Florida Senate - 2018                      CS for CS for SB 1804
       By the Committees on Appropriations; and Education; and Senator
       576-03837-18                                          20181804c2
    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 of the
   14         Department of Education to investigate certain
   15         allegations and reports made by specified individuals;
   16         amending s. 1001.39, F.S.; requiring certain district
   17         school board member travel outside of the school
   18         district to be preapproved and meet certain criteria;
   19         providing requirements for a school board member’s
   20         request for travel outside of the state; providing an
   21         opportunity for the public to speak on such travel;
   22         amending s. 1001.395, F.S.; providing that certain
   23         requirements for the salaries of district school board
   24         members apply every fiscal year, rather than one
   25         specific fiscal year; amending s. 1001.42, F.S.;
   26         providing that the standards of ethical conduct apply
   27         to administrative personnel and school officers;
   28         authorizing district school board members to request
   29         and receive specified budget information; requiring
   30         employment of internal auditors in certain school
   31         districts; revising provisions relating to the scope
   32         of such internal auditors; amending s. 1010.20, F.S.;
   33         requiring each school district to report certain
   34         expenditures to the Department of Education; providing
   35         department responsibilities; amending s. 1010.30,
   36         F.S.; requiring certain entities to conduct an audit
   37         overview under certain circumstances; providing the
   38         contents of the overview; amending ss. 1011.01 and
   39         1011.03, F.S.; conforming provisions and cross
   40         references to changes made by the act; amending s.
   41         1011.035, F.S.; requiring each district school board
   42         to post on its website certain graphical
   43         representations and a link to a certain web-based tool
   44         on the department’s website; providing requirements
   45         for such graphical representations; amending s.
   46         1011.051, F.S.; requiring a district school board to
   47         limit certain expenditures by a specified amount if
   48         certain financial conditions exist for a specified
   49         period of time; requiring the department to contract
   50         with a third party to conduct an investigation under
   51         certain circumstances; providing requirements for such
   52         investigation; requiring the results of such
   53         investigation to include certain information and be
   54         provided to certain entities; amending s. 1011.06,
   55         F.S.; requiring each district school board to approve
   56         certain expenditures by amending its budget and
   57         provide a public explanation for such budget
   58         amendments; amending s. 1011.09, F.S.; providing
   59         certain expenditure limitations for a school district
   60         that meets specified criteria; amending s. 1011.10,
   61         F.S.; requiring certain school districts to withhold
   62         certain district school board member and district
   63         school superintendent salaries until certain
   64         conditions are met; amending s. 1011.60, F.S.;
   65         conforming cross-references; repealing s. 1011.64,
   66         F.S., relating to school district minimum classroom
   67         expenditure requirements; amending s. 1012.23, F.S.;
   68         prohibiting a district school superintendent and
   69         district school board from appointing or employing
   70         certain individuals in certain positions; providing an
   71         exception; requiring the Commission on Ethics to
   72         investigate alleged violations; amending s. 1002.395,
   73         F.S.; conforming a cross-reference; providing an
   74         appropriation; providing an effective date.
   76  Be It Enacted by the Legislature of the State of Florida:
   78         Section 1. Present paragraph (k) of subsection (2) of
   79  section 11.45, Florida Statutes, is redesignated as paragraph
   80  (l), and a new paragraph (k) is added to that subsection, to
   81  read:
   82         11.45 Definitions; duties; authorities; reports; rules.—
   83         (2) DUTIES.—The Auditor General shall:
   84         (k)Contact each district school board, as defined in s.
   85  1003.01(1), with the findings and recommendations contained
   86  within the Auditor General’s previous operational audit report.
   87  The district school board shall provide the Auditor General with
   88  evidence of the initiation of corrective action within 45 days
   89  after the date it is requested by the Auditor General and
   90  evidence of completion of corrective action within 180 days
   91  after the date it is requested by the Auditor General. If the
   92  district school board fails to comply with the Auditor General’s
   93  request or is unable to take corrective action within the
   94  required timeframe, the Auditor General shall notify the
   95  Legislative Auditing Committee.
   97  The Auditor General shall perform his or her duties
   98  independently but under the general policies established by the
   99  Legislative Auditing Committee. This subsection does not limit
  100  the Auditor General’s discretionary authority to conduct other
  101  audits or engagements of governmental entities as authorized in
  102  subsection (3).
