Florida Senate - 2018                             CS for SB 1804
       By the Committee on Education; and Senator Stargel
       581-03448-18                                          20181804c1
    1                        A bill to be entitled                      
    2         An act relating to school district accountability;
    3         amending s. 11.45, F.S.; revising the duties of the
    4         Auditor General; amending s. 112.313, F.S.;
    5         prohibiting former appointed district school
    6         superintendents from conducting certain lobbying
    7         activities; amending s. 112.31455, F.S.; requiring the
    8         governing body of a district school board to be
    9         notified if an officer or employee of the body owes a
   10         certain fine; requiring the governing body of a
   11         district school board to take specified actions under
   12         such circumstances; amending s. 1001.20, F.S.;
   13         requiring the Office of Inspector General to
   14         investigate certain allegations and reports made by
   15         specified individuals; amending s. 1001.39, F.S.;
   16         requiring certain district school board member travel
   17         outside of the school district to be preapproved and
   18         meet certain criteria; providing requirements for a
   19         school board member’s request for travel outside of
   20         the state; providing an opportunity for the public to
   21         speak on such travel; amending s. 1001.395, F.S.;
   22         providing that certain requirements for the salaries
   23         of district school board members apply every fiscal
   24         year, rather than one specific fiscal year; amending
   25         s. 1001.42, F.S.; providing that the standards of
   26         ethical conduct apply to administrative personnel and
   27         school officers; authorizing district school board
   28         members to request and receive specified budget
   29         information; requiring employment of internal auditors
   30         in certain school districts; revising provisions
   31         relating to the duties of such internal auditors;
   32         amending s. 1010.20, F.S.; requiring each school
   33         district to report certain expenditures to the
   34         Department of Education; providing department
   35         responsibilities; amending s. 1010.30, F.S.; requiring
   36         certain entities to provide an audit overview under
   37         certain circumstances; providing the contents of the
   38         overview; amending ss. 1011.01 and 1011.03, F.S.;
   39         conforming cross-references; amending s. 1011.035,
   40         F.S.; requiring each district school board to post on
   41         its website certain graphical representations and a
   42         link to a certain web-based tool on the department’s
   43         website; providing requirements for such graphical
   44         representations; amending s. 1011.051, F.S.; requiring
   45         a district school board to limit certain expenditures
   46         by a specified amount if certain financial conditions
   47         exist for a specified period of time; requiring the
   48         department to contract with a third party to conduct
   49         an investigation under certain circumstances;
   50         providing requirements for such investigation;
   51         requiring the results of such investigation to include
   52         certain information and be provided to certain
   53         entities; amending s. 1011.06, F.S.; requiring each
   54         district school board to approve certain expenditures
   55         by amending its budget and provide a public
   56         explanation for such budget amendments; amending s.
   57         1011.09, F.S.; providing certain expenditure
   58         limitations for a school district that meets specified
   59         criteria; amending s. 1011.10, F.S.; requiring certain
   60         school districts to withhold certain district school
   61         board member and school district superintendent
   62         salaries until certain conditions are met; amending s.
   63         1011.60, F.S.; conforming cross-references; repealing
   64         s. 1011.64, F.S., relating to school district minimum
   65         classroom expenditure requirements; amending s.
   66         1012.23, F.S.; prohibiting a school district
   67         superintendent and district school board from
   68         appointing or employing certain individuals in certain
   69         positions; providing an exception; requiring the
   70         Commission on Ethics to investigate alleged
   71         violations; amending s. 1002.395, F.S.; conforming a
   72         cross-reference; providing a contingent appropriation;
   73         providing an effective date.
   75  Be It Enacted by the Legislature of the State of Florida:
   77         Section 1. Paragraph (k) of subsection (2) of section
   78  11.45, Florida Statutes, is redesignated as paragraph (l), and a
   79  new paragraph (k) is added to that subsection, to read:
   80         11.45 Definitions; duties; authorities; reports; rules.—
   81         (2) DUTIES.—The Auditor General shall:
   82         (k)Contact each district school board, as defined in s.
   83  1003.01(1), with the findings and recommendations contained
   84  within the Auditor General’s previous operational audit report.
