January 24, 2020
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Senate Bill 0708

Senate Bill sb0708c2

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    Florida Senate - 2004                     CS for CS for SB 708

    By the Committees on Finance and Taxation; Education; and
    Senator Atwater




    314-2154-04

  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. 11.51,

10         F.S.; conforming provisions to changes made by

11         the act; amending s. 61.181, F.S.; correcting a

12         cross-reference; amending s. 75.05, F.S.;

13         deleting a requirement for an independent

14         special district to submit a copy of a

15         complaint to the Division of Bond Finance of

16         the State Board of Administration; amending s.

17         112.08, F.S.; clarifying that local governments

18         are authorized to provide health insurance;

19         amending s. 112.625, F.S.; revising the

20         definition of "governmental entity" to include

21         counties and district school boards; amending

22         s. 112.63, F.S.; providing for additional

23         material information to be provided to the

24         Department of Management Services in actuarial

25         reports with regard to retirement systems and

26         plans and providing procedures therefor;

27         providing for notification of the Department of

28         Revenue and the Department of Financial

29         Services in cases of noncompliance and

30         authorizing the withholding of certain funds;

31         requiring the Department of Management Services

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 1         to notify the Department of Community Affairs

 2         in the case of affected special districts;

 3         amending s. 130.04, F.S.; revising provisions

 4         governing notice of bids and disposition of

 5         bonds; amending s. 132.02, F.S.; revising

 6         provisions relating to the authorization to

 7         issue refund bonds; amending s. 132.09, F.S.;

 8         revising provisions relating to the notice of

 9         sale, bids, and awards and private sale of

10         bonds; amending s. 163.05, F.S.; revising

11         provisions governing the Small County Technical

12         Assistance Program; amending s. 166.121, F.S.;

13         revising provisions governing the issuance of

14         bonds by a municipality; amending s. 166.241,

15         F.S.; providing a municipal budget amendment

16         process and requirements; amending ss. 175.261

17         and 185.221, F.S.; conforming provisions to

18         changes made by the act; amending s. 189.4044,

19         F.S.; revising special procedures for

20         determination of inactive special districts;

21         amending s. 189.412, F.S.; revising duties of

22         the Special District Information Program of the

23         Department of Community Affairs; amending s.

24         189.418, F.S.; revising reporting requirements

25         of newly created special districts; authorizing

26         the governing body of a special district to

27         amend its budget; amending s. 189.419, F.S.;

28         revising provisions relating to the failure of

29         special districts to file required reports;

30         amending s. 189.421, F.S.; revising provisions

31         governing the failure of special districts to

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 1         disclose financial reports; providing for

 2         extension of time for the filing of the

 3         reports; providing remedies for noncompliance;

 4         providing for attorney's fees and costs;

 5         amending s. 189.428, F.S.; revising provisions

 6         governing the special district oversight review

 7         process; amending s. 189.439, F.S.; revising

 8         provisions governing the issuance of bonds by

 9         special districts; amending s. 191.005, F.S.;

10         exempting a candidate from campaign

11         requirements under specified conditions;

12         providing for the removal of a board member

13         upon becoming unqualified; amending s. 218.075,

14         F.S.; revising provisions governing the

15         reduction or waiver of permit processing fees

16         for certain counties; amending s. 218.32, F.S.,

17         relating to annual financial reports; requiring

18         the Department of Financial Services to notify

19         the Speaker of the House of Representatives and

20         the President of the Senate of any municipality

21         that has not had financial activity for a

22         specified period of time; providing that such

23         notice is sufficient to initiate dissolution

24         procedures; repealing s. 218.321, F.S.,

25         relating to annual financial statements of

26         local governmental entities; amending s.

27         218.39, F.S.; providing reporting requirements

28         for certain special districts; amending s.

29         218.36, F.S.; revising reporting requirements

30         for boards of county commissioners relating to

31         the failure of a county officer to comply with

                                  3

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 1         the provisions of the section; amending s.

 2         218.369, F.S.; revising the definition of "unit

 3         of local government" to include district school

 4         boards; renaming pt. V of ch. 218, F.S., as

 5         "Local Governmental Entity and District School

 6         Board Financial Emergencies"; amending s.

 7         218.50, F.S.; renaming ss. 218.50-218.504,

 8         F.S., as the "Local Governmental Entity and

 9         District School Board Act"; amending s.

10         218.501, F.S.; revising the stated purposes of

11         pt. V of ch. 218, F.S.; amending s. 218.502,

12         F.S.; revising the definition of "local

13         governmental entity"; amending s. 218.503,

14         F.S.; revising provisions governing the

15         determination of a financial emergency for

16         local governments and district school boards;

17         amending s. 218.504, F.S.; revising provisions

18         relating to the authority of the Governor and

19         authorizing the Commissioner of Education to

20         terminate all state actions pursuant to ss.

