements of this section to the state

30  awarding agency, the Department of Financial Services Chief

31  

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 1  Financial Officer, or the Auditor General for review or

 2  copying.

 3         (10)(9)  The independent auditor, when conducting a

 4  state project-specific audit of a nonstate entity recipients

 5  or subrecipients, shall:

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

 7  of Expenditure of State Financial Assistance is presented

 8  fairly in all material respects in conformity with stated

 9  accounting policies.

10         (b)  Obtain an understanding of internal controls

11  control and perform tests of internal controls control over

12  the state project consistent with the requirements of a major

13  state project.

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

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

16  identified in the State Projects Compliance Supplement, or

17  otherwise identified by the state awarding agency, which could

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

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

20  project-specific audit consistent with the requirements of the

21  state single audit and issue a management letter as prescribed

22  in the rules of the Auditor General.

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

24  available the working papers relating to the audit conducted

25  pursuant to the requirements of this section to the state

26  awarding agency, the Department of Financial Services Chief

27  Financial Officer, or the Auditor General for review or

28  copying.

29         (11)(10)  The Auditor General shall:

30         (a)  Have the authority to audit state financial

31  assistance provided to any nonstate entity when determined

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 1  necessary by the Auditor General or when directed by the

 2  Legislative Auditing Committee.

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

 4  independent auditors are to follow for audits of nonstate

 5  entities required by this section.

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

 7  filing deadlines for the financial reporting package.

 8         (d)  Provide technical advice upon request of the

 9  Department of Financial Services Chief Financial Officer,

10  Executive Office of the Governor, and state awarding agencies

11  relating to financial reporting and audit responsibilities

12  contained in this section.

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

14  package prepared in accordance with the requirements of this

15  section.

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

17  reporting packages filed pursuant to the requirements of this

18  section to determine compliance with the reporting

19  requirements of this section and applicable rules of the

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

21  Financial Services Chief Financial Officer, and rules of the

22  Auditor General.

23         Section 9.  Paragraphs (a), (b), (n), (gg), (hh), and

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

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

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

27  read:

28         216.011  Definitions.--

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

30  appropriations acts, legislative budgets, and approved

31  

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 1  budgets, each of the following terms has the meaning

 2  indicated:

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

 4  compensation authorized to be paid a position on an annualized

 5  basis. The term does not include moneys authorized for

 6  benefits associated with the position. In calculating salary

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

 8  the pay grade for that position.

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

10  make expenditures for specific purposes within the amounts

11  authorized by law in the appropriations act.

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

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

14  agency or the judicial branch, including such items as

15  contractual services, commodities, and supplies of a

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

17  excluding expenditures classified as operating capital outlay.

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

19  may be included in this category.

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

21  appropriation by the Governor or the Legislative Budget

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

23  to s. 216.221. Action may not be taken to restore a mandatory

24  reserve either directly or indirectly. "Performance-based

25  program appropriation" means the appropriation category used

26  to fund a specific set of activities or classification of

27  expenditure within an approved performance-based program.

28         (hh)  "Budget reserve" means the withholding, as

29  authorized by the Legislature, of an appropriation or portion

30  thereof. The need for a budget reserve may exist until certain

31  conditions set by the Legislature are met by the affected

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 1  agency, or such need may exist due to financial or program

 2  changes that have occurred since, and were unforeseen at the

 3  time of, passage of the General Appropriations Act.

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

 5  incorporates approved programs and performance measures.

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

 7  undertaken in accordance with a plan of action organized to

 8  realize identifiable goals and objectives based on legislative

 9  authorization.

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

11  identifiable starting and ending points, consumes resources,

12  and produces outputs.

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

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

15  primarily acting as an instrumentality of the state, any

16  regulatory or governing body, or any other governmental or

17  quasi-governmental organization that receives, disburses,

18  expends, administers, awards, recommends expenditure of,

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

20  appropriated by the Legislature and:

21         1.  Is created, organized, or specifically authorized

22  to be created or established by general law; or

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

24  other unit of state government in providing programs or

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

26  population.

27         Section 10.  Subsections (1), (2), (3), and (9) of

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

29         216.013  Long-range program plan.--

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

31  plans to achieve state goals using an interagency planning

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 1  process that includes the development of integrated agency

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

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

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

 5  development of agency budget requests and shall:

 6         (a)  Identify agency programs and address how agency

 7  programs will be used to implement state policy and achieve

 8  state goals and program component objectives;

 9         (b)  Identify and describe agency services and

10  activities functions and how they will be used to achieve

11  designated outcomes;

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

13  costs for each activity function;

14         (d)  Provide information regarding performance

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

16  is collected, the methodology used to measure a performance

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

18  appropriateness of a measure, and whether the agency inspector

19  general has assessed the reliability and validity of agency

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

21         (e)  Identify and justify facility and fixed capital

22  outlay projects and their associated costs; and

23         (f)  Identify and justify information technology

24  infrastructure and applications and their associated costs for

25  information technology projects or initiatives.

26         (2)  All agency activities functions and their costs

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

28  justification must clearly demonstrate the needs of agency

29  customers and clients and why the agency is proposing

30  functions and their associated costs to address the needs

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

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 1  authorization.  Further, the justification must show how

 2  agency functions are integrated and contribute to the overall

 3  achievement of state goals.  Facilities, fixed capital outlay

 4  and information technology infrastructure, and applications

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

 6  216.0446, respectively.

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

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

 9  unless an alternative date is agreed to be in the best

10  interests of the state by the Governor and the chairs of the

11  legislative appropriations committees, in a form and manner

12  prescribed by the Executive Office of the Governor and the

13  chairs of the legislative appropriations committees. Such

14  long-range program plans for the Judicial Branch shall be

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

16  President of the Senate and the Speaker of the House of

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

18  Office of the Governor.

19         (9)  Agencies and the judicial branch shall make

20  appropriate adjustments to their long-range program plans to

21  be consistent with the appropriations and performance measures

22  in the General Appropriations Act and legislation implementing

23  the General Appropriations Act. Agencies and the judicial

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

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

26  the Governor for review.

27         Section 11.  Section 216.023, Florida Statutes, is

28  amended to read:

29         216.023  Legislative budget requests to be furnished to

30  Legislature by agencies.--

31  

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

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

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

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

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

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

 7  independent judgment of its needs.  However, a no state agency

 8  may not shall submit its complete legislative budget request,

 9  including all supporting forms and schedules required by this

10  chapter, later than October September 15 of any each year

11  unless an alternative date is agreed to be in the best

12  interests of the state by the Governor and the chairs of the

13  legislative appropriations committees.

14         (2)  The judicial branch and the Division of

15  Administrative Hearings shall submit their complete

16  legislative budget requests directly to the Legislature with a

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

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

19  However, the complete legislative budget requests, including

20  all supporting forms and schedules required by this chapter,

21  shall be submitted no later than October September 15 of each

22  year unless an alternative date is agreed to be in the best

23  interests of the state by the Governor and the chairs of the

24  legislative appropriations committees.

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

26  appropriations committees of the Legislature shall jointly

27  develop legislative budget instructions for preparing the

28  exhibits and schedules that make up the agency budget from

29  which each agency and the judicial branch shall prepare their

30  budget request.  The budget instructions shall be consistent

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

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 1  the judicial branch no later than July June 15 of each year

 2  unless an alternative date is agreed to be in the best

 3  interests of the state by the Governor and the chairs of the

 4  legislative appropriations committees.  In the event that

 5  agreement cannot be reached between the Executive Office of

 6  the Governor and the appropriations committees of the

 7  Legislature regarding legislative budget instructions, the

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

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

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

11  each program:

12         1.  The constitutional or statutory authority for a

13  program, a brief purpose statement, and approved program

14  components.

15         2.  Information on expenditures for 3 fiscal years

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

17  expenditures, and agency budget requested expenditures for the

18  next fiscal year) by appropriation category.

19         3.  Details on trust funds and fees.

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

21  and requested).

22         5.  An issue narrative describing and justifying

23  changes in amounts and positions requested for current and

24  proposed programs for the next fiscal year.

25         6.  Information resource requests.

26         7.  Legislatively approved output and outcome

27  performance measures and any proposed revisions to measures.

28         8.  Proposed performance standards for each performance

29  measure and justification for the standards and the sources of

30  data to be used for measurement.

31  

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 1         9.  Prior-year performance data on approved performance

 2  measures and an explanation of deviation from expected

 3  performance. Performance data must be assessed for reliability

 4  in accordance with s. 20.055.

 5         10.  Proposed performance incentives and disincentives.

 6         11.  Supporting information, including applicable

 7  cost-benefit analyses, business case analyses, performance

 8  contracting procedures, service comparisons, and impacts to

 9  performance standards for any requests to outsource or

10  privatize agency functions.

11         12.  An evaluation of any major outsourcing and

12  privatization initiatives undertaken during the last 5 fiscal

13  years having aggregate expenditures exceeding $10 million

14  during the term of the contract. The evaluation shall include

15  an assessment of contractor performance, a comparison of

16  anticipated service levels to actual service levels, and a

17  comparison of estimated savings to actual savings achieved.

18  Consolidated reports issued by the Department of Management

19  Services may be used to satisfy this requirement.

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

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

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

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

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

25  for the preceding year in accordance with the legislative

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

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

28  branch.

29         2.  Total funds from the General Appropriations Act.

30         3.  Adjustments to the General Appropriations Act.

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

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 1         5.  The number of activity units performed or

 2  accomplished.

 3         6.  Total expenditures for each activity, including

 4  amounts paid to contractors and subordinate entities.

 5  Expenditures related to administrative activities not aligned

 6  with output measures must consistently be allocated to

 7  activities with output measures prior to computing unit costs.

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

 9  costs allocated to contractors and subordinate entities.

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

11  expenditures omitted from unit-cost calculations.

12  

13  At the regular session immediately following the submission of

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

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

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

17  the fiscal year preceding the current fiscal year, the funding

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

19  under this paragraph.

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

21  instructions and in sufficient time to be included in the

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

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

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

25  consultation with the Office of Program Policy Analysis and

26  Government Accountability, submit to the President of the

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

28  of proposed programs and associated performance measures. The

29  judicial branch shall provide documentation to accompany the

30  list of proposed programs and performance measures as provided

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

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 1  performance-based program agency budget request using the

 2  programs and performance measures adopted by the Legislature.

 3  The Chief Justice may propose revisions to approved programs

 4  or performance measures for the judicial branch. The

 5  Legislature shall have final approval of all programs and

 6  associated performance measures and standards for the judicial

 7  branch through the General Appropriations Act or legislation

 8  implementing the General Appropriations Act. By September 15,

 9  2001, the Chief Justice of the Supreme Court shall submit to

10  the President of the Senate and the Speaker of the House of

11  Representatives a performance-based program budget request for

12  programs of the judicial branch approved by the Legislature

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

14         (5)(6)  Agencies must maintain a comprehensive

15  performance accountability system and provide a list of

16  performance measures maintained by the agency which are in

17  addition to the measures approved by the Legislature.

18         (6)(7)  Annually, by June 30, executive agencies shall

19  submit to the Executive Office of the Governor adjustments to

20  their performance standards based on the amounts appropriated

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

22  is made, all performance standards, including any adjustments

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

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

25  to the Legislature pursuant to the review and approval process

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

27  Representatives appropriations committees Senate Committee on

28  Fiscal Policy and the House of Representatives Fiscal

29  Responsibility Council shall advise Senate substantive

30  committees and House of Representatives substantive

31  committees, respectively, of all adjustments made to

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 1  performance standards or measures. The Executive Office of the

 2  Governor shall maintain both the official record of

 3  adjustments to the performance standards as part of the

 4  agency's approved operating budget and the official

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

 6  "official record" "performance ledger" means the official

 7  compilation of information about state agency

 8  performance-based programs and measures, including approved

 9  programs, approved outputs and outcomes, baseline data,

10  approved standards for each performance measure and any

11  approved adjustments thereto, as well as actual agency

12  performance for each measure.

13         (7)(8)  As a part of the legislative budget request,

14  the head of each state agency and the Chief Justice of the

15  Supreme Court for the judicial branch shall include an

16  inventory of all litigation in which the agency is involved

17  that may require additional appropriations to the agency, that

18  may significantly affect revenues received or anticipated to

19  be received by the state, or that may require or amendments to

20  the law under which the agency operates.  No later than March

21  1 following the submission of the legislative budget request,

22  the head of the state agency and the Chief Justice of the

23  Supreme Court shall provide an update of any additions or

24  changes to the inventory.  Such inventory shall include

25  information specified annually in the legislative budget

26  instructions.

