Florida Senate - 2018 CS for CS for SB 354
By the Committees on Appropriations; and Community Affairs; and
Senator Stargel
576-04147-18 2018354c2
1 A bill to be entitled
2 An act relating to government accountability; amending
3 s. 11.40, F.S.; requiring, rather than authorizing,
4 the Legislative Auditing Committee to schedule
5 hearings concerning certain governmental entities for
6 failure to comply with certain financial audit
7 requirements; amending s. 11.45, F.S.; defining the
8 terms “abuse,” “fraud,” and “waste”; revising
9 definitions; excluding water management districts from
10 certain audit requirements; removing a cross
11 reference; authorizing the Auditor General to conduct
12 audits of tourist development councils and county
13 tourism promotion agencies; revising reporting
14 requirements applicable to the Auditor General;
15 amending s. 28.35, F.S.; revising reporting
16 requirements applicable to the Florida Clerks of Court
17 Operations Corporation; amending s. 43.16, F.S.;
18 revising the responsibilities of the Justice
19 Administrative Commission, each state attorney, each
20 public defender, the criminal conflict and civil
21 regional counsel, the capital collateral regional
22 counsel, and the Guardian Ad Litem Program, to include
23 the establishment and maintenance of certain internal
24 controls; amending s. 112.061, F.S.; revising certain
25 lodging rates for the purpose of reimbursement to
26 specified employees; authorizing an employee to expend
27 his or her funds for certain lodging expenses;
28 authorizing the Department of Management Services to
29 adopt rules for specified purposes; providing
30 definitions; requiring executive branch state
31 government agencies and the judicial branch to report
32 certain travel information of public officers and
33 employees in the statewide travel management system;
34 requiring executive branch state government agencies
35 and the judicial branch to use the statewide travel
36 management system for certain purposes; requiring the
37 Department of Management Services to make certain
38 travel reports available to the public by a specified
39 date; prescribing reporting requirements for the
40 statewide travel management system for certain
41 reporting entities; specifying that certain reporting
42 requirements are contingent upon funding by the
43 Legislature; specifying that travel reports may not
44 reveal information confidential and exempt or exempt
45 from public records requirements; providing for the
46 redaction of such information from travel reports;
47 specifying that the Secretary of Management Services
48 or an officer, an employee, or a contractor of the
49 department is not responsible for redacting such
50 portions of travel reports; providing for
51 construction; amending ss. 129.03, 129.06, and
52 166.241, F.S.; requiring counties and municipalities
53 to maintain certain budget documents on the entities’
54 websites for a specified period; requiring county and
55 municipality budget officers to submit certain budget
56 information to specified entities within a certain
57 timeframe; amending s. 189.016, F.S.; requiring
58 special district budget officers to submit certain
59 budget information to specified entities within a
60 certain timeframe; amending s. 215.86, F.S.; revising
61 the purposes for which management systems and internal
62 controls must be established and maintained by each
63 state agency and the judicial branch; amending s.
64 215.97, F.S.; revising certain audit threshold
65 requirements; amending s. 215.985, F.S.; revising the
66 requirements for a monthly financial statement
67 provided by a water management district; amending s.
68 218.32, F.S.; revising certain reporting deadlines for
69 an audit report and annual financial report of certain
70 local governmental entities; providing an exception
71 for certain charter counties; prescribing duties of an
72 independent certified public accountant in conducting
73 an audit; providing legislative intent regarding the
74 establishment of the Florida Open Financial Statement
75 System; authorizing the Chief Financial Officer to
76 consult with certain stakeholders for input on the
77 design and implementation of the system; specifying
78 requirements and procedures for the Chief Financial
79 Officer in selecting and recruiting contractors for
80 certain purposes; requiring the Chief Financial
81 Officer to require completion of all work by a
82 specified date; providing that if the Chief Financial
83 Officer deems work products adequate, all local
84 governmental financial statements pertaining to fiscal
85 years ending on or after a specified date must meet
86 certain requirements; providing for the suspension of
87 salary payments to the head of a local governmental
88 entity that does not submit certain financial
89 information; authorizing the Department of Financial
90 Services to request additional information from a
91 local governmental entity under certain circumstances;
92 requiring a local governmental entity to comply with
93 such requests within a specified timeframe; requiring
94 the department to notify the Legislative Auditing
95 Committee of noncompliance; authorizing the committee
96 to take certain action; requiring the department to
97 post annual financial reports for certain governmental
98 entities on its website within a specified timeframe;
99 amending s. 218.33, F.S.; requiring local governmental
100 entities to establish and maintain internal controls
101 to achieve specified purposes; amending s. 218.39,
102 F.S.; requiring municipalities and special districts
103 to have a certain audit performed beginning with a
104 specified fiscal year; revising the deadline for an
105 audit report; providing an exception; requiring the
106 governing body of an audited entity to respond to
107 audit recommendations under specified circumstances;
108 amending s. 218.391, F.S.; revising membership for
109 audit committees; prohibiting an employee, a chief
110 executive officer, or a chief financial officer of the
111 respective governmental entity from serving as a
112 voting member of an audit committee; requiring an
113 auditor to include certain information in a management
114 letter; requiring the chair of a governmental entity’s
115 governing body to submit an affidavit containing
116 certain information when the entity contracts with an
117 auditor to conduct an audit; providing requirements
118 and procedures for selecting an auditor; requiring the
119 Legislative Auditing Committee to determine whether a
120 governmental entity should be subject to state action
121 under certain circumstances; amending s. 286.0114,
122 F.S.; prohibiting a board or commission from requiring
123 an advance copy of testimony or comments from a member
124 of the public as a precondition to being given the
125 opportunity to be heard at a public meeting; amending
126 s. 373.536, F.S.; deleting obsolete language;
127 requiring water management districts to maintain
128 certain budget documents on the districts’ websites
129 for a specified period; requiring district budget
130 officers to submit certain budget information to
131 specified entities within a certain timeframe;
132 providing for the suspension of salary payments of a
133 district executive director if the district does not
134 submit such information; amending s. 1001.42, F.S.;
135 authorizing district school board members to request
136 and receive specified budget information; requiring
137 employment of internal auditors in certain school
138 districts; revising provisions relating to the scope
139 of such internal auditors; amending s. 1002.33, F.S.;
140 revising the responsibilities of the governing board
141 of a charter school to include the establishment and
142 maintenance of internal controls; amending s. 1002.37,
143 F.S.; requiring completion of an annual financial
144 audit of the Florida Virtual School; specifying audit
145 requirements; requiring an audit report to be
146 submitted to the board of trustees of the Florida
147 Virtual School and the Auditor General; deleting
148 obsolete provisions; amending s. 1010.01, F.S.;
149 requiring each school district, Florida College System
150 institution, and state university to establish and
151 maintain certain internal controls; amending s.
152 1010.30, F.S.; requiring a district school board,
153 Florida College System institution board of trustees,
154 or university board of trustees to respond to audit
155 recommendations under certain circumstances; amending
156 s. 1011.03, F.S.; requiring a district school board’s
157 budget officer to submit certain budget information to
158 specified entities within a certain timeframe;
159 providing for suspension of salary payments for a
160 superintendent of a district that does not submit such
161 information; amending s. 1011.60, F.S.; requiring
162 district school boards that submit an annual financial
163 report to the Department of Education to also
164 electronically submit a copy to the clerk of the
165 court; requiring the Office of Economic and
166 Demographic Research to develop, by a specified date,
167 certain forms for use by local governmental entities
168 in reporting certain budget information; requiring the
169 office to submit a report to the Legislature by a
170 specified date; providing requirements for the report;
171 amending ss. 165.0615, 189.066, 189.069, 189.074, and
172 218.503, F.S.; conforming provisions and cross
173 references to changes made by the act; declaring that
174 the act fulfills an important state interest;
175 providing an effective date.
176
177 Be It Enacted by the Legislature of the State of Florida:
178
179 Section 1. Subsection (2) of section 11.40, Florida
180 Statutes, is amended to read:
181 11.40 Legislative Auditing Committee.—
182 (2) Following notification by the Auditor General, the
183 Department of Financial Services, or the Division of Bond
184 Finance of the State Board of Administration, the Governor or
185 his or her designee, or the Commissioner of Education or his or
186 her designee of the failure of a local governmental entity,
187 district school board, charter school, or charter technical
188 career center to comply with the applicable provisions within s.
189 11.45(5)-(7), s. 218.32(1), s. 218.38, or s. 218.503(3), the
190 Legislative Auditing Committee shall may schedule a hearing to
191 determine if the entity should be subject to further state
192 action. If the committee determines that the entity should be
193 subject to further state action, the committee shall:
194 (a) In the case of a local governmental entity or district
195 school board, direct the Department of Revenue and the
196 Department of Financial Services to withhold any funds not
197 pledged for bond debt service satisfaction which are payable to
198 such entity until the entity complies with the law. The
199 committee shall specify the date that such action must shall
200 begin, and the directive must be received by the Department of
201 Revenue and the Department of Financial Services 30 days before
202 the date of the distribution mandated by law. The Department of
203 Revenue and the Department of Financial Services may implement
204 the provisions of this paragraph.
205 (b) In the case of a special district created by:
206 1. A special act, notify the President of the Senate, the
207 Speaker of the House of Representatives, the standing committees
208 of the Senate and the House of Representatives charged with
209 special district oversight as determined by the presiding
210 officers of each respective chamber, the legislators who
211 represent a portion of the geographical jurisdiction of the
212 special district, and the Department of Economic Opportunity
213 that the special district has failed to comply with the law.
214 Upon receipt of notification, the Department of Economic
215 Opportunity shall proceed pursuant to s. 189.062 or s. 189.067.
216 If the special district remains in noncompliance after the
217 process set forth in s. 189.0651, or if a public hearing is not
218 held, the Legislative Auditing Committee may request the
219 department to proceed pursuant to s. 189.067(3).
220 2. A local ordinance, notify the chair or equivalent of the
221 local general-purpose government pursuant to s. 189.0652 and the
222 Department of Economic Opportunity that the special district has
223 failed to comply with the law. Upon receipt of notification, the
224 department shall proceed pursuant to s. 189.062 or s. 189.067.
225 If the special district remains in noncompliance after the
226 process set forth in s. 189.0652, or if a public hearing is not
227 held, the Legislative Auditing Committee may request the
228 department to proceed pursuant to s. 189.067(3).
229 3. Any manner other than a special act or local ordinance,
230 notify the Department of Economic Opportunity that the special
231 district has failed to comply with the law. Upon receipt of
232 notification, the department shall proceed pursuant to s.
233 189.062 or s. 189.067(3).
234 (c) In the case of a charter school or charter technical
235 career center, notify the appropriate sponsoring entity, which
236 may terminate the charter pursuant to ss. 1002.33 and 1002.34.
