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Senate Bill 0708

Senate Bill sb0708c1

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    Florida Senate - 2004                            CS for SB 708

    By the Committee on Education; and Senator Atwater





    304-1995-04

  1                      A bill to be entitled

  2         An act relating to local government

  3         accountability; amending s. 11.40, F.S.;

  4         revising duties of the Legislative Auditing

  5         Committee; amending s. 11.45, F.S.; specifying

  6         requirements for a petition for a municipal

  7         audit; revising reporting requirements of the

  8         Auditor General; providing for technical advice

  9         by the Auditor General; amending s. 61.181,

10         F.S.; correcting a cross-reference; amending s.

11         75.05, F.S.; deleting a requirement for an

12         independent special district to submit a copy

13         of a complaint to the Division of Bond Finance

14         of the State Board of Administration; amending

15         s. 112.08, F.S.; clarifying that local

16         governments are authorized to provide health

17         insurance; amending s. 112.625, F.S.; revising

18         the definition of "governmental entity" to

19         include counties and district school boards;

20         amending s. 112.63, F.S.; providing for

21         additional material information to be provided

22         to the Department of Management Services in

23         actuarial reports with regard to retirement

24         systems and plans and providing procedures

25         therefor; providing for notification of the

26         Department of Revenue and the Department of

27         Financial Services in cases of noncompliance

28         and authorizing the withholding of certain

29         funds; requiring the Department of Management

30         Services to notify the Department of Community

31         Affairs in the case of affected special

                                  1

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    Florida Senate - 2004                            CS for SB 708
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 1         districts; amending s. 130.04, F.S.; revising

 2         provisions governing notice of bids and

 3         disposition of bonds; amending s. 132.02, F.S.;

 4         revising provisions relating to the

 5         authorization to issue refund bonds; amending

 6         s. 132.09, F.S.; revising provisions relating

 7         to the notice of sale, bids, and awards and

 8         private sale of bonds; amending s. 163.05,

 9         F.S.; revising provisions governing the Small

10         County Technical Assistance Program; amending

11         s. 166.121, F.S.; revising provisions governing

12         the issuance of bonds by a municipality;

13         amending s. 166.241, F.S.; providing a

14         municipal budget amendment process and

15         requirements; amending s. 189.4044, F.S.;

16         revising special procedures for determination

17         of inactive special districts; amending s.

18         189.412, F.S.; revising duties of the Special

19         District Information Program of the Department

20         of Community Affairs; amending s. 189.418,

21         F.S.; revising reporting requirements of newly

22         created special districts; authorizing the

23         governing body of a special district to amend

24         its budget; amending s. 189.419, F.S.; revising

25         provisions relating to the failure of special

26         districts to file required reports; amending s.

27         189.421, F.S.; revising provisions governing

28         the failure of special districts to disclose

29         financial reports; providing for extension of

30         time for the filing of the reports; providing

31         remedies for noncompliance; providing for

                                  2

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         attorney's fees and costs; amending s. 189.428,

 2         F.S.; revising provisions governing the special

 3         district oversight review process; amending s.

 4         189.439, F.S.; revising provisions governing

 5         the issuance of bonds by special districts;

 6         amending s. 191.005, F.S.; exempting a

 7         candidate from campaign requirements under

 8         specified conditions; providing for the removal

 9         of a board member upon becoming unqualified;

10         amending s. 218.075, F.S.; revising provisions

11         governing the reduction or waiver of permit

12         processing fees for certain counties; amending

13         s. 218.32, F.S., relating to annual financial

14         reports; requiring the Department of Financial

15         Services to notify the Speaker of the House of

16         Representatives and the President of the Senate

17         of any municipality that has not had financial

18         activity for a specified period of time;

19         providing that such notice is sufficient to

20         initiate dissolution procedures; repealing s.

21         218.321, F.S., relating to annual financial

22         statements of local governmental entities;

23         amending s. 218.39, F.S.; providing reporting

24         requirements for certain special districts;

25         amending s. 218.36, F.S.; revising reporting

26         requirements for boards of county commissioners

27         relating to the failure of a county officer to

28         comply with the provisions of the section;

29         amending s. 218.369, F.S.; revising the

30         definition of "unit of local government" to

31         include district school boards; renaming pt. V

                                  3

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         of ch. 218, F.S., as "Local Governmental Entity

 2         and District School Board Financial

 3         Emergencies"; amending s. 218.50, F.S.;

 4         renaming ss. 218.50-218.504, F.S., as the

 5         "Local Governmental Entity and District School

 6         Board Act"; amending s. 218.501, F.S.; revising

 7         the stated purposes of pt. V of ch. 218, F.S.;

 8         amending s. 218.502, F.S.; revising the

 9         definition of "local governmental entity";

10         amending s. 218.503, F.S.; revising provisions

11         governing the determination of a financial

12         emergency for local governments and district

13         school boards; amending s. 218.504, F.S.;

14         revising provisions relating to the authority

15         of the Governor and authorizing the

16         Commissioner of Education to terminate all

17         state actions pursuant to ss. 218.50-218.504,

18         F.S.; repealing ch. 131, F.S., consisting of

19         ss. 131.01, 131.02, 131.03, 131.04, 131.05, and

20         131.06, F.S., relating to refunding bonds of

21         counties, municipalities, and special

22         districts; repealing s. 132.10, F.S., relating

23         to minimum sale price of bonds; repealing s.

24         165.052, F.S., relating to special dissolution

25         procedures for municipalities; repealing s.

26         189.409, F.S., relating to determination of

27         financial emergencies of special districts;

28         repealing s. 189.422, F.S., relating to actions

29         of the Department of Community Affairs and

30         special districts; repealing s. 200.0684, F.S.,

31         relating to an annual compliance report of the

                                  4

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         Department of Community Affairs regarding

 2         special districts; repealing s. 218.37(1)(h),

 3         F.S., relating to the requirement that the

 4         Division of Bond Finance use a served copy of

 5         the complaint for bond validation to verify

 6         compliance by special districts with the

 7         requirements in s. 218.38, F.S.; amending s.

 8         215.195, F.S., relating to the Statewide Cost

 9         Allocation Plan; providing that the Department

10         of Financial Services is responsible for the

11         plan's preparation and the monitoring of agency

12         compliance; amending s. 215.97, F.S., relating

13         to the Florida Single Audit Act; revising and

14         providing definitions; revising the uniform

15         state audit requirements for state financial

16         assistance that is provided by state agencies

17         to nonstate entities; requiring the Department

18         of Financial Services to adopt rules and

19         perform additional duties with respect to the

20         provision of financial assistance to carry out

21         state projects; specifying duties of

22         coordinating agencies; amending s. 1010.47,

23         F.S.; providing that school districts must sell

24         bonds; deleting obsolete provisions relating to

25         the sale of bonds by a school district;

26         transferring a position from the Executive

27         Office of the Governor to the Department of

28         Financial Services; providing an effective

29         date.

30  

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

                                  5

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         Section 1.  Paragraphs (a) and (b) of subsection (5) of

 2  section 11.40, Florida Statutes, are amended to read:

 3         11.40  Legislative Auditing Committee.--

 4         (5)  Following notification by the Auditor General, the

 5  Department of Financial Services, or the Division of Bond

 6  Finance of the State Board of Administration of the failure of

 7  a local governmental entity, district school board, charter

 8  school, or charter technical career center to comply with the

 9  applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or

10  s. 218.38, the Legislative Auditing Committee may schedule a

11  hearing. If a hearing is scheduled, the committee shall

12  determine if the entity should be subject to further state

13  action.  If the committee determines that the entity should be

14  subject to further state action, the committee shall:

15         (a)  In the case of a local governmental entity or

16  district school board, direct request the Department of

17  Revenue and the Department of Financial Services to withhold

18  any funds not pledged for bond debt service satisfaction which

19  are payable to such entity until the entity complies with the

20  law. The committee, in its request, shall specify the date

21  such action shall begin, and the directive request must be

22  received by the Department of Revenue and the Department of

23  Financial Services 30 days before the date of the distribution

24  mandated by law. The Department of Revenue and the Department

25  of Financial Services may implement the provisions of this

26  paragraph.

27         (b)  In the case of a special district, notify the

28  Department of Community Affairs that the special district has

29  failed to comply with the law. Upon receipt of notification,

30  the Department of Community Affairs shall proceed pursuant to

31  the provisions specified in s. ss. 189.421 and 189.422.

                                  6

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         Section 2.  Paragraph (g) of subsection (2),

 2  subsections (3) and (5), paragraph (e) of subsection (7), and

 3  subsections (8) and (9) of section 11.45, Florida Statutes,

 4  are amended to read:

 5         11.45  Definitions; duties; authorities; reports;

 6  rules.--

 7         (2)  DUTIES.--The Auditor General shall:

 8         (g)  At least every 2 years, conduct a performance

 9  audit of the local government financial reporting system,

10  which, for the purpose of this chapter, means any statutory

11  provisions related to local government financial reporting.

12  The purpose of such an audit is to determine the accuracy,

13  efficiency, and effectiveness of the reporting system in

14  achieving its goals and to make recommendations to the local

15  governments, the Governor, and the Legislature as to how the

16  reporting system can be improved and how program costs can be

17  reduced. The Auditor General shall determine the scope of such

18  audits. The local government financial reporting system should

19  provide for the timely, accurate, uniform, and cost-effective

20  accumulation of financial and other information that can be

21  used by the members of the Legislature and other appropriate

22  officials to accomplish the following goals:

23         1.  Enhance citizen participation in local government;

24         2.  Improve the financial condition of local

25  governments;

26         3.  Provide essential government services in an

27  efficient and effective manner; and

28         4.  Improve decisionmaking on the part of the

29  Legislature, state agencies, and local government officials on

30  matters relating to local government.

31  

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1  The Auditor General shall perform his or her duties

 2  independently but under the general policies established by

 3  the Legislative Auditing Committee. This subsection does not

 4  limit the Auditor General's discretionary authority to conduct

 5  other audits or engagements of governmental entities as

 6  authorized in subsection (3).

 7         (3)  AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.--

 8         (a)  The Auditor General may, pursuant to his or her

 9  own authority, or at the direction of the Legislative Auditing

10  Committee, conduct audits or other engagements as determined

11  appropriate by the Auditor General of:

12         (a)1.  The accounts and records of any governmental

13  entity created or established by law.

14         (b)2.  The information technology programs, activities,

15  functions, or systems of any governmental entity created or

16  established by law.

17         (c)3.  The accounts and records of any charter school

18  created or established by law.

19         (d)4.  The accounts and records of any direct-support

20  organization or citizen support organization created or

21  established by law. The Auditor General is authorized to

22  require and receive any records from the direct-support

23  organization or citizen support organization, or from its

24  independent auditor.

25         (e)5.  The public records associated with any

26  appropriation made by the Legislature General Appropriations

27  Act to a nongovernmental agency, corporation, or person. All

28  records of a nongovernmental agency, corporation, or person

29  with respect to the receipt and expenditure of such an

30  appropriation shall be public records and shall be treated in

31  the same manner as other public records are under general law.

                                  8

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    Florida Senate - 2004                            CS for SB 708
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 1         (f)6.  State financial assistance provided to any

 2  nonstate entity as defined by s. 215.97.

 3         (g)7.  The Tobacco Settlement Financing Corporation

 4  created pursuant to s. 215.56005.

 5         8.  The Florida Virtual School created pursuant to s.

 6  1002.37.

 7         (h)9.  Any purchases of federal surplus lands for use

 8  as sites for correctional facilities as described in s.

 9  253.037.

10         (i)10.  Enterprise Florida, Inc., including any of its

11  boards, advisory committees, or similar groups created by

12  Enterprise Florida, Inc., and programs.  The audit report may

13  not reveal the identity of any person who has anonymously made

14  a donation to Enterprise Florida, Inc., pursuant to this

15  subparagraph. The identity of a donor or prospective donor to

16  Enterprise Florida, Inc., who desires to remain anonymous and

17  all information identifying such donor or prospective donor

18  are confidential and exempt from the provisions of s.

19  119.07(1) and s. 24(a), Art. I of the State Constitution. Such

20  anonymity shall be maintained in the auditor's report.

