Senate Bill sb2548

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    Florida Senate - 2006                                  SB 2548

    By Senator Carlton





    23-1567B-06

  1                      A bill to be entitled

  2         An act relating to state financial matters;

  3         amending s. 11.513, F.S.; requiring that

  4         additional data be included in the plans for

  5         monitoring major programs of state agencies and

  6         in the reviews of those programs; providing for

  7         the Office of Program Policy Analysis and

  8         Government Accountability to review agency

  9         performance standards and report to the

10         Governor, the Legislature, and the Legislative

11         Budget Commission; amending s. 215.18, F.S.;

12         requiring that the Governor provide prior

13         notice of transfers between certain funds;

14         amending s. 216.011, F.S.; defining the term

15         "incurred obligation" for purposes of state

16         fiscal affairs, appropriations, and budgets;

17         amending s. 216.013, F.S.; revising

18         requirements for including information

19         regarding performance measures in the

20         long-range program plans of state agencies and

21         the judicial branch; amending s. 216.023, F.S.;

22         revising certain requirements for legislative

23         budget requests; amending s. 216.177, F.S.;

24         clarifying the circumstances under which the

25         Executive Office of the Governor and the Chief

26         Justice of the Supreme Court are required to

27         provide notice to the chair and vice chair of

28         the Legislative Budget Commission; amending s.

29         216.181, F.S.; providing that amendments to

30         certain approved operating budgets are subject

31         to objection procedures; requiring that state

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 1         agencies submit to the chair and vice chair of

 2         the Legislative Budget Commission a plan for

 3         allocating any lump-sum appropriation in a

 4         budget amendment; amending s. 216.1815, F.S.;

 5         revising certain requirements for the

 6         performance standards included in an amended

 7         operating budget submitted to the Legislative

 8         Budget Commission; creating s. 216.1827, F.S.;

 9         requiring that each state agency operating

10         under a performance-based budget maintain

11         certain performance measures and standards;

12         requiring that performance data, measures, and

13         standards be submitted to the Office of Program

14         Policy Analysis and Government Accountability

15         for review; limiting the reduction of standards

16         without a recommendation of the Governor and

17         approval by the Legislature; providing

18         guidelines for establishing agency performance

19         measures and standards; amending s. 216.292,

20         F.S.; requiring that notice of changed

21         conditions necessitating the budget action be

22         provided to the Executive Office of the

23         Governor and the legislative appropriations

24         committees when funds are transferred between

25         categories of appropriations or budget

26         entities; requiring that such transfers be

27         consistent with legislative policy and intent;

28         providing that certain transfers between budget

29         entities are subject to objection procedures;

30         clarifying provisions authorizing certain

31         transfers of appropriations from trust funds;

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 1         amending s. 216.301, F.S.; revising the

 2         requirements for undisbursed balances of

 3         appropriations; providing a procedure for

 4         identifying and paying incurred obligations;

 5         amending s. 252.37, F.S.; providing that a

 6         budget amendment following a state of emergency

 7         is subject to approval by the Legislative

 8         Budget Commission; providing effective dates.

 9  

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

11  

12         Section 1.  Subsections (2) and (3) of section 11.513,

13  Florida Statutes, are amended, present subsections (5) and (6)

14  of that section are redesignated as subsections (6) and (7),

15  respectively, and a new subsection (5) is added to that

16  section, to read:

17         11.513  Program evaluation and justification review.--

18         (2)  A state agency's inspector general, internal

19  auditor, or other person designated by the agency head shall

20  develop, in consultation with the Office of Program Policy

21  Analysis and Government Accountability, a plan for monitoring

22  and reviewing the state agency's major programs to ensure that

23  performance measures and standards, as well as baseline and

24  previous-year performance data, are maintained and supported

25  by agency records.

26         (3)  The program evaluation and justification review

27  shall be conducted on major programs, but may include other

28  programs. The review shall be comprehensive in its scope but,

29  at a minimum, must be conducted in such a manner as to

30  specifically determine the following, and to consider and

31  

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 1  determine what changes, if any, are needed with respect

 2  thereto:

 3         (a)  The identifiable cost of each program.