  103         Section 2. Subsection (14) of section 112.313, Florida
  104  Statutes, is amended to read:
  105         112.313 Standards of conduct for public officers, employees
  106  of agencies, and local government attorneys.—
  108  person who has been elected to any county, municipal, special
  109  district, or school district office or appointed superintendent
  110  of a school district may not personally represent another person
  111  or entity for compensation before the government body or agency
  112  of which the person was an officer for a period of 2 years after
  113  vacating that office. For purposes of this subsection:
  114         (a) The “government body or agency” of a member of a board
  115  of county commissioners consists of the commission, the chief
  116  administrative officer or employee of the county, and their
  117  immediate support staff.
  118         (b) The “government body or agency” of any other county
  119  elected officer is the office or department headed by that
  120  officer, including all subordinate employees.
  121         (c) The “government body or agency” of an elected municipal
  122  officer consists of the governing body of the municipality, the
  123  chief administrative officer or employee of the municipality,
  124  and their immediate support staff.
  125         (d) The “government body or agency” of an elected special
  126  district officer is the special district.
  127         (e) The “government body or agency” of an elected school
  128  district officer is the school district.
  129         Section 3. Subsection (1) of section 112.31455, Florida
  130  Statutes, is amended to read:
  131         112.31455 Collection methods for unpaid automatic fines for
  132  failure to timely file disclosure of financial interests.—
  133         (1) Before referring any unpaid fine accrued pursuant to s.
  134  112.3144(5) or s. 112.3145(7) to the Department of Financial
  135  Services, the commission shall attempt to determine whether the
  136  individual owing such a fine is a current public officer or
  137  current public employee. If so, the commission may notify the
  138  Chief Financial Officer or the governing body of the appropriate
  139  county, municipality, district school board, or special district
  140  of the total amount of any fine owed to the commission by such
  141  individual.
  142         (a) After receipt and verification of the notice from the
  143  commission, the Chief Financial Officer or the governing body of
  144  the county, municipality, district school board, or special
  145  district shall begin withholding the lesser of 10 percent or the
  146  maximum amount allowed under federal law from any salary-related
  147  payment. The withheld payments shall be remitted to the
  148  commission until the fine is satisfied.
  149         (b) The Chief Financial Officer or the governing body of
  150  the county, municipality, district school board, or special
  151  district may retain an amount of each withheld payment, as
  152  provided in s. 77.0305, to cover the administrative costs
  153  incurred under this section.
  154         Section 4. Paragraph (e) of subsection (4) of section
  155  1001.20, Florida Statutes, is amended to read:
  156         1001.20 Department under direction of state board.—
  157         (4) The Department of Education shall establish the
  158  following offices within the Office of the Commissioner of
  159  Education which shall coordinate their activities with all other
  160  divisions and offices:
  161         (e) Office of Inspector General.—Organized using existing
  162  resources and funds and responsible for promoting
  163  accountability, efficiency, and effectiveness and detecting
  164  fraud and abuse within school districts, the Florida School for
  165  the Deaf and the Blind, and Florida College System institutions
  166  in Florida. If the Commissioner of Education determines that a
  167  district school board, the Board of Trustees for the Florida
  168  School for the Deaf and the Blind, or a Florida College System
  169  institution board of trustees is unwilling or unable to address
  170  substantiated allegations made by any person relating to waste,
  171  fraud, or financial mismanagement within the school district,
  172  the Florida School for the Deaf and the Blind, or the Florida
  173  College System institution, the office shall conduct,
  174  coordinate, or request investigations into such substantiated
  175  allegations. The office shall investigate allegations or reports
  176  of possible fraud or abuse against a district school board made
  177  by any member of the Cabinet; the presiding officer of either
  178  house of the Legislature; a chair of a substantive or
  179  appropriations committee with jurisdiction; or a member of the
  180  board for which an investigation is sought. The office shall
  181  have access to all information and personnel necessary to
  182  perform its duties and shall have all of its current powers,
  183  duties, and responsibilities authorized in s. 20.055.