21         (j)11.  The Florida Development Finance Corporation or

22  the capital development board or the programs or entities

23  created by the board. The audit or report may not reveal the

24  identity of any person who has anonymously made a donation to

25  the board pursuant to this subparagraph. The identity of a

26  donor or prospective donor to the board who desires to remain

27  anonymous and all information identifying such donor or

28  prospective donor are confidential and exempt from the

29  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

30  Constitution. Such anonymity shall be maintained in the

31  auditor's report.

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         (k)12.  The records pertaining to the use of funds from

 2  voluntary contributions on a motor vehicle registration

 3  application or on a driver's license application authorized

 4  pursuant to ss. 320.023 and 322.081.

 5         (l)13.  The records pertaining to the use of funds from

 6  the sale of specialty license plates described in chapter 320.

 7         (m)14.  The transportation corporations under contract

 8  with the Department of Transportation that are acting on

 9  behalf of the state to secure and obtain rights-of-way for

10  urgently needed transportation systems and to assist in the

11  planning and design of such systems pursuant to ss.

12  339.401-339.421.

13         (n)15.  The acquisitions and divestitures related to

14  the Florida Communities Trust Program created pursuant to

15  chapter 380.

16         (o)16.  The Florida Water Pollution Control Financing

17  Corporation created pursuant to s. 403.1837.

18         (p)17.  The Florida Partnership for School Readiness

19  created pursuant to s. 411.01.

20         (q)18.  The Florida Special Disability Trust Fund

21  Financing Corporation created pursuant to s. 440.49.

22         (r)19.  Workforce Florida, Inc., or the programs or

23  entities created by Workforce Florida, Inc., created pursuant

24  to s. 445.004.

25         (s)20.  The corporation defined in s. 455.32 that is

26  under contract with the Department of Business and

27  Professional Regulation to provide administrative,

28  investigative, examination, licensing, and prosecutorial

29  support services in accordance with the provisions of s.

30  455.32 and the practice act of the relevant profession.

31  

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    Florida Senate - 2004                            CS for SB 708
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 1         (t)21.  The Florida Engineers Management Corporation

 2  created pursuant to chapter 471.

 3         (u)22.  The Investment Fraud Restoration Financing

 4  Corporation created pursuant to chapter 517.

 5         (v)23.  The books and records of any permitholder that

 6  conducts race meetings or jai alai exhibitions under chapter

 7  550.

 8         (w)24.  The corporation defined in part II of chapter

 9  946, known as the Prison Rehabilitative Industries and

10  Diversified Enterprises, Inc., or PRIDE Enterprises.

11         (x)  The Florida Virtual School pursuant to s. 1002.37.

12         (b)  The Auditor General is also authorized to:

13         1.  Promote the building of competent and efficient

14  accounting and internal audit organizations in the offices

15  administered by governmental entities.

16         2.  Provide consultation services to governmental

17  entities on their financial and accounting systems,

18  procedures, and related matters.

19         (5)  PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.--

20         (a)  The Legislative Auditing Committee shall direct

21  the Auditor General to make an a financial audit of any

22  municipality whenever petitioned to do so by at least 20

23  percent of the registered electors in the last general

24  election of that municipality pursuant to this subsection. The

25  supervisor of elections of the county in which the

26  municipality is located shall certify whether or not the

27  petition contains the signatures of at least 20 percent of the

28  registered electors of the municipality. After the completion

29  of the audit, the Auditor General shall determine whether the

30  municipality has the fiscal resources necessary to pay the

31  cost of the audit. The municipality shall pay the cost of the

                                  11

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    Florida Senate - 2004                            CS for SB 708
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 1  audit within 90 days after the Auditor General's determination

 2  that the municipality has the available resources. If the

 3  municipality fails to pay the cost of the audit, the

 4  Department of Revenue shall, upon certification of the Auditor

 5  General, withhold from that portion of the distribution

 6  pursuant to s. 212.20(6)(d)6. which is distributable to such

 7  municipality, a sum sufficient to pay the cost of the audit

 8  and shall deposit that sum into the General Revenue Fund of

 9  the state.

10         (b)  At least one registered elector in the most recent

11  general election must file a letter of intent with the

12  municipal clerk prior to any petition of the electors of that

13  municipality for the purpose of an audit. Each petition must

14  be submitted to the supervisor of elections and contain, at a

15  minimum:

16         1.  The elector's printed name;

17         2.  The signature of the elector;

18         3.  The elector's residence address;

19         4.  The elector's date of birth; and

20         5.  The date signed.

21  

22  All petitions must be submitted for verification within 1

23  calendar year after the audit petition origination by the

24  municipal electors.

25         (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--

26         (e)  The Auditor General shall notify the Governor or

27  the Commissioner of Education, as appropriate, and the

28  Legislative Auditing Committee of any audit report reviewed by

29  the Auditor General pursuant to paragraph (b) which contains a

30  statement that a the local governmental entity or district

31  school board has met one or more of the conditions specified

                                  12

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 1  is in a state of financial emergency as provided in s.

 2  218.503. If the Auditor General requests a clarification

 3  regarding information included in an audit report to determine

 4  whether a local governmental entity or district school board

 5  has met one or more of the conditions specified in s. 218.503

 6  is in a state of financial emergency, the requested

 7  clarification must be provided within 45 days after the date

 8  of the request. If the local governmental entity or district

 9  school board does not comply with the Auditor General's

10  request, the Auditor General shall notify the Legislative

11  Auditing Committee. If, after obtaining the requested

12  clarification, the Auditor General determines that the local

13  governmental entity or district school board has met one or

14  more of the conditions specified in s. 218.503 is in a state

15  of financial emergency, he or she shall notify the Governor or

16  the Commissioner of Education, as appropriate, and the

17  Legislative Auditing Committee.

18         (8)  RULES OF THE AUDITOR GENERAL.--The Auditor

19  General, in consultation with the Board of Accountancy, shall

20  adopt rules for the form and conduct of all financial audits

21  performed by independent certified public accountants pursuant

22  to ss. 215.981, 218.39, 1001.453, 1004.28, and 1004.70. The

23  rules for audits of local governmental entities and district

24  school boards must include, but are not limited to,

25  requirements for the reporting of information necessary to

26  carry out the purposes of the Local Governmental Entity and

27  District School Board Government Financial Emergencies Act as

28  stated in s. 218.501.

29         (9)  TECHNICAL ADVICE OTHER GUIDANCE PROVIDED BY THE

30  AUDITOR GENERAL.--The Auditor General may provide technical

31  advice to:, in consultation with

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 1         (a)  The Department of Education in the development of,

 2  shall develop a compliance supplement for the financial audit

 3  of a district school board conducted by an independent

 4  certified public accountant.

 5         (b)  Governmental entities on their financial and

 6  accounting systems, procedures, and related matters.

 7         (c)  Governmental entities on promoting the building of

 8  competent and efficient accounting and internal audit

 9  organizations in their offices.

10         Section 3.  Subsection (10) of section 61.181, Florida

11  Statutes, is amended to read:

12         61.181  Depository for alimony transactions, support,

13  maintenance, and support payments; fees.--

14         (10)  Compliance with the requirements of this section

15  shall be included as part of the annual county audit required

16  pursuant to s. 218.39 11.45.

17         Section 4.  Subsection (3) of section 75.05, Florida

18  Statutes, is amended to read:

19         75.05  Order and service.--

20         (3)  In the case of independent special districts as

21  defined in s. 218.31(7), a copy of the complaint shall be

22  served on the Division of Bond Finance of the State Board of

23  Administration. Notwithstanding any other provision of law,

24  whether a general law or special act, validation of bonds to

25  be issued by a special district, other than a community

26  development district established pursuant to chapter 190, as

27  provided in s. 190.016(12), is not mandatory, but is at the

28  option of the issuer. However, the validation of bonds issued

29  by such community development districts shall not be required

30  on refunding issues.

31  

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 1         Section 5.  Paragraph (a) of subsection (2) of section

 2  112.08, Florida Statutes, is amended to read:

 3         112.08  Group insurance for public officers, employees,

 4  and certain volunteers; physical examinations.--

 5         (2)(a)  Notwithstanding any general law or special act

 6  to the contrary, every local governmental unit is authorized

 7  to provide and pay out of its available funds for all or part

 8  of the premium for life, health, accident, hospitalization,

 9  legal expense, or annuity insurance, or all or any kinds of

10  such insurance, for the officers and employees of the local

11  governmental unit and for health, accident, hospitalization,

12  and legal expense insurance for the dependents of such

13  officers and employees upon a group insurance plan and, to

14  that end, to enter into contracts with insurance companies or

15  professional administrators to provide such insurance.  Before

16  entering any contract for insurance, the local governmental

17  unit shall advertise for competitive bids; and such contract

18  shall be let upon the basis of such bids. If a contracting

19  health insurance provider becomes financially impaired as

20  determined by the Office of Insurance Regulation of the

21  Financial Services Commission or otherwise fails or refuses to

22  provide the contracted-for coverage or coverages, the local

23  government may purchase insurance, enter into risk management

24  programs, or contract with third-party administrators and may

25  make such acquisitions by advertising for competitive bids or

26  by direct negotiations and contract. The local governmental

27  unit may undertake simultaneous negotiations with those

28  companies which have submitted reasonable and timely bids and

29  are found by the local governmental unit to be fully qualified

30  and capable of meeting all servicing requirements. Each local

31  governmental unit may self-insure any plan for health,

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 1  accident, and hospitalization coverage or enter into a risk

 2  management consortium to provide such coverage, subject to

 3  approval based on actuarial soundness by the Office of

 4  Insurance Regulation; and each shall contract with an

 5  insurance company or professional administrator qualified and

 6  approved by the office to administer such a plan.

 7         Section 6.  Subsection (5) of section 112.625, Florida

 8  Statutes, is amended to read:

 9         112.625  Definitions.--As used in this act:

10         (5)  "Governmental entity" means the state, for the

11  Florida Retirement System, and the county, municipality, or

12  special district, or district school board which is the

13  employer of the member of a local retirement system or plan.

14         Section 7.  Subsection (4) of section 112.63, Florida

15  Statutes, is amended to read:

16         112.63  Actuarial reports and statements of actuarial

17  impact; review.--

18         (4)  Upon receipt, pursuant to subsection (2), of an

19  actuarial report, or upon receipt, pursuant to subsection (3),

20  of a statement of actuarial impact, the Department of

21  Management Services shall acknowledge such receipt, but shall

22  only review and comment on each retirement system's or plan's

23  actuarial valuations at least on a triennial basis. If the

24  department finds that the actuarial valuation is not complete,

25  accurate, or based on reasonable assumptions or otherwise

26  materially fails to satisfy the requirements of this part, if

27  the department requires additional material information

28  necessary to complete its review of the actuarial valuation of

29  a system or plan or material information necessary to satisfy

30  the duties of the department pursuant to s. 112.665(1), or if

31  the department does not receive the actuarial report or

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 1  statement of actuarial impact, the department shall notify the

 2  administrator of the affected retirement system or plan and

 3  the affected governmental entity local government and request

 4  appropriate adjustment, the additional material information,

 5  or the required report or statement. The notification must

 6  inform the administrator of the affected retirement system or

 7  plan and the affected governmental entity of the consequences

 8  for failure to comply with the requirements of this

 9  subsection. If, after a reasonable period of time, a

10  satisfactory adjustment is not made or the report, statement,

11  or additional material information is not provided, the

12  department may notify the Department of Revenue and the

13  Department of Financial Services of such noncompliance, in

14  which case the Department of Revenue and the Department of

15  Financial Services shall withhold any funds not pledged for

16  satisfaction of bond debt service which are payable to the

17  affected governmental entity until the adjustment is made or

18  the report, statement, or additional material information is

19  provided to the department. The department shall specify the

20  date such action is to begin, and notification by the

21  department must be received by the Department of Revenue, the

22  Department of Financial Services, and the affected

23  governmental entity 30 days before the date the action begins.