 4         (b)  The specific purpose of each program, as well as

 5  the specific public benefit derived therefrom.

 6         (c)  Progress toward achieving the outputs and outcomes

 7  associated with each program.

 8         (d)  An explanation of circumstances contributing to

 9  the state agency's ability to achieve, not achieve, or exceed

10  its projected outputs and outcomes, as defined in s. 216.011,

11  associated with each program.

12         (e)  Alternate courses of action that would result in

13  administration of the same program in a more efficient or

14  effective manner. The courses of action to be considered must

15  include, but are not limited to:

16         1.  Whether the program could be organized in a more

17  efficient and effective manner, whether the program's mission,

18  goals, or objectives should be redefined, or, when the state

19  agency cannot demonstrate that its efforts have had a positive

20  effect, whether the program should be reduced in size or

21  eliminated.

22         2.  Whether the program could be administered more

23  efficiently or effectively to avoid duplication of activities

24  and ensure that activities are adequately coordinated.

25         3.  Whether the program could be performed more

26  efficiently or more effectively by another unit of government

27  or a private entity, or whether a program performed by a

28  private entity could be performed more efficiently and

29  effectively by a state agency.

30         4.  When compared to costs, whether effectiveness

31  warrants elimination of the program or, if the program serves

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 1  a limited interest, whether it should be redesigned to require

 2  users to finance program costs.

 3         5.  Whether the cost to administer the program exceeds

 4  license and other fee revenues paid by those being regulated.

 5         6.  Whether other changes could improve the efficiency

 6  and effectiveness of the program.

 7         (f)  The consequences of discontinuing such program. If

 8  any discontinuation is recommended, such recommendation must

 9  be accompanied by a description of alternatives to implement

10  such recommendation, including an implementation schedule for

11  discontinuation and recommended procedures for assisting state

12  agency employees affected by the discontinuation.

13         (g)  Determination as to public policy, which may

14  include recommendations as to whether it would be sound public

15  policy to continue or discontinue funding the program, either

16  in whole or in part, in the existing manner.

17         (h)  Whether current performance measures and standards

18  should be reviewed or amended to assist agencies' efforts in

19  achieving outputs and outcome measures.

20         (i)(h)  Whether the information reported as part of the

21  state's performance-based program budgeting system has

22  relevance and utility for the evaluation of each program.

23         (j)(i)  Whether state agency management has established

24  control systems sufficient to ensure that performance data are

25  maintained and supported by state agency records and

26  accurately presented in state agency performance reports.

27         (5)  The Office of Program Policy Analysis and

28  Government Accountability may perform evaluation and

29  justification reviews when necessary and as directed by the

30  Legislature in order to determine whether current agency

31  performance standards and measures are adequate. Reports

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 1  concerning the evaluation and review of agency performance

 2  measures and standards shall be submitted to the Executive

 3  Office of the Governor, the President of the Senate, the

 4  Speaker of the House of Representatives, and the chair and

 5  vice chair of the Legislative Budget Commission.

 6         Section 2.  Section 215.18, Florida Statutes, is

 7  amended to read:

 8         215.18  Transfers between funds; limitation.--Whenever

 9  there exists in any fund provided for by s. 215.32 a

10  deficiency which would render such fund insufficient to meet

11  its just requirements, and there shall exist in the other

12  funds in the State Treasury moneys which are for the time

13  being or otherwise in excess of the amounts necessary to meet

14  the just requirements of such last-mentioned funds, the

15  Governor may order a temporary transfer of moneys from one

16  fund to another in order to meet temporary deficiencies in a

17  particular fund without resorting to the necessity of

18  borrowing money and paying interest thereon. Any action

19  proposed pursuant to this section is subject to the notice and

20  objection procedures set forth in s. 216.177, and the Governor

21  shall provide notice of such action at least 14 days prior to

22  the effective date of the transfer of funds.