  184         Section 5. Subsection (1) of section 1001.39, Florida
  185  Statutes, is amended to read:
  186         1001.39 District school board members; travel expenses.—
  187         (1) In addition to the salary provided in s. 1001.395, each
  188  member of a district school board shall be allowed, from the
  189  district school fund, reimbursement of travel expenses as
  190  authorized in s. 112.061, except as provided that in subsection
  191  (2). any travel outside the district which exceeds $500 requires
  192  prior approval by the district school board to confirm that such
  193  travel is for official business of the school district and
  194  complies with shall also be governed by the rules of the State
  195  Board of Education. Any request for travel outside the state
  196  must include an itemized list detailing all anticipated travel
  197  expenses, including, but not limited to, the anticipated costs
  198  of all means of travel, lodging, and subsistence. Immediately
  199  preceding a request, the public must have an opportunity to
  200  speak on the specific travel agenda item.
  201         Section 6. Subsection (3) of section 1001.395, Florida
  202  Statutes, is amended to read:
  203         1001.395 District school board members; compensation.—
  204         (3) Notwithstanding the provisions of this section and s.
  205  145.19, for the 2010-2011 fiscal year, the salary of each
  206  district school board member shall be the amount calculated
  207  pursuant to subsection (1) or the district’s beginning salary
  208  for teachers who hold baccalaureate degrees, whichever is less.
  209         Section 7. Subsections (6) and (7), paragraphs (b) and (l)
  210  of subsection (12), and paragraph (b) of subsection (17) of
  211  section 1001.42, Florida Statutes, are amended to read:
  212         1001.42 Powers and duties of district school board.—The
  213  district school board, acting as a board, shall exercise all
  214  powers and perform all duties listed below:
  217  ADMINISTRATORS.—Adopt policies establishing standards of ethical
  218  conduct for instructional personnel, administrative personnel,
  219  and school officers administrators. The policies must require
  220  all instructional personnel, administrative personnel, and
  221  school officers administrators, as defined in s. 1012.01, to
  222  complete training on the standards; establish the duty of
  223  instructional personnel, administrative personnel, and school
  224  officers administrators to report, and procedures for reporting,
  225  alleged misconduct by other instructional or administrative
  226  personnel and school officers administrators which affects the
  227  health, safety, or welfare of a student; and include an
  228  explanation of the liability protections provided under ss.
  229  39.203 and 768.095. A district school board, or any of its
  230  employees, may not enter into a confidentiality agreement
  231  regarding terminated or dismissed instructional or
  232  administrative personnel or school officers administrators, or
  233  personnel or administrators who resign in lieu of termination,
  234  based in whole or in part on misconduct that affects the health,
  235  safety, or welfare of a student, and may not provide
  236  instructional personnel, administrative personnel, or school
  237  officers administrators with employment references or discuss
  238  the personnel’s or officers’ administrators’ performance with
  239  prospective employers in another educational setting, without
  240  disclosing the personnel’s or officers’ administrators’
  241  misconduct. Any part of an agreement or contract that has the
  242  purpose or effect of concealing misconduct by instructional
  243  personnel, administrative personnel, or school officers
  244  administrators which affects the health, safety, or welfare of a
  245  student is void, is contrary to public policy, and may not be
  246  enforced.
  247         (7) DISQUALIFICATION FROM EMPLOYMENT.—Disqualify
  248  instructional personnel and administrative personnel school
  249  administrators, as defined in s. 1012.01, from employment in any
  250  position that requires direct contact with students if the
  251  personnel or administrators are ineligible for such employment
  252  under s. 1012.315. An elected or appointed school board official
  253  forfeits his or her salary for 1 year if:
  254         (a) The school board official knowingly signs and transmits
  255  to any state official a report of alleged misconduct by
  256  instructional personnel or administrative personnel school
  257  administrators which affects the health, safety, or welfare of a
  258  student and the school board official knows the report to be
  259  false or incorrect; or
  260         (b) The school board official knowingly fails to adopt
  261  policies that require instructional personnel and administrative
  262  personnel school administrators to report alleged misconduct by
  263  other instructional personnel and administrative personnel
  264  school administrators, or that require the investigation of all
  265  reports of alleged misconduct by instructional personnel and
  266  administrative personnel school administrators, if the
  267  misconduct affects the health, safety, or welfare of a student.