24         (a)  Within 21 days after receipt of the notice, the

25  affected governmental entity local government or the

26  department may petition for a hearing under the provisions of

27  ss. 120.569 and 120.57 with the Department of Management

28  Services. The Department of Revenue and the Department of

29  Financial Services may not be parties to any such hearing, but

30  may request to intervene if requested by the Department of

31  Management Services or if the Department of Revenue or the

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 1  Department of Financial Services determines its interests may

 2  be adversely affected by the hearing. If the administrative

 3  law judge recommends in favor of the department, the

 4  department shall perform an actuarial review, or prepare the

 5  statement of actuarial impact, or collect the requested

 6  material information. The cost to the department of performing

 7  such actuarial review, or preparing the such statement, or

 8  collecting the requested material information shall be charged

 9  to the affected governmental entity of which the employees are

10  covered by the retirement system or plan. If payment of such

11  costs is not received by the department within 60 days after

12  receipt by the affected governmental entity of the request for

13  payment, the department shall certify to the Department of

14  Revenue and the Department of Financial Services Chief

15  Financial Officer the amount due, and the Department of

16  Revenue and the Department of Financial Services Chief

17  Financial Officer shall pay such amount to the Department of

18  Management Services from any funds not pledged for

19  satisfaction of bond debt service which are payable to the

20  affected governmental entity of which the employees are

21  covered by the retirement system or plan. If the

22  administrative law judge recommends in favor of the affected

23  governmental entity local retirement system and the department

24  performs an actuarial review, prepares the statement of

25  actuarial impact, or collects the requested material

26  information, the cost to the department of performing the

27  actuarial review, preparing the statement, or collecting the

28  requested material information shall be paid by the Department

29  of Management Services.

30         (b)  In the case of an affected special district, the

31  Department of Management Services shall also notify the

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 1  Department of Community Affairs. Upon receipt of notification,

 2  the Department of Community Affairs shall proceed pursuant to

 3  the provisions of s. 189.421 with regard to the special

 4  district.

 5         Section 8.  Section 130.04, Florida Statutes, is

 6  amended to read:

 7         130.04  Sale Notice for bids and disposition of

 8  bonds.--In case the issuing of bonds shall be authorized by

 9  the result of such election, the county commissioners shall

10  sell the bonds in the manner provided in s. 218.385. cause

11  notice to be given by publication in a newspaper published in

12  the county, or in some newspaper published in the same

13  judicial circuit, if there be none published in the county,

14  that they will receive bids for the purchase of county bonds

15  at the clerk's office, on a date not less than 10 days nor

16  more than 60 days from the first publication of such notice.

17  The notice shall specify the amount of bonds offered for sale,

18  the rate of interest, and the time when principal and

19  installments of interest shall be due and payable. Any and all

20  bids shall be rejected if the commissioners shall deem it to

21  the best interest for the county so to do, and they may cause

22  a new notice to be given in like manner inviting other bids

23  for said bonds; provided, that when the rate of interest on

24  said bonds exceeds 5 percent per annum, said bonds shall not

25  be sold for less than 95 cents on the dollar, but when any

26  bonds have heretofore been provided for by election, and the

27  rate of interest is 5 percent per annum, or less, that in such

28  cases the county commissioners may accept less than 95 cents

29  upon the dollar, in the sale of said bonds, or for any portion

30  of said bonds not already sold; provided, however, no bonds

31  shall be sold for less than 90 cents on the dollar.

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 1         Section 9.  Subsection (1) of section 132.02, Florida

 2  Statutes, is amended to read:

 3         132.02  Taxing units may refund obligations.--

 4         (1)  Each county, municipality, city, town, special

 5  road and bridge district, special tax school district, or and

 6  other taxing district districts in this state, herein

 7  sometimes called a unit, may issue, pursuant to a resolution

 8  or resolutions of the governing body thereof (meaning thereby

 9  the board or body vested with the power of determining the

10  amount of tax levies required for taxing the taxable property

11  of such unit for the purpose of such unit) and either with or

12  without the approval of such bonds at an election, except as

13  may be required by the Constitution of the state, bonds of

14  such unit for the purpose of refunding any or all bonds,

15  coupons, or interest on any such bonds, or coupons or paving

16  certificates of indebtedness or interest on any such paving

17  certificates of indebtedness, now or hereafter outstanding, or

18  any other funded debt, all of which are herein referred to as

19  bonds, whether such unit created such indebtedness or has

20  assumed, or may become liable therefor, and whether

21  indebtedness to be refunded has matured or to thereafter

22  become matured.

23         Section 10.  Section 132.09, Florida Statutes, is

24  amended to read:

25         132.09  Sale of bonds Notice of sale; bids and award;

26  private sale.--When sold, the refunding bonds (except as

27  otherwise expressly provided) shall be sold in the manner

28  provided in s. 218.385 pursuant to the terms of a notice of

29  sale which shall be published at least twice. The first

30  publication to be not less than 7 days before the date fixed

31  for the sale and to be published in a newspaper published in

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 1  the unit, or if no newspaper is published in the unit, then in

 2  a newspaper published in the county, or if no newspaper is

 3  published in the county, then in a newspaper published in

 4  Tallahassee, and in the discretion of the governing body of

 5  the unit may be published in a financial newspaper in the City

 6  of New York.  Such notices shall state the time and place and

 7  when and where sealed bids will be received, shall state the

 8  amount of bonds, their dates, maturities, denominations and

 9  interest rate or rates (which may be a maximum rate), interest

10  payment dates, an outline of the terms, if any, on which they

11  are redeemable or become payable before maturity, the amount

12  which must be deposited with the bid to secure its performance

13  if accepted, and such other pertinent information as the

14  governing body of the unit may determine.  The notice of sale

15  may require the bidders to fix the interest rate or rates that

16  the bonds are to bear subject to the terms of the notice and

17  the maximum rate permitted by this chapter.  The award of the

18  bonds shall be made by the governing body of the unit to the

19  bidder making the most advantageous bid which shall be

20  determined by the governing body in its absolute and

21  uncontrolled discretion.  The right to reject all bids shall

22  be reserved to the governing body of the unit.  If no bids are

23  received at such public sale, or if all bids are rejected, the

24  bonds may be sold without notice at private sale at any time

25  within one year thereafter, but such bonds shall not be sold

26  at private sale on terms less favorable to the unit than were

27  contained in the best bid at the prior public sale.

28         Section 11.  Paragraph (a) of subsection (2) of section

29  163.05, Florida Statutes, is amended to read:

30         163.05  Small County Technical Assistance Program.--

31  

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 1         (2)  Recognizing the findings in subsection (1), the

 2  Legislature declares that:

 3         (a)  The financial difficulties fiscal emergencies

 4  confronting small counties require an investment that will

 5  facilitate efforts to improve the productivity and efficiency

 6  of small counties' structures and operating procedures.

 7         Section 12.  Subsection (2) of section 166.121, Florida

 8  Statutes, is amended to read:

 9         166.121  Issuance of bonds.--

10         (2)  The governing body of a municipality shall

11  determine the terms and manner of sale and distribution or

12  other disposition of any and all bonds it may issue,

13  consistent with the provisions of s. 218.385, and shall have

14  any and all powers necessary or convenient to such

15  disposition.

16         Section 13.  Section 166.241, Florida Statutes, is

17  amended to read:

18         166.241  Fiscal years, financial reports,

19  appropriations, and budgets, and budget amendments.--

20         (1)  Each municipality shall report its finances

21  annually as provided by general law.

22         (1)(2)  Each municipality shall make provision for

23  establishing a fiscal year beginning October 1 of each year

24  and ending September 30 of the following year.

25         (2)(3)  The governing body of each municipality shall

26  adopt a budget each fiscal year. The budget must be adopted by

27  ordinance or resolution unless otherwise specified in the

28  respective municipality's charter. The amount available from

29  taxation and other sources, including amounts carried over

30  from prior fiscal years, must equal the total appropriations

31  for expenditures and reserves. The budget must regulate

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 1  expenditures of the municipality, and it is unlawful for any

 2  officer of a municipal government to expend or contract for

 3  expenditures in any fiscal year except in pursuance of

 4  budgeted appropriations.

 5         (3)  The governing body of each municipality at any

 6  time within a fiscal year or within up to 60 days following

 7  the end of the fiscal year may amend a budget for that year as

 8  follows:

 9         (a)  Appropriations for expenditures within a fund may

10  be decreased or increased by motion recorded in the minutes,

11  provided that the total of the appropriations of the fund is

12  not changed.

13         (b)  The governing body may establish procedures by

14  which the designated budget officer may authorize certain

15  budget amendments within a department, provided that the total

16  of the appropriations of the department is not changed.

17         (c)  If a budget amendment is required for a purpose

18  not specifically authorized in paragraph (a) or paragraph (b),

19  the budget amendment must be adopted in the same manner as the

20  original budget unless otherwise specified in the charter of

21  the respective municipality.

22         Section 14.  Section 189.4044, Florida Statutes, is

23  amended to read:

24         189.4044  Special procedures for inactive districts.--

25         (1)  The department shall declare inactive any special

26  district in this state by documenting that filing a report

27  with the Speaker of the House of Representatives and the

28  President of the Senate which shows that such special district

29  is no longer active.  The inactive status of the special

30  district must be based upon a finding:

31  

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 1         (a)  That The special district meets one of the

 2  following criteria:

 3         1.  The registered agent of the district, the chair of

 4  the governing body of the district, or the governing body of

 5  the appropriate local general-purpose government notifies the

 6  department in writing that the district has taken no action

 7  for 2 or more calendar years;

 8         2.  Following an inquiry from the department, the

 9  registered agent of the district, the chair of the governing

10  body of the district, or the governing body of the appropriate

11  local general-purpose government notifies the department in

12  writing that the district has not had a governing board or a

13  sufficient number of governing board members to constitute a

14  quorum for 2 or more years or the registered agent of the

15  district, the chair of the governing body of the district, or

16  the governing body of the appropriate local general-purpose

17  government fails to respond to the department's inquiry within

18  21 days; or 18 or more months;

19         3.  The department determines, pursuant to s. 189.421,

20  that the district has failed to file or make a good faith

21  effort to file any of the reports listed in s. 189.419.; or

22         4.  The district has failed, for 2 consecutive fiscal

23  years, to pay fees assessed by the Special District

24  Information Program pursuant to this chapter.

25         (b)  The department, special district, or local

26  general-purpose government published That a notice of the

27  proposed declaration of inactive status has been published

28  once a week for 2 weeks in a newspaper of general circulation

29  in within the county or municipality in which wherein the

30  territory of the special district is located and sent a copy

31  of such notice by certified mail to the registered agent or

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 1  chair of the board, if any. Such notice must include, stating

 2  the name of the said special district, the law under which it

 3  was organized and operating, a general description of the

 4  territory included in the said special district, and a

 5  statement stating that any objections must be filed pursuant

 6  to chapter 120 within 21 days after the publication date to

 7  the proposed declaration or to any claims against the assets

 8  of said special district shall be filed not later than 60 days

 9  following the date of last publication with the department;

10  and

11         (c)  Twenty-one That 60 days have elapsed from the last

12  publication date of the notice of proposed declaration of

13  inactive status and no administrative appeals were sustained

14  objections have been filed.

15         (2)  If any special district is declared inactive

16  pursuant to this section, the property or assets of the

17  special district are subject to legal process for payment of

18  any debts of the district.  After the payment of all the debts

19  of said inactive special district, the remainder of its

20  property or assets shall escheat to the county or municipality

21  wherein located.  If, however, it shall be necessary, in order

22  to pay any such debt, to levy any tax or taxes on the property

23  in the territory or limits of the inactive special district,

24  the same may be assessed and levied by order of the local

25  general-purpose government wherein the same is situated and

26  shall be assessed by the county property appraiser and

27  collected by the county tax collector.

28         (3)  In the case of a district created by special act

29  of the Legislature, the department shall send a notice of

30  declaration of inactive status to notify the Speaker of the

31  House of Representatives and the President of the Senate. The

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 1  notice of declaration of inactive status shall reference of

 2  each known special act creating or amending the charter of any

 3  special district declared to be inactive under this

 4  section.  The declaration of inactive status shall be

 5  sufficient notice as required by s. 10, Art. III of the State

 6  Constitution to authorize the Legislature to repeal any

 7  special laws so reported. In the case of a district created by

 8  one or more local general-purpose governments, the department

 9  shall send a notice of declaration of inactive status to the

10  chair of the governing body of each local general-purpose

11  government that created the district.  In the case of a

12  district created by interlocal agreement, the department shall

13  send a notice of declaration of inactive status to the chair

14  of the governing body of each local general-purpose government

15  which entered into the interlocal agreement.

16         (4)  The entity that created a special district

17  declared inactive under this section must dissolve the special

18  district be dissolved by repealing repeal of its enabling laws

19  or by other appropriate means.

