Florida Senate - 2015                                    SB 1372
       
       
        
       By Senator Gaetz
       
       
       
       
       
       1-00505B-15                                           20151372__
    1                        A bill to be entitled                      
    2         An act relating to government accountability; amending
    3         s. 11.40, F.S.; specifying that the Governor, the
    4         Commissioner of Education, or the designee of the
    5         Governor or of the Commissioner of Education may
    6         notify the Legislative Auditing Committee of an
    7         entity’s failure to comply with certain auditing and
    8         financial reporting requirements; amending s. 11.45,
    9         F.S.; defining the terms “abuse”, “fraud”, and
   10         “waste”; revising the definition of “local
   11         governmental entity”; excluding water management
   12         districts from certain audit requirements; revising
   13         reporting requirements applicable to the Auditor
   14         General; amending s. 28.35, F.S.; revising reporting
   15         requirements applicable to the Florida Clerks of Court
   16         Operations Corporation; amending s. 43.16, F.S.;
   17         revising the responsibilities of the Justice
   18         Administrative Commission, each state attorney, each
   19         public defender, a criminal conflict and civil
   20         regional counsel, a capital collateral counsel, and
   21         the Guardian Ad Litem Program, to include the
   22         establishment and maintenance of certain internal
   23         controls; amending s. 112.31455, F.S.; authorizing the
   24         Chief Financial Officer or a governing body to
   25         withhold an amount of a fine owed and related
   26         administrative costs from public salary-related
   27         payments of certain individuals; authorizing the Chief
   28         Financial Officer or a governing body to reduce the
   29         amount withheld if certain individuals demonstrate a
   30         hardship; transferring a provision relating to the
   31         garnishment of wages of specified individuals;
   32         creating s. 112.31456, F.S.; authorizing the
   33         Commission on Ethics to seek wage garnishment of
   34         certain individuals to satisfy unpaid fines;
   35         authorizing the commission to refer unpaid fines to a
   36         collection agency; establishing a statute of
   37         limitations with respect to the collection of an
   38         unpaid fine; amending s. 112.3261, F.S.; revising
   39         definitions to conform to changes made by the act;
   40         expanding the types of governmental entities that are
   41         subject to lobbyist registration requirements;
   42         amending ss. 129.03, 129.06, 166.241, and 189.016,
   43         F.S.; requiring counties, municipalities, and special
   44         districts to maintain certain budget documents on the
   45         entities’ websites for a specified period; amending s.
   46         215.425, F.S.; requiring a unit of government to
   47         investigate and take necessary action to recover
   48         prohibited compensation; specifying methods of
   49         recovery and liability for unintentional and willful
   50         violations; providing a penalty; authorizing the
   51         Governor to suspend officers under specified
   52         circumstances; establishing eligibility criteria and
   53         amounts for rewards; specifying circumstances under
   54         which an employee has a cause of action under the
   55         Whistle-blower’s Act; establishing causes of action if
   56         a unit of government fails to recover prohibited
   57         compensation within a certain timeframe; amending s.
   58         215.86, F.S.; revising management systems and controls
   59         to be employed by each state agency and the judicial
   60         branch; amending s. 215.97, F.S.; revising the
   61         definition of the term “audit threshold”; amending s.
   62         215.985, F.S.; revising the requirements for a monthly
   63         financial statement provided by a water management
   64         district; amending s. 218.32, F.S.; revising the
   65         requirements of the annual financial audit report of a
   66         local governmental entity; authorizing the Department
   67         of Financial Services to request additional
   68         information from a local governmental entity;
   69         requiring a local governmental entity to respond to
   70         such requests within a specified timeframe; requiring
   71         the department to notify the Legislative Auditing
   72         Committee of noncompliance; amending s. 218.33, F.S.;
   73         requiring local government entities to establish and
   74         maintain internal controls; amending s. 218.39, F.S.;
   75         requiring an audited entity to respond to audit
   76         recommendations under specified circumstances;
   77         amending s. 218.391, F.S.; revising the composition of
   78         an audit committee; restricting the length of a
   79         contract period; amending s. 288.92, F.S.; prohibiting
   80         specified officers and board members of Enterprise
   81         Florida, Inc., from representing a person or entity
   82         for compensation before Enterprise Florida, Inc., for
   83         a specified timeframe; amending s. 288.9604, F.S.;
   84         prohibiting a director of the board of directors of
   85         the Florida Development Finance Corporation from
   86         representing a person or entity for compensation
   87         before the corporation for a specified timeframe;
   88         amending s. 373.536, F.S.; deleting obsolete language;
   89         requiring water management districts to maintain
   90         certain budget documents on the districts’ websites
   91         for a specified period; amending s. 1002.33, F.S.;
   92         revising the responsibilities of the governing board
   93         of a charter school to include the establishment and
   94         maintenance of internal controls; amending s. 1002.37,
   95         F.S.; requiring completion of an annual financial
   96         audit of the Florida Virtual School; specifying audit
   97         requirements; requiring an audit report to be
   98         submitted to the board of trustees of the Florida
   99         Virtual School and the Auditor General; removing an
  100         obsolete provision; amending s. 1010.01, F.S.;
  101         requiring each school district, Florida College System
  102         institution, and state university to establish and
  103         maintain certain internal controls; amending s.
  104         1010.30, F.S.; requiring a district school board,
  105         Florida College System board of trustees, or
  106         university board of trustees to respond to audit
  107         recommendations under certain circumstances; amending
  108         ss. 68.082, 68.083, and 218.503, F.S.; conforming
  109         provisions and cross-references to changes made by the
  110         act; declaring that the act fulfills an important
  111         state interest; providing an effective date.
  112          
  113  Be It Enacted by the Legislature of the State of Florida:
  114  
  115         Section 1. Subsection (2) of section 11.40, Florida
  116  Statutes, is amended to read:
  117         11.40 Legislative Auditing Committee.—
  118         (2) Following notification by the Auditor General, the
  119  Department of Financial Services, or the Division of Bond
  120  Finance of the State Board of Administration, the Governor or
  121  his or her designee, or the Commissioner of Education or his or
  122  her designee of the failure of a local governmental entity,
  123  district school board, charter school, or charter technical
  124  career center to comply with the applicable provisions within s.
  125  11.45(5)-(7), s. 218.32(1), s. 218.38, or s. 218.503(3), the
  126  Legislative Auditing Committee may schedule a hearing to
  127  determine if the entity should be subject to further state
  128  action. If the committee determines that the entity should be
  129  subject to further state action, the committee shall:
  130         (a) In the case of a local governmental entity or district
  131  school board, direct the Department of Revenue and the
  132  Department of Financial Services to withhold any funds not
  133  pledged for bond debt service satisfaction which are payable to
  134  such entity until the entity complies with the law. The
  135  committee shall specify the date such action shall begin, and
  136  the directive must be received by the Department of Revenue and
  137  the Department of Financial Services 30 days before the date of
  138  the distribution mandated by law. The Department of Revenue and
  139  the Department of Financial Services may implement the
  140  provisions of this paragraph.
  141         (b) In the case of a special district created by:
  142         1. A special act, notify the President of the Senate, the
  143  Speaker of the House of Representatives, the standing committees
  144  of the Senate and the House of Representatives charged with
  145  special district oversight as determined by the presiding
  146  officers of each respective chamber, the legislators who
  147  represent a portion of the geographical jurisdiction of the
  148  special district pursuant to s. 189.034(2), and the Department
  149  of Economic Opportunity that the special district has failed to
  150  comply with the law. Upon receipt of notification, the
  151  Department of Economic Opportunity shall proceed pursuant to s.
  152  189.062 or s. 189.067. If the special district remains in
  153  noncompliance after the process set forth in s. 189.034(3), or
  154  if a public hearing is not held, the Legislative Auditing
  155  Committee may request the department to proceed pursuant to s.
  156  189.067(3).