237 Section 2. Subsection (1), paragraph (j) of subsection (2),
238 paragraph (u) of subsection (3), and paragraphs (f) and (i) of
239 subsection (7) of section 11.45, Florida Statutes, are amended,
240 and paragraph (y) is added to subsection (3) of that section, to
241 read:
242 11.45 Definitions; duties; authorities; reports; rules.—
243 (1) DEFINITIONS.—As used in ss. 11.40-11.51, the term:
244 (a) “Abuse” means behavior that is deficient or improper
245 when compared with behavior that a prudent person would consider
246 a reasonable and necessary operational practice given the facts
247 and circumstances. The term includes the misuse of authority or
248 position for personal gain.
249 (b)(a) “Audit” means a financial audit, operational audit,
250 or performance audit.
251 (c)(b) “County agency” means a board of county
252 commissioners or other legislative and governing body of a
253 county, however styled, including that of a consolidated or
254 metropolitan government, a clerk of the circuit court, a
255 separate or ex officio clerk of the county court, a sheriff, a
256 property appraiser, a tax collector, a supervisor of elections,
257 or any other officer in whom any portion of the fiscal duties of
258 a body or officer expressly stated in this paragraph are the
259 above are under law separately placed by law.
260 (d)(c) “Financial audit” means an examination of financial
261 statements in order to express an opinion on the fairness with
262 which they are presented in conformity with generally accepted
263 accounting principles and an examination to determine whether
264 operations are properly conducted in accordance with legal and
265 regulatory requirements. Financial audits must be conducted in
266 accordance with auditing standards generally accepted in the
267 United States and government auditing standards as adopted by
268 the Board of Accountancy. When applicable, the scope of
269 financial audits must shall encompass the additional activities
270 necessary to establish compliance with the Single Audit Act
271 Amendments of 1996, 31 U.S.C. ss. 7501-7507, and other
272 applicable federal law.
273 (e) “Fraud” means obtaining something of value through
274 willful misrepresentation, including, but not limited to, the
275 intentional misstatements or intentional omissions of amounts or
276 disclosures in financial statements to deceive users of
277 financial statements, theft of an entity’s assets, bribery, or
278 the use of one’s position for personal enrichment through the
279 deliberate misuse or misapplication of an organization’s
280 resources.
281 (f)(d) “Governmental entity” means a state agency, a county
282 agency, or any other entity, however styled, that independently
283 exercises any type of state or local governmental function.
284 (g)(e) “Local governmental entity” means a county agency,
285 municipality, tourist development council, county tourism
286 promotion agency, or special district as defined in s. 189.012.
287 The term, but does not include any housing authority established
288 under chapter 421.
289 (h)(f) “Management letter” means a statement of the
290 auditor’s comments and recommendations.
291 (i)(g) “Operational audit” means an audit whose purpose is
292 to evaluate management’s performance in establishing and
293 maintaining internal controls, including controls designed to
294 prevent and detect fraud, waste, and abuse, and in administering
295 assigned responsibilities in accordance with applicable laws,
296 administrative rules, contracts, grant agreements, and other
297 guidelines. Operational audits must be conducted in accordance
298 with government auditing standards. Such audits examine internal
299 controls that are designed and placed in operation to promote
300 and encourage the achievement of management’s control objectives
301 in the categories of compliance, economic and efficient
302 operations, reliability of financial records and reports, and
303 safeguarding of assets, and identify weaknesses in those
304 internal controls.
305 (j)(h) “Performance audit” means an examination of a
306 program, activity, or function of a governmental entity,
307 conducted in accordance with applicable government auditing
308 standards or auditing and evaluation standards of other
309 appropriate authoritative bodies. The term includes an
310 examination of issues related to:
311 1. Economy, efficiency, or effectiveness of the program.
312 2. Structure or design of the program to accomplish its
313 goals and objectives.
314 3. Adequacy of the program to meet the needs identified by
315 the Legislature or governing body.
316 4. Alternative methods of providing program services or
317 products.
318 5. Goals, objectives, and performance measures used by the
319 agency to monitor and report program accomplishments.
320 6. The accuracy or adequacy of public documents, reports,
321 or requests prepared under the program by state agencies.
322 7. Compliance of the program with appropriate policies,
323 rules, or laws.
324 8. Any other issues related to governmental entities as
325 directed by the Legislative Auditing Committee.
326 (k)(i) “Political subdivision” means a separate agency or
327 unit of local government created or established by law and
328 includes, but is not limited to, the following and the officers
329 thereof: authority, board, branch, bureau, city, commission,
330 consolidated government, county, department, district,
331 institution, metropolitan government, municipality, office,
332 officer, public corporation, town, or village.
333 (l)(j) “State agency” means a separate agency or unit of
334 state government created or established by law and includes, but
335 is not limited to, the following and the officers thereof:
336 authority, board, branch, bureau, commission, department,
337 division, institution, office, officer, or public corporation,
338 as the case may be, except any such agency or unit within the
339 legislative branch of state government other than the Florida
340 Public Service Commission.
341 (m) “Waste” means the act of using or expending resources
342 unreasonably, carelessly, extravagantly, or for no useful
343 purpose.
344 (2) DUTIES.—The Auditor General shall:
345 (j) Conduct audits of local governmental entities when
346 determined to be necessary by the Auditor General, when directed
347 by the Legislative Auditing Committee, or when otherwise
348 required by law. No later than 18 months after the release of
349 the audit report, the Auditor General shall perform such
350 appropriate followup procedures as he or she deems necessary to
351 determine the audited entity’s progress in addressing the
352 findings and recommendations contained within the Auditor
353 General’s previous report. The Auditor General shall notify each
354 member of the audited entity’s governing body and the
355 Legislative Auditing Committee of the results of his or her
356 determination. For purposes of this paragraph, local
357 governmental entities do not include water management districts.
358
359 The Auditor General shall perform his or her duties
360 independently but under the general policies established by the
361 Legislative Auditing Committee. This subsection does not limit
362 the Auditor General’s discretionary authority to conduct other
363 audits or engagements of governmental entities as authorized in
364 subsection (3).
365 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
366 General may, pursuant to his or her own authority, or at the
367 direction of the Legislative Auditing Committee, conduct audits
368 or other engagements as determined appropriate by the Auditor
369 General of:
370 (u) The Florida Virtual School pursuant to s. 1002.37.
371 (y) Tourist development councils and county tourism
372 promotion agencies.
373 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
374 (f) The Auditor General shall annually compile and transmit
375 to the President of the Senate, the Speaker of the House of
376 Representatives, and the Legislative Auditing Committee a
377 summary of significant findings and financial trends identified
378 in audit reports reviewed in paragraph (b) or otherwise
379 identified by the Auditor General’s review of such audit reports
380 and financial information, and identified in audits of district
381 school boards conducted by the Auditor General. The Auditor
382 General shall include financial information provided pursuant to
383 s. 218.32(1)(f) s. 218.32(1)(e) for entities with fiscal years
384 ending on or after June 30, 2003, within his or her reports
385 submitted pursuant to this paragraph.
386 (i) The Auditor General shall annually transmit by July 15,
387 to the President of the Senate, the Speaker of the House of
388 Representatives, and the Department of Financial Services, a
389 list of all school districts, charter schools, charter technical
390 career centers, Florida College System institutions, state
391 universities, and local governmental entities water management
392 districts that have failed to comply with the transparency
393 requirements as identified in the audit reports reviewed
394 pursuant to paragraph (b) and those conducted pursuant to
395 subsection (2).
396 Section 3. Paragraph (d) of subsection (2) of section
397 28.35, Florida Statutes, is amended to read:
398 28.35 Florida Clerks of Court Operations Corporation.—
399 (2) The duties of the corporation shall include the
400 following:
401 (d) Developing and certifying a uniform system of workload
402 measures and applicable workload standards for court-related
403 functions as developed by the corporation and clerk workload
404 performance in meeting the workload performance standards. These
405 workload measures and workload performance standards shall be
406 designed to facilitate an objective determination of the
407 performance of each clerk in accordance with minimum standards
408 for fiscal management, operational efficiency, and effective
409 collection of fines, fees, service charges, and court costs. The
410 corporation shall develop the workload measures and workload
411 performance standards in consultation with the Legislature. When
412 the corporation finds a clerk has not met the workload
413 performance standards, the corporation shall identify the nature
414 of each deficiency and any corrective action recommended and
415 taken by the affected clerk of the court. For quarterly periods
416 ending on the last day of March, June, September, and December
417 of each year, the corporation shall notify the Legislature of
418 any clerk not meeting workload performance standards and provide
419 a copy of any corrective action plans. Such notifications shall
420 be submitted no later than 45 days after the end of the
421 preceding quarterly period. As used in this subsection, the
422 term:
423 1. “Workload measures” means the measurement of the
424 activities and frequency of the work required for the clerk to
425 adequately perform the court-related duties of the office as
426 defined by the membership of the Florida Clerks of Court
427 Operations Corporation.
428 2. “Workload performance standards” means the standards
429 developed to measure the timeliness and effectiveness of the
430 activities that are accomplished by the clerk in the performance
431 of the court-related duties of the office as defined by the
432 membership of the Florida Clerks of Court Operations
433 Corporation.
434 Section 4. Present subsections (6) and (7) of section
435 43.16, Florida Statutes, are renumbered as subsections (7) and
436 (8), respectively, and a new subsection (6) is added to that
437 section, to read:
438 43.16 Justice Administrative Commission; membership, powers
439 and duties.—
440 (6) The commission, each state attorney, each public
441 defender, the criminal conflict and civil regional counsel, the
442 capital collateral regional counsel, and the Guardian Ad Litem
443 Program shall establish and maintain internal controls designed
444 to:
445 (a) Prevent and detect fraud, waste, and abuse as defined
446 in s. 11.45(1).
447 (b) Promote and encourage compliance with applicable laws,
448 rules, contracts, grant agreements, and best practices.
449 (c) Support economical and efficient operations.
450 (d) Ensure reliability of financial records and reports.
451 (e) Safeguard assets.
452 Section 5. Subsection (6) of section 112.061, Florida
453 Statutes, is amended, paragraph (c) is added to subsection (9)
454 of that section, and subsection (16) is added to that section,
455 to read:
456 112.061 Per diem and travel expenses of public officers,
457 employees, and authorized persons.—
458 (6) RATES OF PER DIEM AND SUBSISTENCE ALLOWANCE.—For
459 purposes of reimbursement rates and methods of calculation, per
460 diem and subsistence allowances are provided as follows:
461 (a) All travelers shall be allowed for subsistence when
462 traveling to a convention or conference or when traveling within
463 or outside the state in order to conduct bona fide state
464 business, which convention, conference, or business serves a
465 direct and lawful public purpose with relation to the public
466 agency served by the person attending such meeting or conducting
467 such business, either of the following for each day of such
468 travel at the option of the traveler:
469 1. Eighty dollars per diem; or
470 2. If actual expenses exceed $80, the amounts permitted in
471 paragraph (b) for subsistence, plus actual expenses for lodging
472 at a single-occupancy rate, except as provided in paragraph (c),
473 to be substantiated by paid bills therefor.