27         (8)(9)  Annually, by June 30, the judicial branch shall

28  make adjustments to any performance standards for approved

29  programs based on the amount appropriated for each program,

30  which shall be submitted to the Legislature pursuant to the

31  notice and review process provided in s. 216.177. The Senate

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 1  and the House of Representatives appropriations committees

 2  Senate Committee on Fiscal Policy and the House Fiscal

 3  Responsibility Council shall advise Senate substantive

 4  committees and House substantive committees, respectively, of

 5  all adjustments made to performance standards or measures.

 6         (9)(10)  The Executive Office of the Governor shall

 7  review the legislative budget request for technical compliance

 8  with the budget format provided for in the budget

 9  instructions. The Executive Office of the Governor shall

10  notify the agency or the judicial branch of any adjustment

11  required. The agency or judicial branch shall make the

12  appropriate corrections as requested. If the appropriate

13  technical corrections are not made as requested, the Executive

14  Office of the Governor shall adjust the budget request to

15  incorporate the appropriate technical corrections in the

16  format of the request.

17         (10)(11)  At any time after the Governor submits his or

18  her and the Chief Justice submit their recommended budget

19  budgets to the Legislature, the head of the agency or judicial

20  branch may amend his or her request by transmitting to the

21  Governor and the Legislature an amended request in the form

22  and manner prescribed in the legislative budget instructions.

23         (11)(12)  The legislative budget request from each

24  agency and from the judicial branch shall be reviewed by the

25  Legislature. The review may allow for the opportunity to have

26  information or testimony by the agency, the judicial branch,

27  the Auditor General, the Office of Program Policy Analysis and

28  Government Accountability, the Governor's Office of Planning

29  and Budgeting, and the public regarding the proper level of

30  funding for the agency in order to carry out its mission.

31  

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 1         (12)(13)  In order to ensure an integrated state

 2  planning and budgeting process, the agency long-range plan

 3  should be reviewed by the Legislature.

 4         Section 12.  Section 216.031, Florida Statutes, is

 5  amended to read:

 6         216.031  Target budget request.--Either chair of a

 7  legislative appropriations committee, or the Executive Office

 8  of the Governor for state agencies, may require the agency or

 9  the Chief Justice to address major issues separate from those

10  outlined in s. 216.023, this section, and s. 216.043 for

11  inclusion in the requests of the agency or of the judicial

12  branch.  The issues shall be submitted to the agency no later

13  than July 30 of each year and shall be displayed in its

14  requests as provided in the budget instructions.  The

15  Executive Office of the Governor may request an agency, or the

16  chair of an the appropriations committee committees of the

17  Senate or the House of Representatives may request any agency

18  or the judicial branch, to submit no later than September 30

19  of each year a budget plan with respect to targets established

20  by the Governor or either chair. The target budget shall

21  require each entity to establish an order of priorities for

22  its budget issues and may include requests for multiple

23  options for the budget issues.  The target budget may also

24  require each entity to submit a program budget or a

25  performance-based budget in the format prescribed by the

26  Executive Office of the Governor or either chair; provided,

27  however, The target budget format shall be compatible with the

28  planning and budgeting system requirements set out in s.

29  216.141. Such a request shall not influence the agencies' or

30  judicial branch's independent judgment in making legislative

31  budget requests, as required by law.

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 1         Section 13.  Subsections (2), (3), (8), and (9) of

 2  section 216.052, Florida Statutes, are repealed.

 3         Section 14.  Subsection (5) of section 216.053, Florida

 4  Statutes, is repealed.

 5         Section 15.  Section 216.065, Florida Statutes, is

 6  amended to read:

 7         216.065  Fiscal impact statements on actions affecting

 8  the budget.--In addition to the applicable requirements of

 9  chapter 120, before the Governor, or Governor and Cabinet as a

10  body, performing any constitutional or statutory duty, or

11  before any state agency or statutorily authorized entity takes

12  take any final action that will affect revenues, directly

13  require a request for an increased or new appropriation in the

14  following 3 fiscal years year, or that will transfer current

15  year funds, it they shall first provide the legislative

16  appropriations committees with a fiscal impact statement that

17  details the effects of such action on the budget. The fiscal

18  impact statement must specify the estimated budget and revenue

19  impacts for the current year and the 2 subsequent fiscal years

20  at the same level of detail required to support a legislative

21  budget request, including amounts by appropriation category

22  and fund.

23         Section 16.  Subsection (3) is added to section

24  216.081, Florida Statutes, to read:

25         216.081  Data on legislative and judicial branch

26  expenses.--

27         (3)  If the Governor does not receive timely estimates

28  of the financial needs of the legislative branch, the

29  Governor's recommended budget must include the amounts

30  appropriated and budget entity structure established in the

31  most recent General Appropriations Act.

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 1         Section 17.  Subsections (7) and (8) of section

 2  216.136, Florida Statutes, are repealed.

 3         Section 18.  Subsection (1) of section 216.162, Florida

 4  Statutes, is amended to read:

 5         216.162  Governor's recommended budget to be furnished

 6  Legislature; copies to members.--

 7         (1)  At least 30 45 days before the scheduled annual

 8  legislative session, the Governor shall furnish each senator

 9  and representative a copy of his or her recommended balanced

10  budget for the state, based on the Governor's own conclusions

11  and judgment; provided, however, that in his or her first year

12  in office a new Governor may request, subject to approval of

13  the President of the Senate and the Speaker of the House of

14  Representatives, that his or her recommended balanced budget

15  be submitted at a later time prior to the Governor's first

16  regular legislative session.

17         Section 19.  Subsections (1), (2), (3), and (4) of

18  section 216.167, Florida Statutes, are amended to read:

19         216.167  Governor's recommendations.--The Governor's

20  recommendations shall include a financial schedule that

21  provides:

22         (1)  The Governor's estimate of the recommended

23  recurring revenues available in the Budget Stabilization Fund,

24  the Working Capital Fund, and the General Revenue Fund.

25         (2)  The Governor's estimate of the recommended

26  nonrecurring revenues available in the Budget Stabilization

27  Fund, the Working Capital Fund, and the General Revenue Fund.

28         (3)  The Governor's recommended recurring and

29  nonrecurring appropriations from the Budget Stabilization

30  Fund, the Working Capital Fund, and the General Revenue Fund.

31  

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 1         (4)  The Governor's estimates of any interfund loans or

 2  temporary obligations of the Budget Stabilization Fund, the

 3  General Revenue Working Capital Fund, or trust funds, which

 4  loans or obligations are needed to implement his or her

 5  recommended budget.

 6         Section 20.  Subsection (4) of section 216.168, Florida

 7  Statutes, is amended to read:

 8         216.168  Governor's amended revenue or budget

 9  recommendations; optional and mandatory.--

10         (4)  If the Governor determines, at any time after he

11  or she has furnished the Legislature with his or her

12  recommendations or amended recommendations, that the revenue

13  estimates upon which the Governor's recommendations were based

14  are insufficient to fund these recommendations, the Governor

15  shall amend his or her revenues or appropriations

16  recommendations to bring the Governor's recommended budget

17  into balance.  On or after March 1, if the Governor determines

18  that there is insufficient time to provide the information for

19  the amended recommendations required in ss. 216.164 and

20  216.166, he or she shall be exempt from such requirement.

21         Section 21.  Subsections (2) and (3) of section

22  216.177, Florida Statutes, are amended to read:

23         216.177  Appropriations acts, statement of intent,

24  violation, notice, review and objection procedures.--

25         (2)(a)  Whenever notice of action to be taken by the

26  Executive Office of the Governor or the Chief Justice of the

27  Supreme Court is required by this chapter, such notice shall

28  be given to the chair and vice chair of the Legislative Budget

29  Commission in writing, and shall be delivered at least 14 days

30  prior to the action referred to, unless a shorter period is

31  approved in writing by the chair and vice chair. If the action

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 1  is solely for the release of funds appropriated by the

 2  Legislature, the notice shall be delivered at least 3 days

 3  before the effective date of the action. Action shall not be

 4  taken on any budget item for which this chapter requires

 5  notice to the Legislative Budget Commission or the

 6  appropriations committees without such notice having been

 7  provided, even though there may be good cause for considering

 8  such item.

 9         (b)  If the chair and vice chair of the Legislative

10  Budget Commission or the President of the Senate and the

11  Speaker of the House of Representatives timely advise, in

12  writing, the Executive Office of the Governor or the Chief

13  Justice of the Supreme Court that an action or a proposed

14  action, including any expenditure of funds resulting from the

15  settlement of litigation involving a state agency or officer,

16  whether subject to the notice and review requirements of this

17  chapter or not, exceeds the delegated authority of the

18  Executive Office of the Governor for the executive branch or

19  the Chief Justice for the judicial branch, respectively, or is

20  contrary to legislative policy and intent, the Governor or the

21  Chief Justice of the Supreme Court shall void such action and

22  instruct the affected state agency or entity of the judicial

23  branch to change immediately its spending action or spending

24  proposal until the Legislative Budget Commission or the

25  Legislature addresses the issue.  The written documentation

26  shall indicate the specific reasons that an action or proposed

27  action exceeds the delegated authority or is contrary to

28  legislative policy and intent.

29         (c)  The House of Representatives and the Senate shall

30  provide by rule that any member of the House of

31  Representatives or Senate may request, in writing, of either

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 1  the President of the Senate or the Speaker of the House of

 2  Representatives to initiate the procedures of paragraph (b).

 3         (3)  The Legislature may annually specify any

 4  incentives and disincentives for agencies operating programs

 5  under performance-based program budgets pursuant to this

 6  chapter in the General Appropriations Act or legislation

 7  implementing the General Appropriations Act.

 8         Section 22.  Subsections (1), (2), (4), (6), (8), (9),

 9  (10), (12), and (16) of section 216.181, Florida Statutes, are

10  amended to read:

11         216.181  Approved budgets for operations and fixed

12  capital outlay.--

13         (1)  The General Appropriations Act and any other acts

14  containing appropriations shall be considered the original

15  approved operating budgets for operational and fixed capital

16  expenditures. Amendments to the approved operating budgets for

17  operational and fixed capital outlay expenditures from state

18  agencies may be requested only through the Executive Office of

19  the Governor and approved by the Governor and the Legislative

20  Budget Commission as provided in this chapter. Amendments from

21  the judicial branch may be requested only through, and

22  approved by, the Chief Justice of the Supreme Court and must

23  be approved by the Chief Justice and the Legislative Budget

24  Commission as provided in this chapter.  This includes

25  amendments which are necessary to implement the provisions of

26  s. 216.212 or s. 216.221.

27         (2)  Amendments to the original approved operating

28  budgets for operational and fixed capital outlay expenditures

29  must comply with the following guidelines in order to be

30  approved by the Governor and the Legislative Budget Commission

31  as provided in this chapter for the executive branch and the

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 1  Chief Justice and the Legislative Budget Commission for the

 2  judicial branch:

 3         (a)  The amendment must be consistent with legislative

 4  policy and intent.

 5         (b)  The amendment may not initiate or commence a new

 6  program, except as authorized by this chapter, or eliminate an

 7  existing program.

 8         (c)  Except as authorized in s. 216.292 or other

 9  provisions of this chapter, the amendment may not provide

10  funding or increased funding for items which were funded by

11  the Legislature in an amount less than that requested by the

12  agency or Governor in the legislative budget request or

13  recommended by the Governor, or which were vetoed by the

14  Governor.

15         (d)  For amendments that involve trust funds, there

16  must be adequate and appropriate revenues available in the

17  trust fund and the amendment must be consistent with the laws

18  authorizing such trust funds and the laws relating to the use

19  of the trust funds. However, a trust fund shall not be

20  increased in excess of the original approved budget, except as

21  provided in subsection (11).

22         (e)  The amendment shall not conflict with any

23  provision of law.

24         (f)  The amendment must not provide funding for any

25  issue which was requested by the agency or branch in its

26  legislative budget request and not funded in the General

27  Appropriations Act.

28         (g)  The amendment must include a written description

29  of the purpose of the proposed change, an indication of why

30  interim budget action is necessary, and the intended recipient

31  of any funds for contracted services.