  157         2. A local ordinance, notify the chair or equivalent of the
  158  local general-purpose government pursuant to s. 189.035(2) and
  159  the Department of Economic Opportunity that the special district
  160  has failed to comply with the law. Upon receipt of notification,
  161  the department shall proceed pursuant to s. 189.062 or s.
  162  189.067. If the special district remains in noncompliance after
  163  the process set forth in s. 189.034(3), or if a public hearing
  164  is not held, the Legislative Auditing Committee may request the
  165  department to proceed pursuant to s. 189.067(3).
  166         3. Any manner other than a special act or local ordinance,
  167  notify the Department of Economic Opportunity that the special
  168  district has failed to comply with the law. Upon receipt of
  169  notification, the department shall proceed pursuant to s.
  170  189.062 or s. 189.067(3).
  171         (c) In the case of a charter school or charter technical
  172  career center, notify the appropriate sponsoring entity, which
  173  may terminate the charter pursuant to ss. 1002.33 and 1002.34.
  174         Section 2. Subsection (1), paragraph (j) of subsection (2),
  175  and paragraph (i) of subsection (7) of section 11.45, Florida
  176  Statutes, are amended to read:
  177         11.45 Definitions; duties; authorities; reports; rules.—
  178         (1) DEFINITIONS.—As used in ss. 11.40-11.51, the term:
  179         (a) “Abuse” means behavior that is deficient or improper
  180  when compared with behavior that a prudent person would consider
  181  reasonable and necessary operational practice given the facts
  182  and circumstances. The term includes the misuse of authority or
  183  position for personal gain or for the benefit of another.
  184         (b)(a) “Audit” means a financial audit, operational audit,
  185  or performance audit.
  186         (c)(b) “County agency” means a board of county
  187  commissioners or other legislative and governing body of a
  188  county, however styled, including that of a consolidated or
  189  metropolitan government, a clerk of the circuit court, a
  190  separate or ex officio clerk of the county court, a sheriff, a
  191  property appraiser, a tax collector, a supervisor of elections,
  192  or any other officer in whom any portion of the fiscal duties of
  193  the above are under law separately placed.
  194         (d)(c) “Financial audit” means an examination of financial
  195  statements in order to express an opinion on the fairness with
  196  which they are presented in conformity with generally accepted
  197  accounting principles and an examination to determine whether
  198  operations are properly conducted in accordance with legal and
  199  regulatory requirements. Financial audits must be conducted in
  200  accordance with auditing standards generally accepted in the
  201  United States and government auditing standards as adopted by
  202  the Board of Accountancy. When applicable, the scope of
  203  financial audits shall encompass the additional activities
  204  necessary to establish compliance with the Single Audit Act
  205  Amendments of 1996, 31 U.S.C. ss. 7501-7507, and other
  206  applicable federal law.
  207         (e) “Fraud” means obtaining of something of value through
  208  willful misrepresentation, including, but not limited to, the
  209  intentional misstatements or omissions of amounts or disclosures
  210  in financial statements to deceive users of financial
  211  statements, theft of an entity’s assets, bribery, or the use of
  212  one’s position for personal enrichment through the deliberate
  213  misuse or misapplication of an organization’s resources.
  214         (f)(d) “Governmental entity” means a state agency, a county
  215  agency, or any other entity, however styled, that independently
  216  exercises any type of state or local governmental function.
  217         (g)(e) “Local governmental entity” means a county agency,
  218  municipality, tourist development council, county tourism
  219  promotion agency, or special district as defined in s. 189.012.
  220  The term, but does not include any housing authority established
  221  under chapter 421.
  222         (h)(f) “Management letter” means a statement of the
  223  auditor’s comments and recommendations.
  224         (i)(g) “Operational audit” means an audit whose purpose is
  225  to evaluate management’s performance in establishing and
  226  maintaining internal controls, including controls designed to
  227  prevent and detect fraud, waste, and abuse, and in administering
  228  assigned responsibilities in accordance with applicable laws,
  229  administrative rules, contracts, grant agreements, and other
  230  guidelines. Operational audits must be conducted in accordance
  231  with government auditing standards. Such audits examine internal
  232  controls that are designed and placed in operation to promote
  233  and encourage the achievement of management’s control objectives
  234  in the categories of compliance, economic and efficient
  235  operations, reliability of financial records and reports, and
  236  safeguarding of assets, and identify weaknesses in those
  237  internal controls.
  238         (j)(h) “Performance audit” means an examination of a
  239  program, activity, or function of a governmental entity,
  240  conducted in accordance with applicable government auditing
  241  standards or auditing and evaluation standards of other
  242  appropriate authoritative bodies. The term includes an
  243  examination of issues related to:
  244         1. Economy, efficiency, or effectiveness of the program.
  245         2. Structure or design of the program to accomplish its
  246  goals and objectives.
  247         3. Adequacy of the program to meet the needs identified by
  248  the Legislature or governing body.
  249         4. Alternative methods of providing program services or
  250  products.
  251         5. Goals, objectives, and performance measures used by the
  252  agency to monitor and report program accomplishments.
  253         6. The accuracy or adequacy of public documents, reports,
  254  or requests prepared under the program by state agencies.
  255         7. Compliance of the program with appropriate policies,
  256  rules, or laws.
  257         8. Any other issues related to governmental entities as
  258  directed by the Legislative Auditing Committee.
  259         (k)(i) “Political subdivision” means a separate agency or
  260  unit of local government created or established by law and
  261  includes, but is not limited to, the following and the officers
  262  thereof: authority, board, branch, bureau, city, commission,
  263  consolidated government, county, department, district,
  264  institution, metropolitan government, municipality, office,
  265  officer, public corporation, town, or village.
  266         (l)(j) “State agency” means a separate agency or unit of
  267  state government created or established by law and includes, but
  268  is not limited to, the following and the officers thereof:
  269  authority, board, branch, bureau, commission, department,
  270  division, institution, office, officer, or public corporation,
  271  as the case may be, except any such agency or unit within the
  272  legislative branch of state government other than the Florida
  273  Public Service Commission.
  274         (m) “Waste” means the act of using or expending resources
  275  unreasonably, carelessly, extravagantly, or for no useful
  276  purpose.
  277         (2) DUTIES.—The Auditor General shall:
  278         (j) Conduct audits of local governmental entities when
  279  determined to be necessary by the Auditor General, when directed
  280  by the Legislative Auditing Committee, or when otherwise
  281  required by law. No later than 18 months after the release of
  282  the audit report, the Auditor General shall perform such
  283  appropriate followup procedures as he or she deems necessary to
  284  determine the audited entity’s progress in addressing the
  285  findings and recommendations contained within the Auditor
  286  General’s previous report. The Auditor General shall notify each
  287  member of the audited entity’s governing body and the
  288  Legislative Auditing Committee of the results of his or her
  289  determination. For purposes of this paragraph, local
  290  governmental entities do not include water management districts.
  291  
  292  The Auditor General shall perform his or her duties
  293  independently but under the general policies established by the
  294  Legislative Auditing Committee. This subsection does not limit
  295  the Auditor General’s discretionary authority to conduct other
  296  audits or engagements of governmental entities as authorized in
  297  subsection (3).
  298         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
  299         (i) The Auditor General shall annually transmit by July 15,
  300  to the President of the Senate, the Speaker of the House of
  301  Representatives, and the Department of Financial Services, a
  302  list of all school districts, charter schools, charter technical
  303  career centers, Florida College System institutions, state
  304  universities, and local governmental entities water management
  305  districts that have failed to comply with the transparency
  306  requirements as identified in the audit reports reviewed
  307  pursuant to paragraph (b) and those conducted pursuant to
  308  subsection (2).