   85  The district school board shall provide the Auditor General with
   86  evidence of the initiation of corrective action within 45 days
   87  after the date it is requested by the Auditor General and
   88  evidence of completion of corrective action within 180 days
   89  after the date it is requested by the Auditor General. If the
   90  district school board fails to comply with the Auditor General’s
   91  request or is unable to take corrective action within the
   92  required timeframe, the Auditor General shall notify the
   93  Legislative Auditing Committee.
   95  The Auditor General shall perform his or her duties
   96  independently but under the general policies established by the
   97  Legislative Auditing Committee. This subsection does not limit
   98  the Auditor General’s discretionary authority to conduct other
   99  audits or engagements of governmental entities as authorized in
  100  subsection (3).
  101         Section 2. Subsection (14) of section 112.313, Florida
  102  Statutes, is amended to read:
  103         112.313 Standards of conduct for public officers, employees
  104  of agencies, and local government attorneys.—
  106  person who has been elected to any county, municipal, special
  107  district, or school district office or appointed superintendent
  108  of a school district may not personally represent another person
  109  or entity for compensation before the government body or agency
  110  of which the person was an officer for a period of 2 years after
  111  vacating that office. For purposes of this subsection:
  112         (a) The “government body or agency” of a member of a board
  113  of county commissioners consists of the commission, the chief
  114  administrative officer or employee of the county, and their
  115  immediate support staff.
  116         (b) The “government body or agency” of any other county
  117  elected officer is the office or department headed by that
  118  officer, including all subordinate employees.
  119         (c) The “government body or agency” of an elected municipal
  120  officer consists of the governing body of the municipality, the
  121  chief administrative officer or employee of the municipality,
  122  and their immediate support staff.
  123         (d) The “government body or agency” of an elected special
  124  district officer is the special district.
  125         (e) The “government body or agency” of an elected school
  126  district officer is the school district.
  127         Section 3. Subsection (1) of section 112.31455, Florida
  128  Statutes, is amended to read:
  129         112.31455 Collection methods for unpaid automatic fines for
  130  failure to timely file disclosure of financial interests.—
  131         (1) Before referring any unpaid fine accrued pursuant to s.
  132  112.3144(5) or s. 112.3145(7) to the Department of Financial
  133  Services, the commission shall attempt to determine whether the
  134  individual owing such a fine is a current public officer or
  135  current public employee. If so, the commission may notify the
  136  Chief Financial Officer or the governing body of the appropriate
  137  county, municipality, district school board, or special district
  138  of the total amount of any fine owed to the commission by such
  139  individual.
  140         (a) After receipt and verification of the notice from the
  141  commission, the Chief Financial Officer or the governing body of
  142  the county, municipality, district school board, or special
  143  district shall begin withholding the lesser of 10 percent or the
  144  maximum amount allowed under federal law from any salary-related
  145  payment. The withheld payments shall be remitted to the
  146  commission until the fine is satisfied.
  147         (b) The Chief Financial Officer or the governing body of
  148  the county, municipality, district school board, or special
  149  district may retain an amount of each withheld payment, as
  150  provided in s. 77.0305, to cover the administrative costs
  151  incurred under this section.
  152         Section 4. Paragraph (e) of subsection (4) of section
  153  1001.20, Florida Statutes, is amended to read:
  154         1001.20 Department under direction of state board.—
  155         (4) The Department of Education shall establish the
  156  following offices within the Office of the Commissioner of
  157  Education which shall coordinate their activities with all other
  158  divisions and offices:
  159         (e) Office of Inspector General.—Organized using existing
  160  resources and funds and responsible for promoting
  161  accountability, efficiency, and effectiveness and detecting
  162  fraud and abuse within school districts, the Florida School for
  163  the Deaf and the Blind, and Florida College System institutions
  164  in Florida. If the Commissioner of Education determines that a
  165  district school board, the Board of Trustees for the Florida
  166  School for the Deaf and the Blind, or a Florida College System
  167  institution board of trustees is unwilling or unable to address
  168  substantiated allegations made by any person relating to waste,
  169  fraud, or financial mismanagement within the school district,
  170  the Florida School for the Deaf and the Blind, or the Florida
  171  College System institution, the office shall conduct,
  172  coordinate, or request investigations into such substantiated
  173  allegations. The office shall investigate allegations or reports
  174  of possible fraud or abuse against a district school board made
  175  by any member of the Cabinet; the presiding officer of either
  176  house of the Legislature; a chair of a substantive or
  177  appropriations committee with jurisdiction; or a member of the
  178  board for which an investigation is sought. The office shall
  179  have access to all information and personnel necessary to
  180  perform its duties and shall have all of its current powers,
  181  duties, and responsibilities authorized in s. 20.055.