23         (1)  Except as otherwise provided in s.

24  216.222(1)(a)2., the fund from which any money is temporarily

25  transferred shall be repaid the amount transferred from it not

26  later than the end of the fiscal year in which such transfer

27  is made, the date of repayment to be specified in the order of

28  the Governor.

29         (2)  Notwithstanding subsection (1) and for the

30  2005-2006 fiscal year only, the repayment period for funds

31  temporarily transferred in fiscal year 2004-2005 to meet

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 1  deficiencies resulting from hurricanes striking this state in

 2  2004 may be extended until grants awarded by the Federal

 3  Emergency Management Agency for FEMA Disaster Declarations

 4  1539-DR-FL, 1545-DR-FL, 1551-DR-FL, and 1561-DR-FL are

 5  received. This subsection expires July 1, 2006.

 6         Section 3.  Effective upon this act becoming a law,

 7  paragraph (tt) is added to subsection (1) of section 216.011,

 8  Florida Statutes, to read:

 9         216.011  Definitions.--

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

11  appropriations acts, legislative budgets, and approved

12  budgets, each of the following terms has the meaning

13  indicated:

14         (tt)  "Incurred obligation" means a legal obligation

15  for goods or services that have been contracted for, referred

16  to as an encumbrance in the state's financial system, or

17  received or incurred by the state and referred to as a payable

18  in the state's financial system.

19         Section 4.  Paragraph (g) of subsection (1) and

20  subsection (5) of section 216.013, Florida Statutes, are

21  amended to read:

22         216.013  Long-range program plan.--State agencies and

23  the judicial branch shall develop long-range program plans to

24  achieve state goals using an interagency planning process that

25  includes the development of integrated agency program service

26  outcomes. The plans shall be policy based, priority driven,

27  accountable, and developed through careful examination and

28  justification of all agency and judicial branch programs.

29         (1)  Long-range program plans shall provide the

30  framework for the development of budget requests and shall

31  identify or update:

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 1         (g)  Information regarding performance measurement,

 2  which includes, but is not limited to, how data is collected,

 3  the current performance measures and standards, the

 4  methodology used to measure a performance indicator, the

 5  validity and reliability of a measure, the appropriateness of

 6  a measure, whether any performance measures and standards have

 7  been changed or added, and whether, in the case of agencies,

 8  the agency inspector general has assessed the reliability and

 9  validity of agency performance measures, pursuant to s.

10  20.055(2).

11         (5)  Following the adoption of the annual General

12  Appropriations Act, the state agencies and the judicial branch

13  shall make appropriate adjustments to their long-range program

14  plans to be consistent with the appropriations and performance

15  measures in the General Appropriations Act and legislation

16  implementing the General Appropriations Act. Agencies and the

17  judicial branch have until June 30 to make adjustments to

18  their plans as posted on their Internet websites.

19         Section 5.  Paragraph (a) of subsection (4) of section

20  216.023, Florida Statutes, is amended to read:

21         216.023  Legislative budget requests to be furnished to

22  Legislature by agencies.--

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

24  each program:

25         1.  The constitutional or statutory authority for a

26  program, a brief purpose statement, and approved program

27  components.

28         2.  Information on expenditures for 3 fiscal years

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

30  expenditures, and agency budget requested expenditures for the

31  next fiscal year) by appropriation category.

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 1         3.  Details on trust funds and fees.

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

 3  and requested).

 4         5.  An issue narrative describing and justifying

 5  changes in amounts and positions requested for current and

 6  proposed programs for the next fiscal year.

 7         6.  Information resource requests.

 8         7.  Legislatively approved Output and outcome

 9  performance measures and any planned proposed revisions to

10  measures.

11         8.  Planned Proposed performance standards for each

12  performance measure and justification for the standards and

13  the sources of data to be used for measurement.

14         9.  Prior-year performance data on approved performance

15  measures and an explanation of deviation from expected

16  performance. Performance data must be assessed for reliability

17  in accordance with s. 20.055.