474
475 When lodging or meals are provided at a state institution, the
476 traveler shall be reimbursed only for the actual expenses of
477 such lodging or meals, not to exceed the maximum provided for in
478 this subsection.
479 (b) All travelers shall be allowed the following amounts
480 for subsistence while on Class C travel on official business as
481 provided in paragraph (5)(b):
482 1. Breakfast...........................................$6
483 2. Lunch..............................................$11
484 3. Dinner.............................................$19
485 (c) Actual expenses for lodging associated with the
486 attendance of an employee of a state agency or the judicial
487 branch at a meeting, conference, or convention organized or
488 sponsored in whole or in part by a state agency or the judicial
489 branch may not exceed $150 per day. However, an employee may
490 expend his or her own funds for any lodging expenses that exceed
491 $150 per day. For purposes of this paragraph, a meeting does not
492 include travel activities for conducting an audit, examination,
493 inspection, or investigation or travel activities related to a
494 litigation or emergency response.
495 (d)(c) No one, whether traveling out of state or in state,
496 shall be reimbursed for any meal or lodging included in a
497 convention or conference registration fee paid by the state.
498 (9) RULES.—
499 (c) The Department of Management Services may adopt rules
500 to administer the provisions of this section relating to the
501 statewide travel management system.
502 (16) STATEWIDE TRAVEL MANAGEMENT SYSTEM.—
503 (a) For purposes of this subsection, the term:
504 1. “Local constitutional officer” includes sheriffs, tax
505 collectors, property appraisers, supervisors of elections,
506 clerks of the circuit court, county commissioners, district
507 school board members, and superintendents of schools.
508 2. “Reporting entity” includes each municipality, county,
509 local constitutional officer, county school district, state
510 college, state university, and water management district.
511 3. “Statewide travel management system” means the system
512 used by the Department of Management Services to:
513 a. Collect and store information relating to public officer
514 or employee travel information.
515 b. Standardize and automate agency travel management.
516 c. Allow for travel planning and approval, expense
517 reporting, and reimbursement.
518 d. Allow travel information queries.
519 (b) Each executive branch state government agency and the
520 judicial branch must report in the statewide travel management
521 system all public officer and employee travel information,
522 including, but not limited to, name and position title, purpose
523 of travel, dates and location of travel, mode of travel,
524 confirmation from the head of the agency or designee
525 authorization if required, and total travel cost.
526 1. Each executive branch state government agency and the
527 judicial branch must use the statewide travel management system
528 for purposes of travel authorization and reimbursement.
529 2. By November 1, 2018, the Department of Management
530 Services shall make available to the public all travel reports
531 posted on the statewide travel management system for executive
532 branch state government agencies and the judicial branch.
533 (c) Each reporting entity must post on the statewide travel
534 management system information relating to all travel resulting
535 in an overnight stay for public officers and employees,
536 including, but not limited to, name and position title, purpose
537 of travel, dates and location of travel, mode of travel, and
538 total travel costs.
539 1. Each reporting entity shall post one travel report per
540 entity. A local constitutional officer may post a separate
541 travel report from the respective county travel report.
542 2. Every month, each reporting entity shall post a travel
543 report for the previous month.
544 3. The Department of Management Services shall provide a
545 format and method for reporting entities to post travel reports.
546 4. No later than November 1, 2019, each reporting entity
547 shall post monthly travel reports relating to all travel
548 resulting in an overnight stay for public officers and
549 employees.
550 5. Beginning December 1, 2019, the Department of Management
551 Services shall make available to the public all travel reports
552 for reporting entities which are in the statewide travel
553 management system.
554 6. The requirements of this paragraph are contingent upon
555 the Legislature appropriating at least $5.4 million to the
556 Department of Management Services for the 2018-2019 fiscal year
557 to implement the system for the reporting entities.
558 (d) Travel reports made available on the statewide travel
559 management system may not reveal information made confidential
560 and exempt or exempt by law.
561 1. A reporting entity must redact confidential and exempt
562 or exempt information from a travel report before posting the
563 report on the statewide travel management system. If the
564 reporting entity becomes aware that an improperly redacted
565 travel report has been posted, the entity must notify the
566 Department of Management Services and immediately request
567 removal of the travel report from the statewide travel
568 management system. Within 7 business days of becoming aware that
569 an improperly redacted travel report has been posted, the entity
570 must post a properly redacted travel report on the statewide
571 travel management system.
572 2. The Secretary of Management Services or an officer, an
573 employee, or a contractor of the department is not responsible
574 for redacting confidential and exempt or exempt information from
575 a travel report posted on the statewide travel management
576 system.
577 3. The posting of travel reports on the statewide travel
578 management system or the provision of information on a website
579 for public viewing and downloading does not supersede the duty
580 of a reporting entity to respond to a public records request or
581 subpoena for the information.
582 Section 6. Paragraph (c) of subsection (3) of section
583 129.03, Florida Statutes, is amended, and paragraph (d) is added
584 to that subsection, to read:
585 129.03 Preparation and adoption of budget.—
586 (3) The county budget officer, after tentatively
587 ascertaining the proposed fiscal policies of the board for the
588 next fiscal year, shall prepare and present to the board a
589 tentative budget for the next fiscal year for each of the funds
590 provided in this chapter, including all estimated receipts,
591 taxes to be levied, and balances expected to be brought forward
592 and all estimated expenditures, reserves, and balances to be
593 carried over at the end of the year.
594 (c) The board shall hold public hearings to adopt tentative
595 and final budgets pursuant to s. 200.065. The hearings shall be
596 primarily for the purpose of hearing requests and complaints
597 from the public regarding the budgets and the proposed tax
598 levies and for explaining the budget and any proposed or adopted
599 amendments. The tentative budget must be posted on the county’s
600 official website at least 2 days before the public hearing to
601 consider such budget and must remain on the website for at least
602 45 days. The final budget must be posted on the website within
603 30 days after adoption and must remain on the website for at
604 least 2 years. The tentative budgets, adopted tentative budgets,
605 and final budgets shall be filed in the office of the county
606 auditor as a public record. Sufficient reference in words and
607 figures to identify the particular transactions must shall be
608 made in the minutes of the board to record its actions with
609 reference to the budgets.
610 (d)1. Beginning in the 2018-2019 fiscal year, the county
611 budget officer shall electronically submit information regarding
612 the final budget to the Office of Economic and Demographic
613 Research in the format specified by the office within 30 days
614 after adoption of the final budget. If the Governor declares a
615 state of emergency pursuant to s. 252.36(2) within 30 days after
616 the submission deadline, the office may extend the deadline up
617 to an additional 90 days.
618 2. The county budget officer shall also electronically
619 submit to the clerk of the court:
620 a. A copy of the information that was submitted to the
621 office.
622 b. A copy of the final budget that was posted on the
623 county’s website.
624 c. A statement certifying that the items in sub
625 subparagraphs a. and b. were timely submitted and posted.
626 3. Subparagraph 2. does not apply to a charter county in
627 which the clerk of the court is not the county auditor.
628 Section 7. Paragraph (f) of subsection (2) of section
629 129.06, Florida Statutes, is amended to read:
630 129.06 Execution and amendment of budget.—
631 (2) The board at any time within a fiscal year may amend a
632 budget for that year, and may within the first 60 days of a
633 fiscal year amend the budget for the prior fiscal year, as
634 follows:
635 (f) Unless otherwise prohibited by law, if an amendment to
636 a budget is required for a purpose not specifically authorized
637 in paragraphs (a)-(e), the amendment may be authorized by
638 resolution or ordinance of the board of county commissioners
639 adopted following a public hearing.
640 1. The public hearing must be advertised at least 2 days,
641 but not more than 5 days, before the date of the hearing. The
642 advertisement must appear in a newspaper of paid general
643 circulation and must identify the name of the taxing authority,
644 the date, place, and time of the hearing, and the purpose of the
645 hearing. The advertisement must also identify each budgetary
646 fund to be amended, the source of the funds, the use of the
647 funds, and the total amount of each fund’s appropriations.
648 2. If the board amends the budget pursuant to this
649 paragraph, the adopted amendment must be posted on the county’s
650 official website within 5 days after adoption and must remain on
651 the website for at least 2 years.
652 Section 8. Present subsections (4) and (5) of section
653 166.241, Florida Statutes, are renumbered as subsections (5) and
654 (6), respectively, subsection (3) and present subsection (5) are
655 amended, and a new subsection (4) is added to that section, to
656 read:
657 166.241 Fiscal years, budgets, and budget amendments.—
658 (3) The tentative budget must be posted on the
659 municipality’s official website at least 2 days before the
660 budget hearing, held pursuant to s. 200.065 or other law, to
661 consider such budget and must remain on the website for at least
662 45 days. The final adopted budget must be posted on the
663 municipality’s official website within 30 days after adoption
664 and must remain on the website for at least 2 years. If the
665 municipality does not operate an official website, the
666 municipality must, within a reasonable period of time as
667 established by the county or counties in which the municipality
668 is located, transmit the tentative budget and final budget to
669 the manager or administrator of such county or counties who
670 shall post the budgets on the county’s website.
671 (4) Beginning in the 2018-2019 fiscal year, the
672 municipality budget officer shall electronically submit
673 information regarding the final budget to the Office of Economic
674 and Demographic Research in the format specified by the office
675 within 30 days after adoption of the final budget. If the
676 Governor declares a state of emergency pursuant to s. 252.36(2)
677 within 30 days after the submission deadline, the office may
678 extend the deadline up to an additional 90 days. The
679 municipality budget officer shall also electronically submit to
680 the clerk of the court:
681 (a) A copy of the information that was submitted to the
682 office.
683 (b) A copy of the final budget that was posted on the
684 municipality’s website.
685 (c) A statement certifying that the items in paragraphs (a)
686 and (b) were timely submitted and posted.
687 (6)(5) If the governing body of a municipality amends the
688 budget pursuant to paragraph (5)(c) (4)(c), the adopted
689 amendment must be posted on the official website of the
690 municipality within 5 days after adoption and must remain on the
691 website for at least 2 years. If the municipality does not
692 operate an official website, the municipality must, within a
693 reasonable period of time as established by the county or
694 counties in which the municipality is located, transmit the
695 adopted amendment to the manager or administrator of such county
696 or counties who shall post the adopted amendment on the county’s
697 website.