  182         Section 5. Subsection (1) of section 1001.39, Florida
  183  Statutes, is amended to read:
  184         1001.39 District school board members; travel expenses.—
  185         (1) In addition to the salary provided in s. 1001.395, each
  186  member of a district school board shall be allowed, from the
  187  district school fund, reimbursement of travel expenses as
  188  authorized in s. 112.061, except as provided that in subsection
  189  (2). any travel outside the district that exceeds $500 requires
  190  prior approval by the district school board to confirm that such
  191  travel is for official business of the school district and
  192  complies with shall also be governed by the rules of the State
  193  Board of Education. Any request for travel outside the state
  194  must include an itemized list detailing all anticipated travel
  195  expenses, including, but not limited to, the anticipated costs
  196  of all means of travel, lodging, and subsistence. Immediately
  197  preceding a request, the public must have an opportunity to
  198  speak on the specific travel agenda item.
  199         Section 6. Subsection (3) of section 1001.395, Florida
  200  Statutes, is amended to read:
  201         1001.395 District school board members; compensation.—
  202         (3) Notwithstanding the provisions of this section and s.
  203  145.19, for the 2010-2011 fiscal year, the salary of each
  204  district school board member shall be the amount calculated
  205  pursuant to subsection (1) or the district’s beginning salary
  206  for teachers who hold baccalaureate degrees, whichever is less.
  207         Section 7. Subsections (6) and (7), paragraphs (b) and (l)
  208  of subsection (12), and paragraph (b) of subsection (17) of
  209  section 1001.42, Florida Statutes, are amended to read:
  210         1001.42 Powers and duties of district school board.—The
  211  district school board, acting as a board, shall exercise all
  212  powers and perform all duties listed below:
  215  ADMINISTRATORS.—Adopt policies establishing standards of ethical
  216  conduct for instructional personnel, administrative personnel,
  217  and school officers administrators. The policies must require
  218  all instructional personnel, administrative personnel, and
  219  school officers administrators, as defined in s. 1012.01, to
  220  complete training on the standards; establish the duty of
  221  instructional personnel, administrative personnel, and school
  222  officers administrators to report, and procedures for reporting,
  223  alleged misconduct by other instructional or administrative
  224  personnel and school officers administrators which affects the
  225  health, safety, or welfare of a student; and include an
  226  explanation of the liability protections provided under ss.
  227  39.203 and 768.095. A district school board, or any of its
  228  employees, may not enter into a confidentiality agreement
  229  regarding terminated or dismissed instructional or
  230  administrative personnel or school officers administrators, or
  231  personnel or administrators who resign in lieu of termination,
  232  based in whole or in part on misconduct that affects the health,
  233  safety, or welfare of a student, and may not provide
  234  instructional personnel, administrative personnel, or school
  235  officers administrators with employment references or discuss
  236  the personnel’s or officers’ administrators’ performance with
  237  prospective employers in another educational setting, without
  238  disclosing the personnel’s or officers’ administrators’
  239  misconduct. Any part of an agreement or contract that has the
  240  purpose or effect of concealing misconduct by instructional
  241  personnel, administrative personnel, or school officers
  242  administrators which affects the health, safety, or welfare of a
  243  student is void, is contrary to public policy, and may not be
  244  enforced.
  245         (7) DISQUALIFICATION FROM EMPLOYMENT.—Disqualify
  246  instructional personnel and administrative personnel school
  247  administrators, as defined in s. 1012.01, from employment in any
  248  position that requires direct contact with students if the
  249  personnel or administrators are ineligible for such employment
  250  under s. 1012.315. An elected or appointed school board official
  251  forfeits his or her salary for 1 year if:
  252         (a) The school board official knowingly signs and transmits
  253  to any state official a report of alleged misconduct by
  254  instructional personnel or administrative personnel school
  255  administrators which affects the health, safety, or welfare of a
  256  student and the school board official knows the report to be
  257  false or incorrect; or
  258         (b) The school board official knowingly fails to adopt
  259  policies that require instructional personnel and administrative
  260  personnel school administrators to report alleged misconduct by
  261  other instructional personnel and administrative personnel
  262  school administrators, or that require the investigation of all
  263  reports of alleged misconduct by instructional personnel and
  264  administrative personnel school administrators, if the
  265  misconduct affects the health, safety, or welfare of a student.