  268         (12) FINANCE.—Take steps to assure students adequate
  269  educational facilities through the financial procedure
  270  authorized in chapters 1010 and 1011 and as prescribed below:
  271         (b) Annual budget.—
  272         1. Cause to be prepared, adopt, and have submitted to the
  273  Department of Education as required by law and rules of the
  274  State Board of Education, the annual school budget, such budget
  275  to be so prepared and executed as to promote the improvement of
  276  the district school system.
  277         2.An individual school board member may request and shall
  278  receive any proposed, tentative, and official budget documents,
  279  including all supporting and background information.
  280         (l) Internal auditor.—May or, in the case of a school
  281  district receiving annual federal, state, and local funds in
  282  excess of $500 million, shall employ an internal auditor. The
  283  scope of the internal auditor shall not be restricted and shall
  284  include every functional and program area of the school system.
  285         1.The internal auditor shall to perform ongoing financial
  286  verification of the financial records of the school district, a
  287  comprehensive risk assessment of all areas of the school system
  288  every 5 years, and other audits and reviews as the district
  289  school board directs for determining:
  290         a.The adequacy of internal controls designed to prevent
  291  and detect fraud, waste, and abuse.
  292         b.Compliance with applicable laws, rules, contracts, grant
  293  agreements, district school board-approved policies, and best
  294  practices.
  295         c.The efficiency of operations.
  296         d.The reliability of financial records and reports.
  297         e.The safeguarding of assets.
  298         f.Financial solvency.
  299         g.Projected revenues and expenditures.
  300         h.The rate of change in the general fund balance.
  301         2. The internal auditor shall prepare audit reports of his
  302  or her findings and report directly to the district school board
  303  or its designee.
  304         3.Any person responsible for furnishing or producing any
  305  book, record, paper, document, data, or sufficient information
  306  necessary to conduct a proper audit or examination which the
  307  internal auditor is by law authorized to perform is subject to
  308  the provisions of s. 11.47(3) and (4).
  310         (b) Adopt rules to strengthen family involvement and
  311  empowerment pursuant to s. 1002.23. The rules shall be developed
  312  in collaboration with administrative personnel school
  313  administrators, parents, teachers, and community partners.
  314         Section 8. Subsection (2) of section 1010.20, Florida
  315  Statutes, is amended to read:
  316         1010.20 Cost accounting and reporting for school
  317  districts.—
  318         (2) COST REPORTING.—
  319         (a) Each district shall report on a district-aggregate
  320  basis expenditures for inservice training pursuant to s.
  321  1011.62(3) and for categorical programs as provided in s.
  322  1011.62(6).
  323         (b) Each district shall report to the department on a
  324  school-by-school and on an aggregate district basis expenditures
  325  for:
  326         1. Each program funded in s. 1011.62(1)(c).
  327         2.Total operating costs as reported pursuant to s.
  328  1010.215.
  329         3.Expenditures for classroom instruction pursuant to the
  330  calculation in s. 1010.215(4)(b)1. and 2.
  331         (c)The department shall:
  332         1.Categorize all public schools and districts into
  333  appropriate groups based primarily on average full-time
  334  equivalent student enrollment as reported on the most recent
  335  student membership survey under s. 1011.62 and in state board
  336  rule to determine groups of peer schools and districts.
  337         2.Annually calculate for each public school, district, and
  338  for the entire state the percentage of classroom expenditures to
  339  total operating costs expenditures reported in subparagraphs
  340  (b)2. and 3. The results shall be categorized pursuant to this
  341  paragraph.
  342         3.Annually calculate for all public schools, districts,
  343  and the state the average percentage of classroom expenditures
  344  to total operating costs and expenditures reported in
  345  subparagraphs (b)2. and 3. The results shall be categorized
  346  pursuant to this paragraph.
  347         4.Develop a web-based fiscal transparency tool that
  348  identifies public schools and districts that produce high
  349  academic achievement based on the ratio of classroom instruction
  350  expenditures to total expenditures. The fiscal transparency tool
  351  shall must combine the data calculated pursuant to this
  352  paragraph with the student performance measurements calculated
  353  pursuant to s. 1012.34(7) to determine the financial efficiency
  354  of each public school and district. The results shall be
  355  displayed in an easy-to-use format that enables the user to
  356  compare performance among public schools and districts.