20         Section 15.  Subsection (1) of section 189.412, Florida

21  Statutes, is amended, and subsection (8) is added to that

22  section, to read:

23         189.412  Special District Information Program; duties

24  and responsibilities.--The Special District Information

25  Program of the Department of Community Affairs is created and

26  has the following special duties:

27         (1)  The collection and maintenance of special district

28  noncompliance compliance status reports from the Department of

29  Management Services Auditor General, the Department of

30  Financial Services, the Division of Bond Finance of the State

31  Board of Administration, and the Auditor General the

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 1  Department of Management Services, the Department of Revenue,

 2  and the Commission on Ethics for the reporting required in ss.

 3  112.3144, 112.3145, 112.3148, 112.3149, 112.63, 200.068,

 4  218.32, 218.38, and 218.39, and 280.17 and chapter 121 and

 5  from state agencies administering programs that distribute

 6  money to special districts. The noncompliance special district

 7  compliance status reports must list those consist of a list of

 8  special districts used in that state agency and a list of

 9  which special districts that did not comply with the statutory

10  reporting requirements statutorily required by that agency.

11         (8)  Providing assistance to local general-purpose

12  governments and certain state agencies in collecting

13  delinquent reports or information, helping special districts

14  comply with reporting requirements, declaring special

15  districts inactive when appropriate, and, when directed by the

16  Legislative Auditing Committee, initiating enforcement

17  provisions as provided in ss. 189.4044, 189.419, and 189.421.

18         Section 16.  Subsections (1) and (2) of section

19  189.418, Florida Statutes, are amended, subsection (5) is

20  renumbered as subsection (6), present subsection (6) is

21  renumbered as subsection (7) and amended, and a new subsection

22  (5) is added to that section, to read:

23         189.418  Reports; budgets; audits.--

24         (1)  When a new special district is created, the

25  district must forward to the department, within 30 days after

26  the adoption of the special act, rule, ordinance, resolution,

27  or other document that provides for the creation of the

28  district, a copy of the document and a written statement that

29  includes a reference to the status of the special district as

30  dependent or independent and the basis for such

31  classification. In addition to the document or documents that

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 1  create the district, the district must also submit a map of

 2  the district, showing any municipal boundaries that cross the

 3  district's boundaries, and any county lines if the district is

 4  located in more than one county. The department must notify

 5  the local government or other entity and the district within

 6  30 days after receipt of the document or documents that create

 7  the district as to whether the district has been determined to

 8  be dependent or independent.

 9         (2)  Any amendment, modification, or update of the

10  document by which the district was created, including changes

11  in boundaries, must be filed with the department within 30

12  days after adoption. The department may initiate proceedings

13  against special districts as provided in s. ss. 189.421 and

14  189.422 for failure to file the information required by this

15  subsection.

16         (5)  The governing body of each special district at any

17  time within a fiscal year or within up to 60 days following

18  the end of the fiscal year may amend a budget for that

19  year.  The budget amendment must be adopted by resolution.

20         (7)(6)  All reports or information required to be filed

21  with a local governing authority under ss. 189.415, 189.416,

22  and 189.417, 218.32, and 218.39 and this section shall:

23         (a)  When the local governing authority is a county, be

24  filed with the clerk of the board of county commissioners.

25         (b)  When the district is a multicounty district, be

26  filed with the clerk of the county commission in each county.

27         (c)  When the local governing authority is a

28  municipality, be filed at the place designated by the

29  municipal governing body.

30         Section 17.  Section 189.419, Florida Statutes, is

31  amended to read:

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 1         189.419  Effect of failure to file certain reports or

 2  information.--

 3         (1)  If a special district fails to file the reports or

 4  information required under s. 189.415, s. 189.416, or s.

 5  189.417, s. 189.418, s. 218.32, or s. 218.39 and a description

 6  of all new bonds as provided in s. 218.38(1) with the local

 7  governing authority, the person authorized to receive and read

 8  the reports or information shall notify the district's

 9  registered agent and the appropriate local governing authority

10  or authorities. If requested by the district At any time, the

11  governing authority shall may grant an extension of time of up

12  to 30 days for filing the required reports or information,

13  except that an extension may not exceed 30 days.

14         (2)  If at any time the local governing authority or

15  authorities or the board of county commissioners determines

16  that there has been an unjustified failure to file the reports

17  or information described in subsection (1), it may notify

18  petition the department and the department may proceed

19  pursuant to initiate proceedings against the special district

20  in the manner provided in s. 189.421.

21         (3)  If a special district fails to file the reports or

22  information required under s. 112.63, s. 218.32, s. 218.38, or

23  s. 218.39 with the appropriate state agency, the agency shall

24  notify the department, and the department shall proceed

25  pursuant to s. 189.421 may initiate proceedings against the

26  special district in the manner provided in s. 189.421 or

27  assess fines of not more than $25, with an aggregate total not

28  to exceed $50, when formal inquiries do not resolve the

29  noncompliance.

30         Section 18.  Section 189.421, Florida Statutes, is

31  amended to read:

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 1         (Substantial rewording of section. See

 2         s. 189.421, F.S., for present text.)

 3         189.421  Failure of district to disclose financial

 4  reports.--

 5         (1)  When notified pursuant to s. 189.419, the

 6  department shall attempt to assist a special district to

 7  comply with its financial reporting requirements by sending a

 8  certified letter to the special district, and a copy of the

 9  letter to the chair of the governing body of the local

10  general-purpose government, which includes the following: a

11  description of the required report, including statutory

12  submission deadlines, a contact telephone number for technical

13  assistance to help the special district comply, a 60-day

14  extension of time for filing the required report with the

15  appropriate entity, the address where the report must be

16  filed, and an explanation of the penalties for

17  noncompliance.  The department may grant an additional 30-day

18  extension of time if requested to do so in writing by the

19  special district.  The department shall notify the appropriate

20  entity of the new extension of time.  In the case of a special

21  district that did not timely file the reports or information

22  required by s. 218.38, the department shall send a certified

23  technical assistance letter to the special district which

24  summarizes the requirements and encourages the special

25  district to take steps to prevent the noncompliance from

26  reoccurring.

27         (2)  Failure of a special district to comply with the

28  financial reporting requirements after the procedures of

29  subsection (1) are exhausted shall be deemed final action of

30  the special district.  The financial reporting requirements

31  are declared to be essential requirements of law.  Remedy for

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 1  noncompliance shall be by writ of certiorari as set forth in

 2  subsection (3).

 3         (3)  Pursuant to s. 11.40(5)(b), the Legislative

 4  Auditing Committee shall notify the department of those

 5  districts that failed to file the required report.  Within 30

 6  days after receiving this notice or within 30 days after the

 7  extension date provided in subsection (1), whichever occurs

 8  later, the department shall proceed as follows:

 9  notwithstanding the provisions of chapter 120, the department

10  shall file a petition for writ of certiorari with the circuit

11  court. Venue for all actions pursuant to this subsection shall

12  be in Leon County. The court shall award the prevailing party

13  attorney's fees and costs in all cases filed pursuant to this

14  section unless affirmatively waived by all parties. A writ of

15  certiorari shall be issued unless a respondent establishes

16  that the notification of the Legislative Auditing Committee

17  was issued as a result of material error. Proceedings under

18  this subsection shall otherwise be governed by the Rules of

19  Appellate Procedure.

20         Section 19.  Subsection (5) of section 189.428, Florida

21  Statutes, is amended to read:

22         189.428  Special districts; oversight review process.--

23         (5)  Those conducting the oversight review process

24  shall, at a minimum, consider the listed criteria for

25  evaluating the special district, but may also consider any

26  additional factors relating to the district and its

27  performance.  If any of the listed criteria does do not apply

28  to the special district being reviewed, it they need not be

29  considered. The criteria to be considered by the reviewer

30  include:

31  

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 1         (a)  The degree to which the service or services

 2  offered by the special district are essential or contribute to

 3  the well-being of the community.

 4         (b)  The extent of continuing need for the service or

 5  services currently provided by the special district.

 6         (c)  The extent of municipal annexation or

 7  incorporation activity occurring or likely to occur within the

 8  boundaries of the special district and its impact on the

 9  delivery of services by the special district.

10         (d)  Whether there is a less costly alternative method

11  of delivering the service or services that would adequately

12  provide the district residents with the services provided by

13  the district.

14         (e)  Whether transfer of the responsibility for

15  delivery of the service or services to an entity other than

16  the special district being reviewed could be accomplished

17  without jeopardizing the district's existing contracts, bonds,

18  or outstanding indebtedness.

19         (f)  Whether the Auditor General has notified the

20  Legislative Auditing Committee that the special district's

21  audit report, reviewed pursuant to s. 11.45(7), indicates that

22  the district has met any of the conditions specified in s.

23  218.503(1) or that a deteriorating financial condition exists

24  that may cause a condition described in s. 218.503(1) to occur

25  if actions are not taken to address such condition.

26         (g)  Whether the Auditor General has determined that

27  the special district is in a state of financial emergency as

28  provided in s. 218.503(1), and has notified the Governor and

29  the Legislative Auditing Committee.

30         (g)(h)  Whether the district is inactive according to

31  the official list of special districts, and whether the

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 1  district is meeting and discharging its responsibilities as

 2  required by its charter, as well as projected increases or

 3  decreases in district activity.

 4         (h)(i)  Whether the special district has failed to

 5  comply with any of the reporting requirements in this chapter,

 6  including preparation of the public facilities report.

 7         (i)(j)  Whether the special district has designated a

 8  registered office and agent as required by s. 189.416, and has

 9  complied with all open public records and meeting

10  requirements.

11         Section 20.  Paragraph (a) of subsection (1) of section

12  189.439, Florida Statutes, is amended to read:

13         189.439  Bonds.--

14         (1)  AUTHORIZATION AND FORM OF BONDS.--

15         (a)  The authority may issue and sell bonds for any

16  purpose for which the authority has the power to expend money,

17  including, without limitation, the power to obtain working

18  capital loans to finance the costs of any project and to

19  refund any bonds or other indebtedness at the time outstanding

20  at or before maturity. Bonds may be sold in the manner

21  provided in s. 218.385 and by public or negotiated sale after

22  advertisement, if any, as the board considers

23  advisable.  Bonds may be authorized by resolution of the

24  board.

25         Section 21.  Subsections (1) and (2) of section

26  191.005, Florida Statutes, are amended to read:

27         191.005  District boards of commissioners; membership,

28  officers, meetings.--

29         (1)(a)  With the exception of districts whose governing

30  boards are appointed collectively by the Governor, the county

31  commission, and any cooperating city within the county, the

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 1  business affairs of each district shall be conducted and

 2  administered by a five-member board. All three-member boards

 3  existing on the effective date of this act shall be converted

 4  to five-member boards, except those permitted to continue as a

 5  three-member board by special act adopted in 1997 or

 6  thereafter. The board shall be elected in nonpartisan

 7  elections by the electors of the district.  Except as provided

 8  in this act, such elections shall be held at the time and in

 9  the manner prescribed by law for holding general elections in

10  accordance with s. 189.405(2)(a) and (3), and each member

11  shall be elected for a term of 4 years and serve until the

12  member's successor assumes office. Candidates for the board of

13  a district shall qualify with the county supervisor of

14  elections in whose jurisdiction the district is located.  If

15  the district is a multicounty district, candidates shall

16  qualify with the Department of State.  All candidates may

17  qualify by paying a filing fee of $25 or by obtaining the

18  signatures of at least 25 registered electors of the district

19  on petition forms provided by the supervisor of elections

20  which petitions shall be submitted and checked in the same

21  manner as petitions filed by nonpartisan judicial candidates

22  pursuant to s. 105.035. Notwithstanding s. 106.021, a

23  candidate who does not collect contributions and whose only

24  expense is the filing fee is not required to appoint a

25  campaign treasurer or designate a primary campaign depository.