  309         Section 3. Paragraph (d) of subsection (2) of section
  310  28.35, Florida Statutes, is amended to read:
  311         28.35 Florida Clerks of Court Operations Corporation.—
  312         (2) The duties of the corporation shall include the
  313  following:
  314         (d) Developing and certifying a uniform system of workload
  315  measures and applicable workload standards for court-related
  316  functions as developed by the corporation and clerk workload
  317  performance in meeting the workload performance standards. These
  318  workload measures and workload performance standards shall be
  319  designed to facilitate an objective determination of the
  320  performance of each clerk in accordance with minimum standards
  321  for fiscal management, operational efficiency, and effective
  322  collection of fines, fees, service charges, and court costs. The
  323  corporation shall develop the workload measures and workload
  324  performance standards in consultation with the Legislature. When
  325  the corporation finds a clerk has not met the workload
  326  performance standards, the corporation shall identify the nature
  327  of each deficiency and any corrective action recommended and
  328  taken by the affected clerk of the court. For quarterly periods
  329  ending on the last day of March, June, September, and December
  330  of each year, the corporation shall notify the Legislature of
  331  any clerk not meeting workload performance standards and provide
  332  a copy of any corrective action plans. Such notifications shall
  333  be submitted no later than 45 days after the end of the
  334  preceding quarterly period. As used in this subsection, the
  335  term:
  336         1. “Workload measures” means the measurement of the
  337  activities and frequency of the work required for the clerk to
  338  adequately perform the court-related duties of the office as
  339  defined by the membership of the Florida Clerks of Court
  340  Operations Corporation.
  341         2. “Workload performance standards” means the standards
  342  developed to measure the timeliness and effectiveness of the
  343  activities that are accomplished by the clerk in the performance
  344  of the court-related duties of the office as defined by the
  345  membership of the Florida Clerks of Court Operations
  346  Corporation.
  347         Section 4. Present subsections (6) and (7) of section
  348  43.16, Florida Statutes, are redesignated as subsections (7) and
  349  (8), respectively, and a new subsection (6) is added to that
  350  section, to read:
  351         43.16 Justice Administrative Commission; membership, powers
  352  and duties.—
  353         (6) The commission, each state attorney, each public
  354  defender, the criminal conflict and civil regional counsel, the
  355  capital collateral regional counsel, and the Guardian Ad Litem
  356  Program shall establish and maintain internal controls designed
  357  to:
  358         (a) Prevent and detect fraud, waste, and abuse.
  359         (b) Promote and encourage compliance with applicable laws,
  360  rules, contracts, grant agreements, and best practices.
  361         (c) Support economic and efficient operations.
  362         (d) Ensure reliability of records and reports.
  363         (e) Safeguard assets.
  364         Section 5. Section 112.31455, Florida Statutes, is amended
  365  to read:
  366         112.31455 Withholding of public salary-related payments
  367  Collection methods for unpaid automatic fines for failure to
  368  timely file disclosure of financial interests.—
  369         (1) Before referring any unpaid fine accrued pursuant to s.
  370  112.3144(5) or s. 112.3145(7) s. 112.3145(6) to the Department
  371  of Financial Services, the commission shall attempt to determine
  372  whether the individual owing such a fine is a current public
  373  officer or current public employee. If so, the commission may
  374  notify the Chief Financial Officer or the governing body of the
  375  appropriate county, municipality, or special district of the
  376  total amount of any fine owed to the commission by such
  377  individual.
  378         (a) After receipt and verification of the notice from the
  379  commission, the Chief Financial Officer or the governing body of
  380  the county, municipality, or special district shall withhold the
  381  entire amount of any fine owed, and any administrative costs
  382  incurred, from the individual’s next public salary-related
  383  payment. If the fine exceeds the amount of the next public
  384  salary-related payment, all public salary-related payments must
  385  be withheld until the fine and administrative costs are paid in
  386  full begin withholding the lesser of 10 percent or the maximum
  387  amount allowed under federal law from any salary-related
  388  payment. The Chief Financial Officer or the governing body of
  389  the county, municipality, or special district may retain an
  390  amount of each withheld payment, as provided in s. 77.0305, to
  391  cover the administrative costs incurred under this section. The
  392  withheld payments shall be remitted to the commission until the
  393  fine is satisfied.
  394         (b) The Chief Financial Officer or the governing body of
  395  the county, municipality, or special district may retain an
  396  amount of each withheld payment, as provided in s. 77.0305, to
  397  cover the administrative costs incurred under this section.
  398         (b) If a current public officer or current public employee
  399  demonstrates to the Chief Financial Officer or the governing
  400  body responsible for paying him or her that the public salary is
  401  his or her primary source of income and that withholding the
  402  full amount of any fine owed from a public salary-related
  403  payment would present an undue hardship, the withheld amount may
  404  be reduced but must be at least 10 percent of the public salary
  405  related payment.
  406         (2) If the commission determines that the individual who is
  407  the subject of an unpaid fine accrued pursuant to s. 112.3144(5)
  408  or s. 112.3145(6) is no longer a public officer or public
  409  employee or if the commission is unable to determine whether the
  410  individual is a current public officer or public employee, the
  411  commission may, 6 months after the order becomes final, seek
  412  garnishment of any wages to satisfy the amount of the fine, or
  413  any unpaid portion thereof, pursuant to chapter 77. Upon
  414  recording the order imposing the fine with the clerk of the
  415  circuit court, the order shall be deemed a judgment for purposes
  416  of garnishment pursuant to chapter 77.
  417         (2)(3) The commission may refer unpaid fines to the
  418  appropriate collection agency, as directed by the Chief
  419  Financial Officer, to use utilize any collection methods
  420  provided by law. Except as expressly limited by this section,
  421  any other collection methods authorized by law are allowed.
  422         (3)(4) Action may be taken to collect any unpaid fine
  423  imposed by ss. 112.3144 and 112.3145 within 20 years after the
  424  date the final order is rendered.
  425         Section 6. Section 112.31456, Florida Statutes, is created
  426  to read:
  427         112.31456 Garnishment of wages for unpaid automatic fines
  428  for failure to timely file disclosure of financial interests.—
  429         (1) Before referring any unpaid fine accrued pursuant to s.
  430  112.3144(5) or s. 112.3145(7) to the Department of Financial
  431  Services, the commission shall attempt to determine whether the
  432  individual owing such a fine is a current public officer or
  433  current public employee. If the commission determines that an
  434  individual who is the subject of an unpaid fine accrued pursuant
  435  to s. 112.3144(5) or s. 112.3145(7) is no longer a public
  436  officer or public employee or if the commission cannot determine
  437  whether the individual is a current public officer or current
  438  public employee, the commission may, 6 months after the order
  439  becomes final, seek garnishment of any wages to satisfy the
  440  amount of the fine, or any unpaid portion thereof, pursuant to
  441  chapter 77. Upon recording the order imposing the fine with the
  442  clerk of the circuit court, the order shall be deemed a judgment
  443  for purposes of garnishment pursuant to chapter 77.
  444         (2) The commission may refer unpaid fines to the
  445  appropriate collection agency, as directed by the Chief
  446  Financial Officer, to use any collection methods provided by
  447  law. Except as expressly limited by this section, any other
  448  collection method authorized by law is allowed.
  449         (3) Action may be taken to collect any unpaid fine imposed
  450  by ss. 112.3144 and 112.3145 within 20 years after the date the
  451  final order is rendered.
  452         Section 7. Section 112.3261, Florida Statutes, is amended
  453  to read:
  454         112.3261 Lobbying before governmental entities water
  455  management districts; registration and reporting.—
  456         (1) As used in this section, the term:
  457         (a) “Governmental entity” or “entity” “District” means a
  458  water management district created in s. 373.069 and operating
  459  under the authority of chapter 373, a hospital district, a
  460  children’s services district, an expressway authority as the
  461  term “authority” is defined in s. 348.0002, a port authority as
  462  the term is defined in s. 315.02, or an independent special
  463  district with annual revenues of more than $5 million which
  464  exercises ad valorem taxing authority.