  357         (d)(c) The Commissioner of Education shall present to the
  358  Legislature, prior to the opening of the regular session each
  359  year, a district-by-district report of the expenditures reported
  360  pursuant to paragraphs (a) and (b). The report shall include
  361  total expenditures, a detailed analysis showing expenditures for
  362  each program, and such other data as may be useful for
  363  management of the education system. The Commissioner of
  364  Education shall also compute cost factors relative to the base
  365  student allocation for each funded program in s. 1011.62(1)(c).
  366         Section 9. Subsection (2) of section 1010.30, Florida
  367  Statutes, is amended to read:
  368         1010.30 Audits required.—
  369         (2) If an audit contains a significant deficiency or
  370  material weakness finding, the district school board, the
  371  Florida College System institution board of trustees, or the
  372  university board of trustees shall conduct an audit overview
  373  during a public meeting. The audit overview shall describe the
  374  corrective action to be taken and a timeline for completion of
  375  such action.
  376         Section 10. Paragraph (a) of subsection (3) of section
  377  1011.01, Florida Statutes, is amended to read:
  378         1011.01 Budget system established.—
  379         (3)(a) Each district school board and each Florida College
  380  System institution board of trustees shall prepare, adopt, and
  381  submit to the Commissioner of Education an annual operating
  382  budget. Operating budgets shall be prepared and submitted in
  383  accordance with the provisions of law, rules of the State Board
  384  of Education, the General Appropriations Act, and for district
  385  school boards in accordance with the provisions of s. 200.065
  386  ss. 200.065 and 1011.64.
  387         Section 11. Subsection (2) of section 1011.03, Florida
  388  Statutes, is amended to read:
  389         1011.03 Public hearings; budget to be submitted to
  390  Department of Education.—
  391         (2)The advertisement of a district that has been required
  392  by the Legislature to increase classroom expenditures pursuant
  393  to s. 1011.64 must include the following statement:
  394  “This proposed budget reflects an increase in classroom
  395  expenditures as a percent of total current operating
  396  expenditures of XX percent over the (previous fiscal year)
  397  fiscal year. This increase in classroom expenditures is required
  398  by the Legislature because the district has performed below the
  399  required performance standard on XX of XX student performance
  400  standards for the (previous school year) school year. In order
  401  to achieve the legislatively required level of classroom
  402  expenditures as a percentage of total operating expenditures,
  403  the proposed budget includes an increase in overall classroom
  404  expenditures of $XX,XXX,XXX above the amount spent for this same
  405  purpose during the (previous fiscal year) fiscal year. In order
  406  to achieve improved student academic performance, this proposed
  407  increase is being budgeted for the following activities:
  408  ...(list activities and amount budgeted)....”
  409         Section 12. Section 1011.035, Florida Statutes, is amended
  410  to read:
  411         1011.035 School district fiscal budget transparency.—
  412         (1) It is important for school districts to provide
  413  budgetary transparency to enable taxpayers, parents, and
  414  education advocates to obtain school district budget and related
  415  information in a manner that is simply explained and easily
  416  understandable. Budgetary transparency leads to more responsible
  417  spending, more citizen involvement, and improved accountability.
  418  A budget that is not transparent, accessible, and accurate
  419  cannot be properly analyzed, its implementation thoroughly
  420  monitored, or its outcomes evaluated.
  421         (2) Each district school board shall post on its website a
  422  plain language version of each proposed, tentative, and official
  423  budget which describes each budget item in terms that are easily
  424  understandable to the public and includes:
  425         (a)Graphical representations, for each public school
  426  within the district and for the school district, of the
  427  following:
  428         1.Summary financial efficiency data.
  429         2.Fiscal trend information for the previous 3 years on:
  430         a.The ratio of full-time equivalent students to full-time
  431  equivalent instructional personnel.
  432         b.The ratio of full-time equivalent students to full-time
  433  equivalent administrative personnel.
  434         c.The total operating expenditures per full-time
  435  equivalent student.
  436         d.The total instructional expenditures per full-time
  437  equivalent student.
  438         e.The general administrative expenditures as a percentage
  439  of total budget.