18         10.  Proposed performance incentives and disincentives.

19         11.  Supporting information, including applicable

20  cost-benefit analyses, business case analyses, performance

21  contracting procedures, service comparisons, and impacts on

22  performance standards for any request to outsource or

23  privatize agency functions.

24         12.  An evaluation of any major outsourcing and

25  privatization initiatives undertaken during the last 5 fiscal

26  years having aggregate expenditures exceeding $10 million

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

28  an assessment of contractor performance, a comparison of

29  anticipated service levels to actual service levels, and a

30  comparison of estimated savings to actual savings achieved.

31  

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 1  Consolidated reports issued by the Department of Management

 2  Services may be used to satisfy this requirement.

 3         Section 6.  Paragraph (a) of subsection (2) of section

 4  216.177, Florida Statutes, is amended to read:

 5         216.177  Appropriations acts, statement of intent,

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

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

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

 9  Supreme Court is required by law this chapter, such notice

10  shall be given to the chair and vice chair of the Legislative

11  Budget Commission in writing, and shall be delivered at least

12  14 days prior to the action referred to, unless a shorter

13  period is approved in writing by the chair and vice chair or a

14  different period is specified by law. If the action is solely

15  for the release of funds appropriated by the Legislature, the

16  notice shall be delivered at least 3 days before the effective

17  date of the action. Action shall not be taken on any budget

18  item for which this chapter requires notice to the Legislative

19  Budget Commission or the appropriations committees without

20  such notice having been provided, even though there may be

21  good cause for considering such item.

22         Section 7.  Subsections (3), (5), (6), and (11) of

23  section 216.181, Florida Statutes, are amended to read:

24         216.181  Approved budgets for operations and fixed

25  capital outlay.--

26         (3)  All amendments to original approved operating

27  budgets, regardless of funding source, are subject to the

28  notice and objection review procedures set forth in s.

29  216.177.

30         (5)  An amendment to the original operating budget for

31  an information technology project or initiative that involves

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 1  more than one agency, has an outcome that impacts another

 2  agency, or exceeds $500,000 in total cost over a 1-year

 3  period, except for those projects that are a continuation of

 4  hardware or software maintenance or software licensing

 5  agreements, or that are for desktop replacement that is

 6  similar to the technology currently in use must be reviewed by

 7  the Technology Review Workgroup pursuant to s. 216.0446 and

 8  approved by the Executive Office of the Governor for the

 9  executive branch or by the Chief Justice for the judicial

10  branch, and shall be subject to the notice and objection

11  review procedures set forth in s. 216.177.

12         (6)(a)  A detailed plan allocating a lump-sum

13  appropriation to traditional appropriations categories shall

14  be submitted by the affected agency to the Executive Office of

15  the Governor or the Chief Justice of the Supreme Court and the

16  chair and vice chair of the Legislative Budget Commission

17  either before or concurrent with the submission of any budget

18  amendment may require the submission of a detailed plan from

19  the agency or entity of the judicial branch affected,

20  consistent with the General Appropriations Act, special

21  appropriations acts, and statements of intent before

22  transferring and releasing the balance of a lump-sum

23  appropriation.

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

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

26  the Legislative Budget Commission, state agency and judicial

27  branch entity budgets, respectively, to reflect the

28  transferred funds and to provide the associated increased

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

30  appropriations. Any action proposed pursuant to this paragraph

31  is subject to the procedures set forth in s. 216.177.

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 1  

 2  The Executive Office of the Governor shall transmit to each

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

 4  Justice shall transmit to each judicial branch component and

 5  the Chief Financial Officer, any approved amendments to the

 6  approved operating budgets.