  465         (b) “Lobbies” means seeking, on behalf of another person,
  466  to influence a governmental entity district with respect to a
  467  decision of the entity district in an area of policy or
  468  procurement or an attempt to obtain the goodwill of an a
  469  district official or employee of a governmental entity. The term
  470  “lobbies” shall be interpreted and applied consistently with the
  471  rules of the commission implementing s. 112.3215.
  472         (c) “Lobbyist” has the same meaning as provided in s.
  473  112.3215.
  474         (d) “Principal” has the same meaning as provided in s.
  475  112.3215.
  476         (2) A person may not lobby a governmental entity district
  477  until such person has registered as a lobbyist with that entity
  478  district. Such registration shall be due upon initially being
  479  retained to lobby and is renewable on a calendar-year basis
  480  thereafter. Upon registration, the person shall provide a
  481  statement signed by the principal or principal’s representative
  482  stating that the registrant is authorized to represent the
  483  principal. The principal shall also identify and designate its
  484  main business on the statement authorizing that lobbyist
  485  pursuant to a classification system approved by the governmental
  486  entity district. Any changes to the information required by this
  487  section must be disclosed within 15 days by filing a new
  488  registration form. The registration form shall require each
  489  lobbyist to disclose, under oath, the following:
  490         (a) The lobbyist’s name and business address.
  491         (b) The name and business address of each principal
  492  represented.
  493         (c) The existence of any direct or indirect business
  494  association, partnership, or financial relationship with an
  495  official any officer or employee of a governmental entity
  496  district with which he or she lobbies or intends to lobby.
  497         (d) In lieu of creating its own lobbyist registration
  498  forms, a governmental entity district may accept a completed
  499  legislative branch or executive branch lobbyist registration
  500  form.
  501         (3) A governmental entity district shall make lobbyist
  502  registrations available to the public. If a governmental entity
  503  district maintains a website, a database of currently registered
  504  lobbyists and principals must be available on the entity’s
  505  district’s website.
  506         (4) A lobbyist shall promptly send a written statement to
  507  the governmental entity district canceling the registration for
  508  a principal upon termination of the lobbyist’s representation of
  509  that principal. A governmental entity district may remove the
  510  name of a lobbyist from the list of registered lobbyists if the
  511  principal notifies the entity district that a person is no
  512  longer authorized to represent that principal.
  513         (5) A governmental entity district may establish an annual
  514  lobbyist registration fee, not to exceed $40, for each principal
  515  represented. The governmental entity district may use
  516  registration fees only to administer this section.
  517         (6) A governmental entity district shall be diligent to
  518  ascertain whether persons required to register pursuant to this
  519  section have complied. A governmental entity district may not
  520  knowingly authorize a person who is not registered pursuant to
  521  this section to lobby the entity district.
  522         (7) Upon receipt of a sworn complaint alleging that a
  523  lobbyist or principal has failed to register with a governmental
  524  entity district or has knowingly submitted false information in
  525  a report or registration required under this section, the
  526  commission shall investigate a lobbyist or principal pursuant to
  527  the procedures established under s. 112.324. The commission
  528  shall provide the Governor with a report of its findings and
  529  recommendations in any investigation conducted pursuant to this
  530  subsection. The Governor is authorized to enforce the
  531  commission’s findings and recommendations.
  532         (8) A governmental entity Water management districts may
  533  adopt rules to establish procedures to govern the registration
  534  of lobbyists, including the adoption of forms and the
  535  establishment of a lobbyist registration fee.
  536         Section 8. Paragraph (c) of subsection (3) of section
  537  129.03, Florida Statutes, is amended to read:
  538         129.03 Preparation and adoption of budget.—
  539         (3) The county budget officer, after tentatively
  540  ascertaining the proposed fiscal policies of the board for the
  541  next fiscal year, shall prepare and present to the board a
  542  tentative budget for the next fiscal year for each of the funds
  543  provided in this chapter, including all estimated receipts,
  544  taxes to be levied, and balances expected to be brought forward
  545  and all estimated expenditures, reserves, and balances to be
  546  carried over at the end of the year.
  547         (c) The board shall hold public hearings to adopt tentative
  548  and final budgets pursuant to s. 200.065. The hearings shall be
  549  primarily for the purpose of hearing requests and complaints
  550  from the public regarding the budgets and the proposed tax
  551  levies and for explaining the budget and any proposed or adopted
  552  amendments. The tentative budget must be posted on the county’s
  553  official website at least 2 days before the public hearing to
  554  consider such budget and must remain on the website for at least
  555  45 days. The final budget must be posted on the website within
  556  30 days after adoption and must remain on the website for at
  557  least 2 years. The tentative budgets, adopted tentative budgets,
  558  and final budgets shall be filed in the office of the county
  559  auditor as a public record. Sufficient reference in words and
  560  figures to identify the particular transactions shall be made in
  561  the minutes of the board to record its actions with reference to
  562  the budgets.
  563         Section 9. Paragraph (f) of subsection (2) of section
  564  129.06, Florida Statutes, is amended to read:
  565         129.06 Execution and amendment of budget.—
  566         (2) The board at any time within a fiscal year may amend a
  567  budget for that year, and may within the first 60 days of a
  568  fiscal year amend the budget for the prior fiscal year, as
  569  follows:
  570         (f) Unless otherwise prohibited by law, if an amendment to
  571  a budget is required for a purpose not specifically authorized
  572  in paragraphs (a)-(e), the amendment may be authorized by
  573  resolution or ordinance of the board of county commissioners
  574  adopted following a public hearing.
  575         1. The public hearing must be advertised at least 2 days,
  576  but not more than 5 days, before the date of the hearing. The
  577  advertisement must appear in a newspaper of paid general
  578  circulation and must identify the name of the taxing authority,
  579  the date, place, and time of the hearing, and the purpose of the
  580  hearing. The advertisement must also identify each budgetary
  581  fund to be amended, the source of the funds, the use of the
  582  funds, and the total amount of each fund’s appropriations.
  583         2. If the board amends the budget pursuant to this
  584  paragraph, the adopted amendment must be posted on the county’s
  585  official website within 5 days after adoption and must remain on
  586  the website for at least 2 years.
  587         Section 10. Subsections (3) and (5) of section 166.241,
  588  Florida Statutes, are amended to read:
  589         166.241 Fiscal years, budgets, and budget amendments.—
  590         (3) The tentative budget must be posted on the
  591  municipality’s official website at least 2 days before the
  592  budget hearing, held pursuant to s. 200.065 or other law, to
  593  consider such budget, and must remain on the website for at
  594  least 45 days. The final adopted budget must be posted on the
  595  municipality’s official website within 30 days after adoption
  596  and must remain on the website for at least 2 years. If the
  597  municipality does not operate an official website, the
  598  municipality must, within a reasonable period of time as
  599  established by the county or counties in which the municipality
  600  is located, transmit the tentative budget and final budget to
  601  the manager or administrator of such county or counties who
  602  shall post the budgets on the county’s website.
  603         (5) If the governing body of a municipality amends the
  604  budget pursuant to paragraph (4)(c), the adopted amendment must
  605  be posted on the official website of the municipality within 5
  606  days after adoption and must remain on the website for at least
  607  2 years. If the municipality does not operate an official
  608  website, the municipality must, within a reasonable period of
  609  time as established by the county or counties in which the
  610  municipality is located, transmit the adopted amendment to the
  611  manager or administrator of such county or counties who shall
  612  post the adopted amendment on the county’s website.