  440         f.The rate of change in the general fund’s ending fund
  441  balance not classified as restricted.
  442         (b)A link to the web-based fiscal transparency tool
  443  developed by the department pursuant to s. 1010.20 to enable
  444  taxpayers to evaluate the financial efficiency of the school
  445  district and compare the financial efficiency of the school
  446  district with other similarly situated school districts.
  448  This information must be prominently posted on the school
  449  district’s website in a manner that is readily accessible to the
  450  public.
  451         (3) Each district school board is encouraged to post the
  452  following information on its website:
  453         (a) Timely information as to when a budget hearing will be
  454  conducted.
  455         (b) Each contract between the district school board and the
  456  teachers’ union.
  457         (c) Each contract between the district school board and
  458  noninstructional staff.
  459         (d) Each contract exceeding $35,000 between the school
  460  board and a vendor of services, supplies, or programs or for the
  461  purchase or lease of lands, facilities, or properties.
  462         (e) Each contract exceeding $35,000 that is an emergency
  463  procurement or is with a single source as authorized under s.
  464  287.057(3).
  465         (f) Recommendations of the citizens’ budget advisory
  466  committee.
  467         (g) Current and archived video recordings of each district
  468  school board meeting and workshop.
  469         (4) The website should contain links to:
  470         (a) Help explain or provide background information on
  471  various budget items that are required by state or federal law.
  472         (b) Allow users to navigate to related sites to view
  473  supporting details.
  474         (c) Enable taxpayers, parents, and education advocates to
  475  send e-mails asking questions about the budget and enable others
  476  to view the questions and responses.
  477         Section 13. Section 1011.051, Florida Statutes, is amended
  478  to read:
  479         1011.051 Guidelines for general funds.—The district school
  480  board shall maintain a general fund ending fund balance that is
  481  sufficient to address normal contingencies.
  482         (1) If at any time the portion of the general fund’s ending
  483  fund balance not classified as restricted, committed, or
  484  nonspendable in the district’s approved operating budget is
  485  projected to fall below 3 percent of projected general fund
  486  revenues during the current fiscal year, the superintendent
  487  shall provide written notification to the district school board
  488  and the Commissioner of Education. If such financial condition
  489  exists for 2 consecutive fiscal years, the superintendent shall
  490  reduce the district’s administrative expenditures reported
  491  pursuant to s. 1010.215(4)(a) in proportion to the reduction in
  492  the general fund’s ending balance or the reduction in student
  493  enrollment, whichever is greater.
  494         (2)(a) If at any time the portion of the general fund’s
  495  ending fund balance not classified as restricted, committed, or
  496  nonspendable in the district’s approved operating budget is
  497  projected to fall below 2 percent of projected general fund
  498  revenues during the current fiscal year, the superintendent
  499  shall provide written notification to the district school board
  500  and the Commissioner of Education. Within 14 days after
  501  receiving such notification, if the commissioner determines that
  502  the district does not have a plan that is reasonably anticipated
  503  to avoid a financial emergency as determined pursuant to s.
  504  218.503, the commissioner shall appoint a financial emergency
  505  board that shall operate under the requirements, powers, and
  506  duties specified in s. 218.503(3)(g).
  507         (b)If any of the conditions identified in s. 218.503(1)
  508  existed in the 2015-2016 school year or thereafter, the
  509  department shall contract with an independent third party to
  510  conduct an investigation of all accounts and records to
  511  determine the cause of the deficit, what efforts, if any, were
  512  made to avoid the deficit, and whether any of the conditions
  513  identified in s. 1011.10 have occurred. The investigation must
  514  include a detailed review and analysis of documents and records,
  515  including, but not limited to, budget reports, journal entries,
  516  budget methodologies, staff e-mails, hard copy records, monthly
  517  financial statements, quarterly revenue and expenditure reports,
  518  finance staff job descriptions, and minutes from meetings. The
  519  results of the investigation must include recommendations for
  520  corrective action and controls to avoid a reoccurrence of a
  521  future budget shortfall. A final report shall be provided to the
  522  district school board, the department, the Legislative Auditing
  523  Committee, and the district’s financial emergency board, if
  524  applicable.