698 Section 9. Present subsections (5) through (10) of section
699 189.016, Florida Statutes, are renumbered as subsections (6)
700 through (11), respectively, present subsections (7) and (10) are
701 amended, and a new subsection (5) is added to that section, to
702 read:
703 189.016 Reports; budgets; audits.—
704 (5) Beginning in the 2018-2019 fiscal year, the special
705 district budget officer shall electronically submit information
706 regarding the final budget to the Office of Economic and
707 Demographic Research in the format specified by the office
708 within 30 days after adoption of the final budget. If the
709 Governor declares a state of emergency under s. 252.36(2) within
710 30 days after the submission deadline for the final budget, the
711 office may extend the deadline up to an additional 90 days. The
712 special district budget officer shall also electronically submit
713 to the clerk of the court:
714 (a) A copy of the information that was submitted to the
715 office.
716 (b) A copy of the final budget that was posted on the
717 special district’s website.
718 (c) A statement certifying that the items in paragraphs (a)
719 and (b) were timely submitted and posted.
720 (8)(7) If the governing body of a special district amends
721 the budget pursuant to paragraph (7)(c) (6)(c), the adopted
722 amendment must be posted on the official website of the special
723 district within 5 days after adoption and must remain on the
724 website for at least 2 years.
725 (11)(10) All reports or information required to be filed
726 with a local general-purpose government or governing authority
727 under ss. 189.014, 189.015, and 189.08 and subsection (9) (8)
728 must:
729 (a) If the local general-purpose government or governing
730 authority is a county, be filed with the clerk of the board of
731 county commissioners.
732 (b) If the district is a multicounty district, be filed
733 with the clerk of the county commission in each county.
734 (c) If the local general-purpose government or governing
735 authority is a municipality, be filed at the place designated by
736 the municipal governing body.
737 Section 10. Section 215.86, Florida Statutes, is amended to
738 read:
739 215.86 Management systems and controls.—Each state agency
740 and the judicial branch as defined in s. 216.011 shall establish
741 and maintain management systems and internal controls designed
742 to:
743 (1) Prevent and detect fraud, waste, and abuse as defined
744 in s. 11.45(1). that
745 (2) Promote and encourage compliance with applicable laws,
746 rules, contracts, and grant agreements.;
747 (3) Support economical and economic, efficient, and
748 effective operations.;
749 (4) Ensure reliability of financial records and reports.;
750 (5) Safeguard and safeguarding of assets. Accounting
751 systems and procedures shall be designed to fulfill the
752 requirements of generally accepted accounting principles.
753 Section 11. Paragraph (a) of subsection (2) of section
754 215.97, Florida Statutes, is amended to read:
755 215.97 Florida Single Audit Act.—
756 (2) As used in this section, the term:
757 (a) “Audit threshold” means the threshold amount used to
758 determine when a state single audit or project-specific audit of
759 a nonstate entity shall be conducted in accordance with this
760 section. Each nonstate entity that expends a total amount of
761 state financial assistance equal to or in excess of $750,000 in
762 any fiscal year of such nonstate entity shall be required to
763 have a state single audit, or a project-specific audit, for such
764 fiscal year in accordance with the requirements of this section.
765 Every 2 years the Auditor General, After consulting with the
766 Executive Office of the Governor, the Department of Financial
767 Services, and all state awarding agencies, the Auditor General
768 shall periodically review the threshold amount for requiring
769 audits under this section and may recommend any appropriate
770 statutory change to revise the threshold amount in the annual
771 report submitted pursuant to s. 11.45(7)(h) to the Legislature
772 adjust such threshold amount consistent with the purposes of
773 this section.
774 Section 12. Subsection (11) of section 215.985, Florida
775 Statutes, is amended to read:
776 215.985 Transparency in government spending.—
777 (11) Each water management district shall provide a monthly
778 financial statement in the form and manner prescribed by the
779 Department of Financial Services to the district’s its governing
780 board and make such monthly financial statement available for
781 public access on its website.
782 Section 13. Section 218.32, Florida Statutes, is amended to
783 read:
784 218.32 Annual financial reports; local governmental
785 entities; Florida Open Financial Statement System.—
786 (1)(a) Each local governmental entity that is determined to
787 be a reporting entity, as defined by generally accepted
788 accounting principles, and each independent special district as
789 defined in s. 189.012, shall submit to the department a copy of
790 its annual financial report for the previous fiscal year in a
791 format prescribed by the department. The annual financial report
792 must include a list of each local governmental entity included
793 in the report and each local governmental entity that failed to
794 provide financial information as required by paragraph (b). The
795 chair of the governing body and the chief financial officer of
796 each local governmental entity shall sign the annual financial
797 report submitted pursuant to this subsection attesting to the
798 accuracy of the information included in the report. The county
799 annual financial report must be a single document that covers
800 each county agency.
801 (b) Each component unit, as defined by generally accepted
802 accounting principles, of a local governmental entity shall
803 provide the local governmental entity, within a reasonable time
804 period as established by the local governmental entity, with
805 financial information necessary to comply with the reporting
806 requirements contained in this section.
807 (c) Each regional planning council created under s.
808 186.504, each local government finance commission, board, or
809 council, and each municipal power corporation created as a
810 separate legal or administrative entity by interlocal agreement
811 under s. 163.01(7) shall submit to the department a copy of its
812 audit report and an annual financial report for the previous
813 fiscal year in a format prescribed by the department.
814 (d)1. Each local governmental entity that is required to
815 provide for an audit under s. 218.39(1) must submit a copy of
816 the audit report and annual financial report to the department
817 within 45 days after the completion of the audit report but no
818 later than 6 9 months after the end of the fiscal year. If the
819 Governor declares a state of emergency under s. 252.36(2) within
820 30 days after the submission deadline for the audit report and
821 annual financial report, the department may extend the deadline
822 up to an additional 90 days.
823 2. The local governmental entity must electronically submit
824 to the clerk of the court a copy of its annual financial report
825 and a statement certifying that the report was timely filed with
826 the department.
827 3. Subparagraph 2. does not apply to a charter county in
828 which the clerk of the court is not the county auditor.
829 (e) In conducting an audit of a local governmental entity
830 pursuant to s. 218.39, an independent certified public
831 accountant shall determine whether the entity’s annual financial
832 report is in agreement with the audited financial statements. If
833 the audited financial statements are not in agreement with the
834 annual financial report, the accountant shall specify and
835 explain the significant differences that exist between the
836 audited financial statements and the annual financial report.
837 (f) Each local governmental entity that is not required to
838 provide for an audit under s. 218.39 must submit the annual
839 financial report to the department no later than 9 months after
840 the end of the fiscal year. The department shall consult with
841 the Auditor General in the development of the format of annual
842 financial reports submitted pursuant to this paragraph. The
843 format must include balance sheet information used by the
844 Auditor General pursuant to s. 11.45(7)(f). The department must
845 forward the financial information contained within the annual
846 financial reports to the Auditor General in electronic form. If
847 the Governor declares a state of emergency under s. 252.36(2)
848 within 30 days after the submission deadline, the department may
849 extend the deadline up to an additional 90 days. This paragraph
850 does not apply to housing authorities created under chapter 421.
851 (g)(f) If the department does not receive a completed
852 annual financial report from a local governmental entity within
853 the required period, it shall notify the Legislative Auditing
854 Committee and the Special District Accountability Program of the
855 Department of Economic Opportunity by April 30 of the entity’s
856 failure to comply with the reporting requirements.
857 (h)(g) Each local governmental entity’s website must
858 provide a link to the department’s website to view the entity’s
859 annual financial report submitted to the department pursuant to
860 this section. If the local governmental entity does not have an
861 official website, the county government’s website must provide
862 the required link for the local governmental entity.
863 (i) It is the intent of the Legislature to create the
864 Florida Open Financial Statement System, an interactive
865 repository for governmental financial statements.
866 1. The Chief Financial Officer may consult with
867 stakeholders, including the department, the Auditor General, a
868 representative of a municipality or county, a representative of
869 a special district, a municipal bond investor, and an
870 information technology professional employed in the private
871 sector, for input on the design and implementation of the
872 Florida Open Financial Statement System.
873 2. The Chief Financial Officer may choose contractors to
874 build one or more extensible Business Reporting Language (XBRL)
875 taxonomies suitable for state, county, municipal, and special
876 district financial filings and to create a software tool that
877 enables financial statement filers to easily create XBRL
878 documents consistent with the taxonomy or taxonomies. The Chief
879 Financial Officer shall recruit and select contractors through
880 an open request for proposals process pursuant to chapter 287.
881 3. The Chief Financial Officer shall require all work to be
882 completed no later than December 31, 2021.
883 4. If the Chief Financial Officer deems the work products
884 adequate, all local governmental financial statements pertaining
885 to fiscal years ending on or after September 1, 2022, must be
886 filed in XBRL format and must meet the validation requirements
887 of the relevant taxonomy.
888 5. A local government that commences filing in XBRL format
889 may not be required to make filings in portable document format.
890 (j) Beginning in the 2018-2019 fiscal year and
891 notwithstanding any other penalty or remedy provided by law, if
892 a local governmental entity fails to submit information to the
893 clerk of the court as required under paragraph (d), s.
894 129.03(3)(d), s. 166.241(4), or s. 189.016(5), as applicable,
895 the clerk of the court shall notify the appropriate local fiscal
896 officer to suspend future salary payments to the head of that
897 local governmental entity. The clerk shall notify the
898 appropriate local fiscal officer to resume payments when the
899 clerk receives the information.
900 (2) The department shall annually by December 1 file a
901 verified report with the Governor, the Legislature, the Auditor
902 General, and the Special District Accountability Program of the
903 Department of Economic Opportunity showing the revenues, both
904 locally derived and derived from intergovernmental transfers,
905 and the expenditures of each local governmental entity, regional
906 planning council, local government finance commission, and
907 municipal power corporation that is required to submit an annual
908 financial report. In preparing the verified report, the
909 department may request additional information from the local
910 governmental entity. The information requested must be provided
911 to the department within 45 days after the request. If the local
912 governmental entity does not comply with the request, the
913 department shall notify the Legislative Auditing Committee,
914 which may take action pursuant to s. 11.40(2). The report must
915 include, but is not limited to:
916 (a) The total revenues and expenditures of each local
917 governmental entity that is a component unit included in the
918 annual financial report of the reporting entity.
919 (b) The amount of outstanding long-term debt by each local
920 governmental entity. For purposes of this paragraph, the term
921 “long-term debt” means any agreement or series of agreements to
922 pay money, which, at inception, contemplate terms of payment
923 exceeding 1 year in duration.