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 1         (h)  The amendment must not provide general salary

 2  increases which the Legislature has not authorized in the

 3  General Appropriations Act or other laws.

 4         (4)  To the extent possible, individual members of the

 5  Senate and the House of Representatives should be advised of

 6  budget amendments requested by the executive branch and

 7  judicial branch.

 8         (6)(a)  The Executive Office of the Governor or the

 9  Chief Justice of the Supreme Court may require the submission

10  of a detailed plan from the agency or entity of the judicial

11  branch affected, consistent with the General Appropriations

12  Act, special appropriations acts, and statements the statement

13  of intent before transferring and releasing the balance of a

14  lump-sum appropriation. The provisions of this paragraph are

15  subject to the notice and review procedures set forth in s.

16  216.177.

17         (b)  The Executive Office of the Governor and the Chief

18  Justice of the Supreme Court may amend, without approval of

19  the Legislative Budget Commission, state agency and judicial

20  branch entity budgets, respectively, to reflect the

21  transferred funds and to provide the associated increased

22  salary rate based on the approved plans for lump-sum

23  appropriations. This paragraph is subject to the notice and

24  review procedures set forth in s. 216.177.

25  

26  The Executive Office of the Governor shall transmit to each

27  state agency and the Chief Financial Officer, and the Chief

28  Justice shall transmit to each judicial branch component and

29  the Chief Financial Officer, any approved amendments to the

30  approved operating budgets.

31  

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 1         (8)  As part of the approved operating budget, the

 2  Executive Office of the Governor shall furnish to each state

 3  agency, and the Chief Justice of the Supreme Court shall

 4  furnish to the entity of the judicial branch, an approved

 5  annual salary rate for each budget entity containing a salary

 6  appropriation. This rate shall be based upon the actual salary

 7  rate and shall be consistent with the General Appropriations

 8  Act or special appropriations acts.  The annual salary rate

 9  shall be:

10         (a)  Determined by Calculated based on the actual

11  salary rate in effect on June 30, and the salary policy and

12  the number of authorized positions as specified in the General

13  Appropriations Act and adjusted for reorganizations authorized

14  by law, for any other appropriations made by law, and, subject

15  to s. 216.177, for distributions of lump-sum appropriations

16  and administered funds special appropriations acts, or as

17  provided pursuant to s. 216.177.

18         (b)  Controlled by the budget entity department or

19  agency; except for the Department of Education, which shall be

20  controlled by division and for the judicial branch, which

21  shall be controlled at the branch level.

22         (c)  Assigned to the number of authorized positions.

23         (9)(a)  The calculation for the annual salary rate for

24  vacant and newly authorized positions shall be at no more than

25  the midpoint of the range of the pay grade for the position or

26  as provided in the General Appropriations Act.

27         (b)  No agency or the judicial branch may exceed its

28  maximum approved annual salary rate for the fiscal year.

29  However, at any time during the fiscal year, an agency or

30  entity of the judicial branch may exceed its approved rate for

31  all budget entities by no more than 5 percent, provided that,

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 1  by June 30 of every fiscal year, the agency or entity of the

 2  judicial branch has reduced its salary rate so that the salary

 3  rate for each budget entity is within the approved rate limit

 4  for that budget entity.

 5         (10)(a)  The Legislative Budget Commission Executive

 6  Office of the Governor and the Chief Justice of the Supreme

 7  Court may authorize increases or decreases in increase or

 8  decrease the approved salary rate for positions for the

 9  purpose of implementing the General Appropriations Act,

10  special appropriations acts, and actions pursuant to s.

11  216.262 consistent with legislative intent and policy. Other

12  adjustments to approved salary rate must be approved by the

13  Legislative Budget Commission pursuant to the request of the

14  agency filed with the Executive Office of the Governor or

15  pursuant to the request of an entity of the judicial branch

16  filed with the Chief Justice of the Supreme Court, if deemed

17  necessary and in the best interest of the state and consistent

18  with legislative policy and intent. The provisions of this

19  paragraph are subject to the notice and review procedures set

20  forth in s. 216.177.

21         (b)  Lump-sum salary bonuses may be provided only if

22  specifically appropriated or provided pursuant to s. 110.1245

23  or s. 216.1815.

24         (c)  State agencies and the judicial branch shall

25  report, each fiscal quarter, the number of filled positions,

26  the number of vacant positions, and the salary rate associated

27  with each category to the Legislative Budget Commission in a

28  form and manner prescribed by the commission.

29         (12)(a)  There is established appropriated nonoperating

30  budget authority for refunds, payments to the United States

31  Treasury, payments of the service charge to the General

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 1  Revenue Fund, and transfers of funds specifically required by

 2  law. Such authorized budget authority, together with related

 3  releases, shall be transmitted by the state agency or by the

 4  judicial branch to the Chief Financial Officer for entry in

 5  his or her records in the manner and format prescribed by the

 6  Executive Office of the Governor in consultation with the

 7  Chief Financial Officer. A copy of such authorized budget

 8  authority budgets shall be furnished to the Executive Office

 9  of the Governor or the Chief Justice, the chairs of the

10  legislative committees responsible for developing the general

11  appropriations acts, and the Auditor General. Notwithstanding

12  the duty specified for each state agency in s. 17.61(3), the

13  Governor may withhold approval of nonoperating investment

14  authority for certain trust funds when deemed in the best

15  interest of the state.

16         (b)  The Governor for the executive branch, and the

17  Chief Justice for the judicial branch, may establish budget

18  authority pursuant to this subsection, with the approval of

19  the chairs of the legislative committees responsible for

20  developing the general appropriations acts, nonoperating

21  budgets for transfers, purchase of investments, special

22  expenses, distributions, and any other nonoperating budget

23  authority categories they deem necessary and in the best

24  interest of the state and consistent with legislative intent

25  and policy. Other budget authority may include The provisions

26  of this subsection are subject to the notice, review, and

27  objection procedures set forth in s. 216.177. For purposes of

28  this section, the term "nonoperating budgets" means

29  nonoperating disbursement authority for purchase of

30  investments, refunds, payments to the United States Treasury,

31  transfers of funds specifically required by law, distributions

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 1  of assets held by the state in a trustee capacity as an agent

 2  of fiduciary, and special expenses, and other nonoperating

 3  budget categories as determined necessary by the Executive

 4  Office of the Governor, not otherwise appropriated in the

 5  General Appropriations Act.

 6         (c)  All budget actions taken pursuant to this

 7  subsection are subject to the procedures for notice, review,

 8  and objection set forth in s. 216.177.

 9         (16)(a)  Funds provided in any specific appropriation

10  in the General Appropriations Act may be advanced if the

11  General Appropriations Act specifically so provides.

12         (b)  Any agency, or the judicial branch, that has been

13  authorized by the General Appropriations Act or expressly

14  authorized by other law to make advances for program startup

15  or advances for contracted services, in total or periodically,

16  shall limit such disbursements to other governmental entities

17  and not-for-profit corporations.  The amount that which may be

18  advanced shall not exceed the expected cash needs of the

19  contractor or recipient within the initial 3 months.

20  Thereafter, disbursements shall only be made on a

21  reimbursement basis.  Any agreement that provides for

22  advancements may contain a clause that permits the contractor

23  or recipient to temporarily invest the proceeds, provided that

24  any interest income shall either be returned to the agency or

25  be applied against the agency's obligation to pay the contract

26  amount.  This paragraph does not constitute lawful authority

27  to make any advance payment not otherwise authorized by laws

28  relating to a particular agency or general laws relating to

29  the expenditure or disbursement of public funds. The Chief

30  Financial Officer may, after consultation with the legislative

31  appropriations committees, advance funds beyond a 3-month

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 1  requirement if it is determined to be consistent with the

 2  intent of the approved operating budget.

 3         (c)  Unless specifically prohibited in the General

 4  Appropriations Act, funds appropriated to the Department of

 5  Children and Family Services and the Department of Health may

 6  be advanced for those contracted services that were approved

 7  for advancement by the Comptroller in fiscal year 1993-1994,

 8  including those services contracted on a fixed-price or

 9  unit-cost basis.

10         Section 23.  Sections 216.1825 and 216.183, Florida

11  Statutes, are repealed.

12         Section 24.  Section 216.192, Florida Statutes, is

13  amended to read:

14         216.192  Release of appropriations; revision of

15  budgets.--

16         (1)(a)  Unless otherwise provided in the General

17  Appropriations Act, on July 1 of each fiscal year, up to 25

18  percent of the original approved operating budget of each

19  agency and of the judicial branch may be released until such

20  time as annual plans for quarterly releases for all

21  appropriations have been developed, approved, and furnished to

22  the Chief Financial Officer by the Executive Office of the

23  Governor for state agencies and by the Chief Justice of the

24  Supreme Court for the judicial branch.  The plans, including

25  appropriate plans of releases for fixed capital outlay

26  projects that correspond with each project schedule, shall

27  attempt to maximize the use of trust funds and shall be

28  transmitted to the Chief Financial Officer by August 1 of each

29  fiscal year. Such releases shall at no time exceed the total

30  appropriations available to a state agency or to the judicial

31  branch, or the approved budget for such agency or the judicial

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 1  branch if less. The Chief Financial Officer shall enter such

 2  releases in his or her records in accordance with the release

 3  plans prescribed by the Executive Office of the Governor and

 4  the Chief Justice, unless otherwise amended as provided by

 5  law. The Executive Office of the Governor and the Chief

 6  Justice shall transmit a copy of the approved annual releases

 7  to the head of the state agency, the chair and vice chair of

 8  the Legislative Budget Commission, and the Auditor General.

 9  The Chief Financial Officer shall authorize all expenditures

10  to be made from the appropriations on the basis of such

11  releases and in accordance with the approved budget, and not

12  otherwise. Expenditures shall be authorized only in accordance

13  with legislative authorizations. Nothing herein precludes

14  periodic reexamination and revision by the Executive Office of

15  the Governor or by the Chief Justice of the annual plans for

16  release of appropriations and the notifications of the parties

17  of all such revisions.

18         (b)1.  Before the release of funds for information

19  technology projects designated in the General Appropriations

20  Act, the agency shall submit a detailed operational work plan

21  to the Executive Office of the Governor and the chairs of the

22  legislative appropriations committees. The work plan must

23  include a project charter that describes the business

24  objectives and expected outcomes to be attained and specifies

25  planned project milestones and deliverables; a work breakdown

26  structure that summarizes all tasks required to complete the

27  project; a project schedule and spending plan; a description

28  of the project organization and the roles and responsibilities

29  of the project participants; and a description of the

30  processes and procedures that will be used to identify and

31  

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 1  manage the project's risks and to manage changes in the

 2  requirements of the project.

 3         2.  The agency may request the Executive Office of the

 4  Governor to release the funds based upon the operational work

 5  plan; however, the funds may not be released until the

 6  operational work plan is approved by the Executive Office of

 7  the Governor, in consultation with the legislative

 8  appropriations committees pursuant to the requirements set

 9  forth in chapter 216. Funds released for the information

10  technology project may not exceed the amount needed for the

11  fiscal year as specifically appropriated and identified in the

12  approved operational work plan.

13         3.  The agency also shall submit to the Executive

14  Office of the Governor and the legislative appropriations

15  chairs status reports for the project which compare the

16  planned progress of the project as specified in the

17  operational work plan versus the actual progress made to date,

18  the actual completion dates, and the actual costs incurred.

19  The status reports must also describe the planned project

20  milestones, deliverables, and expenditures for the next

21  reporting period; the current issues requiring resolution; and

22  the project risks that are being actively managed and the

23  actions being taken to mitigate the risks. The operational

24  work plans and project status reports must comply with the

25  standards annually published by the State Technology Office

26  and the Technology Review Workgroup jointly. The General

27  Appropriations Act shall specify the frequency of operational

28  work plans and project-status reports.

29         (2)  Any department under the direct supervision of a

30  member of the Cabinet or of a board consisting of the Governor

31  and members of the Cabinet which contends that the plan for

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 1  releases of funds appropriated to it is contrary to the

 2  approved operating budget shall have the right to have the

 3  issue reviewed by the Administration Commission which shall

 4  decide such issue by majority vote.  The appropriations

 5  committees of the Legislature may advise the Administration

 6  Commission on the issue.

 7         (3)  The Executive Office of the Governor shall make

 8  releases within the amounts appropriated and as requested for

 9  all appropriations to the legislative branch, and the

10  provisions of subsections (1) and (2) shall not apply to the

11  legislative branch.