26         (b)1.  At the next general election following the

27  effective date of this act, or on or after the effective date

28  of a special act or general act of local application creating

29  a new district, the members of the board shall be elected by

30  the electors of the district in the manner provided in this

31  section.  The office of each member of the board is designated

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 1  as being a seat on the board, distinguished from each of the

 2  other seats by a numeral:  1, 2, 3, 4, or 5.  The numerical

 3  seat designation does not designate a geographical subdistrict

 4  unless such subdistrict exists on the effective date of this

 5  act, in which case the candidates must reside in the

 6  subdistrict, and only electors of the subdistrict may vote in

 7  the election for the member from that subdistrict.  Each

 8  candidate for a seat on the board shall designate, at the time

 9  the candidate qualifies, the seat on the board for which the

10  candidate is qualifying.  The name of each candidate who

11  qualifies for election to a seat on the board shall be

12  included on the ballot in a way that clearly indicates the

13  seat for which the candidate is a candidate.  The candidate

14  for each seat who receives the most votes cast for a candidate

15  for the seat shall be elected to the board.

16         2.  If, on the effective date of this act, a district

17  presently in existence elects members of its board, the next

18  election shall be conducted in accordance with this section,

19  but this section does not require the early expiration of any

20  member's term of office by more than 60 days.

21         3.  If, on the effective date of this act, a district

22  does not elect the members of its board, the entire board

23  shall be elected in accordance with this section.  However, in

24  the first election following the effective date of this act,

25  seats 1, 3, and 5 shall be designated for 4-year terms and

26  seats 2 and 4 shall be designated for 2-year terms.

27         4.  If, on the effective date of this act, the district

28  has an elected three-member board, one of the two seats added

29  by this act shall, for the first election following the

30  effective date of this act, be designated for a 4-year term

31  and the other for a 2-year term, unless the terms of the three

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 1  existing seats all expire within 6 months of the first

 2  election following the effective date of this act, in which

 3  case seats 1, 3, and 5 shall be designated for 4-year terms

 4  and seats 2 and 4 shall be designated for 2-year terms.

 5         5.  If the district has an elected three-member board

 6  designated to remain three members by special act adopted in

 7  1997 or thereafter, the terms of the board members shall be

 8  staggered. In the first election following the effective date

 9  of this act, seats 1 and 3 shall be designated for 4-year

10  terms, and seat 2 for a 2-year term.

11         (c)  The board of any district may request the local

12  legislative delegation that represents the area within the

13  district to create by special law geographical subdistricts

14  for board seats.  Any board of five members or larger elected

15  on a subdistrict basis as of the effective date of this act

16  shall continue to elect board members from such previously

17  designated subdistricts, and this act shall not require the

18  elimination of board seats from such boards.

19         (2)  Each member of the board must be a qualified

20  elector at the time he or she qualifies and continually

21  throughout his or her term. Any board members who ceases to be

22  a qualified elector is automatically removed pursuant to this

23  act.

24         Section 22.  Section 218.075, Florida Statutes, is

25  amended to read:

26         218.075  Reduction or waiver of permit processing

27  fees.--Notwithstanding any other provision of law, the

28  Department of Environmental Protection and the water

29  management districts shall reduce or waive permit processing

30  fees for counties with a population of 50,000 or less on April

31  1, 1994, until such counties exceed a population of 75,000 and

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 1  municipalities with a population of 25,000 or less, or any

 2  county or municipality not included within a metropolitan

 3  statistical area. Fee reductions or waivers shall be approved

 4  on the basis of fiscal hardship or environmental need for a

 5  particular project or activity. The governing body must

 6  certify that the cost of the permit processing fee is a fiscal

 7  hardship due to one of the following factors:

 8         (1)  Per capita taxable value is less than the

 9  statewide average for the current fiscal year;

10         (2)  Percentage of assessed property value that is

11  exempt from ad valorem taxation is higher than the statewide

12  average for the current fiscal year;

13         (3)  Any condition specified in s. 218.503(1) which

14  results in the county or municipality being in s. 218.503,

15  that determines a state of financial emergency;

16         (4)  Ad valorem operating millage rate for the current

17  fiscal year is greater than 8 mills; or

18         (5)  A financial condition that is documented in annual

19  financial statements at the end of the current fiscal year and

20  indicates an inability to pay the permit processing fee during

21  that fiscal year.

22  

23  The permit applicant must be the governing body of a county or

24  municipality or a third party under contract with a county or

25  municipality and the project for which the fee reduction or

26  waiver is sought must serve a public purpose. If a permit

27  processing fee is reduced, the total fee shall not exceed

28  $100.

29         Section 23.  Subsection (3) is added to section 218.32,

30  Florida Statutes, to read:

31  

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 1         218.32  Annual financial reports; local governmental

 2  entities.--

 3         (3)  The department shall notify the President of the

 4  Senate and the Speaker of the House of Representatives of any

 5  municipality that has not reported any financial activity for

 6  the last 4 fiscal years.  Such notice must be sufficient to

 7  initiate dissolution procedures as described in s.

 8  165.051(1)(a).  Any special law authorizing the incorporation

 9  or creation of the municipality must be included within the

10  notification.

11         Section 24.  Section 218.321, Florida Statutes, is

12  repealed.

13         Section 25.  Subsection (3) of section 218.39, Florida

14  Statutes, is amended to read:

15         218.39  Annual financial audit reports.--

16         (3)(a)  A dependent special district may make provision

17  for an annual financial audit by being included within the

18  audit of another local governmental entity upon which it is

19  dependent.  An independent special district may not make

20  provision for an annual financial audit by being included

21  within the audit of another local governmental entity.

22         (b)  A special district that is a component unit, as

23  defined by generally accepted accounting principles, of a

24  local government entity shall provide the local governmental

25  entity, within a reasonable time period as established by the

26  local governmental entity, with financial information

27  necessary to comply with this section. The failure of a

28  component unit to provide this financial information must be

29  noted in the annual financial audit report of the local

30  governmental entity.

31  

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 1         Section 26.  Subsection (3) of section 218.36, Florida

 2  Statutes, is amended to read:

 3         218.36  County officers; record and report of fees and

 4  disposition of same.--

 5         (3)  The board of county commissioners may shall, on

 6  the 32nd day following the close of the fiscal year, notify

 7  the Governor of the failure of any county officer to comply

 8  with the provisions of this section.  Such notification shall

 9  specify the name of the officer and the office held by him or

10  her at the time of such failure and shall subject said officer

11  to suspension from office at the Governor's discretion.

12         Section 27.  Section 218.369, Florida Statutes, is

13  amended to read:

14         218.369  Definitions applicable to ss.

15  218.37-218.386.--As used in this section and in ss. 218.37,

16  218.38, 218.385, and 218.386, the term "unit of local

17  government," except where exception is made, means a county,

18  municipality, special district, district school board, local

19  agency, authority, or consolidated city-county government or

20  any other local governmental body or public body corporate and

21  politic authorized or created by general or special law and

22  granted the power to issue general obligation or revenue

23  bonds; and the words "general obligation or revenue bonds"

24  shall be interpreted to include within their scope general

25  obligation bonds, revenue bonds, special assessment bonds,

26  limited revenue bonds, special obligation bonds, debentures,

27  and other similar instruments, but not bond anticipation

28  notes.

29         Section 28.  Part V of chapter 218, Florida Statutes,

30  entitled "Financial Emergencies" is renamed "Local

31  

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 1  Governmental Entity and District School Board Financial

 2  Emergencies."

 3         Section 29.  Section 218.50, Florida Statutes, is

 4  amended to read:

 5         218.50  Short title.--Sections 218.50-218.504 may be

 6  cited shall be known as the "Local Governmental Entity and

 7  District School Board Government Financial Emergencies Act."

 8         Section 30.  Section 218.501, Florida Statutes, is

 9  amended to read:

10         218.501  Purposes.--The purposes of ss. 218.50-218.504

11  are:

12         (1)  To promote preserve and protect the fiscal

13  responsibility solvency of local governmental entities and

14  district school boards.

15         (2)  To assist local governmental entities and district

16  school boards in providing essential services without

17  interruption and in meeting their financial obligations.

18         (3)  To assist local governmental entities and district

19  school boards through the improvement of local financial

20  management procedures.

21         Section 31.  Section 218.502, Florida Statutes, is

22  amended to read:

23         218.502  Definition.--As used in ss. 218.50-218.504,

24  the term "local governmental entity" means a county,

25  municipality, or special district, or district school board.

26         Section 32.  Section 218.503, Florida Statutes, is

27  amended to read:

28         218.503  Determination of financial emergency.--

29         (1)  A Local governmental entities and district school

30  boards shall be subject to review and oversight by the

31  Governor or the Commissioner of Education entity is in a state

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 1  of financial emergency when any one of the following

 2  conditions occurs:

 3         (a)  Failure within the same fiscal year in which due

 4  to pay short-term loans from banks or failure to make bond

 5  debt service or other long-term debt payments when due, as a

 6  result of a lack of funds.

 7         (b)  Failure to pay uncontested claims from creditors

 8  within 90 days after the claim is presented, as a result of a

 9  lack of funds.

10         (c)(b)  Failure to transfer at the appropriate time,

11  due to lack of funds:

12         1.  Taxes withheld on the income of employees; or

13         2.  Employer and employee contributions for:

14         a.  Federal social security; or

15         b.  Any pension, retirement, or benefit plan of an

16  employee.

17         (d)(c)  Failure for one pay period to pay, due to lack

18  of funds:

19         1.  Wages and salaries owed to employees; or

20         2.  Retirement benefits owed to former employees.

21         (e)(d)  An unreserved or total fund balance or retained

22  earnings deficit, or unrestricted or total net assets deficit,

23  as reported on the balance sheet or statement of net assets on

24  the general purpose or basic financial statements, for which

25  sufficient resources of the local governmental entity, as

26  reported on the balance sheet or statement of net assets on

27  the general purpose or basic financial statements, are not

28  available to cover the deficit for 2 successive years.

29  Resources available to cover reported deficits include net

30  assets that are not otherwise restricted by federal, state, or

31  local laws, bond covenants, contractual agreements, or other

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 1  legal constraints. Fixed or capital assets, the disposal of

 2  which would impair the ability of a local governmental entity

 3  to carry out its functions, are not considered resources

 4  available to cover reported deficits.

 5         (e)  Noncompliance of the local government retirement

 6  system with actuarial conditions provided by law.

 7         (2)  A local governmental entity shall notify the

 8  Governor and the Legislative Auditing Committee, and a

 9  district school board shall notify the Commissioner of

10  Education and the Legislative Auditing Committee, when one or

11  more of the conditions specified in subsection (1) have

12  occurred or will occur if action is not taken to assist the

13  local governmental entity or district school board.  In

14  addition, any state agency must, within 30 days after a

15  determination that one or more of the conditions specified in

16  subsection (1) have occurred or will occur if action is not

17  taken to assist the local governmental entity or district

18  school board the identification of the financial emergency,

19  notify the Governor or the Commissioner of Education, as

20  appropriate, and the Legislative Auditing Committee when one

21  or more of the conditions specified in subsection (1) have

22  occurred or will occur if action is not taken to assist a

23  local governmental entity.

24         (3)  Upon notification that one or more of the

25  conditions in subsection (1) exist, the Governor or his or her

26  designee shall contact the local governmental entity or the

27  Commissioner of Education or his or her designee shall contact

28  the district school board to determine what actions have been

29  taken by the local governmental entity or the district school

30  board to resolve the condition financial emergency. The

31  Governor or the Commissioner of Education, as appropriate,

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 1  shall determine whether the local governmental entity or the

 2  district school board needs state assistance to resolve the

 3  condition.  If state assistance is needed, the local

 4  governmental entity or district school board is considered to

 5  be in a state of financial emergency.  The Governor or the

 6  Commissioner of Education, as appropriate, has the authority

 7  to implement measures as set forth in ss. 218.50-218.504 to

 8  assist the local governmental entity or district school board

 9  in resolving resolve the financial emergency.  Such measures

10  may include, but are not limited to:

11         (a)  Requiring approval of the local governmental

12  entity's budget by the Governor or approval of the district

13  school board's budget by the Commissioner of Education.

14         (b)  Authorizing a state loan to a the local

15  governmental entity and providing for repayment of same.

16         (c)  Prohibiting a local governmental entity or

17  district school board from issuing bonds, notes, certificates

18  of indebtedness, or any other form of debt until such time as

19  it is no longer subject to this section.

20         (d)  Making such inspections and reviews of records,

21  information, reports, and assets of the local governmental

22  entity or district school board. The appropriate local

23  officials shall cooperate in such, in which inspections and

24  reviews the appropriate local officials shall cooperate.

