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A bill to be entitled

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An act relating to direct-support organizations; creating

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s. 292.075, F.S.; providing definitions; authorizing the

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Department of Veterans' Affairs to establish a direct-

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support organization to assist the department; providing

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purposes, objectives, and duties of the direct-support

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organization; providing for a board of directors and

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membership requirements for the board members; requiring

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the direct-support organization to operate under contract

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with the department; delineating contract and other

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governance requirements; providing guidelines for the use

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of funds; providing for the use of property, facilities,

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and personal services of the department; providing

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restrictions; providing limits on the direct-support

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organization; requiring the direct-support organization to

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submit certain federal tax forms to the department;

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providing for an annual audit; amending s. 320.08058,

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F.S.; requiring that 20 percent of the annual license

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plate fee collected from the sale of the "Florida Salutes

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Veterans" license plate be distributed to the direct-

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support organization created for the purpose of providing

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benefit to the Department of Veterans' Affairs; providing

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that the remaining fees be deposited in the State Homes

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for Veterans Trust Fund; repealing s. 292.04, F.S.,

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relating to the Florida Commission on Veteran's Affairs;

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providing an effective date.

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

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     Section 1.  Section 292.075, Florida Statutes, is created to

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read:

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     292.075 Direct-support organization.--

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     (1) PURPOSE.--The Department of Veterans' Affairs is

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authorized to establish a direct-support organization to

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accomplish the purposes and objectives set forth in this section.

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     (2) DEFINITIONS.--As used in this section, the term:

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     (a) "Department" means the Department of Veterans' Affairs.

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     (b) "Personal services" includes full-time or part-time

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personnel.

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     (3) AUTHORITY.--The direct-support organization must be an

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organization that is:

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     (a) A Florida corporation not for profit, incorporated

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under chapter 617, and approved by the Department of State. The

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direct-support organization is exempt from paying fees under s.

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617.0122.

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     (b) Organized and operated exclusively to obtain funds;

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request and receive grants, gifts, and bequests of moneys;

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acquire, receive, hold, invest, and administer in its own name

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securities, funds, or property; and make expenditures to or for

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the direct or indirect benefit of the department.

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     (c) Determined by the department to be operating in a

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manner consistent with the goals and purposes of the department

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and in the best interest of the state.

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     (4) BOARD OF DIRECTORS.--The direct-support organization

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shall be governed by a board of directors.

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     (a) The board of directors shall consist of not fewer than

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five members appointed by the executive director of the

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department. Veteran service organizations in this state may

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recommend nominees to the position of executive director.

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     (b) The term of office of each member shall be 3 years. For

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the initial term, at least one member shall be appointed to a 1-

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year term, two members shall be appointed to 2-year terms, and

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two members appointed to 3-year terms. A member may be

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reappointed when his or her term expires. The executive director

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or his or her designee shall serve as an ex officio member of the

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board of the direct-support organization.

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     (c) Members must be current residents of the state, a

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majority of whom must be veterans, as defined in s. 1.01(14), and

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highly knowledgeable about the United States military and its

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service personnel, veterans, and missions. The executive director

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may remove any member of the board. The executive director of the

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department shall appoint a replacement for any vacancy that

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occurs.

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     (5) CONTRACT.--The direct-support organization shall

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operate under a written contract with the department. The written

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contract must, at a minimum, provide for:

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     (a) Approval of the articles of incorporation and bylaws of

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the direct-support organization by the department.

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     (b) Submission of an annual budget for the approval of the

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department. The budget must comply with rules adopted by the

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department.

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     (c) Certification by the department that the direct-support

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organization is complying with the terms of the contract and is

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doing so consistent with the goals and purposes of the department

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and in the best interest of the state. This certification must be

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made annually and reported in the official minutes of a meeting

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of the department.

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     (d) The reversion of moneys and property held by the

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direct-support organization to:

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     1 The department if the direct-support organization is no

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longer approved to operate for the department;

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     2. The department if the direct-support organization ceases

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to exist or the contract is terminated; or

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     3 The state if the department ceases to exist.

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     (e) The fiscal year of the direct-support organization,

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which must begin July 1 of each year and end June 30 of the

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following year.

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     (f) The disclosure of the material provisions of the

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contract, and the distinction between the department and the

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direct-support organization, to donors of gifts, contributions,

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or bequests, including such disclosure on all promotional and

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fundraising publications.

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     (6) PROPERTY AND SERVICES.--

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     (a) The department may authorize the use of property,

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facilities, and personal services of the department by the

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direct-support organization, subject to the provisions of this

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section.

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     (b) The department may prescribe by contract any condition

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with which the direct-support organization must comply in order

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to use property, facilities, or personal services of the

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department.

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     (c) The department may not permit the direct-support

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organization to use its property, facilities, or personal

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services if the direct-support organization does not provide

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equal employment opportunities to all persons regardless of race,

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color, national origin, gender, age, or religion.

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     (7) ACTIVITIES; RESTRICTIONS.--Any transaction or agreement

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between the direct-support organization organized under this

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section and another direct-support organization or other entity

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must be approved by the executive director.

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     (8) TAX EXEMPTION.--The direct-support organization shall

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submit to the department its federal Internal Revenue Service

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Application for Recognition of Exemption form (Form 1023) and its

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federal Internal Revenue Service Return of Organization Exempt

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from Income Tax form (Form 990).

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     (9) AUNNUAL AUDIT.--The direct-support organization shall

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provide for an annual financial audit in accordance with s.

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215.981.

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     Section 2.  Subsection (4) of section 320.08058, Florida

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Statutes, is amended to read:

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     320.08058  Specialty license plates.--

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     (4)  FLORIDA SALUTES VETERANS LICENSE PLATES.--

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     (a)  The department shall develop a Florida Salutes Veterans

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license plate. The words "Florida Salutes Veterans" and the flag

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of the United States of America must appear on the plate.

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     (b)  The Florida Salutes Veterans license plate annual use

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fee shall be distributed as provided in this paragraph:

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     1. Twenty percent must be distributed to the direct-support

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organization created in s. 292.075. The funds must be used for

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the sole purpose of providing direct or indirect benefit to the

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Department of Veterans' Affairs.

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     2. Any remaining fees must be deposited in the State Homes

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for Veterans Trust Fund, which is created in the State Treasury.

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All such moneys are to be administered by the Department of

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Veterans' Affairs and must be used solely for the purpose of

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constructing, operating, and maintaining domiciliary and nursing

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homes for veterans and for continuing promotion and marketing of

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the license plate, subject to the requirements of chapter 216.

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     Section 3. Section 292.04, Florida Statutes, is repealed.

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     Section 4.  This act shall take effect July 1, 2008.