21         218.50-218.504, F.S.; repealing ch. 131, F.S.,

22         consisting of ss. 131.01, 131.02, 131.03,

23         131.04, 131.05, and 131.06, F.S., relating to

24         refunding bonds of counties, municipalities,

25         and special districts; repealing s. 132.10,

26         F.S., relating to minimum sale price of bonds;

27         repealing s. 165.052, F.S., relating to special

28         dissolution procedures for municipalities;

29         repealing s. 189.409, F.S., relating to

30         determination of financial emergencies of

31         special districts; repealing s. 189.422, F.S.,

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 1         relating to actions of the Department of

 2         Community Affairs and special districts;

 3         repealing s. 200.0684, F.S., relating to an

 4         annual compliance report of the Department of

 5         Community Affairs regarding special districts;

 6         repealing s. 218.37(1)(h), F.S., relating to

 7         the requirement that the Division of Bond

 8         Finance use a served copy of the complaint for

 9         bond validation to verify compliance by special

10         districts with the requirements in s. 218.38,

11         F.S.; amending s. 215.195, F.S., relating to

12         the Statewide Cost Allocation Plan; providing

13         that the Department of Financial Services is

14         responsible for the plan's preparation and the

15         monitoring of agency compliance; amending s.

16         215.97, F.S., relating to the Florida Single

17         Audit Act; revising and providing definitions;

18         revising the uniform state audit requirements

19         for state financial assistance that is provided

20         by state agencies to nonstate entities;

21         requiring the Department of Financial Services

22         to adopt rules and perform additional duties

23         with respect to the provision of financial

24         assistance to carry out state projects;

25         specifying duties of coordinating agencies;

26         amending s. 1010.47, F.S.; providing that

27         school districts must sell bonds; deleting

28         obsolete provisions relating to the sale of

29         bonds by a school district; amending s.

30         288.9610, F.S.; correcting a cross-reference;

31         transferring a position from the Executive

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 1         Office of the Governor to the Department of

 2         Financial Services; repealing s. 373.556, F.S.,

 3         relating to the investment of funds by the

 4         governing board of a water management district;

 5         providing an effective date.

 6  

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

 8  

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

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

11         11.40  Legislative Auditing Committee.--

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

13  Department of Financial Services, or the Division of Bond

14  Finance of the State Board of Administration of the failure of

15  a local governmental entity, district school board, charter

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

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

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

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

20  determine if the entity should be subject to further state

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

22  subject to further state action, the committee shall:

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

24  district school board, direct request the Department of

25  Revenue and the Department of Financial Services to withhold

26  any funds not pledged for bond debt service satisfaction which

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

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

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

30  received by the Department of Revenue and the Department of

31  Financial Services 30 days before the date of the distribution

                                  6

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

 2  of Financial Services may implement the provisions of this

 3  paragraph.

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

 5  Department of Community Affairs that the special district has

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

 7  the Department of Community Affairs shall proceed pursuant to

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

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

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

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

12  are amended to read:

13         11.45  Definitions; duties; authorities; reports;

14  rules.--

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

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

17  audit of the local government financial reporting system,

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

19  provisions related to local government financial reporting.

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

21  efficiency, and effectiveness of the reporting system in

22  achieving its goals and to make recommendations to the local

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

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

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

26  audits. The local government financial reporting system should

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

28  accumulation of financial and other information that can be

29  used by the members of the Legislature and other appropriate

30  officials to accomplish the following goals:

31         1.  Enhance citizen participation in local government;

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 1         2.  Improve the financial condition of local

 2  governments;

 3         3.  Provide essential government services in an

 4  efficient and effective manner; and

 5         4.  Improve decisionmaking on the part of the

 6  Legislature, state agencies, and local government officials on

 7  matters relating to local government.

 8  

 9  The Auditor General shall perform his or her duties

10  independently but under the general policies established by

11  the Legislative Auditing Committee. This subsection does not

12  limit the Auditor General's discretionary authority to conduct

13  other audits or engagements of governmental entities as

14  authorized in subsection (3).

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

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

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

18  Committee, conduct audits or other engagements as determined

19  appropriate by the Auditor General of:

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

21  entity created or established by law.

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

23  functions, or systems of any governmental entity created or

24  established by law.

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

26  created or established by law.

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

28  organization or citizen support organization created or

29  established by law. The Auditor General is authorized to

30  require and receive any records from the direct-support

31  

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 1  organization or citizen support organization, or from its

 2  independent auditor.