25         (e)  Consulting with the officials and auditors of the

26  local governmental entity or the district school board and the

27  appropriate state officials agency regarding any steps

28  necessary to bring the books of account, accounting systems,

29  financial procedures, and reports into compliance with state

30  requirements.

31  

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 1         (f)  Providing technical assistance to the local

 2  governmental entity or the district school board.

 3         (g)1.  Establishing a financial emergency emergencies

 4  board to oversee the activities of the local governmental

 5  entity or the district school board. If a financial emergency

 6  The board, if is established for a local governmental entity,

 7  shall be appointed by the Governor shall appoint board members

 8  and select a chair. If a financial emergency board is

 9  established for a district school board, the State Board of

10  Education shall appoint board members and select a chair. The

11  Governor shall select a chair and such other officers as are

12  necessary. The financial emergency board shall adopt such

13  rules as are necessary for conducting board business. The

14  board may:

15         a.  Make such reviews of records, reports, and assets

16  of the local governmental entity or the district school board

17  as are needed.

18         b.  Consult with the officials and auditors of the

19  local governmental entity or the district school board and the

20  appropriate state officials regarding any steps necessary to

21  bring the books of account, accounting systems, financial

22  procedures, and reports of the local governmental entity or

23  the district school board into compliance with state

24  requirements.

25         c.  Review the operations, management, efficiency,

26  productivity, and financing of functions and operations of the

27  local governmental entity or the district school board.

28         2.  The recommendations and reports made by the

29  financial emergency board must be submitted to the Governor

30  for local governmental entities or to the Commissioner of

31  

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 1  Education and the State Board of Education for district school

 2  boards for appropriate action.

 3         (h)  Requiring and approving a plan, to be prepared by

 4  officials of the appropriate state agency in conjunction with

 5  the local governmental entity or the district school board in

 6  consultation with the appropriate state officials, prescribing

 7  actions that will cause the local governmental entity or

 8  district school board to no longer be subject to this

 9  section.  The plan must include, but need not be limited to:

10         1.  Provision for payment in full of obligations

11  outlined in subsection (1), designated as priority items, that

12  are currently all payments due or will to come due on debt

13  obligations, pension payments, and all payments and charges

14  imposed or mandated by federal or state law and for all

15  judgments and past due accounts, as priority items of

16  expenditures.

17         2.  Establishment of a basis of priority budgeting or

18  zero-based budgeting in order, so as to eliminate low-priority

19  items that are not affordable.

20         3.  The prohibition of a level of operations which can

21  be sustained only with nonrecurring revenues.

22         (4)  A During the financial emergency period, the local

23  governmental entity or district school board may not seek

24  application of laws under the bankruptcy provisions of the

25  United States Constitution except with the prior approval of

26  the Governor for local governmental entities or the

27  Commissioner of Education for district school boards.

28         (5)(a)  The governing authority of any municipality

29  having a resident population of 300,000 or more on or after

30  April 1, 1999, which has been declared in a state of financial

31  emergency pursuant to this section may impose a discretionary

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 1  per-vehicle surcharge of up to 20 percent on the gross

 2  revenues of the sale, lease, or rental of space at parking

 3  facilities within the municipality which are open for use to

 4  the general public.

 5         (b)  A municipal governing authority that imposes the

 6  surcharge authorized by this subsection may use the proceeds

 7  of such surcharge for the following purposes only:

 8         1.  No less than 60 percent and no more than 80 percent

 9  of the surcharge proceeds shall be used by the governing

10  authority to reduce its ad valorem tax millage rate or to

11  reduce or eliminate non-ad valorem assessments.

12         2.  A portion of the balance of the surcharge proceeds

13  shall be used by the governing authority to increase its

14  budget reserves; however, the governing authority shall not

15  reduce the amount it allocates for budget reserves from other

16  sources below the amount allocated for reserves in the fiscal

17  year prior to the year in which the surcharge is initially

18  imposed. When a 15-percent budget reserve is achieved, based

19  on the average gross revenue for the most recent 3 prior

20  fiscal years, the remaining proceeds from this subparagraph

21  shall be used for the payment of annual debt service related

22  to outstanding obligations backed or secured by a covenant to

23  budget and appropriate from non-ad valorem revenues.

24         (c)  This subsection expires June 30, 2006.

25         Section 33.  Section 218.504, Florida Statutes, is

26  amended to read:

27         218.504  Cessation of state action.--The Governor or

28  the Commissioner of Education, as appropriate, has the

29  authority to terminate all state actions pursuant to ss.

30  218.50-218.504.  Cessation of state action must not occur

31  

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 1  until the Governor or the Commissioner of Education, as

 2  appropriate, has determined that:

 3         (1)  The local governmental entity or district school

 4  board:

 5         (a)  Has established and is operating an effective

 6  financial accounting and reporting system.

 7         (b)  Has resolved corrected or eliminated the fiscal

 8  emergency conditions outlined in s. 218.503(1).

 9         (2)  None of the No new fiscal emergency conditions

10  outlined in s. 218.503(1) exists exist.

11         Section 34.  Chapter 131, Florida Statutes, consisting

12  of sections 131.01, 131.02, 131.03, 131.04, 131.05, and

13  131.06, Florida Statutes, is repealed.

14         Section 35.  Section 132.10, Florida Statutes, is

15  repealed.

16         Section 36.  Section 165.052, Florida Statutes, is

17  repealed.

18         Section 37.  Section 189.409, Florida Statutes, is

19  repealed.

20         Section 38.  Section 189.422, Florida Statutes, is

21  repealed.

22         Section 39.  Section 200.0684, Florida Statutes, is

23  repealed.

24         Section 40.  Paragraph (h) of subsection (1) of section

25  218.37, Florida Statutes, is repealed.

26         Section 41.  Section 215.195, Florida Statutes, is

27  amended to read:

28         215.195  Agency deposits relating to the Statewide Cost

29  Allocation Plan.--

30         (1)  APPLICATION FOR ALLOCABLE STATEWIDE

31  OVERHEAD.--Each state agency, and the judicial branch, making

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 1  application for federal grant or contract funds shall, in

 2  accordance with the Statewide Cost Allocation Plan (SWCAP),

 3  include in its application a prorated share of the cost of

 4  services provided by state central service agencies which are

 5  reimbursable to the state pursuant to the provisions of Office

 6  of Management and Budget Circular A-87. Preparation of the

 7  Statewide Cost Allocation Plan and coordination thereof with

 8  all applicable parties is the responsibility of the Department

 9  of Financial Services. The Department of Financial Services

10  shall ensure that the SWCAP presents the most favorable

11  allocation of central services cost allowable to the state by

12  the Federal Government.

13         (2)  DEPOSIT OF OVERHEAD IN THE GENERAL REVENUE

14  FUND.--If an application for federal grant or contract funds

15  is approved, the state agency or judicial branch receiving the

16  federal grant or contract shall identify that portion

17  representing reimbursement of allocable statewide overhead and

18  deposit that amount into the General Revenue Fund unallocated

19  as directed by the Department of Financial Services Executive

20  Office of the Governor. The Department of Financial Services

21  shall be responsible for monitoring agency compliance with

22  this section.

23         Section 42.  Section 215.97, Florida Statutes, is

24  amended to read:

25         215.97  Florida Single Audit Act.--

26         (1)  The purposes of the section are to:

27         (a)  Establish uniform state audit requirements for

28  state financial assistance provided by state agencies to

29  nonstate entities to carry out state projects.

30  

31  

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 1         (b)  Promote sound financial management, including

 2  effective internal controls, with respect to state financial

 3  assistance administered by nonstate entities.

 4         (c)  Promote audit economy and efficiency by relying to

 5  the extent possible on already required audits of federal

 6  financial assistance provided to nonstate entities.

 7         (d)  Provide for identification of state financial

 8  assistance transactions in the appropriations act, state

 9  accounting records, and recipient organization records.

10         (e)  Promote improved coordination and cooperation

11  within and between affected state agencies providing state

12  financial assistance and nonstate entities receiving state

13  assistance.

14         (f)  Ensure, to the maximum extent possible, that state

15  agencies monitor, use, and followup on audits of state

16  financial assistance provided to nonstate entities.

17         (2)  Definitions; as used in this section, the term:

18         (a)  "Audit threshold" means the threshold amount used

19  to determine to use in determining when a state single audit

20  or project-specific audit of a nonstate entity shall be

21  conducted in accordance with this section. Each nonstate

22  entity that expends a total amount of state financial

23  assistance equal to or in excess of $300,000 in any fiscal

24  year of such nonstate entity shall be required to have a state

25  single audit, or a project-specific audit performed by an

26  independent auditor, for such fiscal year in accordance with

27  the requirements of this section. Every 2 years the Auditor

28  General, after consulting with the Executive Office of the

29  Governor, the Department of Financial Services Chief Financial

30  Officer, and all state awarding agencies that provide state

31  financial assistance to nonstate entities, shall review the

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 1  threshold amount for requiring audits under this section and

 2  may adjust such threshold dollar amount consistent with the

 3  purposes purpose of this section.

 4         (b)  "Auditing standards" means the auditing standards

 5  as stated in the rules of the Auditor General as applicable to

 6  for-profit organizations, nonprofit organizations, or local

 7  governmental entities.

 8         (c)  "Catalog of State Financial Assistance" means a

 9  comprehensive listing of state projects. The Catalog of State

10  Financial Assistance shall be issued by the Department of

11  Financial Services Executive Office of the Governor after

12  conferring with the Chief Financial Officer and all state

13  awarding agencies that provide state financial assistance to

14  nonstate entities. The Catalog of State Financial Assistance

15  shall include for each listed state project: the responsible

16  state awarding agency; standard state project number

17  identifier; official title; legal authorization; and

18  description of the state project, including objectives,

19  restrictions, application and awarding procedures, and other

20  relevant information determined necessary.

21         (d)  "Coordinating agency" means the state awarding

22  agency that provides the predominant amount of state financial

23  assistance expended by a recipient, as determined by the

24  recipient's Schedule of Expenditures of State Financial

25  Assistance. To provide continuity, the determination of the

26  predominant amount of state financial assistance shall be

27  based upon state financial assistance expended in the

28  recipient's fiscal years ending in 2004, 2007, and 2010, and

29  every third year thereafter.

30         (e)(d)  "Financial reporting package" means the

31  nonstate entities' financial statements, Schedule of

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 1  Expenditures of State Financial Assistance, auditor's reports,

 2  management letter, auditee's written responses or corrective

 3  action plan, correspondence on followup of prior years'

 4  corrective actions taken, and such other information

 5  determined by the Auditor General to be necessary and

 6  consistent with the purposes of this section.

 7         (f)(e)  "Federal financial assistance" means financial

 8  assistance from federal sources passed through the state and

 9  provided to nonstate organizations entities to carry out a

10  federal program. "Federal financial assistance" includes all

11  types of federal assistance as defined in applicable United

12  States Office of Management and Budget circulars.

13         (g)(f)  "For-profit organization" means any

14  organization or sole proprietor but is not a local

15  governmental entity or a nonprofit organization.

16         (h)(g)  "Independent auditor" means an independent

17  external state or local government auditor or a certified

18  public accountant licensed under chapter 473 who meets the

19  independence standards.

20         (i)(h)  "Internal control over state projects" means a

21  process, effected by a nonstate an entity's management and

22  other personnel, designed to provide reasonable assurance

23  regarding the achievement of objectives in the following

24  categories:

25         1.  Effectiveness and efficiency of operations.

26         2.  Reliability of financial operations.

27         3.  Compliance with applicable laws and regulations.

28         (j)(i)  "Local governmental entity" means a county

29  agency, municipality, or special district or any other entity

30  excluding (other than a district school board, charter school,

31  or community college), or public university, however styled,

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 1  which independently exercises any type of governmental

 2  function within the state.

 3         (k)(j)  "Major state project" means any state project

 4  meeting the criteria as stated in the rules of the Department

 5  of Financial Services Executive Office of the Governor. Such

 6  criteria shall be established after consultation with all the

 7  Chief Financial Officer and appropriate state awarding

 8  agencies that provide state financial assistance and shall

 9  consider the amount of state project expenditures and or

10  expenses or inherent risks. Each major state project shall be

11  audited in accordance with the requirements of this section.