12         (4)  The legislative appropriations committees may

13  advise the Chief Financial Officer, the Executive Office of

14  the Governor, or the Chief Justice relative to the release of

15  any funds under this section.

16         (4)(5)  The annual plans of releases authorized by this

17  section may be considered by the Revenue Estimating Conference

18  in preparation of the statement of financial outlook.

19         (5)  In order to implement directives contained in the

20  General Appropriations Act or to prevent deficits pursuant to

21  s. 216.221, the Executive Office of the Governor for the

22  executive branch and the Chief Justice for the judicial branch

23  may place appropriations in budget reserve or mandatory

24  reserve.

25         (6)  All budget actions taken pursuant to the

26  provisions of this section are subject to the notice and

27  review procedures set forth in s. 216.177.

28         Section 25.  Section 216.195, Florida Statutes, is

29  amended to read:

30         216.195  Impoundment of funds; restricted.--The

31  Executive Office of the Governor, the Chief Justice of the

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 1  Supreme Court, any member of the Cabinet, or any state agency

 2  shall not impound any appropriation except as necessary to

 3  avoid or eliminate a deficit pursuant to the provisions of s.

 4  216.221.  As used in this section, the term "impoundment"

 5  means the omission of any appropriation or part of an

 6  appropriation in the approved operating plan prepared pursuant

 7  to s. 216.181 or in the schedule of releases prepared pursuant

 8  to s. 216.192 or the failure of any state agency or the

 9  judicial branch to spend an appropriation for the stated

10  purposes authorized in the approved operating budget. The

11  provisions of this section are subject to the notice and

12  review procedures of s. 216.177.  The Governor or either house

13  of the Legislature may seek judicial review of any action or

14  proposed action which violates the provisions of this section.

15         Section 26.  Subsections (2), (3), (5), (7), (9), and

16  (10) of section 216.221, Florida Statutes, are amended to

17  read:

18         216.221  Appropriations as maximum appropriations;

19  adjustment of budgets to avoid or eliminate deficits.--

20         (2)  The Legislature may annually provide direction in

21  the General Appropriations Act regarding use of any state

22  funds the Budget Stabilization Fund and Working Capital Fund

23  to offset General Revenue Fund deficits.

24         (3)  For purposes of preventing a deficit in the

25  General Revenue Fund, all branches and agencies of government

26  that receive General Revenue Fund appropriations shall

27  participate in deficit reduction efforts.  Absent specific

28  legislative direction in the General Appropriations Act, when

29  budget reductions are required in order to prevent a deficit

30  under the provisions of subsection (7), each branch shall

31  

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 1  reduce its General Revenue Fund appropriations by a

 2  proportional amount.

 3         (5)(a)  If, in the opinion of the Governor, after

 4  consultation with the Revenue Estimating Conference, a deficit

 5  will occur in the General Revenue Fund, he or she shall so

 6  certify to the commission and to the Chief Justice of the

 7  Supreme Court.  No more than 30 days after certifying that a

 8  deficit will occur in the General Revenue Fund, the Governor

 9  shall develop for the executive branch, and the Chief Justice

10  of the Supreme Court shall develop for the judicial branch,

11  and provide to the commission and to the Legislature plans of

12  action to eliminate the deficit.

13         (b)  If, in the opinion of the President of the Senate

14  and the Speaker of the House of Representatives, after

15  consultation with the Revenue Estimating Conference, a deficit

16  will occur in the General Revenue Fund and the Governor has

17  not certified the deficit, the President of the Senate and the

18  Speaker of the House of Representatives shall so certify.

19  Within 30 days after such certification, the Governor shall

20  develop for the executive branch and the Chief Justice of the

21  Supreme Court shall develop for the judicial branch, and

22  provide to the commission and to the Legislature, plans of

23  action to eliminate the deficit.

24         (c)(b)  In developing a plan of action to prevent

25  deficits in accordance with subsection (7), the Governor and

26  Chief Justice shall, to the extent possible, preserve

27  legislative policy and intent, and, absent any specific

28  direction to the contrary in the General Appropriations Act,

29  the Governor and Chief Justice shall comply with the following

30  guidelines for reductions in the approved operating budgets of

31  the executive branch and the judicial branch:

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 1         1.  Entire statewide programs previously established by

 2  the Legislature should not be eliminated.

 3         1.2.  Education budgets should not be reduced more than

 4  provided for in s. 215.16(2).

 5         2.3.  The use of nonrecurring funds to solve recurring

 6  deficits should be minimized.

 7         3.4.  Newly created programs that are not fully

 8  implemented and programs with critical audits, evaluations,

 9  and reviews should receive first consideration for reductions.

10         4.5.  No agencies or branches of government receiving

11  appropriations should be exempt from reductions.

12         5.6.  When reductions in positions are required, the

13  focus should be initially on vacant positions.

14         7.  Any reductions applied to all agencies and branches

15  should be uniformly applied.

16         6.8.  Reductions that would cause substantial losses of

17  federal funds should be minimized.

18         9.  To the greatest extent possible, across-the-board,

19  prorated reductions should be considered.

20         7.10.  Reductions to statewide programs should occur

21  only after review of programs that provide only local

22  benefits.

23         8.11.  Reductions in administrative and support

24  functions should be considered before reductions in

25  direct-support services.

26         9.12.  Maximum reductions should be considered in

27  budgets for expenses including travel and in budgets for

28  equipment replacement, outside consultants, and contracts.

29         10.13.  Reductions in salaries for elected state

30  officials should be considered.

31  

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 1         11.14.  Reductions that adversely affect the public

 2  health, safety, and welfare should be minimized.

 3         12.15.  The Budget Stabilization Fund should not be

 4  reduced to a level that would impair the financial stability

 5  of this state.

 6         13.16.  Reductions in programs that are traditionally

 7  funded by the private sector and that may be assumed by

 8  private enterprise should be considered.

 9         14.17.  Reductions in programs that are duplicated

10  among state agencies or branches of government should be

11  considered.

12         (7)  Deficits in the General Revenue Fund that do not

13  meet the amounts specified by subsection (6) shall be resolved

14  by the Governor Commission for the executive branch and the

15  Chief Justice of the Supreme Court for the judicial branch.

16  The Governor commission and Chief Justice shall implement any

17  directions provided in the General Appropriations Act related

18  to eliminating deficits and to reducing agency and judicial

19  branch budgets, including the use of those legislative

20  appropriations voluntarily placed in reserve.  In addition,

21  the Governor and Chief Justice commission shall implement any

22  directions in the General Appropriations Act relating to the

23  resolution of deficit situations.  When reducing state agency

24  or judicial branch budgets, the Governor commission or the

25  Chief Justice, respectively, shall use the guidelines

26  prescribed in subsection (5). The Executive Office of the

27  Governor for the commission, and the Chief Justice for the

28  judicial branch, shall implement the deficit reduction plans

29  through amendments to the approved operating budgets in

30  accordance with s. 216.181.

31  

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 1         (9)  If, in the opinion of the Chief Financial Officer,

 2  after consultation with the Revenue Estimating Conference, a

 3  deficit will occur, he or she shall report his or her opinion

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

 5  of the House of Representatives in writing. In the event the

 6  Governor does not certify a deficit, or the President of the

 7  Senate and the Speaker of the House of Representatives do not

 8  certify a deficit, within 10 days after the Chief Financial

 9  Officer's report, the Chief Financial Officer shall report his

10  or her findings and opinion to the commission and the Chief

11  Justice of the Supreme Court.

12         (10)  When advised by the Revenue Estimating

13  Conference, the Chief Financial Officer, or any agency

14  responsible for a trust fund that a deficit will occur with

15  respect to the appropriations from a specific trust fund in

16  the current fiscal year, the Governor for the executive

17  branch, or the Chief Justice for the judicial branch, shall

18  develop a plan of action to eliminate the deficit. Before

19  implementing the plan of action, the Governor or the Chief

20  Justice must comply with the provisions of s. 216.177(2), and

21  actions to resolve deficits in excess of $1 million must be

22  approved by the Legislative Budget Commission. In developing

23  the plan of action, the Governor or the Chief Justice shall,

24  to the extent possible, preserve legislative policy and

25  intent, and, absent any specific directions to the contrary in

26  the General Appropriations Act, any reductions in

27  appropriations from the trust fund for the fiscal year shall

28  be prorated among the specific appropriations made from the

29  trust fund for the current fiscal year.

30         Section 27.  Subsection (2) of section 216.231, Florida

31  Statutes, is amended to read:

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 1         216.231  Release of certain classified

 2  appropriations.--

 3         (2)  The release of appropriated funds classified as

 4  "deficiency" shall be approved only when a General Revenue

 5  Fund appropriation for operations of a state agency or of the

 6  judicial branch is inadequate because the workload or cost of

 7  the operation exceeds that anticipated by the Legislature and

 8  a determination has been made by the Governor commission that

 9  the deficiency will result in an impairment of the activities

10  of an agency or of the judicial branch to the extent that the

11  agency is unable to carry out its program as provided by the

12  Legislature in the general appropriations acts. These funds

13  may not be used for creation of any new agency or program, for

14  increases of salary, or for the construction or equipping of

15  additional buildings.

16         Section 28.  Subsections (3), (6), and (11) of section

17  216.235, Florida Statutes, are amended to read:

18         216.235  Innovation Investment Program.--

19         (3)  For purposes of this section:

20         (a)  "Agency" means an official, officer, commission,

21  authority, council, committee, department, division, bureau,

22  board, section, or other unit or entity of the executive

23  branch.

24         (b)  "Commission" means the Information Resource

25  Commission.

26         (b)(c)  "Committee" means the State Innovation

27  Committee.

28         (c)(d)  "Office" means the Office of Tourism, Trade,

29  and Economic Development within the Executive Office of the

30  Governor.

31  

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 1         (d)(e)  "Review board" means a nonpartisan board

 2  composed of private citizens and public employees who evaluate

 3  the projects and make funding recommendations to the

 4  committee.

 5         (6)  Any agency developing an innovative investment

 6  project proposal that involves information technology

 7  resources may consult with and seek technical assistance from

 8  the state technology office commission. The office shall

 9  consult with the state technology office commission for any

10  project proposal that involves information resource

11  technology. The state technology office commission is

12  responsible for evaluating these projects and for advising the

13  committee and review board of the technical feasibility and

14  any transferable benefits of the proposed technology. In

15  addition to the requirements of subsection (5), the agencies

16  shall provide to the state technology office commission any

17  information requested by the state technology office

18  commission to aid in determining that the proposed technology

19  is appropriate for the project's success.

20         (11)  Funds appropriated for the Innovation Investment

21  Program shall be distributed by the Executive Office of the

22  Governor subject to notice, review, and objection procedures

23  set forth in s. 216.177. The office may transfer funds from

24  the annual appropriation as necessary to administer the

25  program. Proposals considered but not funded by the

26  Legislature as part of an agency legislative budget request or

27  the Governor's budget recommendation are not eligible to

28  receive funding under the Innovation Investment Program.

29         Section 29.  Section 216.241, Florida Statutes, is

30  amended to read:

31  

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 1         216.241  Initiation or commencement of new programs;

 2  approval; expenditure of certain revenues.--

 3         (1)  A state agency or the judicial branch may not

 4  initiate or commence any new program, including any new

 5  federal program or initiative, or make changes in its current

 6  programs, as provided for in the appropriations act, that

 7  require additional financing unless funds have been

 8  specifically appropriated by the Legislature or unless the

 9  Legislative Budget Commission or the Chief Justice of the

10  Supreme Court expressly approves such new program or changes.

11  The commission and the Chief Justice shall give notice as

12  provided in s. 216.177 prior to approving such new program or

13  changes.

14         (2)  No Changes that which are inconsistent with the

15  approved operating budget may not shall be made to existing

16  programs unless such changes are recommended to the

17  Legislative Budget Commission by the Governor or the Chief

18  Justice and the Legislative Budget Commission expressly

19  approves such program changes. The provisions of This

20  subsection is are subject to the notice, review, and objection

21  procedures set forth in s. 216.177.

22         (3)  Any revenues generated by any tax or fee imposed

23  by amendment to the State Constitution after October 1, 1999,

24  shall not be expended by any agency, as defined in s.