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

 4  appropriation made by the Legislature General Appropriations

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

 6  records of a nongovernmental agency, corporation, or person

 7  with respect to the receipt and expenditure of such an

 8  appropriation shall be public records and shall be treated in

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

10         (f)6.  State financial assistance provided to any

11  nonstate entity as defined by s. 215.97.

12         (g)7.  The Tobacco Settlement Financing Corporation

13  created pursuant to s. 215.56005.

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

15  1002.37.

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

17  as sites for correctional facilities as described in s.

18  253.037.

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

20  boards, advisory committees, or similar groups created by

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

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

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

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

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

26  all information identifying such donor or prospective donor

27  are confidential and exempt from the provisions of s.

28  119.07(1) and s. 24(a), Art. I of the State Constitution. Such

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

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

31  the capital development board or the programs or entities

                                  9

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

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

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

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

 5  anonymous and all information identifying such donor or

 6  prospective donor are confidential and exempt from the

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

 8  Constitution. Such anonymity shall be maintained in the

 9  auditor's report.

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

11  voluntary contributions on a motor vehicle registration

12  application or on a driver's license application authorized

13  pursuant to ss. 320.023 and 322.081.

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

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

16         (m)14.  The transportation corporations under contract

17  with the Department of Transportation that are acting on

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

19  urgently needed transportation systems and to assist in the

20  planning and design of such systems pursuant to ss.

21  339.401-339.421.

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

23  the Florida Communities Trust Program created pursuant to

24  chapter 380.

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

26  Corporation created pursuant to s. 403.1837.

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

28  created pursuant to s. 411.01.

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

30  Financing Corporation created pursuant to s. 440.49.

31  

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

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

 3  to s. 445.004.

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

 5  under contract with the Department of Business and

 6  Professional Regulation to provide administrative,

 7  investigative, examination, licensing, and prosecutorial

 8  support services in accordance with the provisions of s.

 9  455.32 and the practice act of the relevant profession.

10         (t)21.  The Florida Engineers Management Corporation

11  created pursuant to chapter 471.

12         (u)22.  The Investment Fraud Restoration Financing

13  Corporation created pursuant to chapter 517.

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

15  conducts race meetings or jai alai exhibitions under chapter

16  550.

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

18  946, known as the Prison Rehabilitative Industries and

19  Diversified Enterprises, Inc., or PRIDE Enterprises.

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

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

22         1.  Promote the building of competent and efficient

23  accounting and internal audit organizations in the offices

24  administered by governmental entities.

25         2.  Provide consultation services to governmental

26  entities on their financial and accounting systems,

27  procedures, and related matters.

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

29         (a)  The Legislative Auditing Committee shall direct

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

31  municipality whenever petitioned to do so by at least 20

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 1  percent of the registered electors in the last general

 2  election of that municipality pursuant to this subsection. The

 3  supervisor of elections of the county in which the

 4  municipality is located shall certify whether or not the

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

 6  registered electors of the municipality. After the completion

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

 8  municipality has the fiscal resources necessary to pay the

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

10  audit within 90 days after the Auditor General's determination

11  that the municipality has the available resources. If the

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

13  Department of Revenue shall, upon certification of the Auditor

14  General, withhold from that portion of the distribution

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

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

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

18  the state.

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

20  general election must file a letter of intent with the

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

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

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

24  minimum:

25         1.  The elector's printed name;

26         2.  The signature of the elector;

27         3.  The elector's residence address;

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

29         5.  The date signed.

30  

31  

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 1  All petitions must be submitted for verification within 1

 2  calendar year after the audit petition origination by the

 3  municipal electors.

 4         (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--

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

 6  the Commissioner of Education, as appropriate, and the

 7  Legislative Auditing Committee of any audit report reviewed by

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

 9  statement that a the local governmental entity or district

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

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

12  218.503. If the Auditor General requests a clarification

13  regarding information included in an audit report to determine

14  whether a local governmental entity or district school board

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

16  is in a state of financial emergency, the requested

17  clarification must be provided within 45 days after the date

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

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

20  request, the Auditor General shall notify the Legislative

21  Auditing Committee. If, after obtaining the requested

22  clarification, the Auditor General determines that the local

23  governmental entity or district school board has met one or

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

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

26  the Commissioner of Education, as appropriate, and the

27  Legislative Auditing Committee.

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

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

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

31  performed by independent certified public accountants pursuant

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

 2  rules for audits of local governmental entities and district

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

 4  requirements for the reporting of information necessary to

 5  carry out the purposes of the Local Governmental Entity and

 6  District School Board Government Financial Emergencies Act as

 7  stated in s. 218.501.

 8         (9)  TECHNICAL ADVICE OTHER GUIDANCE PROVIDED BY THE

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

10  advice to:, in consultation with

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

12  shall develop a compliance supplement for the financial audit

13  of a district school board conducted by an independent

14  certified public accountant.