 7         (11)  The Executive Office of the Governor and the

 8  Chief Justice of the Supreme Court may approve changes in the

 9  amounts appropriated from state trust funds in excess of those

10  in the approved operating budget up to $1 million only

11  pursuant to the federal funds provisions of s. 216.212, when

12  grants and donations are received after April 1, or when

13  deemed necessary due to a set of conditions that were

14  unforeseen at the time the General Appropriations Act was

15  adopted and that are essential to correct in order to continue

16  the operation of government. Changes in the amounts

17  appropriated from state trust funds in excess of those in the

18  approved operating budget which are in excess of $1 million

19  may be approved only by the Legislative Budget Commission

20  pursuant to the request of a state agency filed with the

21  Executive Office of the Governor or pursuant to the request of

22  an entity of the judicial branch filed with the Chief Justice

23  of the Supreme Court. The provisions of this subsection are

24  subject to the notice, review, and objection procedures set

25  forth in s. 216.177.

26         Section 8.  Subsection (2) of section 216.1815, Florida

27  Statutes, is amended to read:

28         216.1815  Agency incentive and savings program.--

29         (2)  To be eligible to retain funds, an agency or the

30  Chief Justice of the Supreme Court must submit a plan and an

31  

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 1  associated request to amend its approved operating budget to

 2  the Legislative Budget Commission specifying:

 3         (a)  The modifications to approved programs resulting

 4  in efficiencies and cost savings;

 5         (b)  The amount and source of the funds and positions

 6  saved;

 7         (c)  The specific positions, rate, amounts, and sources

 8  of funds the agency or the judicial branch wishes to include

 9  in its incentive expenditures;

10         (d)  How the agency or the judicial branch will meet

11  the goals and objectives established in its long-range program

12  plan;

13         (e)  How the agency or the judicial branch will meet

14  performance standards, including established by the

15  Legislature and those in its long-range program plan; and

16         (f)  Any other incentive expenditures which the agency

17  or the judicial branch believes will enhance its performance.

18         Section 9.  Section 216.1827, Florida Statutes, is

19  created to read:

20         216.1827  Requirements for performance measures and

21  standards.--

22         (1)  Beginning July 1, 2007, each state agency

23  operating under a performance-based budget must maintain

24  current performance measures and standards as approved by the

25  Legislature and adjusted by the Governor for the 2006-2007

26  fiscal year.

27         (2)(a)  Agencies shall continue to submit output and

28  outcome measures and standards, as well as historical baseline

29  and performance data, to the Executive Office of the Governor

30  and the Legislature, along with legislative budget requests

31  

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 1  submitted pursuant to s. 216.023(4)(a) and long-range program

 2  plans pursuant to ss. 186.021 and 216.013.

 3         (b)  Agencies shall also submit performance data,

 4  measures, and standards to the Office of Program Policy

 5  Analysis and Government Accountability beginning July 1, 2007,

 6  for review of the adequacy of the current measures and

 7  standards.

 8         (3)(a)  An agency may not delete more than 5 percent of

 9  its existing approved performance measures or reduce more than

10  5 percent of existing standards in any fiscal year without the

11  recommendation of the Governor and approval by the

12  Legislature. An agency may make technical changes to

13  performance measures, including changes to the procedure for

14  measuring performance, may increase performance standards, and

15  may add additional performance measures and standards.

16  However, an agency may not delete or make substantive changes

17  to more than 5 percent of current performance measures in any

18  fiscal year.

19         (b)  Agencies shall establish, in coordination with the

20  Executive Office of the Governor and pursuant to s. 216.023,

21  procedures necessary to preserve legislative policy and intent

22  and agency performance measures and standards by complying

23  with the following guidelines:

24         1.  Any changes to performance measures and standards

25  must be consistent with statutory law.

26         2.  Changes to performance measures and standards

27  should support the receipt of federal funds.

28         3.  Changes to performance measures and standards

29  should promote public health, safety, and welfare.

30  

31  

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 1         4.  Changes to performance measures and standards

 2  should support improvements to current programmatic services

 3  provided to recipients of state services.

 4         5.  Changes that reduce duplicative services or

 5  performance measures should be considered.