12         (l)(k)  "Nonprofit organization" means any corporation,

13  trust, association, cooperative, or other organization that:

14         1.  Is operated primarily for scientific, educational

15  service, charitable, or similar purpose in the public

16  interest;

17         2.  Is not organized primarily for profit;

18         3.  Uses net proceeds to maintain, improve, or expand

19  the operations of the organization; and

20         4.  Has no part of its income or profit distributable

21  to its members, directors, or officers.

22         (m)(l)  "Nonstate entity" means a local governmental

23  entity, nonprofit organization, or for-profit organization

24  that receives state financial assistance resources.

25         (n)(m)  "Recipient" means a nonstate entity that

26  receives state financial assistance directly from a state

27  awarding agency.

28         (o)(n)  "Schedule of of Expenditures of State Financial

29  Assistance" means a document prepared in accordance with the

30  rules of the Department of Financial Services Chief Financial

31  

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 1  Officer and included in each financial reporting package

 2  required by this section.

 3         (p)(o)  "State awarding agency" means a the state

 4  agency, as defined in s. 216.011, that provides provided state

 5  financial assistance to a the nonstate entity.

 6         (q)(p)  "State financial assistance" means financial

 7  assistance from state resources, not including federal

 8  financial assistance and state matching on federal programs,

 9  provided to a nonstate entity entities to carry out a state

10  project. "State financial assistance" includes the all types

11  of state resources assistance as stated in the rules of the

12  Department of Financial Services Executive Office of the

13  Governor established in consultation with all the Chief

14  Financial Officer and appropriate state awarding agencies that

15  provide state financial assistance. It includes State

16  financial assistance may be provided directly by state

17  awarding agencies or indirectly by nonstate entities

18  recipients of state awards or subrecipients. State financial

19  assistance It does not include procurement contracts used to

20  buy goods or services from vendors and . Audits of such

21  procurement contracts with vendors are outside of the scope of

22  this section. Also, audits of contracts to operate state-owned

23  state-government-owned and contractor-operated facilities are

24  excluded from the audit requirements of this section.

25         (r)(q)  "State matching" means state resources provided

26  to a nonstate entity entities to be used to meet federal

27  financial participation matching requirements of federal

28  programs.

29         (s)  "State program" means a set of special purpose

30  activities undertaken to realize identifiable goals and

31  objectives in order to achieve a state agency's mission and

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 1  legislative intent requiring accountability for state

 2  resources.

 3         (t)(r)  "State project" means a state program that

 4  provides all state financial assistance to a nonstate

 5  organization and that must be entity assigned a single state

 6  project number identifier in the Catalog of State Financial

 7  Assistance.

 8         (u)(s)  "State Projects Compliance Supplement" means a

 9  document issued by the Department of Financial Services

10  Executive Office of the Governor, in consultation with the

11  Chief Financial Officer and all state awarding agencies that

12  provide state financial assistance. The State Projects

13  Compliance Supplement shall identify state projects, the

14  significant compliance requirements, eligibility requirements,

15  matching requirements, suggested audit procedures, and other

16  relevant information determined necessary.

17         (v)(t)  "State project-specific audit" means an audit

18  of one state project performed in accordance with the

19  requirements of subsection (10) (9).

20         (w)(u)  "State single audit" means an audit of a

21  nonstate entity's financial statements and state financial

22  assistance. Such audits shall be conducted in accordance with

23  the auditing standards as stated in the rules of the Auditor

24  General.

25         (x)(v)  "Subrecipient" means a nonstate entity that

26  receives state financial assistance through another nonstate

27  entity.

28         (y)(w)  "Vendor" means a dealer, distributor, merchant,

29  or other seller providing goods or services that are required

30  for the conduct of a state project. These goods or services

31  

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 1  may be for an organization's own use or for the use of

 2  beneficiaries of the state project.

 3         (3)  The Executive Office of the Governor shall be

 4  responsible for notifying the Department of Financial Services

 5  of any actions during the budgetary process which impact the

 6  Catalog of State Financial Assistance.:

 7         (a)  Upon conferring with the Chief Financial Officer

 8  and all state awarding agencies, adopt rules necessary to

 9  provide appropriate guidance to state awarding agencies,

10  recipients and subrecipients, and independent auditors of

11  state financial assistance relating to the requirements of

12  this section, including:

13         1.  The types or classes of financial assistance

14  considered to be state financial assistance which would be

15  subject to the requirements of this section. This would

16  include guidance to assist in identifying when the state

17  agency or recipient has contracted with a vendor rather than

18  with a recipient or subrecipient.

19         2.  The criteria for identifying a major state project.

20         3.  The criteria for selecting state projects for

21  audits based on inherent risk.

22         (b)  Be responsible for coordinating the initial

23  preparation and subsequent revisions of the Catalog of State

24  Financial Assistance after consultation with the Chief

25  Financial Officer and all state awarding agencies.

26         (c)  Be responsible for coordinating the initial

27  preparation and subsequent revisions of the State Projects

28  Compliance Supplement, after consultation with the Chief

29  Financial Officer and all state awarding agencies.

30         (4)  The Department of Financial Services Chief

31  Financial Officer shall:

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 1         (a)  Upon conferring with the Executive Office of the

 2  Governor and all state awarding agencies, adopt rules

 3  necessary to provide appropriate guidance to state awarding

 4  agencies, nonstate entities, and independent auditors of state

 5  financial assistance relating to the requirements of this

 6  section, including:

 7         1.  The types or classes of state resources considered

 8  to be state financial assistance that would be subject to the

 9  requirements of this section. This would include guidance to

10  assist in identifying when the state awarding agency or a

11  nonstate entity has contracted with a vendor rather than with

12  a recipient or subrecipient.

13         2.  The criteria for identifying a major state project.

14         3.  The criteria for selecting state projects for

15  audits based on inherent risk.

16         (b)  Be responsible for coordinating revisions to the

17  Catalog of State Financial Assistance after consultation with

18  the Executive Office of the Governor and all state awarding

19  agencies.

20         (c)  Be responsible for coordinating with the Executive

21  Office of the Governor actions affecting the budgetary process

22  under paragraph (b).

23         (d)  Be responsible for coordinating revisions to the

24  State Projects Compliance Supplement, after consultation with

25  the Executive Office of the Governor and all state awarding

26  agencies.

27         (e)(a)  Make enhancements to the state's accounting

28  system to provide for the:

29         1.  Recording of state financial assistance and federal

30  financial assistance appropriations and expenditures within

31  the state awarding agencies' operating funds.

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 1         2.  Recording of state project number identifiers, as

 2  provided in the Catalog of State Financial Assistance, for

 3  state financial assistance.

 4         3.  Establishment and recording of an identification

 5  code for each financial transaction, including awarding state

 6  agencies' disbursements of state financial assistance and

 7  federal financial assistance, as to the corresponding type or

 8  organization that is party to the transaction (e.g., other

 9  governmental agencies, nonprofit organizations, and for-profit

10  organizations), and disbursements of federal financial

11  assistance, as to whether the party to the transaction is or

12  is not a nonstate entity recipient or subrecipient.

13         (f)(b)  Upon conferring with the Executive Office of

14  the Governor and all state awarding agencies, adopt rules

15  necessary to provide appropriate guidance to state awarding

16  agencies, nonstate entities recipients and subrecipients, and

17  independent auditors of state financial assistance relating to

18  the format for the Schedule of Expenditures of State Financial

19  Assistance.

20         (g)(c)  Perform any inspections, reviews,

21  investigations, or audits of state financial assistance

22  considered necessary in carrying out the Department of

23  Financial Services Chief Financial Officer's legal

24  responsibilities for state financial assistance or to comply

25  with the requirements of this section.

26         (5)  Each state awarding agency shall:

27         (a)  Provide to each a recipient information needed by

28  the recipient to comply with the requirements of this section,

29  including:

30         1.  The audit and accountability requirements for state

31  projects as stated in this section and applicable rules of the

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 1  Executive Office of the Governor, rules of the Department of

 2  Financial Services Chief Financial Officer, and rules of the

 3  Auditor General.

 4         2.  Information from the Catalog of State Financial

 5  Assistance, including the standard state project number

 6  identifier; official title; legal authorization; and

 7  description of the state project including objectives,

 8  restrictions, and other relevant information determined

 9  necessary.

10         3.  Information from the State Projects Compliance

11  Supplement, including the significant compliance requirements,

12  eligibility requirements, matching requirements, suggested

13  audit procedures, and other relevant information determined

14  necessary.

15         (b)  Require the recipient, as a condition of receiving

16  state financial assistance, to allow the state awarding

17  agency, the Department of Financial Services Chief Financial

18  Officer, and the Auditor General access to the recipient's

19  records and the recipient's independent auditor's working

20  papers as necessary for complying with the requirements of

21  this section.

22         (c)  Notify the recipient that this section does not

23  limit the authority of the state awarding agency to conduct or

24  arrange for the conduct of additional audits or evaluations of

25  state financial assistance or limit the authority of any state

26  awarding agency inspector general, the Auditor General, or any

27  other state official.

28         (d)  Be provided one copy of each financial reporting

29  package prepared in accordance with the requirement of this

30  section.

31  

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 1         (e)  Review the recipient's recipient financial

 2  reporting package, including the management letters and

 3  corrective action plans, to the extent necessary to determine

 4  whether timely and appropriate corrective action has been

 5  taken with respect to audit findings and recommendations

 6  pertaining to state financial assistance that are specific to

 7  provided by the state awarding agency.

 8         (f)  Designate within the state awarding agency a

 9  division, bureau, or other organizational unit that will be

10  responsible for reviewing financial reporting packages

11  pursuant to paragraph (e).

12  

13  If the state awarding agency is not the coordinating agency as

14  defined in paragraph (2)(d), the state awarding agency's

15  designated division, bureau, or other organizational unit

16  shall communicate to the coordinating agency the state

17  awarding agency's approval of the recipient's corrective

18  action plan with respect to findings and recommendations that

19  are not specific to the state awarding agency.

20         (6)  Each coordinating agency shall:

21         (a)  Review the recipient's financial reporting

22  package, including the management letter and corrective action

23  plan, to identify audit findings and recommendations that

24  affect state financial assistance which are not specific to a

25  particular state awarding agency.

26         (b)  For any such findings and recommendations

27  determine:

28         1.  Whether timely and appropriate corrective action

29  has been taken.

30         2.  Promptly inform the state awarding agency's

31  contact, as provided in paragraph (5)(f), of actions taken by

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 1  the recipient to comply with the approved corrective action

 2  plan.

 3         (c)  Maintain records of followup actions taken for the

 4  use of any succeeding coordinating agency.

 5         (7)(6)  As a condition of receiving state financial

 6  assistance, each nonstate entity recipient that provides state

 7  financial assistance to a subrecipient shall:

 8         (a)  Provide to each a subrecipient information needed

 9  by the subrecipient to comply with the requirements of this

10  section, including:

11         1.  Identification of the state awarding agency.

12         2.  The audit and accountability requirements for state

13  projects as stated in this section and applicable rules of the

14  Executive Office of the Governor, rules of the Department of

15  Financial Services Chief Financial Officer, and rules of the

16  Auditor General.

17         3.  Information from the Catalog of State Financial

18  Assistance, including the standard state project number

19  identifier; official title; legal authorization; and

20  description of the state project, including objectives,

21  restrictions, and other relevant information.

22         4.  Information from the State Projects Compliance

23  Supplement including the significant compliance requirements,

24  eligibility requirements, matching requirements, and suggested

25  audit procedures, and other relevant information determined

26  necessary.

27         (b)  Review the financial reporting package of the

28  subrecipient audit reports, including the management letter

29  and corrective action plan letters, to the extent necessary to

30  determine whether timely and appropriate corrective action has

31  been taken with respect to audit findings and recommendations

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 1  pertaining to state financial assistance provided by a the

 2  state awarding agency or nonstate entity.

 3         (c)  Perform any such other procedures as specified in

 4  terms and conditions of the written agreement with the state

 5  awarding agency or nonstate entity, including any required

 6  monitoring of the subrecipient's use of state financial

 7  assistance through onsite visits, limited scope audits, or

 8  other specified procedures.

 9         (d)  Require subrecipients, as a condition of receiving

10  state financial assistance, to permit the independent auditor

11  of the nonstate entity recipient, the state awarding agency,

12  Department of Financial Services the Chief Financial Officer,

13  and the Auditor General access to the subrecipient's records

14  and the subrecipient's independent auditor's working papers as

15  necessary to comply with the requirements of this section.