  613         Section 11. Subsections (4) and (7) of section 189.016,
  614  Florida Statutes, are amended to read:
  615         189.016 Reports; budgets; audits.—
  616         (4) The tentative budget must be posted on the special
  617  district’s official website at least 2 days before the budget
  618  hearing, held pursuant to s. 200.065 or other law, to consider
  619  such budget, and must remain on the website for at least 45
  620  days. The final adopted budget must be posted on the special
  621  district’s official website within 30 days after adoption and
  622  must remain on the website for at least 2 years. If the special
  623  district does not operate an official website, the special
  624  district must, within a reasonable period of time as established
  625  by the local general-purpose government or governments in which
  626  the special district is located or the local governing authority
  627  to which the district is dependent, transmit the tentative
  628  budget or final budget to the manager or administrator of the
  629  local general-purpose government or the local governing
  630  authority. The manager or administrator shall post the tentative
  631  budget or final budget on the website of the local general
  632  purpose government or governing authority. This subsection and
  633  subsection (3) do not apply to water management districts as
  634  defined in s. 373.019.
  635         (7) If the governing body of a special district amends the
  636  budget pursuant to paragraph (6)(c), the adopted amendment must
  637  be posted on the official website of the special district within
  638  5 days after adoption and must remain on the website for at
  639  least 2 years. If the special district does not operate an
  640  official website, the special district must, within a reasonable
  641  period of time as established by the local general-purpose
  642  government or governments in which the special district is
  643  located or the local governing authority to which the district
  644  is dependent, transmit the adopted amendment to the manager or
  645  administrator of the local general-purpose government or
  646  governing authority. The manager or administrator shall post the
  647  adopted amendment on the website of the local general-purpose
  648  government or governing authority.
  649         Section 12. Subsections (6) through (10) are added to
  650  section 215.425, Florida Statutes, to read:
  651         215.425 Extra compensation claims prohibited; bonuses;
  652  severance pay.—
  653         (6) Upon discovery or notification that a unit of
  654  government has provided prohibited compensation to any officer,
  655  agent, employee, or contractor in violation of this section,
  656  such unit of government shall investigate and take all necessary
  657  action to recover the prohibited compensation.
  658         (a)If the violation was unintentional, the unit of
  659  government shall recover the prohibited compensation from the
  660  individual receiving the prohibited compensation through normal
  661  recovery methods for overpayments.
  662         (b) If the violation was willful, the unit of government
  663  shall recover the prohibited compensation from either the
  664  individual receiving the prohibited compensation or the
  665  individual or individuals responsible for approving the
  666  prohibited compensation. Each individual determined to have
  667  willfully violated this section is jointly and severally liable
  668  for repayment of the prohibited compensation.
  669         (7) A person who willfully violates this section commits a
  670  misdemeanor of the first degree, punishable as provided in s.
  671  775.082 or s. 775.083. The Governor may suspend an officer who
  672  willfully violates this section.
  673         (8)(a)A person who reports a violation of this section is
  674  eligible for a reward of at least $500, or the lesser of 10
  675  percent of the funds recovered or $10,000 per incident of a
  676  prohibited compensation payment recovered by the unit of
  677  government, depending upon the extent to which the person
  678  substantially contributed to the discovery, notification, and
  679  recovery of such prohibited payment.
  680         (b) In the event that the recovery of the prohibited
  681  compensation is based primarily on disclosures of specific
  682  information, other than information provided by such person,
  683  relating to allegations or transactions in a criminal, civil, or
  684  administrative hearing; a legislative, administrative, inspector
  685  general, or other government report; auditor general report,
  686  hearing, audit, or investigation; or from the news media, such
  687  person is not eligible for a reward, or for an award of a
  688  portion of the proceeds or payment of attorney fees and costs
  689  pursuant to s. 68.085.
  690         (c) If it is determined that the person who reported a
  691  violation of this section was involved in the authorization,
  692  approval, or receipt of the prohibited compensation or is
  693  convicted of criminal conduct arising from his or her role in
  694  the authorization, approval, or receipt of the prohibited
  695  compensation, such person is not eligible for a reward, or for
  696  an award of a portion of the proceeds or payment of attorney
  697  fees and costs pursuant to s. 68.085.
  698         (9) An employee who is discharged, demoted, suspended,
  699  threatened, harassed, or in any manner discriminated against in
  700  the terms and conditions of employment by his or her employer
  701  because of lawful acts done by the employee on behalf of the
  702  employee or others in furtherance of an action under this
  703  section, including investigation for initiation of, testimony
  704  for, or assistance in an action filed or to be filed under this
  705  section, has a cause of action under s. 112.3187.
  706         (10)If the unit of government fails to recover prohibited
  707  compensation for a willful violation of this section upon
  708  discovery and notification of such prohibited payment within 90
  709  days, a cause of action may be brought to:
  710         (a) Recover state funds in accordance with ss. 68.082 and
  711  68.083.
  712         (b) Recover other funds by the Department of Legal Affairs
  713  using the procedures set forth in ss. 68.082 and 68.083, except
  714  that venue shall lie in the circuit court of the county in which
  715  the unit of government is located.
  716         (c) Recover other funds by a person using the procedures
  717  set forth in ss. 68.082 and 68.083, except that venue shall lie
  718  in the circuit court of the county in which the unit of
  719  government is located.
  720         Section 13. Section 215.86, Florida Statutes, is amended to
  721  read:
  722         215.86 Management systems and controls.—Each state agency
  723  and the judicial branch as defined in s. 216.011 shall establish
  724  and maintain management systems and internal controls designed
  725  to:
  726         (1) Prevent and detect fraud, waste, and abuse. that
  727         (2) Promote and encourage compliance with applicable laws,
  728  rules, contracts, grant agreements, and best practices.;
  729         (3) Support economic, efficient, and effective operations.;
  730         (4) Ensure reliability of records and reports.;
  731         (5) Safeguard and safeguarding of assets. Accounting
  732  systems and procedures shall be designed to fulfill the
  733  requirements of generally accepted accounting principles.
  734         Section 14. Paragraph (a) of subsection (2) of section
  735  215.97, Florida Statutes, is amended to read:
  736         215.97 Florida Single Audit Act.—
  737         (2) Definitions; as used in this section, the term:
  738         (a) “Audit threshold” means the threshold amount used to
  739  determine when a state single audit or project-specific audit of
  740  a nonstate entity shall be conducted in accordance with this
  741  section. Each nonstate entity that expends a total amount of
  742  state financial assistance equal to or in excess of $750,000
  743  $500,000 in any fiscal year of such nonstate entity shall be
  744  required to have a state single audit, or a project-specific
  745  audit, for such fiscal year in accordance with the requirements
  746  of this section. Periodically, Every 2 years the Auditor
  747  General, after consulting with the Executive Office of the
  748  Governor, the Department of Financial Services, and all state
  749  awarding agencies, shall review the threshold amount for
  750  requiring audits under this section and, if appropriate, may
  751  recommend to the Legislature a statutory change to revise the
  752  threshold amount in the annual report submitted pursuant to s.
  753  11.45(7)(f) may adjust such threshold amount consistent with the
  754  purposes of this section.
  755         Section 15. Subsection (11) of section 215.985, Florida
  756  Statutes, is amended to read:
  757         215.985 Transparency in government spending.—
  758         (11) Each water management district shall provide a monthly
  759  financial statement in the form and manner prescribed by the
  760  Department of Financial Services to the district’s its governing
  761  board and make such monthly financial statement available for
  762  public access on its website.
  763         Section 16. Paragraph (d) of subsection (1) and subsection
  764  (2) of section 218.32, Florida Statutes, are amended to read:
  765         218.32 Annual financial reports; local governmental
  766  entities.—
  767         (1)
  768         (d) Each local governmental entity that is required to
  769  provide for an audit under s. 218.39(1) must submit a copy of
  770  the audit report and annual financial report to the department
  771  within 45 days after the completion of the audit report but no
  772  later than 9 months after the end of the fiscal year. An
  773  independent certified public accountant completing an audit of a
  774  local governmental entity pursuant to s. 218.39 shall report, as
  775  part of the audit, whether or not the entity’s annual financial
  776  report is in agreement with the audit report, and, if the report
  777  is not in agreement, shall specify the significant differences
  778  that exist between the annual financial report and the audit
  779  report.