 6         (4)  The Legislature may create and amend performance

 7  measures and standards. Any new agency created by the

 8  Legislature is subject to the initial performance measures and

 9  standards established by the Legislature.

10         Section 10.  Subsections (2), (3), (4), and (5) of

11  section 216.292, Florida Statutes, are amended to read:

12         216.292  Appropriations nontransferable; exceptions.--

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

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

15  Supreme Court whenever it is deemed necessary by reason of

16  changed conditions:

17         (a)  The transfer of appropriations funded from

18  identical funding sources, except appropriations for fixed

19  capital outlay, and the transfer of amounts included within

20  the total original approved budget and plans of releases of

21  appropriations as furnished pursuant to ss. 216.181 and

22  216.192, as follows:

23         1.  Between categories of appropriations within a

24  budget entity, if no category of appropriation is increased or

25  decreased by more than 5 percent of the original approved

26  budget or $250,000, whichever is greater, by all action taken

27  under this subsection.

28         2.  Between budget entities within identical categories

29  of appropriations, if no category of appropriation is

30  increased or decreased by more than 5 percent of the original

31  

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 1  approved budget or $250,000, whichever is greater, by all

 2  action taken under this subsection.

 3         3.  Any agency exceeding salary rate established

 4  pursuant to s. 216.181(8) on June 30th of any fiscal year

 5  shall not be authorized to make transfers pursuant to

 6  subparagraphs 1. and 2. in the subsequent fiscal year.

 7         4.  Notice of proposed transfers under subparagraphs 1.

 8  and 2. and notice of the specific changed conditions

 9  necessitating the action shall be provided to the Executive

10  Office of the Governor and the chairs of the legislative

11  appropriations committees at least 3 working days prior to

12  agency implementation in order to provide an opportunity for

13  review and objection. Such transfers must be consistent with

14  legislative policy and intent and may not adversely affect

15  achievement of approved performance outcomes or outputs in any

16  program. The review shall be limited to ensuring that the

17  transfer is in compliance with the requirements of this

18  paragraph.

19         (b)  After providing notice at least 5 working days

20  prior to implementation:

21         1.  The transfer of funds within programs identified in

22  the General Appropriations Act from identical funding sources

23  between the following appropriation categories without

24  limitation so long as such a transfer does not result in an

25  increase, to the total recurring general revenue or trust fund

26  cost of the agency or entity of the judicial branch in the

27  subsequent fiscal year: other personal services, expenses,

28  operating capital outlay, food products, state attorney and

29  public defender operations, data processing services,

30  operating and maintenance of patrol vehicles, overtime

31  

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 1  payments, salary incentive payments, compensation to retired

 2  judges, law libraries, and juror and witness payments.

 3         2.  The transfer of funds and positions from identical

 4  funding sources between salaries and benefits appropriation

 5  categories within programs identified in the General

 6  Appropriations Act. Such transfers must be consistent with

 7  legislative policy and intent and may not adversely affect

 8  achievement of approved performance outcomes or outputs in any

 9  program.

10         (c)  The transfer of funds appropriated to accounts

11  established for disbursement purposes upon release of such

12  appropriation upon request of a department and approval by the

13  Chief Financial Officer. Such transfer may only be made to the

14  same appropriation category and the same funding source from

15  which the funds are transferred.

16         (d)  The transfer of funds by the Executive Office of

17  the Governor from appropriations for public school operations

18  to a fixed capital outlay appropriation for class size

19  reduction based on recommendations of the Florida Education

20  Finance Program Appropriation Allocation Conference or the

21  Legislative Budget Commission pursuant to s. 1003.03(4)(a).

22  Actions by the Governor under this subsection are subject to

23  the notice and review provisions of s. 216.177.

24         (3)  The following transfers are authorized with the

25  approval of the Executive Office of the Governor for the

26  executive branch or the Chief Justice for the judicial branch,

27  subject to the notice and objection review provisions of s.

28  216.177:

29         (a)  The transfer of appropriations for operations from

30  trust funds in excess of those provided in subsection (2), up

31  to $1 million.