25  120.52(1), except pursuant to appropriation by the

26  Legislature.

27         (4)  A state agency or the judicial branch may not

28  shift functions or responsibilities from agency staff to the

29  private sector or to another agency's staff, including, but

30  not limited to, outsourcing, public-private partnerships, or

31  shared-savings initiatives, without specific approval by the

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 1  Legislature or, absent such specific approval but consistent

 2  with legislative intent and policy, without specific approval

 3  by the Legislative Budget Commission. A request for such

 4  approval, including a recommendation submitted in an agency's

 5  legislative budget request or the Governor's budget

 6  recommendation, must include, but need not be limited to,

 7  applicable supporting cost-benefit analyses, business case

 8  analyses, proposed performance contracting procedures,

 9  detailed service comparisons, and impacts to approved

10  performance standards. Adjustments to the approved budget

11  which are not reflected in the General Appropriations Act and

12  which are necessary to implement such shifts of functions and

13  responsibilities must be approved by the Legislative Budget

14  Commission prior to the execution of any related contracts or

15  other agreements.

16         Section 30.  Subsection (2) of section 216.251, Florida

17  Statutes, is amended to read:

18         216.251  Salary appropriations; limitations.--

19         (2)(a)  The salary for each position not specifically

20  indicated in the appropriations acts shall be as provided in

21  one of the following subparagraphs:

22         1.  Within the classification and pay plans provided

23  for in chapter 110.

24         2.  Within the classification and pay plans established

25  by the Board of Trustees for the Florida School for the Deaf

26  and the Blind of the Department of Education and approved by

27  the State Board of Education for academic and academic

28  administrative personnel.

29         3.  Within the classification and pay plan approved and

30  administered by the State Board of Education Board of Regents

31  for those positions in the State University System.

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 1         4.  Within the classification and pay plan approved by

 2  the President of the Senate and the Speaker of the House of

 3  Representatives, as the case may be, for employees of the

 4  Legislature.

 5         5.  Within the approved classification and pay plan for

 6  the judicial branch.

 7         6.  The salary of all positions not specifically

 8  included in this subsection shall be set by the commission or

 9  by the Chief Justice for the judicial branch.

10         (b)  Salary payments shall be made only to employees

11  filling established positions included in the agency's or in

12  the judicial branch's approved budgets and amendments thereto

13  as may be provided by law; provided, however:

14         1.  Reclassification of established positions may be

15  accomplished when justified in accordance with the established

16  procedures for reclassifying positions; or

17         2.  When the Division of Risk Management of the

18  Department of Financial Services has determined that an

19  employee is entitled to receive a temporary partial disability

20  benefit or a temporary total disability benefit pursuant to

21  the provisions of s. 440.15 and there is medical certification

22  that the employee cannot perform the duties of the employee's

23  regular position, but the employee can perform some type of

24  work beneficial to the agency, the agency may return the

25  employee to the payroll, at his or her regular rate of pay, to

26  perform such duties as the employee is capable of performing,

27  even if there is not an established position in which the

28  employee can be placed.  Nothing in this subparagraph shall

29  abrogate an employee's rights under chapter 440 or chapter

30  447, nor shall it adversely affect the retirement credit of a

31  member of the Florida Retirement System in the membership

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 1  class he or she was in at the time of, and during, the

 2  member's disability.

 3         Section 31.  Paragraphs (a) and (c) of subsection (1)

 4  of section 216.262, Florida Statutes, are amended to read:

 5         216.262  Authorized positions.--

 6         (1)(a)  Unless otherwise expressly provided by law, the

 7  total number of authorized positions may not exceed the total

 8  provided in the appropriations acts.  In the event any state

 9  agency or entity of the judicial branch finds that the number

10  of positions so provided is not sufficient to administer its

11  authorized programs, it may file an application with the

12  Executive Office of the Governor or the Chief Justice; and, if

13  the Executive Office of the Governor or Chief Justice

14  certifies that there are no authorized positions available for

15  addition, deletion, or transfer within the agency as provided

16  in paragraph (c) and recommends an increase in the number of

17  positions, the Governor or the Chief Justice may recommend,

18  after a public hearing, authorize an increase in the number of

19  positions for the following reasons only:

20         1.  To implement or provide for continuing federal

21  grants or changes in grants not previously anticipated;

22         2.  To meet emergencies pursuant to s. 252.36;

23         3.  To satisfy new federal regulations or changes

24  therein;

25         4.  To take advantage of opportunities to reduce

26  operating expenditures or to increase the revenues of the

27  state or local government; and

28         5.  To authorize positions which were not fixed by the

29  Legislature through error in drafting the appropriations acts.

30  

31  

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 1  Actions recommended pursuant to The provisions of this

 2  paragraph are subject to approval by the Legislative Budget

 3  Commission the notice and review procedures set forth in s.

 4  216.177. A copy of the application, The certification, and the

 5  final authorization shall be provided to filed with the

 6  Legislative Budget Commission, the appropriations committees,

 7  and with the Auditor General.

 8         (c)1.  The Executive Office of the Governor, under such

 9  procedures and qualifications as it deems appropriate, shall,

10  upon agency request, delegate to any state agency authority to

11  add and delete authorized positions or transfer authorized

12  positions from one budget entity to another budget entity

13  within the same division, and may approve additions and

14  deletions of authorized positions or transfers of authorized

15  positions within the state agency when such changes would

16  enable the agency to administer more effectively its

17  authorized and approved programs.  The additions or deletions

18  must be consistent with the intent of the approved operating

19  budget, must be consistent with legislative policy and intent,

20  and must not conflict with specific spending policies

21  specified in the General Appropriations Act.

22         2.  The Chief Justice of the Supreme Court shall have

23  the authority to establish procedures for the judicial branch

24  to add and delete authorized positions or transfer authorized

25  positions from one budget entity to another budget entity, and

26  to add and delete authorized positions within the same budget

27  entity, when such changes are consistent with legislative

28  policy and intent and do not conflict with spending policies

29  specified in the General Appropriations Act.

30         3.a.  A state agency may be eligible to retain salary

31  dollars for authorized positions eliminated after July 1,

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 1  2001. The agency must certify the eliminated positions to the

 2  Legislative Budgeting Commission.

 3         b.  The Legislative Budgeting Commission shall

 4  authorize the agency to retain 20 percent of the salary

 5  dollars associated with the eliminated positions and may

 6  authorize retention of a greater percentage. All such salary

 7  dollars shall be used for permanent salary increases.

 8         Section 32.  Section 216.292, Florida Statutes, is

 9  amended to read:

10         (Substantial rewording of section. See

11         s. 216.292, F.S., for present text.)

12         216.292  Appropriations nontransferable; exceptions.--

13         (1)(a)  Funds provided in the General Appropriations

14  Act or as otherwise expressly provided by law shall be

15  expended only for the purpose for which appropriated, except

16  that such moneys may be transferred as provided in this

17  section when it is determined to be in the best interest of

18  the state. Appropriations for fixed capital outlay may not be

19  expended for any other purpose. Appropriations may not be

20  transferred between state agencies, or between a state agency

21  and the judicial branch, unless specifically authorized by

22  law.

23         (b)1.  Authorized revisions of the original approved

24  operating budget, together with related changes in the plan

25  for release of appropriations, if any, shall be transmitted by

26  the state agency or by the judicial branch to the Executive

27  Office of the Governor or the Chief Justice, respectively, the

28  chairs of the Senate and the House of Representatives

29  appropriations committees, the Office of Program Policy

30  Analysis and Government Accountability, and the Auditor

31  General. Such authorized revisions must be consistent with the

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 1  intent of the approved operating budget, must be consistent

 2  with legislative policy and intent, and may not conflict with

 3  specific spending policies specified in the General

 4  Appropriations Act.

 5         2.  Authorized revisions, together with related

 6  changes, if any, in the plan for release of appropriations,

 7  shall be transmitted by the state agency or by the judicial

 8  branch to the Chief Financial Officer for entry in the Chief

 9  Financial Officer's records in the manner and format

10  prescribed by the Executive Office of the Governor in

11  consultation with the Chief Financial Officer.

12         3.  The Executive Office of the Governor or the Chief

13  Justice shall forward a copy of the revisions within 7 working

14  days to the Chief Financial Officer for entry in his or her

15  records in the manner and format prescribed by the Executive

16  Office of the Governor in consultation with the Chief

17  Financial Officer.

18         (2)  The following transfers are authorized to be made

19  by the head of each department or the Chief Justice of the

20  Supreme Court whenever it is deemed necessary by reason of

21  changed conditions:

22         (a)  The transfer of appropriations funded from

23  identical funding sources, except appropriations for fixed

24  capital outlay, and the transfer of amounts included within

25  the total original approved budget and releases as furnished

26  pursuant to ss. 216.181 and 216.192, as follows:

27         1.  Between categories of appropriations within a

28  budget entity, if no category of appropriation is increased or

29  decreased by more than 5 percent of the original approved

30  budget or $250,000, whichever is greater, by all action taken

31  under this subsection.

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 1         2.  Additionally, between budget entities within

 2  identical categories of appropriations, if no category of

 3  appropriation is increased or decreased by more than 5 percent

 4  of the original approved budget or $250,000, whichever is

 5  greater, by all action taken under this subsection.

 6         (b)  After providing notice at least 5 working days

 7  prior to implementation:

 8         1.  The transfer of funds within programs identified in

 9  the General Appropriations Act from identical funding sources

10  between the following appropriation categories without

11  limitation so long as such a transfer does not result in an

12  increase to the total recurring general revenue or trust fund

13  cost of the agency or entity of the judicial branch in the

14  subsequent fiscal year: other personal services, expenses,

15  operating capital outlay, food products, state attorney and

16  public defender operations, acquisition of motor vehicles,

17  data processing services, operating and maintenance of patrol

18  vehicles, overtime payments, salary incentive payments,

19  compensation to retired judges, law libraries, and juror and

20  witness payments.

21         2.  The transfer of funds and positions from identical

22  funding sources between salaries and benefits appropriation

23  categories within programs identified in the General

24  Appropriations Act.

25  

26  Such transfers must be consistent with legislative policy and

27  intent and may not adversely affect achievement of approved

28  performance outcomes or outputs in any program.

29         (c)  The transfer of funds appropriated to accounts

30  established for disbursement purposes upon release of such

31  appropriation upon request of a department and approval by the

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 1  Chief Financial Officer. Such transfer may only be made to the

 2  same appropriation category and the same funding source from

 3  which the funds are transferred.

 4         (d)  The transfer by the Executive Office of the

 5  Governor of funds from appropriations for public school

 6  operations to a fixed capital outlay appropriation for class

 7  size reduction based on recommendations of the Florida

 8  Education Finance Program Appropriation Allocation Conference

 9  or the Legislative Budget Commission pursuant to s.

10  1003.03(4)(a). Actions by the Governor under this subsection

11  are subject to the notice and review provisions of s. 216.177.

12         (e)  The transfer by the Department of Children and

13  Family Services of general revenue funds appropriated for

14  targeted case management services to the Agency for Health

15  Care Administration to fund state match requirements exceeding

16  the amount specified in the General Appropriations Act for

17  Medicaid targeted case management services.

18         (f)  The transfer by the Department of Elderly Affairs

19  of funds that are appropriated for the Assisted Living for the

20  Elderly Medicaid waiver and not expended to the agency to fund

21  Medicaid-reimbursed nursing home care.

22         (g)  The transfer of funds appropriated to the Agency

23  for Persons with Disabilities for developmental services

24  programs only if the secretary finds that treatment programs

25  for developmental disabilities will not be adversely affected.

26         (3)  The following transfers are authorized with the

27  approval of the Executive Office of the Governor for the

28  executive branch or the Chief Justice for the judicial branch,

29  subject to the notice and review provisions of s. 216.177:

30  

31  

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 1         (a)  The transfer of appropriations for operations from

 2  trust funds in excess of those provided in subsection (2), up

 3  to $1 million.

 4         (b)  The transfer of positions between budget entities.

 5         (4)  The following transfers are authorized with the

 6  approval of the Legislative Budget Commission. Unless waived

 7  by the chair and vice chair of the commission, notice of such

 8  transfers must be provided 14 days before the commission

 9  meeting:

10         (a)  The transfer of appropriations for operations from

11  the General Revenue Fund in excess of those provided in this

12  section but within a state agency or within the judicial

13  branch, as recommended by the Executive Office of the Governor

14  or the Chief Justice of the Supreme Court.