  525         Section 14. Subsection (2) of section 1011.06, Florida
  526  Statutes, is amended to read:
  527         1011.06 Expenditures.—
  529  Expenditures from district and all other funds available for the
  530  public school program of any district shall be authorized by law
  531  and must be in accordance with procedures prescribed by the
  532  district school board. A district school board may establish
  533  policies that allow expenditures to exceed the amount budgeted
  534  by function and object, provided that the district school board
  535  complies with s. 1011.09(4) and approves the expenditure by
  536  amending and amends the budget at the next scheduled public
  537  meeting. The district school board must provide a full
  538  explanation of any amendments at the public meeting within
  539  timelines established by school board policies.
  540         Section 15. Subsection (4) of section 1011.09, Florida
  541  Statutes, is amended to read:
  542         1011.09 Expenditure of funds by district school board.—All
  543  state funds apportioned to the credit of any district constitute
  544  a part of the district school fund of that district and must be
  545  budgeted and expended under authority of the district school
  546  board subject to the provisions of law and rules of the State
  547  Board of Education.
  548         (4) If the financial conditions in s. 1011.051 exist, a
  549  district school board During the 2009-2010 fiscal year, unless
  550  otherwise specifically approved by the district school board,
  551  public funds may not make expenditures be expended for out-of
  552  state travel outside of the district or cellular phones,
  553  cellular phone service, personal digital assistants, or any
  554  other mobile wireless communication device or service, including
  555  text messaging, whether through purchasing, leasing,
  556  contracting, or any other method, while the financial conditions
  557  exist. The expenditure of public funds for art programs, music
  558  programs, sports programs, and extracurricular programs for
  559  students is a higher priority than expending funds for employee
  560  travel and cellular phones.
  561         Section 16. Subsection (3) is added to section 1011.10,
  562  Florida Statutes, to read:
  563         1011.10 Penalty.—
  564         (3)If any of the conditions identified in s. 218.503(1)
  565  exist within a school district, the salary of each district
  566  school board member and district superintendent, calculated
  567  pursuant to ss. 1001.395 and 1001.47, shall be withheld until
  568  the conditions are corrected. This subsection does not apply to
  569  a district school board member or district superintendent
  570  elected or appointed within 1 year after the identification of
  571  the conditions in s. 218.503(1) if he or she did not participate
  572  in the approval or preparation of the final school district
  573  budget adopted before the identification of such conditions.
  574         Section 17. Subsection (8) of section 1011.60, Florida
  575  Statutes, is amended to read:
  576         1011.60 Minimum requirements of the Florida Education
  577  Finance Program.—Each district which participates in the state
  578  appropriations for the Florida Education Finance Program shall
  579  provide evidence of its effort to maintain an adequate school
  580  program throughout the district and shall meet at least the
  581  following requirements:
  583  the minimum classroom expenditure requirements and associated
  584  reporting pursuant to s. 1011.64.
  585         Section 18. Section 1011.64, Florida Statutes, is repealed.
  586         Section 19. Subsection (2) of section 1012.23, Florida
  587  Statutes, is amended to read:
  588         1012.23 School district personnel policies.—
  589         (2) The district school superintendent or a district school
  590  board member may not appoint or employ or appoint a relative, as
  591  defined in s. 112.3135, to work under the direct supervision of
  592  that district school board member or district school
  593  superintendent. The limitations of this subsection do not apply
  594  to employees appointed or employed before the election or
  595  appointment of a school board member or district school
  596  superintendent. The Commission on Ethics shall accept and
  597  investigate any alleged violations of this section pursuant to
  598  the procedures contained in ss. 112.322-112.3241.
  599         Section 20. Paragraph (d) of subsection (9) of section
  600  1002.395, Florida Statutes, is amended to read:
  601         1002.395 Florida Tax Credit Scholarship Program.—
  602         (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
  603  Education shall:
  604         (d) Annually verify the eligibility of expenditures as
  605  provided in paragraph (6)(d) using the audit required by
  606  paragraph (6)(m) and s. 11.45(2)(l) s. 11.45(2)(k).
  607         Section 21. For the 2018-2019 fiscal year, the sum of
  608  $850,000 in nonrecurring funds from the General Revenue Fund is
  609  appropriated to the Department of Education to implement the
  610  provisions of this act.
  611         Section 22. This act shall take effect July 1, 2018.