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 1         (b)  The transfer of positions between budget entities.

 2         (4)  The following transfers are authorized with the

 3  approval of the Legislative Budget Commission. Unless waived

 4  by the chair and vice chair of the commission, notice of such

 5  transfers must be provided 14 days before the commission

 6  meeting:

 7         (a)  The transfer of appropriations for operations from

 8  the General Revenue Fund in excess of those provided in this

 9  section but within a state agency or within the judicial

10  branch, as recommended by the Executive Office of the Governor

11  or the Chief Justice of the Supreme Court.

12         (b)  The transfer of appropriations for operations from

13  trust funds in excess of those authorized provided in

14  subsection (2) or subsection (3) this section that exceed the

15  greater of 5 percent of the original approved budget or $1

16  million, as recommended by the Executive Office of the

17  Governor or the Chief Justice of the Supreme Court.

18         (c)  The transfer of the portion of an appropriation

19  for a named fixed capital outlay project found to be in excess

20  of that needed to complete the project to another project for

21  which there has been an appropriation in the same fiscal year

22  from the same fund and within the same department where a

23  deficiency is found to exist, at the request of the Executive

24  Office of the Governor for state agencies or the Chief Justice

25  of the Supreme Court for the judicial branch. The scope of a

26  fixed capital outlay project may not be changed by any

27  transfer of funds made pursuant to this subsection.

28         (d)  The transfers necessary to accomplish the purposes

29  of reorganization within state agencies or the judicial branch

30  authorized by the Legislature when the necessary adjustments

31  

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    Florida Senate - 2006                                  SB 2548
    23-1567B-06




 1  of appropriations and positions have not been provided in the

 2  General Appropriations Act.

 3         (5)  A transfer of funds may not result in the

 4  initiation of a fixed capital outlay project that has not

 5  received a specific legislative appropriation, except that

 6  federal funds for fixed capital outlay projects for the

 7  Department of Military Affairs, which do not carry a

 8  continuing commitment on future appropriations by the

 9  Legislature, may be approved by the Executive Office of the

10  Governor for the purpose received, subject to the notice,

11  review, and objection procedures set forth in s. 216.177.

12         Section 11.  Effective upon this act becoming a law,

13  subsection (1) of section 216.301, Florida Statutes, as

14  amended by section 40 of chapter 2005-152, Laws of Florida, is

15  amended to read:

16         216.301  Appropriations; undisbursed balances.--

17         (1)(a)  Any balance of any appropriation, except an

18  appropriation for fixed capital outlay, which is not disbursed

19  but which is expended shall, at the end of each fiscal year,

20  be certified by the head of the affected state agency or the

21  judicial or legislative branches, on or before August 1 of

22  each year, to the Executive Office of the Governor, showing in

23  detail the obligees to whom obligated and the amounts of such

24  obligations. Any such encumbered balance remaining undisbursed

25  on September 30  of the same calendar year in which such

26  certification was made shall revert to the fund from which

27  appropriated, except as provided in subsection (3), and shall

28  be available for reappropriation by the Legislature. In the

29  event such certification is not made and an obligation is

30  proven to be legal, due, and unpaid, then the obligation shall

31  be paid and charged to the appropriation for the current

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    Florida Senate - 2006                                  SB 2548
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 1  fiscal year of the state agency or the legislative or judicial

 2  branch affected.

 3         (1)(a)(b)  Except as provided in subsection (3), any

 4  balance of any appropriation, except an appropriation for

 5  fixed capital outlay, for any given fiscal year remaining on

 6  June 30 of the fiscal year after charging against the

 7  appropriation it any lawful expenditure shall revert to the

 8  fund from which appropriated and shall be available for

 9  reappropriation by the Legislature.

10         (b)  By June 30th of each year, each department and the

11  judicial branch shall identify in the state's financial system

12  any lawfully incurred obligation that has not been disbursed

13  by the end of the fiscal year, showing in detail the

14  commitment or to whom obligated and the amount of such

15  commitment or obligation.