15         (b)  The transfer of appropriations for operations from

16  trust funds in excess of those provided in this section which

17  exceed the greater of 5 percent of the original approved

18  budget or $1 million, as recommended by the Executive Office

19  of the Governor or the Chief Justice of the Supreme Court.

20         (c)  The transfer of the portion of an appropriation

21  for a named fixed capital outlay project found to be in excess

22  of that needed to complete the project to another project for

23  which there has been an appropriation in the same fiscal year

24  from the same fund and within the same department where a

25  deficiency is found to exist, at the request of the Executive

26  Office of the Governor for state agencies or the Chief Justice

27  of the Supreme Court for the judicial branch. The scope of a

28  fixed capital outlay project may not be changed by any

29  transfer of funds made pursuant to this subsection.

30         (d)  The transfers necessary to accomplish the purposes

31  of reorganization within state agencies or the judicial branch

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 1  authorized by the Legislature when the necessary adjustments

 2  of appropriations and positions have not been provided in the

 3  General Appropriations Act.

 4         (5)  A transfer of funds may not result in the

 5  initiation of a fixed capital outlay project that has not

 6  received a specific legislative appropriation; except that

 7  federal funds for fixed capital outlay projects for the

 8  Department of Military Affairs, which do not carry a

 9  continuing commitment on future appropriations by the

10  Legislature, may be approved by the Executive Office of the

11  Governor for the purpose received, subject to the notice,

12  review, and objection procedures set forth in s. 216.177.

13         (6)  The Chief Financial Officer shall transfer from

14  any available funds of an agency or the judicial branch the

15  following amounts and shall report all such transfers and the

16  reasons therefor to the legislative appropriations committees

17  and the Executive Office of the Governor:

18         (a)  The amount due to the Unemployment Compensation

19  Trust Fund which is more than 90 days delinquent on

20  reimbursements due to the Unemployment Compensation Trust

21  Fund. The amount transferred shall be that certified by the

22  state agency providing unemployment tax collection services

23  under contract with the Agency for Workforce Innovation

24  through an interagency agreement pursuant to s. 443.1316.

25         (b)  The amount due to the Division of Risk Management

26  which is more than 90 days delinquent in payment to the

27  Division of Risk Management of the Department of Financial

28  Services for insurance coverage. The amount transferred shall

29  be that certified by the division.

30         (c)  The amount due to the Communications Working

31  Capital Trust Fund from moneys appropriated in the General

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 1  Appropriations Act for the purpose of paying for services

 2  provided by the state communications system in the Department

 3  of Management Services which is unpaid 45 days after the

 4  billing date. The amount transferred shall be that billed by

 5  the department.

 6         Section 33.  Section 216.301, Florida Statutes, is

 7  amended to read:

 8         216.301  Appropriations; undisbursed balances.--

 9         (1)(a)  Any balance of any appropriation, except an

10  appropriation for fixed capital outlay, which is not disbursed

11  but which is expended or contracted to be expended shall, at

12  the end of each fiscal year, be certified by the head of the

13  affected state agency or the judicial or legislative branches,

14  on or before August 1 of each year, to the Executive Office of

15  the Governor, showing in detail the obligees to whom obligated

16  and the amounts of such obligations. On or before September 1

17  of each year, the Executive Office of the Governor shall

18  review and approve or disapprove, consistent with legislative

19  policy and intent, any or all of the items and amounts

20  certified by the head of the affected state agency and shall

21  approve all items and amounts certified by the Chief Justice

22  of the Supreme Court for the judicial branch and by the

23  legislative branch and shall furnish the Chief Financial

24  Officer, the legislative appropriations committees, and the

25  Auditor General a detailed listing of the items and amounts

26  approved as legal encumbrances against the undisbursed balance

27  of such appropriation. The review shall assure that trust

28  funds have been fully maximized. Any such encumbered balance

29  remaining undisbursed on December 31 of the same calendar year

30  in which such certification was made shall revert to the fund

31  from which appropriated, except as provided in subsection (3),

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 1  and shall be available for reappropriation by the Legislature.

 2  In the event such certification is not made and an obligation

 3  is proven to be legal, due, and unpaid, then the obligation

 4  shall be paid and charged to the appropriation for the current

 5  fiscal year of the state agency or the legislative or judicial

 6  branch affected.

 7         (b)  Any balance of any appropriation, except an

 8  appropriation for fixed capital outlay, for any given fiscal

 9  year remaining after charging against it any lawful

10  expenditure shall revert to the fund from which appropriated

11  and shall be available for reappropriation by the Legislature.

12         (c)  Each department and the judicial branch shall

13  maintain the integrity of the General Revenue Fund.

14  Appropriations from the General Revenue Fund contained in the

15  original approved budget may be transferred to the proper

16  trust fund for disbursement. Any reversion of appropriation

17  balances from programs which receive funding from the General

18  Revenue Fund and trust funds shall be transferred to the

19  General Revenue Fund within 15 days after such reversion,

20  unless otherwise provided by federal or state law, including

21  the General Appropriations Act. The Executive Office of the

22  Governor or the Chief Justice of the Supreme Court shall

23  determine the state agency or judicial branch programs which

24  are subject to this paragraph. This determination shall be

25  subject to the legislative consultation and objection process

26  in this chapter. The Education Enhancement Trust Fund shall

27  not be subject to the provisions of this section.

28         (2)(a)  The balance of any appropriation for fixed

29  capital outlay which is not disbursed but expended,

30  contracted, or committed to be expended prior to February 1 of

31  the second fiscal year of the appropriation, or the third

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 1  fiscal year if it is for an educational facility as defined in

 2  chapter 1013 or for a construction project of a state

 3  university, shall be certified by the head of the affected

 4  state agency or the legislative or judicial branch on February

 5  1 to the Executive Office of the Governor, showing in detail

 6  the commitment or to whom obligated and the amount of the

 7  commitment or obligation. The Executive Office of the Governor

 8  shall review and approve or disapprove, consistent with

 9  criteria jointly developed by the Executive Office of the

10  Governor and the legislative appropriations committees, the

11  continuation of such unexpended balances. The Executive Office

12  of the Governor shall, not later than February 20 of each

13  year, furnish the Chief Financial Officer, the legislative

14  appropriations committees, and the Auditor General a report

15  listing in detail the items and amounts reverting under the

16  authority of this subsection, including the fund to which

17  reverted and the agency affected.

18         (b)  The certification required in this subsection must

19  be in the form and on the date approved by the Executive

20  Office of the Governor. Any balance that is not certified

21  shall revert to the fund from which it was appropriated and be

22  available for reappropriation.

23         (c)  The balance of any appropriation for fixed capital

24  outlay certified forward under paragraph (a) which is not

25  disbursed but expended, contracted, or committed to be

26  expended prior to the end of the second fiscal year of the

27  appropriation, or the third fiscal year if it is for an

28  educational facility as defined in chapter 1013 or for a

29  construction project of a state university, and any subsequent

30  fiscal year, shall be certified by the head of the affected

31  state agency or the legislative or judicial branch on or

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 1  before August 1 of each year to the Executive Office of the

 2  Governor, showing in detail the commitment or to whom

 3  obligated and the amount of such commitment or obligation. On

 4  or before September 1 of each year, the Executive Office of

 5  the Governor shall review and approve or disapprove,

 6  consistent with legislative policy and intent, any or all of

 7  the items and amounts certified by the head of the affected

 8  state agency and shall approve all items and amounts certified

 9  by the Chief Justice of the Supreme Court and by the

10  legislative branch and shall furnish the Chief Financial

11  Officer, the legislative appropriations committees, and the

12  Auditor General a detailed listing of the items and amounts

13  approved as legal encumbrances against the undisbursed

14  balances of such appropriations. If such certification is not

15  made and the balance of the appropriation has reverted and the

16  obligation is proven to be legal, due, and unpaid, the

17  obligation shall be presented to the Legislature for its

18  consideration.

19         (3)  The President of the Senate and the Speaker of the

20  House of Representatives may notify the Executive Office of

21  the Governor to retain certified-forward balances from

22  legislative budget entities until June 30 of the following

23  fiscal year.

24         (2)(a)  Any balance of any appropriation for fixed

25  capital outlay not disbursed but expended or contracted or

26  committed to be expended shall, at the end of each fiscal

27  year, be certified by the head of the affected state agency or

28  the legislative or judicial branch, on or before August 1 of

29  each year, to the Executive Office of the Governor, showing in

30  detail the commitment or to whom obligated and the amount of

31  such commitment or obligation. On or before September 1 of

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 1  each year, the Executive Office of the Governor shall review

 2  and approve or disapprove, consistent with legislative policy

 3  and intent, any or all of the items and amounts certified by

 4  the head of the affected state agency and shall approve all

 5  items and amounts certified by the Chief Justice of the

 6  Supreme Court and by the legislative branch and shall furnish

 7  the Chief Financial Officer, the legislative appropriations

 8  committees, and the Auditor General a detailed listing of the

 9  items and amounts approved as legal encumbrances against the

10  undisbursed balances of such appropriations. In the event such

11  certification is not made and the balance of the appropriation

12  has reverted and the obligation is proven to be legal, due,

13  and unpaid, then the same shall be presented to the

14  Legislature for its consideration.

15         (b)  Such certification as herein required shall be in

16  the form and on the date approved by the Executive Office of

17  the Governor. Any balance not so certified shall revert to the

18  fund from which appropriated and shall be available for

19  reappropriation.

20         (3)  Notwithstanding the provisions of subsection (2),

21  the unexpended balance of any appropriation for fixed capital

22  outlay subject to but not under the terms of a binding

23  contract or a general construction contract prior to February

24  1 of the second fiscal year, or the third fiscal year if it is

25  for an educational facility as defined in chapter 1013 or a

26  construction project of a state university, of the

27  appropriation shall revert on February 1 of such year to the

28  fund from which appropriated and shall be available for

29  reappropriation. The Executive Office of the Governor shall,

30  not later than February 20 of each year, furnish the Chief

31  Financial Officer, the legislative appropriations committees,

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 1  and the Auditor General a report listing in detail the items

 2  and amounts reverting under the authority of this subsection,

 3  including the fund to which reverted and the agency affected.

 4         Section 34.  Effective July 1, 2006, subsection (1) of

 5  section 216.301, Florida Statutes, as amended by this act, is

 6  amended to read:

 7         216.301  Appropriations; undisbursed balances.--

 8         (1)(a)  Any balance of any appropriation, except an

 9  appropriation for fixed capital outlay, which is not disbursed

10  but which is expended or contracted to be expended shall, at

11  the end of each fiscal year, be certified by the head of the

12  affected state agency or the judicial or legislative branches,

13  on or before August 1 of each year, to the Executive Office of

14  the Governor, showing in detail the obligees to whom obligated

15  and the amounts of such obligations. On or before September 1

16  of each year, the Executive Office of the Governor shall

17  review and approve or disapprove, consistent with legislative

18  policy and intent, any or all of the items and amounts

19  certified by the head of the affected state agency and shall

20  approve all items and amounts certified by the Chief Justice

21  of the Supreme Court for the judicial branch and by the

22  legislative branch and shall furnish the Chief Financial

23  Officer, the legislative appropriations committees, and the

24  Auditor General a detailed listing of the items and amounts

25  approved as legal encumbrances against the undisbursed balance

26  of such appropriation. The review shall assure that trust

27  funds have been fully maximized. Any such encumbered balance

28  remaining undisbursed on September 30 December 31 of the same

29  calendar year in which such certification was made shall

30  revert to the fund from which appropriated, except as provided

31  in subsection (3), and shall be available for reappropriation

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 1  by the Legislature. In the event such certification is not

 2  made and an obligation is proven to be legal, due, and unpaid,

 3  then the obligation shall be paid and charged to the

 4  appropriation for the current fiscal year of the state agency

 5  or the legislative or judicial branch affected.

 6         (b)  Any balance of any appropriation, except an

 7  appropriation for fixed capital outlay, for any given fiscal

 8  year remaining after charging against it any lawful

 9  expenditure shall revert to the fund from which appropriated

10  and shall be available for reappropriation by the Legislature.

11         (c)  Each department and the judicial branch shall

12  maintain the integrity of the General Revenue Fund.