  266         (12) FINANCE.—Take steps to assure students adequate
  267  educational facilities through the financial procedure
  268  authorized in chapters 1010 and 1011 and as prescribed below:
  269         (b) Annual budget.—
  270         1. Cause to be prepared, adopt, and have submitted to the
  271  Department of Education as required by law and rules of the
  272  State Board of Education, the annual school budget, such budget
  273  to be so prepared and executed as to promote the improvement of
  274  the district school system.
  275         2.An individual school board member may request and shall
  276  receive any proposed, tentative, and official budget documents,
  277  including all supporting and background information.
  278         (l) Internal auditor.—May or, in the case of a school
  279  district receiving annual federal, state, and local funds in
  280  excess of $500 million, shall employ an internal auditor. The
  281  duties of the internal auditor shall include oversight of every
  282  functional and program area of the school system.
  283         1.The internal auditor shall to perform ongoing financial
  284  verification of the financial records of the school district, a
  285  comprehensive risk assessment of all areas of the school system
  286  every 5 years, and other audits and reviews as the district
  287  school board directs for determining:
  288         a.The adequacy of internal controls designed to prevent
  289  and detect fraud, waste, and abuse.
  290         b.Compliance with applicable laws, rules, contracts, grant
  291  agreements, district school board-approved policies, and best
  292  practices.
  293         c.The efficiency of operations.
  294         d.The reliability of financial records and reports.
  295         e.The safeguarding of assets.
  296         f.Financial solvency.
  297         g.Projected revenues and expenditures.
  298         h.The rate of change in the general fund balance.
  299         2. The internal auditor shall prepare audit reports of his
  300  or her findings and report directly to the district school board
  301  or its designee.
  302         3.Any person responsible for furnishing or producing any
  303  book, record, paper, document, data, or sufficient information
  304  necessary to conduct a proper audit or examination which the
  305  internal auditor is by law authorized to perform is subject to
  306  the provisions of s. 11.47(3) and (4).
  308         (b) Adopt rules to strengthen family involvement and
  309  empowerment pursuant to s. 1002.23. The rules shall be developed
  310  in collaboration with administrative personnel school
  311  administrators, parents, teachers, and community partners.
  312         Section 8. Subsection (2) of section 1010.20, Florida
  313  Statutes, is amended to read:
  314         1010.20 Cost accounting and reporting for school
  315  districts.—
  316         (2) COST REPORTING.—
  317         (a) Each district shall report on a district-aggregate
  318  basis expenditures for inservice training pursuant to s.
  319  1011.62(3) and for categorical programs as provided in s.
  320  1011.62(6).
  321         (b) Each district shall report to the department on a
  322  school-by-school and on an aggregate district basis expenditures
  323  for:
  324         1. Each program funded in s. 1011.62(1)(c).
  325         2.Total operating costs as reported pursuant to s.
  326  1010.215.
  327         3.Expenditures for classroom instruction pursuant to the
  328  calculation in s. 1010.215(4)(b)1. and 2.
  329         (c)The department shall:
  330         1.Categorize all public schools and districts into
  331  appropriate groups based primarily on average full-time
  332  equivalent student enrollment as reported on the most recent
  333  student membership survey under s. 1011.62 and in state board
  334  rule to determine groups of peer schools and districts.
  335         2.Annually calculate for each public school, district, and
  336  for the entire state, the percentage of classroom expenditures
  337  to total operating costs expenditures reported in subparagraphs
  338  (b)2. and 3. The results shall be categorized pursuant to this
  339  paragraph.
  340         3.Annually calculate for all public schools, districts,
  341  and the state, the average percentage of classroom expenditures
  342  to total operating costs and expenditures reported in
  343  subparagraphs (b)2. and 3. The results shall be categorized
  344  pursuant to this paragraph.