16         (c)  Notwithstanding paragraph (a), the balance of any

17  appropriation equal to the amounts of the incurred obligations

18  identified pursuant to paragraph (b) shall not revert until

19  September 30 of the same calendar year. Any such incurred

20  obligation remaining undisbursed on September 30 shall revert

21  to the fund from which appropriated and shall be available for

22  reappropriation by the Legislature.

23         (d)  If an appropriate identification of an incurred

24  obligation is not made and an incurred obligation is proven to

25  be legal, due, and unpaid, the incurred obligation shall be

26  paid and charged to the appropriation for the current fiscal

27  year of the affected state agency or legislative or judicial

28  branch.

29         (e)(c)  Each department and the judicial branch shall

30  maintain the integrity of the General Revenue Fund.

31  Appropriations from the General Revenue Fund contained in the

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    Florida Senate - 2006                                  SB 2548
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 1  original approved budget may be transferred to the proper

 2  trust fund for disbursement. Any reversion of appropriation

 3  balances from programs which receive funding from the General

 4  Revenue Fund and trust funds shall be transferred to the

 5  General Revenue Fund within 15 days after such reversion,

 6  unless otherwise provided by federal or state law, including

 7  the General Appropriations Act. The Executive Office of the

 8  Governor or the Chief Justice of the Supreme Court shall

 9  determine the state agency or judicial branch programs which

10  are subject to this paragraph. This determination shall be

11  subject to the legislative consultation and objection process

12  in this chapter. The Education Enhancement Trust Fund shall

13  not be subject to the provisions of this section.

14         Section 12.  Subsection (2) of section 252.37, Florida

15  Statutes, is amended to read:

16         252.37  Financing.--

17         (2)  It is the legislative intent that the first

18  recourse be made to funds regularly appropriated to state and

19  local agencies. If the Governor finds that the demands placed

20  upon these funds in coping with a particular disaster declared

21  by the Governor as a state of emergency are unreasonably

22  great, she or he may make funds available by transferring and

23  expending moneys appropriated for other purposes, by

24  transferring and expending moneys out of any unappropriated

25  surplus funds, or from the Budget Stabilization Fund.

26  Following the expiration or termination of the state of

27  emergency, the Governor may recommend, subject to approval by

28  the Legislative Budget Commission, process a budget amendment

29  under the notice and review procedures set forth in s. 216.177

30  to transfer moneys to satisfy the budget authority granted for

31  such emergency.

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    Florida Senate - 2006                                  SB 2548
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 1         Section 13.  Except as otherwise expressly provided in

 2  this act and except for this section, which shall take effect

 3  upon becoming a law, this act shall take effect July 1, 2006.

 4  

 5            *****************************************

 6                          SENATE SUMMARY

 7    Revises various provisions governing state budget
      procedures. Requires that the Office of Program Policy
 8    Analysis and Government Accountability review agency
      performance standards and report to the Governor and
 9    Legislature. Requires that the Governor provide prior
      notice of certain transfers of moneys. Defines the term
10    "incurred obligation." Specifies circumstances under
      which the Executive Office of the Governor and the Chief
11    Justice of the Supreme Court must provide notice of
      certain actions to the Legislative Budget Commission.
12    Provides that amendments to certain approved operating
      budgets and transfers between budget entities are subject
13    to objection procedures. Requires that state agencies
      submit a plan to the commission for allocating a lump-sum
14    appropriation in a budget amendment. Requires that state
      agencies operating under performance-based budgets
15    maintain current performance measures and standards.
      Provides for certain exceptions. Requires that notice of
16    changed conditions be provided to the Executive Office of
      the Governor and the legislative appropriations
17    committees when funds are transferred between categories
      of appropriations or budget entities. Revises
18    requirements for transferring appropriations from trust
      funds. Provides procedures for identifying and paying
19    incurred obligations. Requires approval by the
      Legislative Budget Commission of certain budget
20    amendments. (See bill for details.)

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