  780         (2) The department shall annually by December 1 file a
  781  verified report with the Governor, the Legislature, the Auditor
  782  General, and the Special District Accountability Program of the
  783  Department of Economic Opportunity showing the revenues, both
  784  locally derived and derived from intergovernmental transfers,
  785  and the expenditures of each local governmental entity, regional
  786  planning council, local government finance commission, and
  787  municipal power corporation that is required to submit an annual
  788  financial report. In preparing the verified report, the
  789  department may request additional information from the local
  790  governmental entity. The information requested must be provided
  791  to the department within 45 days of the request. If the local
  792  governmental entity does not comply with the request, the
  793  department shall notify the Legislative Auditing Committee,
  794  which may take action pursuant to s. 11.40(2). The report must
  795  include, but is not limited to:
  796         (a) The total revenues and expenditures of each local
  797  governmental entity that is a component unit included in the
  798  annual financial report of the reporting entity.
  799         (b) The amount of outstanding long-term debt by each local
  800  governmental entity. For purposes of this paragraph, the term
  801  “long-term debt” means any agreement or series of agreements to
  802  pay money, which, at inception, contemplate terms of payment
  803  exceeding 1 year in duration.
  804         Section 17. Present subsection (3) of section 218.33,
  805  Florida Statutes, is redesignated as subsection (4), and a new
  806  subsection (3) is added to that section, to read:
  807         218.33 Local governmental entities; establishment of
  808  uniform fiscal years and accounting practices and procedures.—
  809         (3) Each local governmental entity shall establish and
  810  maintain internal controls designed to:
  811         (a) Prevent and detect fraud, waste, and abuse.
  812         (b) Promote and encourage compliance with applicable laws,
  813  rules, contracts, grant agreements, and best practices.
  814         (c) Support economic and efficient operations.
  815         (d) Ensure reliability of financial records and reports.
  816         (e) Safeguard assets.
  817         Section 18. Present subsections (8) through (12) of section
  818  218.39, Florida Statutes, are redesignated as subsections (9)
  819  through (13), respectively, and a new subsection (8) is added to
  820  that section, to read:
  821         218.39 Annual financial audit reports.—
  822         (8) If the audit report includes a recommendation that was
  823  previously included in the preceding financial audit report, the
  824  governing body of the audited entity, within 60 days after the
  825  delivery of the audit report to the governing body and during a
  826  regularly scheduled public meeting, shall indicate its intent
  827  regarding corrective action, the corrective action to be taken,
  828  and when the corrective action will occur. If the governing body
  829  does not intend to take corrective action, it shall explain why
  830  such action will not be taken at the regularly scheduled public
  831  meeting.
  832         Section 19. Subsection (2) and paragraph (c) of subsection
  833  (7) of section 218.391, Florida Statutes, are amended to read:
  834         218.391 Auditor selection procedures.—
  835         (2) The governing body of a charter county, municipality,
  836  special district, district school board, charter school, or
  837  charter technical career center shall establish an audit
  838  committee. For a county, the Each noncharter county shall
  839  establish an audit committee that, at a minimum, shall consist
  840  of each of the county officers elected pursuant to the county
  841  charter or s. 1(d), Art. VIII of the State Constitution, or a
  842  designee, and one member of the board of county commissioners or
  843  its designee. For a municipality or a special district, the
  844  audit committee shall consist of at least three members, who
  845  must be members of the governing body of the municipality or the
  846  special district, respectively. For a county, municipality, or
  847  special district, a member of the audit committee may not
  848  exercise financial management responsibilities for the county,
  849  municipality, or special district. The primary purpose of the
  850  audit committee is to assist the governing body in selecting an
  851  auditor to conduct the annual financial audit required in s.
  852  218.39; however, the audit committee may serve other audit
  853  oversight purposes as determined by the entity’s governing body.
  854  The public may shall not be excluded from the proceedings under
  855  this section.
  856         (7) Every procurement of audit services shall be evidenced
  857  by a written contract embodying all provisions and conditions of
  858  the procurement of such services. For purposes of this section,
  859  an engagement letter signed and executed by both parties shall
  860  constitute a written contract. The written contract shall, at a
  861  minimum, include the following:
  862         (c) A provision specifying the contract period, including
  863  renewals, and conditions under which the contract may be
  864  terminated or renewed. The contract period, including renewals,
  865  may not exceed 2 years.
  866         Section 20. Paragraph (b) of subsection (2) of section
  867  288.92, Florida Statutes, is amended to read:
  868         288.92 Divisions of Enterprise Florida, Inc.—
  869         (2)
  870         (b)1. The following officers and board members are subject
  871  to ss. 112.313(1)-(8), (10), (12), and (15); 112.3135; and
  872  112.3143(2):
  873         a. Officers and members of the board of directors of the
  874  divisions of Enterprise Florida, Inc.
  875         b. Officers and members of the board of directors of
  876  subsidiaries of Enterprise Florida, Inc.
  877         c. Officers and members of the board of directors of
  878  corporations created to carry out the missions of Enterprise
  879  Florida, Inc.
  880         d. Officers and members of the board of directors of
  881  corporations with which a division is required by law to
  882  contract to carry out its missions.
  883         2. The officers and members of the board of directors
  884  specified in subparagraph 1. may not represent another person or
  885  entity for compensation before Enterprise Florida, Inc., for a
  886  period of 2 years after retirement from or termination of
  887  service to a division.
  888         3.2. For purposes of applying ss. 112.313(1)-(8), (10),
  889  (12), and (15); 112.3135; and 112.3143(2) to activities of the
  890  officers and members of the board of directors specified in
  891  subparagraph 1., those persons shall be considered public
  892  officers or employees and the corporation shall be considered
  893  their agency.
  894         4.3. It is not a violation of s. 112.3143(2) or (4) for the
  895  officers or members of the board of directors of the Florida
  896  Tourism Industry Marketing Corporation to:
  897         a. Vote on the 4-year marketing plan required under s.
  898  288.923 or vote on any individual component of or amendment to
  899  the plan.
  900         b. Participate in the establishment or calculation of
  901  payments related to the private match requirements of s.
  902  288.904(3). The officer or member must file an annual disclosure
  903  describing the nature of his or her interests or the interests
  904  of his or her principals, including corporate parents and
  905  subsidiaries of his or her principal, in the private match
  906  requirements. This annual disclosure requirement satisfies the
  907  disclosure requirement of s. 112.3143(4). This disclosure must
  908  be placed either on the Florida Tourism Industry Marketing
  909  Corporation’s website or included in the minutes of each meeting
  910  of the Florida Tourism Industry Marketing Corporation’s board of
  911  directors at which the private match requirements are discussed
  912  or voted upon.
  913         Section 21. Paragraph (a) of subsection (3) of section
  914  288.9604, Florida Statutes, is amended to read:
  915         288.9604 Creation of the authority.—
  916         (3)(a)1. A director may not receive compensation for his or
  917  her services, but is entitled to necessary expenses, including
  918  travel expenses, incurred in the discharge of his or her duties.
  919  Each director shall hold office until his or her successor has
  920  been appointed.
  921         2. Directors are subject to ss. 112.313(1)-(8), (10), (12),
  922  and (15); 112.3135; and 112.3143(2). For purposes of applying
  923  ss. 112.313(1)-(8), (10), (12), and (15); 112.3135; and
  924  112.3143(2) to activities of directors, directors shall be
  925  considered public officers and the corporation shall be
  926  considered their agency.
  927         3. A director of the board of directors of the corporation
  928  may not represent another person or entity for compensation
  929  before the corporation for a period of 2 years following his or
  930  her service on the board of directors.