924 (3) No later than 12 months after the end of the most
925 recently completed fiscal year, the department shall post on its
926 website the annual financial report for each local governmental
927 entity and independent special district that is required to
928 submit an annual financial report pursuant to subsection (1).
929 (4)(3) The department shall notify the President of the
930 Senate and the Speaker of the House of Representatives of any
931 municipality that has not reported any financial activity for
932 the last 4 fiscal years. Such notice must be sufficient to
933 initiate dissolution procedures as described in s.
934 165.051(1)(a). Any special law authorizing the incorporation or
935 creation of the municipality must be included within the
936 notification.
937 Section 14. Present subsection (3) of section 218.33,
938 Florida Statutes, is renumbered as subsection (4), and a new
939 subsection (3) is added to that section, to read:
940 218.33 Local governmental entities; establishment of
941 uniform fiscal years and accounting practices and procedures.—
942 (3) Each local governmental entity shall establish and
943 maintain internal controls designed to:
944 (a) Prevent and detect fraud, waste, and abuse as defined
945 in s. 11.45(1).
946 (b) Promote and encourage compliance with applicable laws,
947 rules, contracts, grant agreements, and best practices.
948 (c) Support economical and efficient operations.
949 (d) Ensure reliability of financial records and reports.
950 (e) Safeguard assets.
951 Section 15. Present subsections (8) through (12) of section
952 218.39, Florida Statutes, are renumbered as subsections (9)
953 through (13), respectively, paragraphs (b), (c), (g), and (h) of
954 subsection (1) and subsection (7) of that section are amended,
955 and a new subsection (8) is added to that section, to read:
956 218.39 Annual financial audit reports.—
957 (1) If, by the first day in any fiscal year, a local
958 governmental entity, district school board, charter school, or
959 charter technical career center has not been notified that a
960 financial audit for that fiscal year will be performed by the
961 Auditor General, each of the following entities shall have an
962 annual financial audit of its accounts and records completed
963 within 9 months after the end of its fiscal year by an
964 independent certified public accountant retained by it and paid
965 from its public funds:
966 (b) Any municipality with revenues or the total of
967 expenditures and expenses in excess of $250,000, as reported on
968 the fund financial statements, and each municipality beginning
969 with the 2018-2019 fiscal year.
970 (c) Any special district with revenues or the total of
971 expenditures and expenses in excess of $100,000, as reported on
972 the fund financial statements, and each special district
973 beginning with the 2018-2019 fiscal year.
974 (g) Each municipality with revenues or the total of
975 expenditures and expenses between $100,000 and $250,000, as
976 reported on the fund financial statements, which has not been
977 subject to a financial audit pursuant to this subsection for the
978 2 preceding fiscal years.
979 (h) Each special district with revenues or the total of
980 expenditures and expenses between $50,000 and $100,000, as
981 reported on the fund financial statement, which has not been
982 subject to a financial audit pursuant to this subsection for the
983 2 preceding fiscal years.
984 (7) All audits conducted pursuant to this section must be
985 conducted in accordance with the rules of the Auditor General
986 adopted pursuant to s. 11.45. Upon completion of the audit, the
987 auditor shall prepare an audit report in accordance with the
988 rules of the Auditor General. The audit report shall be filed
989 with the Auditor General within 45 days after delivery of the
990 audit report to the governing body of the audited entity, but no
991 later than 6 9 months after the end of the audited entity’s
992 fiscal year. The audit report must include a written statement
993 describing corrective actions to be taken in response to each of
994 the auditor’s recommendations included in the audit report. If
995 the Governor declares a state of emergency under s. 252.36(2)
996 within 30 days after the submission deadline for the audit
997 report, the Auditor General may extend the deadline up to an
998 additional 90 days.
999 (8) If the audit report includes a recommendation that was
1000 included in the preceding financial audit report and remains
1001 unaddressed, the governing body of the audited entity, within 60
1002 days after the delivery of the audit report to the governing
1003 body, shall indicate during a regularly scheduled public meeting
1004 whether it intends to take corrective action, the intended
1005 corrective action, and the timeframe for the corrective action.
1006 If the governing body indicates that it does not intend to take
1007 corrective action, it must explain its decision at the public
1008 meeting.
1009 Section 16. Subsection (2) of section 218.391, Florida
1010 Statutes, is amended, and subsections (9) through (13) are added
1011 to that section, to read:
1012 218.391 Auditor selection procedures.—
1013 (2) The governing body of a charter county, municipality,
1014 special district, district school board, charter school, or
1015 charter technical career center shall establish an audit
1016 committee.
1017 (a) At a minimum, the audit committee for a county must
1018 Each noncharter county shall establish an audit committee that,
1019 at a minimum, shall consist of each of the county officers
1020 elected pursuant to the county charter or s. 1(d), Art. VIII of
1021 the State Constitution, or their respective designees a
1022 designee, and one member of the board of county commissioners or
1023 its designee.
1024 (b) The audit committee for a municipality, special
1025 district, district school board, charter school, or charter
1026 technical career center shall consist of at least three members.
1027 One member of the audit committee must be a member of the
1028 governing body of an entity specified in this paragraph, who
1029 shall also serve as the chair of the committee.
1030 (c) An employee, a chief executive officer, or a chief
1031 financial officer of the county, municipality, special district,
1032 district school board, charter school, or charter technical
1033 career center may not serve as a voting member of an audit
1034 committee established under this subsection but may serve in a
1035 nonvoting advisory capacity.
1036 (d) At least one member of the audit committee should have
1037 experience in finance, business, or government operations.
1038 (e) The primary purpose of the audit committee is to assist
1039 the governing body in selecting an auditor to conduct the annual
1040 financial audit required in s. 218.39; however, the audit
1041 committee may serve other audit oversight purposes as determined
1042 by the entity’s governing body. The public may shall not be
1043 excluded from the proceedings under this section.
1044 (9) For each audit required by s. 218.39, the auditor shall
1045 include the following information in the management letter
1046 prepared pursuant to s. 218.39(4):
1047 (a) The date the entity’s governing body approved the
1048 selection of the auditor and the date the entity and the auditor
1049 executed the most recent contract pursuant to subsection (7);
1050 (b) The first fiscal year for which the auditor conducted
1051 the audit under the most recently executed contract pursuant to
1052 subsection (7); and
1053 (c) The contract period, including renewals, and conditions
1054 under which the contract may be terminated or renewed.
1055 (10) On each occasion that an entity contracts with an
1056 auditor to conduct an audit pursuant to s. 218.39, an affidavit
1057 shall be executed by the chair of the entity’s governing body in
1058 a format prescribed in accordance with rules adopted by the
1059 Auditor General, affirming that the auditor was selected in
1060 compliance with the requirements of subsections (3)-(6). The
1061 affidavit must, as a separate document, accompany the entity’s
1062 first audit report prepared by the auditor under the most
1063 recently executed contract pursuant to subsection (7). The
1064 affidavit shall include the following information:
1065 (a) The date the entity’s governing body approved the
1066 selection of the auditor;
1067 (b) The first fiscal year for which the auditor conducted
1068 the audit; and
1069 (c) The contract period, including renewals, and conditions
1070 under which the contract may be terminated or renewed.
1071 (11) If the entity fails to select the auditor in
1072 accordance with the requirements of subsections (3)-(6), the
1073 entity shall again perform the auditor selection process in
1074 accordance with this section to select an auditor to conduct
1075 audits for subsequent fiscal years if the original audit was
1076 performed under a multiyear contract.
1077 (a) If performing the auditor selection process again in
1078 accordance with this section would preclude the entity from
1079 timely completing the annual financial audit required by s.
1080 218.39, the entity shall again perform the auditor selection
1081 process in accordance with this section for the subsequent
1082 annual financial audit. A multiyear contract entered into
1083 between an entity and an auditor after the effective date of
1084 this act may not prohibit or restrict an entity from complying
1085 with the section.
1086 (b) If the entity fails to perform the auditor selection
1087 process again, pursuant to this subsection, the Legislative
1088 Auditing Committee shall determine whether the entity should be
1089 subject to state action pursuant to s. 11.40(2).
1090 (12) If the entity fails to provide the Auditor General
1091 with the affidavit required by subsection (10), the Auditor
1092 General shall request that the entity provide the affidavit. The
1093 affidavit must be provided within 45 days after the date of the
1094 request. If the entity does not comply with the Auditor
1095 General’s request, the Legislative Auditing Committee shall
1096 determine whether the entity should be subject to state action
1097 pursuant to s. 11.40(2).
1098 (13) If the entity provides the Auditor General with the
1099 affidavit required in subsection (10) but failed to select the
1100 auditor in accordance with the requirements of subsections (3)
1101 (6), the Legislative Auditing Committee shall determine whether
1102 the entity should be subject to state action pursuant to s.
1103 11.40(2).
1104 Section 17. Subsection (2) of section 286.0114, Florida
1105 Statutes, is amended to read:
1106 286.0114 Public meetings; reasonable opportunity to be
1107 heard; attorney fees.—
1108 (2) Members of the public shall be given a reasonable
1109 opportunity to be heard on a proposition before a board or
1110 commission. The opportunity to be heard need not occur at the
1111 same meeting at which the board or commission takes official
1112 action on the proposition if the opportunity occurs at a meeting
1113 that is during the decisionmaking process and is within
1114 reasonable proximity in time before the meeting at which the
1115 board or commission takes the official action. A board or
1116 commission may not require a member of the public to provide an
1117 advance written copy of his or her testimony or comments as a
1118 condition of being given the opportunity to be heard at a
1119 meeting. This section does not prohibit a board or commission
1120 from maintaining orderly conduct or proper decorum in a public
1121 meeting. The opportunity to be heard is subject to rules or
1122 policies adopted by the board or commission, as provided in
1123 subsection (4).
1124 Section 18. Paragraph (e) of subsection (4), paragraph (d)
1125 of subsection (5), and paragraph (d) of subsection (6) of
1126 section 373.536, Florida Statutes, are amended, and paragraphs
1127 (e) and (f) are added to subsection (6) of that section, to
1128 read:
1129 373.536 District budget and hearing thereon.—
1130 (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
1131 (e) By September 1, 2012, Each district shall provide a
1132 monthly financial statement in the form and manner prescribed by
1133 the Department of Financial Services to the district’s governing
1134 board and make such monthly financial statement available for
1135 public access on its website.