16         (8)(7)  Each recipient or subrecipient of state

17  financial assistance shall comply with the following:

18         (a)  Each nonstate entity that receives state financial

19  assistance and meets the audit threshold requirements, in any

20  fiscal year of the nonstate entity, as stated in the rules of

21  the Auditor General, shall have a state single audit conducted

22  for such fiscal year in accordance with the requirements of

23  this act and with additional requirements established in rules

24  of the Executive Office of the Governor, rules of the

25  Department of Financial Services Chief Financial Officer, and

26  rules of the Auditor General. If only one state project is

27  involved in a nonstate entity's fiscal year, the nonstate

28  entity may elect to have only a state project-specific audit

29  of the state project for that fiscal year.

30         (b)  Each nonstate entity that receives state financial

31  assistance and does not meet the audit threshold requirements,

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 1  in any fiscal year of the nonstate entity, as stated in this

 2  law or the rules of the Auditor General is exempt for such

 3  fiscal year from the state single audit requirements of this

 4  section. However, such nonstate entity must meet terms and

 5  conditions specified in the written agreement with the state

 6  awarding agency or nonstate entity.

 7         (c)  Regardless of the amount of the state financial

 8  assistance, the provisions of this section do not exempt a

 9  nonstate entity from compliance with provisions of law

10  relating to maintaining records concerning state financial

11  assistance to such nonstate entity or allowing access and

12  examination of those records by the state awarding agency,

13  nonstate entity, the Department of Financial Services Chief

14  Financial Officer, or the Auditor General.

15         (d)  Audits conducted pursuant to this section shall be

16  performed annually.

17         (e)  Audits conducted pursuant to this section shall be

18  conducted by independent auditors in accordance with auditing

19  standards as stated in rules of the Auditor General.

20         (f)  Upon completion of the audit as required by this

21  section, a copy of the recipient's financial reporting package

22  shall be filed with the state awarding agency and the Auditor

23  General. Upon completion of the audit as required by this

24  section, a copy of the subrecipient's financial reporting

25  package shall be filed with the nonstate entity recipient that

26  provided the state financial assistance and the Auditor

27  General. The financial reporting package shall be filed in

28  accordance with the rules of the Auditor General.

29         (g)  All financial reporting packages prepared pursuant

30  to the requirements of this section shall be available for

31  public inspection.

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 1         (h)  If an audit conducted pursuant to this section

 2  discloses any significant audit findings relating to state

 3  financial assistance, including material noncompliance with

 4  individual state project compliance requirements or reportable

 5  conditions in internal controls of the nonstate entity, the

 6  nonstate entity shall submit as part of the financial

 7  reporting audit package to the state awarding agency or

 8  nonstate entity a plan for corrective action to eliminate such

 9  audit findings or a statement describing the reasons that

10  corrective action is not necessary.

11         (i)  An audit conducted in accordance with this section

12  is in addition to any audit of federal awards required by the

13  federal Single Audit Act and other federal laws and

14  regulations. To the extent that such federally required audits

15  provide the state awarding agency or nonstate entity with

16  information it requires to carry out its responsibilities

17  under state law or other guidance, the a state awarding agency

18  or nonstate entity shall rely upon and use that information.

19         (j)  Unless prohibited by law, the costs cost of audits

20  pursuant to this section are is allowable charges to state

21  projects. However, any charges to state projects should be

22  limited to those incremental costs incurred as a result of the

23  audit requirements of this section in relation to other audit

24  requirements. The nonstate entity should allocate such

25  incremental costs to all state projects for which it expended

26  state financial assistance.

27         (k)  Audit costs may not be charged to state projects

28  when audits required by this section have not been made or

29  have been made but not in accordance with this section. If a

30  nonstate entity fails to have an audit conducted consistent

31  with this section, a state awarding agency or nonstate entity

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 1  agencies may take appropriate corrective action to enforce

 2  compliance.

 3         (l)  This section does not prohibit the state awarding

 4  agency or nonstate entity from including terms and conditions

 5  in the written agreement which require additional assurances

 6  that state financial assistance meets the applicable

 7  requirements of laws, regulations, and other compliance rules.

 8         (m)  A state awarding agency or nonstate entity that

 9  provides state financial assistance to nonstate entities and

10  conducts or arranges for audits of state financial assistance

11  that are in addition to the audits conducted under this act,

12  including audits of nonstate entities that do not meet the

13  audit threshold requirements, shall, consistent with other

14  applicable law, arrange for funding the full cost of such

15  additional audits.

16         (9)(8)  The independent auditor when conducting a state

17  single audit of a nonstate entity recipients or subrecipients

18  shall:

19         (a)  Determine whether the nonstate entity's financial

20  statements are presented fairly in all material respects in

21  conformity with generally accepted accounting principles.

22         (b)  Determine whether state financial assistance shown

23  on the Schedule of Expenditures of State Financial Assistance

24  is presented fairly in all material respects in relation to

25  the nonstate entity's financial statements taken as a whole.

26         (c)  With respect to internal controls pertaining to

27  each major state project:

28         1.  Obtain an understanding of internal controls;

29         2.  Assess control risk;

30         3.  Perform tests of controls unless the controls are

31  deemed to be ineffective; and

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 1         4.  Determine whether the nonstate entity has internal

 2  controls in place to provide reasonable assurance of

 3  compliance with the provisions of laws and rules pertaining to

 4  state financial assistance that have a material effect on each

 5  major state project.

 6         (d)  Determine whether each major state project

 7  complied with the provisions of laws, rules, and guidelines as

 8  identified in the State Projects Compliance Supplement, or

 9  otherwise identified by the state awarding agency, which have

10  a material effect on each major state project. When major

11  state projects are less than 50 percent of the nonstate

12  entity's total expenditures for all state financial

13  assistance, the auditor shall select and test additional state

14  projects as major state projects as necessary to achieve audit

15  coverage of at least 50 percent of the expenditures for all

16  state financial assistance provided to the nonstate entity.

17  Additional state projects needed to meet the 50-percent

18  requirement may be selected on an inherent risk basis as

19  stated in the rules of the Department of Financial Services

20  Executive Office of the Governor.

21         (e)  Report on the results of any audit conducted

22  pursuant to this section in accordance with the rules of the

23  Executive Office of the Governor, rules of the Department of

24  Financial Services Chief Financial Officer, and rules of the

25  Auditor General. Financial reporting packages must Audit

26  reports shall include summaries of the auditor's results

27  regarding the nonstate entity's financial statements; Schedule

28  of Expenditures of State Financial Assistance; internal

29  controls; and compliance with laws, rules, and guidelines.

30         (f)  Issue a management letter as prescribed in the

31  rules of the Auditor General.

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 1         (g)  Upon notification by the nonstate entity, make

 2  available the working papers relating to the audit conducted

 3  pursuant to the requirements of this section to the state

 4  awarding agency, the Department of Financial Services Chief

 5  Financial Officer, or the Auditor General for review or

 6  copying.

 7         (10)(9)  The independent auditor, when conducting a

 8  state project-specific audit of a nonstate entity recipients

 9  or subrecipients, shall:

10         (a)  Determine whether the nonstate entity's Schedule

11  of Expenditure of State Financial Assistance is presented

12  fairly in all material respects in conformity with stated

13  accounting policies.

14         (b)  Obtain an understanding of internal controls

15  control and perform tests of internal controls control over

16  the state project consistent with the requirements of a major

17  state project.

18         (c)  Determine whether or not the auditee has complied

19  with applicable provisions of laws, rules, and guidelines as

20  identified in the State Projects Compliance Supplement, or

21  otherwise identified by the state awarding agency, which could

22  have a direct and material effect on the state project.

23         (d)  Report on the results of the a state

24  project-specific audit consistent with the requirements of the

25  state single audit and issue a management letter as prescribed

26  in the rules of the Auditor General.

27         (e)  Upon notification by the nonstate entity, make

28  available the working papers relating to the audit conducted

29  pursuant to the requirements of this section to the state

30  awarding agency, the Department of Financial Services Chief

31  

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1  Financial Officer, or the Auditor General for review or

 2  copying.

 3         (11)(10)  The Auditor General shall:

 4         (a)  Have the authority to audit state financial

 5  assistance provided to any nonstate entity when determined

 6  necessary by the Auditor General or when directed by the

 7  Legislative Auditing Committee.

 8         (b)  Adopt rules that state the auditing standards that

 9  independent auditors are to follow for audits of nonstate

10  entities required by this section.

11         (c)  Adopt rules that describe the contents and the

12  filing deadlines for the financial reporting package.

13         (d)  Provide technical advice upon request of the

14  Department of Financial Services Chief Financial Officer,

15  Executive Office of the Governor, and state awarding agencies

16  relating to financial reporting and audit responsibilities

17  contained in this section.

18         (e)  Be provided one copy of each financial reporting

19  package prepared in accordance with the requirements of this

20  section.

21         (f)  Perform ongoing reviews of a sample of financial

22  reporting packages filed pursuant to the requirements of this

23  section to determine compliance with the reporting

24  requirements of this section and applicable rules of the

25  Executive Office of the Governor, rules of the Department of

26  Financial Services Chief Financial Officer, and rules of the

27  Auditor General.

28         Section 43.  Section 1010.47, Florida Statutes, is

29  amended to read:

30         1010.47  Receiving bids and sale of bonds.--

31  

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1         (1)  If the issuance of bonds is authorized at the

 2  election, or if any bonds outstanding against the district are

 3  being refunded, the district school board shall sell the bonds

 4  in the manner provided in s. 218.385. cause notice to be given

 5  by publication in some newspaper published in the district

 6  that the board will receive bids for the purchase of the bonds

 7  at the office of the district school superintendent. The

 8  notice shall be published twice, and the first publication

 9  shall be given not less than 30 days prior to the date set for

10  receiving the bids. The notice shall specify the amount of the

11  bonds offered for sale, shall state whether the bids shall be

12  sealed bids or whether the bonds are to be sold at auction,

13  and shall give the schedule of maturities of the proposed

14  bonds and such other pertinent information as may be

15  prescribed by rules of the State Board of Education. Bidders

16  may be invited to name the rate of interest that the bonds are

17  to bear or the district school board may name rates of

18  interest and invite bids thereon. In addition to publication

19  of notice of the proposed sale as set forth in this

20  subsection, the district school board shall notify in writing

21  at least three recognized bond dealers in the state, and, at

22  the same time, notify the Department of Education concerning

23  the proposed sale and enclose a copy of the advertisement.

24         (2)  All bonds and refunding bonds issued as provided

25  by law shall be sold to the highest and best bidder at such

26  public sale unless sold at a better price or yield basis

27  within 30 days after failure to receive an acceptable bid at a

28  duly advertised public sale, provided that at no time shall

29  bonds or refunding bonds be sold or exchanged at less than par

30  value except as specifically authorized by the Department of

31  Education; and provided, further, that the district school

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    Florida Senate - 2004                            CS for SB 708
    304-1995-04




 1  board shall have the right to reject all bids and cause a new

 2  notice to be given in like manner inviting other bids for such

 3  bonds, or to sell all or any part of such bonds to the State

 4  Board of Education at a price and yield basis that shall not

 5  be less advantageous to the district school board than that

 6  represented by the highest and best bid received. In the

 7  marketing of the bonds, the district school board shall be

 8  entitled to have such assistance as can be rendered by the

 9  Division of Bond Finance, the Commissioner of Education, or

10  any other public state officer or agency. In determining the

11  highest and best bidder for bonds offered for sale, the net

12  interest cost to the school board as shown in standard bond

13  tables shall govern, provided that the determination of the

14  district school board as to the highest and best bidder shall

15  be final.

16         Section 44.  Effective July 1, 2004, one full-time

17  equivalent position is transferred from the Executive Office

18  of the Governor to the Department of Financial Services.

19         Section 45.  This act shall take effect upon becoming a

20  law.

21  

22          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
23                         Senate Bill 708

24                                 

25  The committee substitute provides that the Department of
    Management Services may compel a local government to provide
26  material actuarial information concerning its local pension
    plan.
27  
    In addition, the committee substitute eliminates the term
28  "non-state organization" from revisions to the Florida Single
    Audit Act as the term is not used.
29  

30  

31  

                                  69

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