  345         4.Develop a web-based fiscal transparency tool that
  346  identifies public schools and districts that produce high
  347  academic achievement based on the ratio of classroom instruction
  348  expenditures to total expenditures. The fiscal transparency tool
  349  shall combine the data calculated pursuant to this paragraph
  350  with the student performance measurements calculated pursuant to
  351  s. 1012.34(7) to determine the financial efficiency of each
  352  public school and district. The results shall be displayed in an
  353  easy-to-use format that enables the user to compare performance
  354  among public schools and districts.
  355         (d)(c) The Commissioner of Education shall present to the
  356  Legislature, prior to the opening of the regular session each
  357  year, a district-by-district report of the expenditures reported
  358  pursuant to paragraphs (a) and (b). The report shall include
  359  total expenditures, a detailed analysis showing expenditures for
  360  each program, and such other data as may be useful for
  361  management of the education system. The Commissioner of
  362  Education shall also compute cost factors relative to the base
  363  student allocation for each funded program in s. 1011.62(1)(c).
  364         Section 9. Subsection (2) of section 1010.30, Florida
  365  Statutes, is amended to read:
  366         1010.30 Audits required.—
  367         (2) If an audit contains a significant deficiency or
  368  material weakness finding, the district school board, the
  369  Florida College System institution board of trustees, or the
  370  university board of trustees shall conduct an audit overview
  371  during a public meeting. The audit overview shall describe the
  372  corrective action to be taken and a timeline for completion of
  373  such action.
  374         Section 10. Paragraph (a) of subsection (3) of section
  375  1011.01, Florida Statutes, is amended to read:
  376         1011.01 Budget system established.—
  377         (3)(a) Each district school board and each Florida College
  378  System institution board of trustees shall prepare, adopt, and
  379  submit to the Commissioner of Education an annual operating
  380  budget. Operating budgets shall be prepared and submitted in
  381  accordance with the provisions of law, rules of the State Board
  382  of Education, the General Appropriations Act, and for district
  383  school boards in accordance with the provisions of s. 200.065
  384  ss. 200.065 and 1011.64.
  385         Section 11. Subsection (2) of section 1011.03, Florida
  386  Statutes, is amended to read:
  387         1011.03 Public hearings; budget to be submitted to
  388  Department of Education.—
  389         (2)The advertisement of a district that has been required
  390  by the Legislature to increase classroom expenditures pursuant
  391  to s. 1011.64 must include the following statement:
  392  “This proposed budget reflects an increase in classroom
  393  expenditures as a percent of total current operating
  394  expenditures of XX percent over the (previous fiscal year)
  395  fiscal year. This increase in classroom expenditures is required
  396  by the Legislature because the district has performed below the
  397  required performance standard on XX of XX student performance
  398  standards for the (previous school year) school year. In order
  399  to achieve the legislatively required level of classroom
  400  expenditures as a percentage of total operating expenditures,
  401  the proposed budget includes an increase in overall classroom
  402  expenditures of $XX,XXX,XXX above the amount spent for this same
  403  purpose during the (previous fiscal year) fiscal year. In order
  404  to achieve improved student academic performance, this proposed
  405  increase is being budgeted for the following activities:
  406  ...(list activities and amount budgeted)....”
  407         Section 12. Section 1011.035, Florida Statutes, is amended
  408  to read:
  409         1011.035 School district fiscal budget transparency.—
  410         (1) It is important for school districts to provide
  411  budgetary transparency to enable taxpayers, parents, and
  412  education advocates to obtain school district budget and related
  413  information in a manner that is simply explained and easily
  414  understandable. Budgetary transparency leads to more responsible
  415  spending, more citizen involvement, and improved accountability.
  416  A budget that is not transparent, accessible, and accurate
  417  cannot be properly analyzed, its implementation thoroughly
  418  monitored, or its outcomes evaluated.
  419         (2) Each district school board shall post on its website a
  420  plain language version of each proposed, tentative, and official
  421  budget which describes each budget item in terms that are easily
  422  understandable to the public and includes:
  423         (a)Graphical representations, for each public school
  424  within the district and for the school district, of the
  425  following:
  426         1.Summary financial efficiency data.
  427         2.Fiscal trend information for the previous 3 years on:
  428         a.The ratio of full-time equivalent students to full-time
  429  equivalent instructional personnel.
  430         b.The ratio of full-time equivalent students to full-time
  431  equivalent administrative personnel.
  432         c.The total operating expenditures per full-time
  433  equivalent student.
  434         d.The total instructional expenditures per full-time
  435  equivalent student.