1136 (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
1137 APPROVAL.—
1138 (d) Each district shall, by August 1 of each year, submit
1139 for review a tentative budget and a description of any
1140 significant changes from the preliminary budget submitted to the
1141 Legislature pursuant to s. 373.535 to the Governor, the
1142 President of the Senate, the Speaker of the House of
1143 Representatives, the chairs of all legislative committees and
1144 subcommittees having substantive or fiscal jurisdiction over
1145 water management districts, as determined by the President of
1146 the Senate or the Speaker of the House of Representatives, as
1147 applicable, the secretary of the department, and the governing
1148 body of each county in which the district has jurisdiction or
1149 derives any funds for the operations of the district. The
1150 tentative budget must be posted on the district’s official
1151 website at least 2 days before budget hearings held pursuant to
1152 s. 200.065 or other law and must remain on the website for at
1153 least 45 days.
1154 (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
1155 WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
1156 (d) The final adopted budget must be posted on the water
1157 management district’s official website within 30 days after
1158 adoption and must remain on the website for at least 2 years.
1159 (e) Beginning in the 2018-2019 fiscal year, the water
1160 management district budget officer shall electronically submit
1161 information regarding the final budget to the Office of Economic
1162 and Demographic Research in the format specified by the office
1163 within 30 days after adoption of the final budget. If the
1164 Governor declares a state of emergency under s. 252.36(2) within
1165 30 days after the submission deadline, the office may extend the
1166 deadline up to an additional 90 days. The water management
1167 district budget officer shall also electronically submit to the
1168 clerk of the court in each county in which the district
1169 operates:
1170 1. A copy of the information that was submitted to the
1171 office.
1172 2. A copy of the final budget that was posted on the water
1173 management district’s website.
1174 3. A statement certifying that the items in subparagraphs
1175 1. and 2. were timely submitted and posted.
1176 (f) Beginning in the 2018-2019 fiscal year and
1177 notwithstanding any other penalty or remedy that may be
1178 authorized by law, if a water management district budget officer
1179 fails to submit information to the clerk of the court as
1180 required in paragraph (e), the clerk of the court shall notify
1181 the appropriate fiscal officer to suspend future salary payments
1182 for the executive director of that district. The clerk shall
1183 notify the fiscal officer to resume payments when the clerk
1184 receives the information.
1185 Section 19. Paragraphs (b) and (l) of subsection (12) of
1186 section 1001.42, Florida Statutes, are amended to read:
1187 1001.42 Powers and duties of district school board.—The
1188 district school board, acting as a board, shall exercise all
1189 powers and perform all duties listed below:
1190 (12) FINANCE.—Take steps to assure students adequate
1191 educational facilities through the financial procedure
1192 authorized in chapters 1010 and 1011 and as prescribed below:
1193 (b) Annual budget.—
1194 1. Cause to be prepared, adopt, and have submitted to the
1195 Department of Education as required by law and rules of the
1196 State Board of Education, the annual school budget, such budget
1197 to be so prepared and executed as to promote the improvement of
1198 the district school system.
1199 2. An individual school board member may request and shall
1200 receive any proposed, tentative, and official budget documents,
1201 including all supporting and background information.
1202 (l) Internal auditor.—May or, in the case of a school
1203 district receiving annual federal, state, and local funds in
1204 excess of $500 million, shall employ an internal auditor. The
1205 scope of the internal auditor may not be restricted and must
1206 include every functional and program area of the school system.
1207 1. The internal auditor shall to perform ongoing financial
1208 verification of the financial records of the school district, a
1209 comprehensive risk assessment of all areas of the school system
1210 every 5 years, and other audits and reviews as the district
1211 school board directs, for determining:
1212 a. The adequacy of internal controls designed to prevent
1213 and detect fraud, waste, and abuse.
1214 b. Compliance with applicable laws, rules, contracts, grant
1215 agreements, district school board-approved policies, and best
1216 practices.
1217 c. The efficiency of operations.
1218 d. The reliability of financial records and reports.
1219 e. The safeguarding of assets.
1220 f. Financial solvency.
1221 g. Projected revenues and expenditures.
1222 h. The rate of change in the general fund balance.
1223 2. The internal auditor shall prepare audit reports of his
1224 or her findings and report directly to the district school board
1225 or its designee.
1226 3. Any person responsible for furnishing or producing any
1227 book, record, paper, document, data, or sufficient information
1228 necessary to conduct a proper audit or examination which the
1229 internal auditor is by law authorized to perform is subject to
1230 the provisions of s. 11.47(3) and (4).
1231 Section 20. Paragraph (j) of subsection (9) of section
1232 1002.33, Florida Statutes, is amended to read:
1233 1002.33 Charter schools.—
1234 (9) CHARTER SCHOOL REQUIREMENTS.—
1235 (j) The governing body of the charter school shall be
1236 responsible for:
1237 1. Establishing and maintaining internal controls designed
1238 to:
1239 a. Prevent and detect fraud, waste, and abuse as defined in
1240 s. 11.45(1).
1241 b. Promote and encourage compliance with applicable laws,
1242 rules, contracts, grant agreements, and best practices.
1243 c. Support economical and efficient operations.
1244 d. Ensure reliability of financial records and reports.
1245 e. Safeguard assets.
1246 2.1. Ensuring that the charter school has retained the
1247 services of a certified public accountant or auditor for the
1248 annual financial audit, pursuant to s. 1002.345(2), who shall
1249 submit the report to the governing body.
1250 3.2. Reviewing and approving the audit report, including
1251 audit findings and recommendations for the financial recovery
1252 plan.
1253 4.a.3.a. Performing the duties in s. 1002.345, including
1254 monitoring a corrective action plan.
1255 b. Monitoring a financial recovery plan in order to ensure
1256 compliance.
1257 5.4. Participating in governance training approved by the
1258 department which must include government in the sunshine,
1259 conflicts of interest, ethics, and financial responsibility.
1260 Section 21. Present subsections (6) through (10) of section
1261 1002.37, Florida Statutes, are renumbered as subsections (7)
1262 through (11), respectively, present subsection (6) is amended,
1263 and a new subsection (6) is added to that section, to read:
1264 1002.37 The Florida Virtual School.—
1265 (6) The Florida Virtual School shall have an annual
1266 financial audit of its accounts and records conducted by an
1267 independent auditor who is a certified public accountant
1268 licensed under chapter 473. The independent auditor shall
1269 conduct the audit in accordance with rules adopted by the
1270 Auditor General pursuant to s. 11.45 and, upon completion of the
1271 audit, shall prepare an audit report in accordance with such
1272 rules. The audit report must include a written statement by the
1273 board of trustees describing corrective action to be taken in
1274 response to each of the recommendations of the independent
1275 auditor included in the audit report. The independent auditor
1276 shall submit the audit report to the board of trustees and the
1277 Auditor General no later than 9 months after the end of the
1278 preceding fiscal year.
1279 (7)(6) The board of trustees shall annually submit to the
1280 Governor, the Legislature, the Commissioner of Education, and
1281 the State Board of Education the audit report prepared pursuant
1282 to subsection (6) and a complete and detailed report setting
1283 forth:
1284 (a) The operations and accomplishments of the Florida
1285 Virtual School within the state and those occurring outside the
1286 state as Florida Virtual School Global.
1287 (b) The marketing and operational plan for the Florida
1288 Virtual School and Florida Virtual School Global, including
1289 recommendations regarding methods for improving the delivery of
1290 education through the Internet and other distance learning
1291 technology.
1292 (c) The assets and liabilities of the Florida Virtual
1293 School and Florida Virtual School Global at the end of the
1294 fiscal year.
1295 (d) A copy of an annual financial audit of the accounts and
1296 records of the Florida Virtual School and Florida Virtual School
1297 Global, conducted by an independent certified public accountant
1298 and performed in accordance with rules adopted by the Auditor
1299 General.
1300 (d)(e) Recommendations regarding the unit cost of providing
1301 services to students through the Florida Virtual School and
1302 Florida Virtual School Global. In order to most effectively
1303 develop public policy regarding any future funding of the
1304 Florida Virtual School, it is imperative that the cost of the
1305 program is accurately identified. The identified cost of the
1306 program must be based on reliable data.
1307 (e)(f) Recommendations regarding an accountability
1308 mechanism to assess the effectiveness of the services provided
1309 by the Florida Virtual School and Florida Virtual School Global.
1310 Section 22. Subsection (5) is added to section 1010.01,
1311 Florida Statutes, to read:
1312 1010.01 Uniform records and accounts.—
1313 (5) Each school district, Florida College System
1314 institution, and state university shall establish and maintain
1315 internal controls designed to:
1316 (a) Prevent and detect fraud, waste, and abuse as defined
1317 in s. 11.45(1).
1318 (b) Promote and encourage compliance with applicable laws,
1319 rules, contracts, grant agreements, and best practices.
1320 (c) Support economical and efficient operations.
1321 (d) Ensure reliability of financial records and reports.
1322 (e) Safeguard assets.
1323 Section 23. Subsection (2) of section 1010.30, Florida
1324 Statutes, is amended to read:
1325 1010.30 Audits required.—
1326 (2) If a school district, Florida College System
1327 institution, or university audit report includes a
1328 recommendation that was included in the preceding financial
1329 audit report but remains unaddressed an audit contains a
1330 significant finding, the district school board, the Florida
1331 College System institution board of trustees, or the university
1332 board of trustees, within 60 days after the delivery of the
1333 audit report to the school district, Florida College System
1334 institution, or university, shall indicate conduct an audit
1335 overview during a regularly scheduled public meeting whether it
1336 intends to take corrective action, the intended corrective
1337 action, and the timeframe for the corrective action. If the
1338 district school board, Florida College System institution board
1339 of trustees, or university board of trustees indicates that it
1340 does not intend to take corrective action, it shall explain its
1341 decision at the public meeting.
1342 Section 24. Section 1011.03, Florida Statutes, is amended
1343 to read:
1344 1011.03 Public hearings; budget submissions; penalties to
1345 be submitted to Department of Education.—
1346 (1) Each district school board shall cause a summary of its
1347 tentative budget, including the proposed millage levies as
1348 provided for by law, to be posted on the district’s official
1349 website and advertised once in a newspaper of general
1350 circulation published in the district or to be posted at the
1351 courthouse if there be no such newspaper.
1352 (2) The advertisement of a district that has been required
1353 by the Legislature to increase classroom expenditures pursuant
1354 to s. 1011.64 must include the following statement:
1355
1356 “This proposed budget reflects an increase in classroom
1357 expenditures as a percent of total current operating
1358 expenditures of XX percent over the (previous fiscal year)
1359 fiscal year. This increase in classroom expenditures is required
1360 by the Legislature because the district has performed below the
1361 required performance standard on XX of XX student performance
1362 standards for the (previous school year) school year. In order
1363 to achieve the legislatively required level of classroom
1364 expenditures as a percentage of total operating expenditures,
1365 the proposed budget includes an increase in overall classroom
1366 expenditures of $XX,XXX,XXX above the amount spent for this same
1367 purpose during the (previous fiscal year) fiscal year. In order
1368 to achieve improved student academic performance, this proposed
1369 increase is being budgeted for the following activities:
1370 ...(list activities and amount budgeted)....”