13  Appropriations from the General Revenue Fund contained in the

14  original approved budget may be transferred to the proper

15  trust fund for disbursement. Any reversion of appropriation

16  balances from programs which receive funding from the General

17  Revenue Fund and trust funds shall be transferred to the

18  General Revenue Fund within 15 days after such reversion,

19  unless otherwise provided by federal or state law, including

20  the General Appropriations Act. The Executive Office of the

21  Governor or the Chief Justice of the Supreme Court shall

22  determine the state agency or judicial branch programs which

23  are subject to this paragraph. This determination shall be

24  subject to the legislative consultation and objection process

25  in this chapter. The Education Enhancement Trust Fund shall

26  not be subject to the provisions of this section.

27         Section 35.  Subsection (3) of section 218.60, Florida

28  Statutes, is repealed.

29         Section 36.  Subsection (2) of section 252.37, Florida

30  Statutes, is amended to read:

31         252.37  Financing.--

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 1         (2)  It is the legislative intent that the first

 2  recourse be made to funds regularly appropriated to state and

 3  local agencies.  If the Governor finds that the demands placed

 4  upon these funds in coping with a particular disaster declared

 5  by the Governor as a state of emergency are unreasonably

 6  great, she or he may make funds available by transferring and

 7  expending moneys appropriated for other purposes, by

 8  transferring and expending moneys out of any unappropriated

 9  surplus funds, or from the Budget Stabilization Fund or

10  Working Capital Fund.  Following the expiration or termination

11  of the state of emergency, the Governor may process a budget

12  amendment under the notice and review procedures set forth in

13  s. 216.177 to transfer moneys to satisfy the budget authority

14  granted for such emergency.

15         Section 37.  Subsection (3) of section 265.55, Florida

16  Statutes, is amended to read:

17         265.55  Claims.--

18         (3)  The authorization for payment delineated in

19  subsection (2) shall be forwarded to the Chief Financial

20  Officer. The Chief Financial Officer shall take appropriate

21  action to execute authorized payment of the claim from

22  unobligated, unappropriated moneys in the General Revenue

23  Working Capital Fund, as defined in s. 215.32.

24         Section 38.  Section 288.1234, Florida Statutes, is

25  repealed.

26         Section 39.  Subsection (5) of section 320.20, Florida

27  Statutes, is amended to read:

28         320.20  Disposition of license tax moneys.--The revenue

29  derived from the registration of motor vehicles, including any

30  delinquent fees and excluding those revenues collected and

31  

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 1  distributed under the provisions of s. 320.081, must be

 2  distributed monthly, as collected, as follows:

 3         (5)(a)  Except as provided in paragraph (c), the

 4  remainder of such revenues must be deposited in the State

 5  Transportation Trust Fund.

 6         (b)  The Chief Financial Officer each month shall

 7  deposit in the State Transportation Trust Fund an amount,

 8  drawn from other funds in the State Treasury which are not

 9  immediately needed or are otherwise in excess of the amount

10  necessary to meet the requirements of the State Treasury,

11  which when added to such remaining revenues each month will

12  equal one-twelfth of the amount of the anticipated annual

13  revenues to be deposited in the State Transportation Trust

14  Fund under paragraph (a) as determined by the Chief Financial

15  Officer after consultation with the estimated by the most

16  recent Revenue Estimating Conference held pursuant to s.

17  216.136(3).  The transfers required hereunder may be suspended

18  by action of the Legislative Budget Commission in the event of

19  a significant shortfall of state revenues.

20         (c)  In any month in which the remaining revenues

21  derived from the registration of motor vehicles exceed

22  one-twelfth of those anticipated annual remaining revenues as

23  determined by the Chief Financial Officer after consultation

24  with the Revenue Estimating Conference, the excess shall be

25  credited to those state funds in the State Treasury from which

26  the amount was originally drawn, up to the amount which was

27  deposited in the State Transportation Trust Fund under

28  paragraph (b).  A final adjustment must be made in the last

29  months of a fiscal year so that the total revenue deposited in

30  the State Transportation Trust Fund each year equals the

31  amount derived from the registration of motor vehicles, less

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 1  the amount distributed under subsection (1).  For the purposes

 2  of this paragraph and paragraph (b), the term "remaining

 3  revenues" means all revenues deposited into the State

 4  Transportation Trust Fund under paragraph (a) and subsections

 5  (2) and (3). In order that interest earnings continue to

 6  accrue to the General Revenue Fund, the Department of

 7  Transportation may not invest an amount equal to the

 8  cumulative amount of funds deposited in the State

 9  Transportation Trust Fund under paragraph (b) less funds

10  credited under this paragraph as computed on a monthly basis.

11  The amounts to be credited under this and the preceding

12  paragraph must be calculated and certified to the Chief

13  Financial Officer by the Executive Office of the Governor.

14         Section 40.  Paragraph (a) of subsection (2) and

15  subsections (6) and (7) of section 339.135, Florida Statutes,

16  are amended to read:

17         339.135  Work program; legislative budget request;

18  definitions; preparation, adoption, execution, and

19  amendment.--

20         (2)  SUBMISSION OF LEGISLATIVE BUDGET REQUEST AND

21  REQUEST FOR LIST OF ADDITIONAL TRANSPORTATION PROJECTS.--

22         (a)  The department shall file the legislative budget

23  request in the manner required by chapter 216, setting forth

24  the department's proposed revenues and expenditures for

25  operational and fixed capital outlay needs to accomplish the

26  objectives of the department in the ensuing fiscal year.  The

27  right-of-way, construction, preliminary engineering,

28  maintenance, and all grants and aids programs of the

29  department shall be set forth only in program totals.  The

30  legislative budget request must include a balanced 36-month

31  forecast of cash and expenditures and a 5-year finance plan.

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 1  The legislative budget request shall be amended to conform to

 2  the tentative work program. The department may not amend its

 3  legislative budget request and the tentative work program to

 4  include increased revenues based on the most recent estimating

 5  conference estimate of revenues and the most recent federal

 6  aid apportionments until such increased amounts are

 7  appropriated by the Legislature.

 8         (6)  EXECUTION OF THE BUDGET.--

 9         (a)  The department, during any fiscal year, shall not

10  expend money, incur any liability, or enter into any contract

11  which, by its terms, involves the expenditure of money in

12  excess of the amounts budgeted as available for expenditure

13  during such fiscal year.  Any contract, verbal or written,

14  made in violation of this subsection is null and void, and no

15  money may be paid on such contract.  The department shall

16  require a statement from the comptroller of the department

17  that funds are available prior to entering into any such

18  contract or other binding commitment of funds.  Nothing herein

19  contained shall prevent the making of contracts for periods

20  exceeding 1 year, but any contract so made shall be executory

21  only for the value of the services to be rendered or agreed to

22  be paid for in succeeding fiscal years; and this paragraph

23  shall be incorporated verbatim in all contracts of the

24  department which are for an amount in excess of $25,000 and

25  which have a term for a period of more than 1 year.

26         (b)  In the operation of the State Transportation Trust

27  Fund, the department shall have on hand at the close of

28  business, which closing shall not be later than the 10th

29  calendar day of the month following the end of each quarter of

30  the fiscal year, an available cash balance (which shall

31  include cash on deposit with the treasury and short-term

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 1  investments of the department) equivalent to not less than $50

 2  million, or 5 percent of the unpaid balance of all State

 3  Transportation Trust Fund obligations at the close of such

 4  quarter, whichever amount is less.  In the event that this

 5  cash position is not maintained, no further contracts or other

 6  fund commitments shall be approved, entered into, awarded, or

 7  executed until the cash balance, as defined above, has been

 8  regained.

 9         (c)  Notwithstanding the provisions of ss. 216.301(3)

10  and 216.351, any unexpended balance remaining at the end of

11  the fiscal year in the appropriations to the department for

12  special categories; aid to local governments; lump sums for

13  project phases which are part of the adopted work program, and

14  for which contracts have been executed or bids have been let;

15  and for right-of-way land acquisition and relocation

16  assistance for parcels from project phases in the adopted work

17  program for which appraisals have been completed and approved,

18  may be certified forward as fixed capital outlay under the

19  provisions of s. 216.301(2)(a).  Any project phases in the

20  adopted work program not certified forward under the

21  provisions of s. 216.301(2)(a) shall be available for roll

22  forward for the next fiscal year of the adopted work program.

23  Spending authority associated with such project phases may be

24  rolled forward to the next fiscal year upon approval by the

25  Legislative Budget Commission pursuant to paragraph (f).

26  Increases in spending authority shall be limited to amounts of

27  unexpended balances by appropriation category. Any project

28  phase certified forward for which bids have been let but

29  subsequently rejected shall be available for roll forward in

30  the adopted work program for the next fiscal year.  Spending

31  authority associated with such project phases may be rolled

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 1  forward into the current year from funds certified forward

 2  pursuant to paragraph (f).  The amount certified forward may

 3  include contingency allowances for right-of-way acquisition

 4  and relocation, asphalt and petroleum product escalation

 5  clauses, and contract overages, which allowances shall be

 6  separately identified in the certification detail.

 7  Right-of-way acquisition and relocation and contract overages

 8  contingency allowances shall be based on documented historical

 9  patterns.  These contingency amounts shall be incorporated in

10  the certification for each specific category, but when a

11  category has an excess and another category has a deficiency,

12  the Executive Office of the Governor is authorized to transfer

13  the excess to the deficient account.

14         (d)  The department shall allocate resources provided

15  in the General Appropriations Act to the districts prior to

16  July 31 of each year. The allocation shall be promptly

17  reported to the Executive Office of the Governor and the

18  legislative appropriations committees, and all subsequent

19  amendments shall be reported promptly to the secretary of the

20  department.

21         (e)  This subsection does not apply to any bonds issued

22  on behalf of the department pursuant to the State Bond Act.

23         (f)  Notwithstanding the provisions of ss. 216.181(1),

24  216.292, and 216.351, the Executive Office of the Governor may

25  amend that portion of the department's original approved fixed

26  capital outlay budget which comprises the work program

27  pursuant to subsection (7).  Increase in spending authority in

28  paragraph (c) shall be limited to amounts of unexpended

29  balances by appropriation category.

30         (7)  AMENDMENT OF THE ADOPTED WORK PROGRAM.--

31  

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 1         (a)  Notwithstanding the provisions of ss. 216.181(1),

 2  216.292, and 216.351, the adopted work program may be amended

 3  only pursuant to the provisions of this subsection.

 4         (a)(b)  The department may not transfer any funds for

 5  any project or project phase between department districts.

 6  However, a district secretary may agree to a loan of funds to

 7  another district, if:

 8         1.  The funds are used solely to maximize the use or

 9  amount of funds available to the state;

10         2.  The loan agreement is executed in writing and is

11  signed by the district secretaries of the respective

12  districts;

13         3.  Repayment of the loan is to be made within 3 years

14  after the date on which the agreement was entered into; and

15         4.  The adopted work program of the district loaning

16  the funds would not be substantially impaired if the loan were

17  made, according to the district secretary.

18  

19  The loan constitutes an amendment to the adopted work program

20  and is subject to the procedures specified in paragraph (b)

21  (c).

22         (b)(c)  The department may amend the adopted work

23  program to transfer appropriations within the department,

24  except that the following amendments shall be subject to the

25  procedures in paragraph (c) (d):

26         1.  Any amendment which deletes any project or project

27  phase;

28         2.  Any amendment which adds a project estimated to

29  cost over $150,000 in funds appropriated by the Legislature;

30         3.  Any amendment which advances or defers to another

31  fiscal year, a right-of-way phase, a construction phase, or a

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 1  public transportation project phase estimated to cost over

 2  $500,000 in funds appropriated by the Legislature, except an

 3  amendment advancing or deferring a phase for a period of 90

 4  days or less; or

 5         4.  Any amendment which advances or defers to another

 6  fiscal year, any preliminary engineering phase or design phase

 7  estimated to cost over $150,000 in funds appropriated by the

 8  Legislature, except an amendment advancing or deferring a

 9  phase for a period of 90 days or less.

10         (c)(d)1.  Whenever the department proposes any

11  amendment to the adopted work program, which amendment is

12  defined in subparagraph (b)1. (c)1., subparagraph (b)2. (c)2.,

13  subparagraph (b)3. (c)3., or subparagraph (b)4. (c)4., it

14  shall submit the proposed amendment to the Governor for

15  approval and shall immediately notify the chairs of the

16  legislative appropriations committees, the chairs of the

17  legislative transportation committees, each member of the

18  Legislature who represents a district affected by the proposed

19  amendment, each metropolitan planning organization affected by

20  the proposed amendment, and each unit of local government

21  affected by the proposed amendment.  Such proposed amendment

22  shall provide a complete justification of the need for the

23  proposed amendment.