  436         e.The general administrative expenditures as a percentage
  437  of total budget.
  438         f.The rate of change in the general fund’s ending fund
  439  balance not classified as restricted.
  440         (b)A link to the web-based fiscal transparency tool
  441  developed by the department pursuant to s. 1010.20 to enable
  442  taxpayers to evaluate the financial efficiency of the school
  443  district and compare the financial efficiency of the school
  444  district with other similarly situated school districts.
  446  This information must be prominently posted on the school
  447  district’s website in a manner that is readily accessible to the
  448  public.
  449         (3) Each district school board is encouraged to post the
  450  following information on its website:
  451         (a) Timely information as to when a budget hearing will be
  452  conducted.
  453         (b) Each contract between the district school board and the
  454  teachers’ union.
  455         (c) Each contract between the district school board and
  456  noninstructional staff.
  457         (d) Each contract exceeding $35,000 between the school
  458  board and a vendor of services, supplies, or programs or for the
  459  purchase or lease of lands, facilities, or properties.
  460         (e) Each contract exceeding $35,000 that is an emergency
  461  procurement or is with a single source as authorized under s.
  462  287.057(3).
  463         (f) Recommendations of the citizens’ budget advisory
  464  committee.
  465         (g) Current and archived video recordings of each district
  466  school board meeting and workshop.
  467         (4) The website should contain links to:
  468         (a) Help explain or provide background information on
  469  various budget items that are required by state or federal law.
  470         (b) Allow users to navigate to related sites to view
  471  supporting details.
  472         (c) Enable taxpayers, parents, and education advocates to
  473  send e-mails asking questions about the budget and enable others
  474  to view the questions and responses.
  475         Section 13. Section 1011.051, Florida Statutes, is amended
  476  to read:
  477         1011.051 Guidelines for general funds.—The district school
  478  board shall maintain a general fund ending fund balance that is
  479  sufficient to address normal contingencies.
  480         (1) If at any time the portion of the general fund’s ending
  481  fund balance not classified as restricted, committed, or
  482  nonspendable in the district’s approved operating budget is
  483  projected to fall below 3 percent of projected general fund
  484  revenues during the current fiscal year, the superintendent
  485  shall provide written notification to the district school board
  486  and the Commissioner of Education. If such financial condition
  487  exists for 2 consecutive fiscal years, the superintendent shall
  488  reduce the district’s administrative expenditures reported
  489  pursuant to s. 1010.215(4)(a) in proportion to the reduction in
  490  the general fund’s ending balance or the reduction in student
  491  enrollment, whichever is greater.
  492         (2)(a) If at any time the portion of the general fund’s
  493  ending fund balance not classified as restricted, committed, or
  494  nonspendable in the district’s approved operating budget is
  495  projected to fall below 2 percent of projected general fund
  496  revenues during the current fiscal year, the superintendent
  497  shall provide written notification to the district school board
  498  and the Commissioner of Education. Within 14 days after
  499  receiving such notification, if the commissioner determines that
  500  the district does not have a plan that is reasonably anticipated
  501  to avoid a financial emergency as determined pursuant to s.
  502  218.503, the commissioner shall appoint a financial emergency
  503  board that shall operate under the requirements, powers, and
  504  duties specified in s. 218.503(3)(g).
  505         (b)If any of the conditions identified in s. 218.503(1)
  506  existed in the 2015-2016 school year or thereafter, the
  507  department shall contract with an independent third party to
  508  conduct an investigation of all accounts and records to
  509  determine the cause of the deficit, what efforts, if any, were
  510  made to avoid the deficit, and whether any of the conditions
  511  identified in s. 1011.10 have occurred. The investigation must
  512  include a detailed review and analysis of documents and records,
  513  including, but not limited to, budget reports, journal entries,
  514  budget methodologies, staff e-mails, hard copy records, monthly
  515  financial statements, quarterly revenue and expenditure reports,
  516  finance staff job descriptions, and minutes from meetings. The
  517  results of the investigation must include recommendations for
  518  corrective action and controls to avoid a reoccurrence of a
  519  future budget shortfall. A final report shall be provided to the
  520  district school board, the department, the Legislative Auditing
  521  Committee, and the district’s financial emergency board, if
  522  applicable.