1371 (3) The advertisement shall appear adjacent to the
1372 advertisement required pursuant to s. 200.065. The State Board
1373 of Education may adopt rules necessary to provide specific
1374 requirements for the format of the advertisement.
1375 (4) The board shall hold public hearings to adopt tentative
1376 and final budgets pursuant to s. 200.065. The hearings shall be
1377 primarily for the purpose of hearing requests and complaints
1378 from the public regarding the budgets and the proposed tax
1379 levies and for explaining the budget and proposed or adopted
1380 amendments thereto, if any. The tentative budget must be posted
1381 on the district’s official website at least 2 days before the
1382 budget hearing held pursuant to s. 200.065 or other law. The
1383 final adopted budget must be posted on the district’s official
1384 website within 30 days after adoption. The board shall require
1385 the superintendent to transmit two copies of the adopted budget
1386 to the Department of Education as prescribed by law and rules of
1387 the State Board of Education.
1388 (5)(a) Beginning in the 2018-2019 fiscal year, the district
1389 school board budget officer shall electronically submit
1390 information regarding the final budget to the Office of Economic
1391 and Demographic Research in the format specified by the office
1392 within 30 days after adoption of the final budget. If the
1393 Governor declares a state of emergency under s. 252.36(2) within
1394 30 days after the submission deadline for the final budget, the
1395 office may extend the deadline up to an additional 90 days. The
1396 district school board budget officer shall also electronically
1397 submit to the clerk of the court:
1398 1. A copy of the information that was submitted to the
1399 office.
1400 2. A copy of the final budget that was posted on the
1401 district school board’s website.
1402 3. A statement certifying that the items in subparagraphs
1403 1. and 2. were timely submitted and posted.
1404 (b) Beginning in the 2018-2019 fiscal year and
1405 notwithstanding any other penalty or remedy that may be
1406 authorized by law, if the district school board budget officer
1407 fails to submit information to the clerk of the court as
1408 required in paragraph (a), the clerk of the court shall notify
1409 the appropriate fiscal officer to suspend future salary payments
1410 for the superintendent of that district. The clerk shall notify
1411 the appropriate fiscal officer to resume payments when the clerk
1412 receives the information.
1413 (6)(5) If the governing body of a district amends the
1414 budget, the adopted amendment must be posted on the official
1415 website of the district within 5 days after adoption.
1416 Section 25. Subsection (1) of section 1011.60, Florida
1417 Statutes, is amended to read:
1418 1011.60 Minimum requirements of the Florida Education
1419 Finance Program.—Each district which participates in the state
1420 appropriations for the Florida Education Finance Program shall
1421 provide evidence of its effort to maintain an adequate school
1422 program throughout the district and shall meet at least the
1423 following requirements:
1424 (1) ACCOUNTS AND REPORTS.—Maintain adequate and accurate
1425 records, including a system of internal accounts for individual
1426 schools, and file with the Department of Education, in correct
1427 and proper form on or before the date due as fixed by law or
1428 rule, each annual or periodic report that is required by rules
1429 of the State Board of Education. A district school board that
1430 submits an annual financial report to the department must also
1431 electronically submit to the clerk of the court a copy of the
1432 report with a statement certifying that the report was timely
1433 filed with the department.
1434 Section 26. (1) By July 15, 2018, the Office of Economic
1435 and Demographic Research shall prepare forms for use by
1436 counties, municipalities, special districts, water management
1437 districts, and school districts when submitting information
1438 regarding their final budgets to the office. The forms must
1439 group existing fiscal information in broad yet meaningful
1440 categories, but should not create new reporting requirements.
1441 (2) By December 1, 2018, the office shall submit a report
1442 to the President of the Senate and the Speaker of the House of
1443 Representatives which:
1444 (a) Identifies a structure to create unique area profiles
1445 for the counties, municipalities, special districts, water
1446 management districts, and school districts which would assist
1447 the public in making simple direct comparisons between the
1448 distinct entities.
1449 (b) Provides recommendations for metrics for ranking the
1450 reporting entities based on the final budget information
1451 submitted to the office. The metrics must allow the public to
1452 make direct comparisons between the different local governments.
1453 (c) Provides recommendations for mechanisms to submit the
1454 information in this subsection to the public in a cost-effective
1455 manner.
1456 Section 27. Subsection (16) of section 165.0615, Florida
1457 Statutes, is amended to read:
1458 165.0615 Municipal conversion of independent special
1459 districts upon elector-initiated and approved referendum.—
1460 (16) If the incorporation plan is approved by a majority of
1461 the votes cast in the independent special district, the district
1462 shall notify the Special District Accountability Program
1463 pursuant to s. 189.016(2) and the local general-purpose
1464 governments in which any part of the independent special
1465 district is situated pursuant to s. 189.016(8) s. 189.016(7).
1466 Section 28. Subsections (1) and (2) of section 189.066,
1467 Florida Statutes, are amended to read:
1468 189.066 Effect of failure to file certain reports or
1469 information.—
1470 (1) If an independent special district fails to file the
1471 reports or information required under s. 189.014, s. 189.015, s.
1472 189.016(10) s. 189.016(9), or s. 189.08 with the local general
1473 purpose government or governments in which it is located, the
1474 person authorized to receive and read the reports or information
1475 or the local general-purpose government shall notify the
1476 district’s registered agent. If requested by the district, the
1477 local general-purpose government shall grant an extension of up
1478 to 30 days for filing the required reports or information. If
1479 the governing body of the local general-purpose government or
1480 governments determines that there has been an unjustified
1481 failure to file these reports or information, it shall notify
1482 the department, and the department may proceed pursuant to s.
1483 189.067(1).
1484 (2) If a dependent special district fails to file the
1485 reports or information required under s. 189.014, s. 189.015, or
1486 s. 189.016(10) s. 189.016(9) with the local governing authority
1487 to which it is dependent, the local governing authority shall
1488 take whatever steps it deems necessary to enforce the special
1489 district’s accountability. Such steps may include, as
1490 authorized, withholding funds, removing governing body members
1491 at will, vetoing the special district’s budget, conducting the
1492 oversight review process set forth in s. 189.068, or amending,
1493 merging, or dissolving the special district in accordance with
1494 the provisions contained in the ordinance that created the
1495 dependent special district.
1496 Section 29. Paragraph (a) of subsection (2) of section
1497 189.069, Florida Statutes, is amended to read:
1498 189.069 Special districts; required reporting of
1499 information; web-based public access.—
1500 (2)(a) A special district shall post the following
1501 information, at a minimum, on the district’s official website:
1502 1. The full legal name of the special district.
1503 2. The public purpose of the special district.
1504 3. The name, official address, official e-mail address,
1505 and, if applicable, term and appointing authority for each
1506 member of the governing body of the special district.
1507 4. The fiscal year of the special district.
1508 5. The full text of the special district’s charter, the
1509 date of establishment, the establishing entity, and the statute
1510 or statutes under which the special district operates, if
1511 different from the statute or statutes under which the special
1512 district was established. Community development districts may
1513 reference chapter 190 as the uniform charter but must include
1514 information relating to any grant of special powers.
1515 6. The mailing address, e-mail address, telephone number,
1516 and website uniform resource locator of the special district.
1517 7. A description of the boundaries or service area of, and
1518 the services provided by, the special district.
1519 8. A listing of all taxes, fees, assessments, or charges
1520 imposed and collected by the special district, including the
1521 rates or amounts for the fiscal year and the statutory authority
1522 for the levy of the tax, fee, assessment, or charge. For
1523 purposes of this subparagraph, charges do not include patient
1524 charges by a hospital or other health care provider.
1525 9. The primary contact information for the special district
1526 for purposes of communication from the department.
1527 10. A code of ethics adopted by the special district, if
1528 applicable, and a hyperlink to generally applicable ethics
1529 provisions.
1530 11. The budget of the special district and any amendments
1531 thereto in accordance with s. 189.016.
1532 12. The final, complete audit report for the most recent
1533 completed fiscal year and audit reports required by law or
1534 authorized by the governing body of the special district.
1535 13. A listing of its regularly scheduled public meetings as
1536 required by s. 189.015(1).
1537 14. The public facilities report, if applicable.
1538 15. The link to the Department of Financial Services’
1539 website as set forth in s. 218.32(1)(h) s. 218.32(1)(g).
1540 16. At least 7 days before each meeting or workshop, the
1541 agenda of the event, along with any meeting materials available
1542 in an electronic format, excluding confidential and exempt
1543 information. The information must remain on the website for at
1544 least 1 year after the event.
1545 Section 30. Paragraph (e) of subsection (2) and paragraph
1546 (g) of subsection (3) of section 189.074, Florida Statutes, are
1547 amended to read:
1548 189.074 Voluntary merger of independent special districts.
1549 Two or more contiguous independent special districts created by
1550 special act which have similar functions and elected governing
1551 bodies may elect to merge into a single independent district
1552 through the act of merging the component independent special
1553 districts.
1554 (2) JOINT MERGER PLAN BY RESOLUTION.—The governing bodies
1555 of two or more contiguous independent special districts may, by
1556 joint resolution, endorse a proposed joint merger plan to
1557 commence proceedings to merge the districts pursuant to this
1558 section.
1559 (e) After the final public hearing, the governing bodies
1560 shall notify the supervisors of elections of the applicable
1561 counties in which district lands are located of the adoption of
1562 the resolution by each governing body. The supervisors of
1563 elections shall schedule a separate referendum for each
1564 component independent special district. The referenda may be
1565 held in each district on the same day, or on different days, but
1566 no more than 20 days apart.
1567 1. Notice of a referendum on the merger of independent
1568 special districts must be provided pursuant to the notice
1569 requirements in s. 100.342. At a minimum, the notice must
1570 include:
1571 a. A brief summary of the resolution and joint merger plan;
1572 b. A statement as to where a copy of the resolution and
1573 joint merger plan may be examined;
1574 c. The names of the component independent special districts
1575 to be merged and a description of their territory;
1576 d. The times and places at which the referendum will be
1577 held; and
1578 e. Such other matters as may be necessary to call, provide
1579 for, and give notice of the referendum and to provide for the
1580 conduct thereof and the canvass of the returns.
1581 2. The referenda must be held in accordance with the
1582 Florida Election Code and may be held pursuant to ss. 101.6101
1583 101.6107. All costs associated with the referenda shall be borne
1584 by the respective component independent special district.
1585 3. The ballot question in such referendum placed before the
1586 qualified electors of each component independent special
1587 district to be merged must be in substantially the following
1588 form:
1589
1590 “Shall ...(name of component independent special
1591 district)... and ...(name of component independent special
1592 district or districts)... be merged into ...(name of newly
1593 merged independent district)...?