  931         Section 22. Paragraph (e) of subsection (4), paragraph (d)
  932  of subsection (5), and paragraph (d) of subsection (6) of
  933  section 373.536, Florida Statutes, are amended to read:
  934         373.536 District budget and hearing thereon.—
  935         (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
  936         (e) By September 1, 2012, Each district shall provide a
  937  monthly financial statement in the form and manner prescribed by
  938  the Department of Financial Services to the district’s governing
  939  board and make such monthly financial statement available for
  940  public access on its website.
  941         (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
  942  APPROVAL.—
  943         (d) Each district shall, by August 1 of each year, submit
  944  for review a tentative budget and a description of any
  945  significant changes from the preliminary budget submitted to the
  946  Legislature pursuant to s. 373.535 to the Governor, the
  947  President of the Senate, the Speaker of the House of
  948  Representatives, the chairs of all legislative committees and
  949  subcommittees having substantive or fiscal jurisdiction over
  950  water management districts, as determined by the President of
  951  the Senate or the Speaker of the House of Representatives, as
  952  applicable, the secretary of the department, and the governing
  953  body of each county in which the district has jurisdiction or
  954  derives any funds for the operations of the district. The
  955  tentative budget must be posted on the district’s official
  956  website at least 2 days before budget hearings held pursuant to
  957  s. 200.065 or other law and must remain on the website for at
  958  least 45 days.
  959         (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
  960  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
  961         (d) The final adopted budget must be posted on the water
  962  management district’s official website within 30 days after
  963  adoption and must remain on the website for at least 2 years.
  964         Section 23. Paragraph (j) of subsection (9) of section
  965  1002.33, Florida Statutes, is amended to read:
  966         1002.33 Charter schools.—
  967         (9) CHARTER SCHOOL REQUIREMENTS.—
  968         (j) The governing body of the charter school shall be
  969  responsible for:
  970         1. Establishing and maintaining internal controls designed
  971  to:
  972         a. Prevent and detect fraud, waste, and abuse.
  973         b. Promote and encourage compliance with applicable laws,
  974  rules, contracts, grant agreements, and best practices.
  975         c. Support economic and efficient operations.
  976         d. Ensure reliability of financial records and reports.
  977         e. Safeguard assets.
  978         2.1. Ensuring that the charter school has retained the
  979  services of a certified public accountant or auditor for the
  980  annual financial audit, pursuant to s. 1002.345(2), who shall
  981  submit the report to the governing body.
  982         3.2. Reviewing and approving the audit report, including
  983  audit findings and recommendations for the financial recovery
  984  plan.
  985         4.a.3.a. Performing the duties in s. 1002.345, including
  986  monitoring a corrective action plan.
  987         b. Monitoring a financial recovery plan in order to ensure
  988  compliance.
  989         5.4. Participating in governance training approved by the
  990  department which must include government in the sunshine,
  991  conflicts of interest, ethics, and financial responsibility.
  992         Section 24. Present subsections (6) through (10) of section
  993  1002.37, Florida Statutes, are redesignated as subsections (7)
  994  through (11), respectively, a new subsection (6) is added to
  995  that section, and present subsections (6) and (11) of that
  996  section are amended, to read:
  997         1002.37 The Florida Virtual School.—
  998         (6) The Florida Virtual School shall have an annual
  999  financial audit of its accounts and records completed by an
 1000  independent auditor who is a certified public accountant
 1001  licensed under chapter 473. The independent auditor shall
 1002  conduct the audit in accordance with rules adopted by the
 1003  Auditor General pursuant to s. 11.45 and, upon completion of the
 1004  audit, shall prepare an audit report in accordance with such
 1005  rules. The independent auditor shall submit the audit report to
 1006  the board of trustees and the Auditor General no later than 9
 1007  months after the end of the preceding fiscal year.
 1008         (7)(6) The board of trustees shall annually submit to the
 1009  Governor, the Legislature, the Commissioner of Education, and
 1010  the State Board of Education a complete and detailed report
 1011  setting forth:
 1012         (a) The operations and accomplishments of the Florida
 1013  Virtual School within the state and those occurring outside the
 1014  state as Florida Virtual School Global.
 1015         (b) The marketing and operational plan for the Florida
 1016  Virtual School and Florida Virtual School Global, including
 1017  recommendations regarding methods for improving the delivery of
 1018  education through the Internet and other distance learning
 1019  technology.
 1020         (c) The assets and liabilities of the Florida Virtual
 1021  School and Florida Virtual School Global at the end of the
 1022  fiscal year.
 1023         (d) A copy of the an annual financial audit report
 1024  completed pursuant to subsection (6), and a written statement of
 1025  the board of trustees describing corrective action to be taken
 1026  in response to each of the independent auditor’s recommendations
 1027  included in the audit report. of the accounts and records of the
 1028  Florida Virtual School and Florida Virtual School Global,
 1029  conducted by an independent certified public accountant and
 1030  performed in accordance with rules adopted by the Auditor
 1031  General.
 1032         (e) Recommendations regarding the unit cost of providing
 1033  services to students through the Florida Virtual School and
 1034  Florida Virtual School Global. In order to most effectively
 1035  develop public policy regarding any future funding of the
 1036  Florida Virtual School, it is imperative that the cost of the
 1037  program is accurately identified. The identified cost of the
 1038  program must be based on reliable data.
 1039         (f) Recommendations regarding an accountability mechanism
 1040  to assess the effectiveness of the services provided by the
 1041  Florida Virtual School and Florida Virtual School Global.
 1042         (11) The Auditor General shall conduct an operational audit
 1043  of the Florida Virtual School, including Florida Virtual School
 1044  Global. The scope of the audit shall include, but not be limited
 1045  to, the administration of responsibilities relating to
 1046  personnel; procurement and contracting; revenue production;
 1047  school funds, including internal funds; student enrollment
 1048  records; franchise agreements; information technology
 1049  utilization, assets, and security; performance measures and
 1050  standards; and accountability. The final report on the audit
 1051  shall be submitted to the President of the Senate and the
 1052  Speaker of the House of Representatives no later than January
 1053  31, 2014.
 1054         Section 25. Subsection (5) is added to section 1010.01,
 1055  Florida Statutes, to read:
 1056         1010.01 Uniform records and accounts.—
 1057         (5) Each school district, Florida College System
 1058  institution, and state university shall establish and maintain
 1059  internal controls designed to:
 1060         (a) Prevent and detect fraud, waste, and abuse.
 1061         (b) Promote and encourage compliance with applicable laws,
 1062  rules, contracts, grant agreements, and best practices.
 1063         (c) Support economic and efficient operations.
 1064         (d) Ensure reliability of financial records and reports.
 1065         (e) Safeguard assets.
 1066         Section 26. Subsection (2) of section 1010.30, Florida
 1067  Statutes, is amended to read:
 1068         1010.30 Audits required.—
 1069         (2) If a school district, Florida College System
 1070  institution, or university audit report includes a
 1071  recommendation that was previously included in the preceding
 1072  financial audit report, an audit contains a significant finding,
 1073  the district school board, the Florida College System
 1074  institution board of trustees, or the university board of
 1075  trustees, within 60 days after the delivery of the audit report
 1076  to the school district, Florida College System institution, or
 1077  university and shall conduct an audit overview during a
 1078  regularly scheduled public meeting, shall indicate its intent
 1079  regarding corrective action, the corrective action to be taken,
 1080  and when the corrective action will occur. If the district
 1081  school board, Florida College System institution board of
 1082  trustees, or university board of trustees does not intend to
 1083  take corrective action, it shall explain why such action will
 1084  not be taken at the regularly scheduled public meeting.