24         2.  The Governor shall not approve a proposed amendment

25  until 14 days following the notification required in

26  subparagraph 1.

27         3.  If either of the chairs of the legislative

28  appropriations committees or the President of the Senate or

29  the Speaker of the House of Representatives objects in writing

30  to a proposed amendment within 14 days following notification

31  and specifies the reasons for such objection, the Governor

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 1  shall disapprove the proposed amendment or shall submit the

 2  proposed amendment to the Administration Commission.  The

 3  proposed amendment may be approved by the Administration

 4  Commission by a two-thirds vote of the members present with

 5  the Governor voting in the affirmative.  In the absence of

 6  approval by the commission, the proposed amendment shall be

 7  automatically disapproved.

 8         (d)(e)  Notwithstanding the requirements in paragraph

 9  (c) (d) and ss. 216.177(2) and 216.351, the secretary may

10  request the Executive Office of the Governor to amend the

11  adopted work program when an emergency exists, as defined in

12  s. 252.34(3), and the emergency relates to the repair or

13  rehabilitation of any state transportation facility.  The

14  Executive Office of the Governor may approve the amendment to

15  the adopted work program and amend that portion of the

16  department's approved budget in the event that the delay

17  incident to the notification requirements in paragraph (c) (d)

18  would be detrimental to the interests of the state.  However,

19  the department shall immediately notify the parties specified

20  in paragraph (c) (d) and shall provide such parties written

21  justification for the emergency action within 7 days of the

22  approval by the Executive Office of the Governor of the

23  amendment to the adopted work program and the department's

24  budget.  In no event may the adopted work program be amended

25  under the provisions of this subsection without the

26  certification by the comptroller of the department that there

27  are sufficient funds available pursuant to the 36-month cash

28  forecast and applicable statutes.

29         (e)(f)  The department may authorize the investment of

30  the earnings accrued and collected upon the investment of the

31  minimum balance of funds required to be maintained in the

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 1  State Transportation Trust Fund pursuant to paragraph (a) (b).

 2  Such investment shall be limited as provided in s.

 3  288.9607(7).

 4         Section 41.  Subsection (3) of section 381.0303,

 5  Florida Statutes, is amended to read:

 6         381.0303  Health practitioner recruitment for special

 7  needs shelters.--

 8         (3)  REIMBURSEMENT TO HEALTH CARE PRACTITIONERS.--The

 9  Department of Health shall reimburse, subject to the

10  availability of funds for this purpose, health care

11  practitioners, as defined in s. 456.001, provided the

12  practitioner is not providing care to a patient under an

13  existing contract, and emergency medical technicians and

14  paramedics licensed pursuant to chapter 401 for medical care

15  provided at the request of the department in special needs

16  shelters or at other locations during times of emergency or

17  major disaster. Reimbursement for health care practitioners,

18  except for physicians licensed pursuant to chapter 458 or

19  chapter 459, shall be based on the average hourly rate that

20  such practitioners were paid according to the most recent

21  survey of Florida hospitals conducted by the Florida Hospital

22  Association. Reimbursement shall be requested on forms

23  prepared by the Department of Health. If a Presidential

24  Disaster Declaration has been made, and the Federal Government

25  makes funds available, the department shall use such funds for

26  reimbursement of eligible expenditures. In other situations,

27  or if federal funds do not fully compensate the department for

28  reimbursement made pursuant to this section, the department

29  shall process submit to the Cabinet or Legislature, as

30  appropriate, a budget amendment to obtain reimbursement from

31  unobligated, unappropriated moneys in the General Revenue

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 1  working capital Fund. Travel expense and per diem costs shall

 2  be reimbursed pursuant to s. 112.061.

 3         Section 42.  Subsection (5) of section 409.906, Florida

 4  Statutes, is amended to read:

 5         409.906  Optional Medicaid services.--Subject to

 6  specific appropriations, the agency may make payments for

 7  services which are optional to the state under Title XIX of

 8  the Social Security Act and are furnished by Medicaid

 9  providers to recipients who are determined to be eligible on

10  the dates on which the services were provided. Any optional

11  service that is provided shall be provided only when medically

12  necessary and in accordance with state and federal law.

13  Optional services rendered by providers in mobile units to

14  Medicaid recipients may be restricted or prohibited by the

15  agency. Nothing in this section shall be construed to prevent

16  or limit the agency from adjusting fees, reimbursement rates,

17  lengths of stay, number of visits, or number of services, or

18  making any other adjustments necessary to comply with the

19  availability of moneys and any limitations or directions

20  provided for in the General Appropriations Act or chapter 216.

21  If necessary to safeguard the state's systems of providing

22  services to elderly and disabled persons and subject to the

23  notice and review provisions of s. 216.177, the Governor may

24  direct the Agency for Health Care Administration to amend the

25  Medicaid state plan to delete the optional Medicaid service

26  known as "Intermediate Care Facilities for the Developmentally

27  Disabled." Optional services may include:

28         (5)  CASE MANAGEMENT SERVICES.--The agency may pay for

29  primary care case management services rendered to a recipient

30  pursuant to a federally approved waiver, and targeted case

31  management services for specific groups of targeted

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 1  recipients, for which funding has been provided and which are

 2  rendered pursuant to federal guidelines. The agency is

 3  authorized to limit reimbursement for targeted case management

 4  services in order to comply with any limitations or directions

 5  provided for in the General Appropriations Act.

 6  Notwithstanding s. 216.292, the Department of Children and

 7  Family Services may transfer general funds to the Agency for

 8  Health Care Administration to fund state match requirements

 9  exceeding the amount specified in the General Appropriations

10  Act for targeted case management services.

11         Section 43.  Paragraph (b) of subsection (11) of

12  section 409.912, Florida Statutes, is repealed.

13         Section 44.  Subsection (2) of section 468.392, Florida

14  Statutes, is amended to read:

15         468.392  Auctioneer Recovery Fund.--There is created

16  the Auctioneer Recovery Fund as a separate account in the

17  Professional Regulation Trust Fund.  The fund shall be

18  administered by the Florida Board of Auctioneers.

19         (2)  All payments and disbursements from the Auctioneer

20  Recovery Fund shall be made by the Chief Financial Officer

21  upon a voucher signed by the Secretary of Business and

22  Professional Regulation or the secretary's designee. Amounts

23  transferred to the Auctioneer Recovery Fund shall not be

24  subject to any limitation imposed by an appropriation act of

25  the Legislature.

26         Section 45.  Subsection (6) of section 475.484, Florida

27  Statutes, is amended to read:

28         475.484  Payment from the fund.--

29         (6)  All payments and disbursements from the Real

30  Estate Recovery Fund shall be made by the Chief Financial

31  Officer upon a voucher signed by the secretary of the

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 1  department. Amounts transferred to the Real Estate Recovery

 2  Fund shall not be subject to any limitation imposed by an

 3  appropriation act of the Legislature.

 4         Section 46.  Paragraph (b) of subsection (7) of section

 5  631.141, Florida Statutes, is amended to read:

 6         631.141  Conduct of delinquency proceeding; domestic

 7  and alien insurers.--

 8         (7)

 9         (b)  In the event that initiation of delinquency

10  proceedings does not result in appointment of the department

11  as receiver, or in the event that the funds or assets of an

12  insurer for which the department is appointed as receiver are

13  insufficient to cover the cost of compensation to special

14  agents, counsel, clerks, or assistants and all expenses of

15  taking, or attempting to take, possession of the insurer, and

16  of conducting the proceeding, there is appropriated, upon

17  approval of the Chief Financial Officer and of the Legislative

18  Budget Commission pursuant to chapter 216, from the Insurance

19  Regulation Trust Fund to the Division of Rehabilitation and

20  Liquidation a sum that is sufficient to cover the unreimbursed

21  costs.

22         Section 47.  Paragraph (b) of subsection (9) of section

23  921.001, Florida Statutes, is amended to read:

24         921.001  Sentencing Commission and sentencing

25  guidelines generally.--

26         (9)

27         (b)  On or after January 1, 1994, any legislation

28  which:

29         1.  Creates a felony offense;

30         2.  Enhances a misdemeanor offense to a felony offense;

31  

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 1         3.  Moves a felony offense from a lesser offense

 2  severity level to a higher offense severity level in the

 3  offense severity ranking chart in s. 921.0012; or

 4         4.  Reclassifies an existing felony offense to a

 5  greater felony classification

 6  

 7  must provide that such a change result in a net zero sum

 8  impact in the overall prison population, as determined by the

 9  Legislature, considering the most recent estimates of the

10  Criminal Justice Estimating Conference, unless the legislation

11  contains a funding source sufficient in its base or rate to

12  accommodate such change or a provision which specifically

13  abrogates the application of this paragraph.

14         Section 48.  Subsection (3) of section 943.61, Florida

15  Statutes, is amended to read:

16         943.61  Powers and duties of the Capitol Police.--

17         (3)  Notwithstanding the provisions of chapter 216, no

18  assets, personnel, or resources shall be taken from the

19  Capitol Police, and no appropriation to the Capitol Police

20  shall be reduced without the express approval of the Governor

21  and the Legislative Budget Commission. Nothing herein limits

22  the ability of the Capitol Police to provide mutual aid to

23  other law enforcement agencies as authorized by law unless

24  such a limitation is expressly included in the operational

25  security plans provided for herein.

26         Section 49.  Paragraph (a) of subsection (1) of section

27  1009.536, Florida Statutes, is amended to read:

28         1009.536  Florida Gold Seal Vocational Scholars

29  award.--The Florida Gold Seal Vocational Scholars award is

30  created within the Florida Bright Futures Scholarship Program

31  to recognize and reward academic achievement and career

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 1  preparation by high school students who wish to continue their

 2  education.

 3         (1)  A student is eligible for a Florida Gold Seal

 4  Vocational Scholars award if the student meets the general

 5  eligibility requirements for the Florida Bright Futures

 6  Scholarship Program and the student:

 7         (a)  Completes the secondary school portion of a

 8  sequential program of studies that requires at least three

 9  secondary school career credits taken over at least 2 academic

10  years, and is continued in a planned, related postsecondary

11  education program. If the student's school does not offer such

12  a two-plus-two or tech-prep program, the student must complete

13  a job-preparatory career education program selected by the

14  Workforce Estimating Conference or Workforce Florida, Inc.,

15  for its ability to provide high-wage employment in an

16  occupation with high potential for employment opportunities.

17  On-the-job training may not be substituted for any of the

18  three required career credits.

19         Section 50.  Subsection (2) of section 1013.512,

20  Florida Statutes, is amended to read:

21         1013.512  Land Acquisition and Facilities Advisory

22  Board.--

23         (2)  If the director of the Office of Program Policy

24  Analysis and Government Accountability (OPPAGA) or the Auditor

25  General determines in a review or examination that significant

26  deficiencies exist in a school district's land acquisition and

27  facilities operational processes, he or she shall certify to

28  the President of the Senate, the Speaker of the House of

29  Representatives, the Legislative Budget Commission, and the

30  Governor that the deficiency exists. If recommended by the

31  Governor, the Legislative Budget Commission shall approve or

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 1  disapprove the placement of determine whether funds for the

 2  school district funds will be placed in reserve until the

 3  deficiencies are corrected.

 4         Section 51.  Any undisbursed appropriations made from

 5  the Working Capital Fund, previously created in section

 6  215.32, Florida Statutes, are reappropriated from unallocated

 7  moneys in the General Revenue Fund; any appropriations made to

 8  the Working Capital Fund are reappropriated to the General

 9  Revenue Fund; and any references to the Working Capital Fund

10  in proviso language or in Senate Bill 2502, or similar

11  legislation, shall be replaced with "the General Revenue

12  Fund." This section expires July 1, 2006.

13         Section 52.  Except as otherwise expressly provided in

14  this act, this act shall take effect upon becoming a law.

15  

16            *****************************************

17                          SENATE SUMMARY

18    Revises varied provisions relating to the state budgetary
      process, including information to be submitted with
19    proposed budgets, notice of financial information and
      budget modifications, audits, and approval of changes in
20    budgets. (See bill for details.)

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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