1594
1595 ....YES
1596 ....NO”
1597
1598 4. If the component independent special districts proposing
1599 to merge have disparate millage rates, the ballot question in
1600 the referendum placed before the qualified electors of each
1601 component independent special district must be in substantially
1602 the following form:
1603
1604 “Shall ...(name of component independent special
1605 district)... and ...(name of component independent special
1606 district or districts)... be merged into ...(name of newly
1607 merged independent district)... if the voter-approved maximum
1608 millage rate within each independent special district will not
1609 increase absent a subsequent referendum?
1610
1611 ....YES
1612 ....NO”
1613
1614 5. In any referendum held pursuant to this section, the
1615 ballots shall be counted, returns made and canvassed, and
1616 results certified in the same manner as other elections or
1617 referenda for the component independent special districts.
1618 6. The merger may not take effect unless a majority of the
1619 votes cast in each component independent special district are in
1620 favor of the merger. If one of the component districts does not
1621 obtain a majority vote, the referendum fails, and merger does
1622 not take effect.
1623 7. If the merger is approved by a majority of the votes
1624 cast in each component independent special district, the merged
1625 independent district is created. Upon approval, the merged
1626 independent district shall notify the Special District
1627 Accountability Program pursuant to s. 189.016(2) and the local
1628 general-purpose governments in which any part of the component
1629 independent special districts is situated pursuant to s.
1630 189.016(8) s. 189.016(7).
1631 8. If the referendum fails, the merger process under this
1632 subsection may not be initiated for the same purpose within 2
1633 years after the date of the referendum.
1634 (3) QUALIFIED ELECTOR-INITIATED MERGER PLAN.—The qualified
1635 electors of two or more contiguous independent special districts
1636 may commence a merger proceeding by each filing a petition with
1637 the governing body of their respective independent special
1638 district proposing to be merged. The petition must contain the
1639 signatures of at least 40 percent of the qualified electors of
1640 each component independent special district and must be
1641 submitted to the appropriate component independent special
1642 district governing body no later than 1 year after the start of
1643 the qualified elector-initiated merger process.
1644 (g) After the final public hearing, the governing bodies
1645 shall notify the supervisors of elections of the applicable
1646 counties in which district lands are located of the adoption of
1647 the resolution by each governing body. The supervisors of
1648 elections shall schedule a date for the separate referenda for
1649 each district. The referenda may be held in each district on the
1650 same day, or on different days, but no more than 20 days apart.
1651 1. Notice of a referendum on the merger of the component
1652 independent special districts must be provided pursuant to the
1653 notice requirements in s. 100.342. At a minimum, the notice must
1654 include:
1655 a. A brief summary of the resolution and elector-initiated
1656 merger plan;
1657 b. A statement as to where a copy of the resolution and
1658 petition for merger may be examined;
1659 c. The names of the component independent special districts
1660 to be merged and a description of their territory;
1661 d. The times and places at which the referendum will be
1662 held; and
1663 e. Such other matters as may be necessary to call, provide
1664 for, and give notice of the referendum and to provide for the
1665 conduct thereof and the canvass of the returns.
1666 2. The referenda must be held in accordance with the
1667 Florida Election Code and may be held pursuant to ss. 101.6101
1668 101.6107. All costs associated with the referenda shall be borne
1669 by the respective component independent special district.
1670 3. The ballot question in such referendum placed before the
1671 qualified electors of each component independent special
1672 district to be merged must be in substantially the following
1673 form:
1674
1675 “Shall ...(name of component independent special
1676 district)... and ...(name of component independent special
1677 district or districts)... be merged into ...(name of newly
1678 merged independent district)...?
1679
1680 ....YES
1681 ....NO”
1682
1683 4. If the component independent special districts proposing
1684 to merge have disparate millage rates, the ballot question in
1685 the referendum placed before the qualified electors of each
1686 component independent special district must be in substantially
1687 the following form:
1688
1689 “Shall ...(name of component independent special
1690 district)... and ...(name of component independent special
1691 district or districts)... be merged into ...(name of newly
1692 merged independent district)... if the voter-approved maximum
1693 millage rate within each independent special district will not
1694 increase absent a subsequent referendum?
1695
1696 ....YES
1697 ....NO”
1698
1699 5. In any referendum held pursuant to this section, the
1700 ballots shall be counted, returns made and canvassed, and
1701 results certified in the same manner as other elections or
1702 referenda for the component independent special districts.
1703 6. The merger may not take effect unless a majority of the
1704 votes cast in each component independent special district are in
1705 favor of the merger. If one of the component independent special
1706 districts does not obtain a majority vote, the referendum fails,
1707 and merger does not take effect.
1708 7. If the merger is approved by a majority of the votes
1709 cast in each component independent special district, the merged
1710 district shall notify the Special District Accountability
1711 Program pursuant to s. 189.016(2) and the local general-purpose
1712 governments in which any part of the component independent
1713 special districts is situated pursuant to s. 189.016(8) s.
1714 189.016(7).
1715 8. If the referendum fails, the merger process under this
1716 subsection may not be initiated for the same purpose within 2
1717 years after the date of the referendum.
1718 Section 31. Subsection (3) of section 218.503, Florida
1719 Statutes, is amended to read:
1720 218.503 Determination of financial emergency.—
1721 (3) Upon notification that one or more of the conditions in
1722 subsection (1) have occurred or will occur if action is not
1723 taken to assist the local governmental entity or district school
1724 board, the Governor or his or her designee shall contact the
1725 local governmental entity or the Commissioner of Education or
1726 his or her designee shall contact the district school board, as
1727 appropriate, to determine what actions have been taken by the
1728 local governmental entity or the district school board to
1729 resolve or prevent the condition. The information requested must
1730 be provided within 45 days after the date of the request. If the
1731 local governmental entity or the district school board does not
1732 comply with the request, the Governor or his or her designee or
1733 the Commissioner of Education or his or her designee shall
1734 notify the members of the Legislative Auditing Committee, which
1735 who may take action pursuant to s. 11.40(2) s. 11.40. The
1736 Governor or the Commissioner of Education, as appropriate, shall
1737 determine whether the local governmental entity or the district
1738 school board needs state assistance to resolve or prevent the
1739 condition. If state assistance is needed, the local governmental
1740 entity or district school board is considered to be in a state
1741 of financial emergency. The Governor or the Commissioner of
1742 Education, as appropriate, has the authority to implement
1743 measures as set forth in ss. 218.50-218.504 to assist the local
1744 governmental entity or district school board in resolving the
1745 financial emergency. Such measures may include, but are not
1746 limited to:
1747 (a) Requiring approval of the local governmental entity’s
1748 budget by the Governor or approval of the district school
1749 board’s budget by the Commissioner of Education.
1750 (b) Authorizing a state loan to a local governmental entity
1751 and providing for repayment of same.
1752 (c) Prohibiting a local governmental entity or district
1753 school board from issuing bonds, notes, certificates of
1754 indebtedness, or any other form of debt until such time as it is
1755 no longer subject to this section.
1756 (d) Making such inspections and reviews of records,
1757 information, reports, and assets of the local governmental
1758 entity or district school board as are needed. The appropriate
1759 local officials shall cooperate in such inspections and reviews.
1760 (e) Consulting with officials and auditors of the local
1761 governmental entity or the district school board and the
1762 appropriate state officials regarding any steps necessary to
1763 bring the books of account, accounting systems, financial
1764 procedures, and reports into compliance with state requirements.
1765 (f) Providing technical assistance to the local
1766 governmental entity or the district school board.
1767 (g)1. Establishing a financial emergency board to oversee
1768 the activities of the local governmental entity or the district
1769 school board. If a financial emergency board is established for
1770 a local governmental entity, the Governor shall appoint board
1771 members and select a chair. If a financial emergency board is
1772 established for a district school board, the State Board of
1773 Education shall appoint board members and select a chair. The
1774 financial emergency board shall adopt such rules as are
1775 necessary for conducting board business. The board may:
1776 a. Make such reviews of records, reports, and assets of the
1777 local governmental entity or the district school board as are
1778 needed.
1779 b. Consult with officials and auditors of the local
1780 governmental entity or the district school board and the
1781 appropriate state officials regarding any steps necessary to
1782 bring the books of account, accounting systems, financial
1783 procedures, and reports of the local governmental entity or the
1784 district school board into compliance with state requirements.
1785 c. Review the operations, management, efficiency,
1786 productivity, and financing of functions and operations of the
1787 local governmental entity or the district school board.
1788 d. Consult with other governmental entities for the
1789 consolidation of all administrative direction and support
1790 services, including, but not limited to, services for asset
1791 sales, economic and community development, building inspections,
1792 parks and recreation, facilities management, engineering and
1793 construction, insurance coverage, risk management, planning and
1794 zoning, information systems, fleet management, and purchasing.
1795 2. The recommendations and reports made by the financial
1796 emergency board must be submitted to the Governor for local
1797 governmental entities or to the Commissioner of Education and
1798 the State Board of Education for district school boards for
1799 appropriate action.
1800 (h) Requiring and approving a plan, to be prepared by
1801 officials of the local governmental entity or the district
1802 school board in consultation with the appropriate state
1803 officials, prescribing actions that will cause the local
1804 governmental entity or district school board to no longer be
1805 subject to this section. The plan must include, but need not be
1806 limited to:
1807 1. Provision for payment in full of obligations outlined in
1808 subsection (1), designated as priority items, which are
1809 currently due or will come due.
1810 2. Establishment of priority budgeting or zero-based
1811 budgeting in order to eliminate items that are not affordable.
1812 3. The prohibition of a level of operations which can be
1813 sustained only with nonrecurring revenues.
1814 4. Provisions implementing the consolidation, sourcing, or
1815 discontinuance of all administrative direction and support
1816 services, including, but not limited to, services for asset
1817 sales, economic and community development, building inspections,
1818 parks and recreation, facilities management, engineering and
1819 construction, insurance coverage, risk management, planning and
1820 zoning, information systems, fleet management, and purchasing.
1821 Section 32. The Legislature finds that a proper and
1822 legitimate state purpose is served when internal controls are
1823 established to prevent and detect fraud, waste, and abuse and to
1824 safeguard and account for government funds and property. The
1825 Legislature also finds that a proper and legitimate state
1826 purpose is served when the travel records of state and local
1827 employees are transparent to members of the public. The
1828 Legislature further finds that a proper and legitimate state
1829 purpose is served when local governments ensure that the
1830 budgets, annual financial reports, and associated data for
1831 various governmental entities are available to, and usable by,
1832 the public. Therefore, the Legislature determines and declares
1833 that this act fulfills an important state interest.
1834 Section 33. This act shall take effect July 1, 2018.