  523         Section 14. Subsection (2) of section 1011.06, Florida
  524  Statutes, is amended to read:
  525         1011.06 Expenditures.—
  527  Expenditures from district and all other funds available for the
  528  public school program of any district shall be authorized by law
  529  and must be in accordance with procedures prescribed by the
  530  district school board. A district school board may establish
  531  policies that allow expenditures to exceed the amount budgeted
  532  by function and object, provided that the district school board
  533  complies with s. 1011.09(4) and approves the expenditure by
  534  amending and amends the budget at the next scheduled public
  535  meeting. The district school board must provide a full
  536  explanation of any amendments at the public meeting within
  537  timelines established by school board policies.
  538         Section 15. Subsection (4) of section 1011.09, Florida
  539  Statutes, is amended to read:
  540         1011.09 Expenditure of funds by district school board.—All
  541  state funds apportioned to the credit of any district constitute
  542  a part of the district school fund of that district and must be
  543  budgeted and expended under authority of the district school
  544  board subject to the provisions of law and rules of the State
  545  Board of Education.
  546         (4) If the financial conditions in s. 1011.051 exist, a
  547  district school board During the 2009-2010 fiscal year, unless
  548  otherwise specifically approved by the district school board,
  549  public funds may not make expenditures be expended for out-of
  550  state travel outside of the district or cellular phones,
  551  cellular phone service, personal digital assistants, or any
  552  other mobile wireless communication device or service, including
  553  text messaging, whether through purchasing, leasing,
  554  contracting, or any other method, while the financial conditions
  555  exist. The expenditure of public funds for art programs, music
  556  programs, sports programs, and extracurricular programs for
  557  students is a higher priority than expending funds for employee
  558  travel and cellular phones.
  559         Section 16. Subsection (3) is added to section 1011.10,
  560  Florida Statutes, to read:
  561         1011.10 Penalty.—
  562         (3)If any of the conditions identified in s. 218.503(1)
  563  exist within a school district, the salary of each district
  564  school board member and district superintendent, calculated
  565  pursuant to ss. 1001.395 and 1001.47, shall be withheld until
  566  the conditions are corrected. This subsection does not apply to
  567  a district school board member or district superintendent
  568  elected or appointed within 1 year after the identification of
  569  the conditions in s. 218.503(1) if he or she did not participate
  570  in the approval or preparation of the final school district
  571  budget adopted before the identification of such conditions.
  572         Section 17. Subsection (8) of section 1011.60, Florida
  573  Statutes, is amended to read:
  574         1011.60 Minimum requirements of the Florida Education
  575  Finance Program.—Each district which participates in the state
  576  appropriations for the Florida Education Finance Program shall
  577  provide evidence of its effort to maintain an adequate school
  578  program throughout the district and shall meet at least the
  579  following requirements:
  581  the minimum classroom expenditure requirements and associated
  582  reporting pursuant to s. 1011.64.
  583         Section 18. Section 1011.64, Florida Statutes, is repealed.
  584         Section 19. Subsection (2) of section 1012.23, Florida
  585  Statutes, is amended to read:
  586         1012.23 School district personnel policies.—
  587         (2) The district school superintendent or a district school
  588  board member may not appoint or employ or appoint a relative, as
  589  defined in s. 112.3135, to work under the direct supervision of
  590  that district school board member or district school
  591  superintendent. The limitations of this subsection do not apply
  592  to employees appointed or employed before the election or
  593  appointment of a school board member or district school
  594  superintendent. The Commission on Ethics shall accept and
  595  investigate any alleged violations of this section pursuant to
  596  the procedures contained in ss. 112.322-112.3241.
  597         Section 20. Paragraph (d) of subsection (9) of section
  598  1002.395, Florida Statutes, is amended to read:
  599         1002.395 Florida Tax Credit Scholarship Program.—
  600         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
  601  Education shall:
  602         (d) Annually verify the eligibility of expenditures as
  603  provided in paragraph (6)(d) using the audit required by
  604  paragraph (6)(m) and s. 11.45(2)(l) s. 11.45(2)(k).
  605         Section 21. For the 2018-2019 fiscal year, the sum of
  606  $850,000 in nonrecurring funds from the General Revenue Fund is
  607  appropriated to the Department of Education to implement the
  608  provisions of this act.
  609         Section 22. This act shall take effect July 1, 2018.