 1085         Section 27. Subsection (2) of section 68.082, Florida
 1086  Statutes, is amended to read:
 1087         68.082 False claims against the state; definitions;
 1088  liability.—
 1089         (2) Any person who:
 1090         (a) Knowingly presents or causes to be presented a false or
 1091  fraudulent claim for payment or approval;
 1092         (b) Knowingly authorizes, approves, or receives payment of
 1093  prohibited compensation in violation of s. 215.425;
 1094         (c)(b) Knowingly makes, uses, or causes to be made or used
 1095  a false record or statement material to a false or fraudulent
 1096  claim;
 1097         (d)(c) Conspires to commit a violation of this subsection;
 1098         (e)(d) Has possession, custody, or control of property or
 1099  money used or to be used by the state and knowingly delivers or
 1100  causes to be delivered less than all of that money or property;
 1101         (f)(e) Is authorized to make or deliver a document
 1102  certifying receipt of property used or to be used by the state
 1103  and, intending to defraud the state, makes or delivers the
 1104  receipt without knowing that the information on the receipt is
 1105  true;
 1106         (g)(f) Knowingly buys or receives, as a pledge of an
 1107  obligation or a debt, public property from an officer or
 1108  employee of the state who may not sell or pledge the property;
 1109  or
 1110         (h)(g) Knowingly makes, uses, or causes to be made or used
 1111  a false record or statement material to an obligation to pay or
 1112  transmit money or property to the state, or knowingly conceals
 1113  or knowingly and improperly avoids or decreases an obligation to
 1114  pay or transmit money or property to the state
 1115  
 1116  is liable to the state for a civil penalty of not less than
 1117  $5,500 and not more than $11,000 and for treble the amount of
 1118  damages the state sustains because of the act of that person.
 1119         Section 28. Subsection (1) of section 68.083, Florida
 1120  Statutes, is amended to read:
 1121         68.083 Civil actions for false claims.—
 1122         (1) The department may diligently investigate a violation
 1123  under s. 68.082. If the department finds that a person has
 1124  violated or is violating s. 68.082, the department may bring a
 1125  civil action under the Florida False Claims Act against the
 1126  person. The Department of Financial Services may bring a civil
 1127  action under this section if the action arises from an
 1128  investigation by that department and the Department of Legal
 1129  Affairs has not filed an action under this act. For a violation
 1130  of s. 68.082 regarding prohibited compensation paid from state
 1131  funds, the Department of Financial Services may bring a civil
 1132  action under this section if the action arises from an
 1133  investigation by that department concerning a violation of s.
 1134  215.425 by the state and the Department of Legal Affairs has not
 1135  filed an action under this act.
 1136         Section 29. Subsection (3) of section 218.503, Florida
 1137  Statutes, is amended to read:
 1138         218.503 Determination of financial emergency.—
 1139         (3) Upon notification that one or more of the conditions in
 1140  subsection (1) have occurred or will occur if action is not
 1141  taken to assist the local governmental entity or district school
 1142  board, the Governor or his or her designee shall contact the
 1143  local governmental entity or the Commissioner of Education or
 1144  his or her designee shall contact the district school board to
 1145  determine what actions have been taken by the local governmental
 1146  entity or the district school board to resolve or prevent the
 1147  condition. The information requested must be provided within 45
 1148  days after the date of the request. If the local governmental
 1149  entity or the district school board does not comply with the
 1150  request, the Governor or his or her designee or the Commissioner
 1151  of Education or his or her designee shall notify the members of
 1152  the Legislative Auditing Committee, which who may take action
 1153  pursuant to s. 11.40(2) s. 11.40. The Governor or the
 1154  Commissioner of Education, as appropriate, shall determine
 1155  whether the local governmental entity or the district school
 1156  board needs state assistance to resolve or prevent the
 1157  condition. If state assistance is needed, the local governmental
 1158  entity or district school board is considered to be in a state
 1159  of financial emergency. The Governor or the Commissioner of
 1160  Education, as appropriate, has the authority to implement
 1161  measures as set forth in ss. 218.50-218.504 to assist the local
 1162  governmental entity or district school board in resolving the
 1163  financial emergency. Such measures may include, but are not
 1164  limited to:
 1165         (a) Requiring approval of the local governmental entity’s
 1166  budget by the Governor or approval of the district school
 1167  board’s budget by the Commissioner of Education.
 1168         (b) Authorizing a state loan to a local governmental entity
 1169  and providing for repayment of same.
 1170         (c) Prohibiting a local governmental entity or district
 1171  school board from issuing bonds, notes, certificates of
 1172  indebtedness, or any other form of debt until such time as it is
 1173  no longer subject to this section.
 1174         (d) Making such inspections and reviews of records,
 1175  information, reports, and assets of the local governmental
 1176  entity or district school board as are needed. The appropriate
 1177  local officials shall cooperate in such inspections and reviews.
 1178         (e) Consulting with officials and auditors of the local
 1179  governmental entity or the district school board and the
 1180  appropriate state officials regarding any steps necessary to
 1181  bring the books of account, accounting systems, financial
 1182  procedures, and reports into compliance with state requirements.
 1183         (f) Providing technical assistance to the local
 1184  governmental entity or the district school board.
 1185         (g)1. Establishing a financial emergency board to oversee
 1186  the activities of the local governmental entity or the district
 1187  school board. If a financial emergency board is established for
 1188  a local governmental entity, the Governor shall appoint board
 1189  members and select a chair. If a financial emergency board is
 1190  established for a district school board, the State Board of
 1191  Education shall appoint board members and select a chair. The
 1192  financial emergency board shall adopt such rules as are
 1193  necessary for conducting board business. The board may:
 1194         a. Make such reviews of records, reports, and assets of the
 1195  local governmental entity or the district school board as are
 1196  needed.
 1197         b. Consult with officials and auditors of the local
 1198  governmental entity or the district school board and the
 1199  appropriate state officials regarding any steps necessary to
 1200  bring the books of account, accounting systems, financial
 1201  procedures, and reports of the local governmental entity or the
 1202  district school board into compliance with state requirements.
 1203         c. Review the operations, management, efficiency,
 1204  productivity, and financing of functions and operations of the
 1205  local governmental entity or the district school board.
 1206         d. Consult with other governmental entities for the
 1207  consolidation of all administrative direction and support
 1208  services, including, but not limited to, services for asset
 1209  sales, economic and community development, building inspections,
 1210  parks and recreation, facilities management, engineering and
 1211  construction, insurance coverage, risk management, planning and
 1212  zoning, information systems, fleet management, and purchasing.
 1213         2. The recommendations and reports made by the financial
 1214  emergency board must be submitted to the Governor for local
 1215  governmental entities or to the Commissioner of Education and
 1216  the State Board of Education for district school boards for
 1217  appropriate action.
 1218         (h) Requiring and approving a plan, to be prepared by
 1219  officials of the local governmental entity or the district
 1220  school board in consultation with the appropriate state
 1221  officials, prescribing actions that will cause the local
 1222  governmental entity or district school board to no longer be
 1223  subject to this section. The plan must include, but need not be
 1224  limited to:
 1225         1. Provision for payment in full of obligations outlined in
 1226  subsection (1), designated as priority items, which are
 1227  currently due or will come due.
 1228         2. Establishment of priority budgeting or zero-based
 1229  budgeting in order to eliminate items that are not affordable.
 1230         3. The prohibition of a level of operations which can be
 1231  sustained only with nonrecurring revenues.
 1232         4. Provisions implementing the consolidation, sourcing, or
 1233  discontinuance of all administrative direction and support
 1234  services, including, but not limited to, services for asset
 1235  sales, economic and community development, building inspections,
 1236  parks and recreation, facilities management, engineering and
 1237  construction, insurance coverage, risk management, planning and
 1238  zoning, information systems, fleet management, and purchasing.
 1239         Section 30. The Legislature finds that a proper and
 1240  legitimate state purpose is served when internal controls are
 1241  established to prevent and detect fraud, waste, and abuse and to
 1242  safeguard and account for government funds and property.
 1243  Therefore, the Legislature determines and declares that this act
 1244  fulfills an important state interest.
 1245         Section 31. This act shall take effect July 1, 2015.