15         (b)  Governmental entities on their financial and

16  accounting systems, procedures, and related matters.

17         (c)  Governmental entities on promoting the building of

18  competent and efficient accounting and internal audit

19  organizations in their offices.

20         Section 3.  Subsection (4) of section 11.51, Florida

21  Statutes, is amended to read:

22         11.51  Office of Program Policy Analysis and Government

23  Accountability.--

24         (4)  The Office of Program Policy Analysis and

25  Government Accountability is authorized to examine all

26  entities and records listed in s. 11.45(3) s. 11.45(3)(a).

27         Section 4.  Subsection (10) of section 61.181, Florida

28  Statutes, is amended to read:

29         61.181  Depository for alimony transactions, support,

30  maintenance, and support payments; fees.--

31  

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 1         (10)  Compliance with the requirements of this section

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

 3  pursuant to s. 218.39 11.45.

 4         Section 5.  Subsection (3) of section 75.05, Florida

 5  Statutes, is amended to read:

 6         75.05  Order and service.--

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

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

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

10  Administration. Notwithstanding any other provision of law,

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

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

13  development district established pursuant to chapter 190, as

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

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

16  by such community development districts shall not be required

17  on refunding issues.

18         Section 6.  Paragraph (a) of subsection (2) of section

19  112.08, Florida Statutes, is amended to read:

20         112.08  Group insurance for public officers, employees,

21  and certain volunteers; physical examinations.--

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

23  to the contrary, every local governmental unit is authorized

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

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

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

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

28  governmental unit and for health, accident, hospitalization,

29  and legal expense insurance for the dependents of such

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

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

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 1  professional administrators to provide such insurance.  Before

 2  entering any contract for insurance, the local governmental

 3  unit shall advertise for competitive bids; and such contract

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

 5  health insurance provider becomes financially impaired as

 6  determined by the Office of Insurance Regulation of the

 7  Financial Services Commission or otherwise fails or refuses to

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

 9  government may purchase insurance, enter into risk management

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

11  make such acquisitions by advertising for competitive bids or

12  by direct negotiations and contract. The local governmental

13  unit may undertake simultaneous negotiations with those

14  companies which have submitted reasonable and timely bids and

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

16  and capable of meeting all servicing requirements. Each local

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

18  accident, and hospitalization coverage or enter into a risk

19  management consortium to provide such coverage, subject to

20  approval based on actuarial soundness by the Office of

21  Insurance Regulation; and each shall contract with an

22  insurance company or professional administrator qualified and

23  approved by the office to administer such a plan.

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

25  Statutes, is amended to read:

26         112.625  Definitions.--As used in this act:

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

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

29  special district, or district school board which is the

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

31  

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 1         Section 8.  Subsection (4) of section 112.63, Florida

 2  Statutes, is amended to read:

 3         112.63  Actuarial reports and statements of actuarial

 4  impact; review.--

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

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

 7  of a statement of actuarial impact, the Department of

 8  Management Services shall acknowledge such receipt, but shall

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

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

11  department finds that the actuarial valuation is not complete,

12  accurate, or based on reasonable assumptions or otherwise

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

14  the department requires additional material information

15  necessary to complete its review of the actuarial valuation of

16  a system or plan or material information necessary to satisfy

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

18  the department does not receive the actuarial report or

19  statement of actuarial impact, the department shall notify the

20  administrator of the affected retirement system or plan and

21  the affected governmental entity local government and request

22  appropriate adjustment, the additional material information,

23  or the required report or statement. The notification must

24  inform the administrator of the affected retirement system or

25  plan and the affected governmental entity of the consequences

26  for failure to comply with the requirements of this

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

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

29  or additional material information is not provided, the

30  department may notify the Department of Revenue and the

31  Department of Financial Services of such noncompliance, in

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 1  which case the Department of Revenue and the Department of

 2  Financial Services shall withhold any funds not pledged for

 3  satisfaction of bond debt service which are payable to the

 4  affected governmental entity until the adjustment is made or

 5  the report, statement, or additional material information is

 6  provided to the department. The department shall specify the

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

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

 9  Department of Financial Services, and the affected

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

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

12  affected governmental entity local government or the

13  department may petition for a hearing under the provisions of

14  ss. 120.569 and 120.57 with the Department of Management

15  Services. The Department of Revenue and the Department of

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

17  may request to intervene if requested by the Department of

18  Management Services or if the Department of Revenue or the

19  Department of Financial Services determines its interests may

20  be adversely affected by the hearing. If the administrative

21  law judge recommends in favor of the department, the

22  department shall perform an actuarial review, or prepare the

23  statement of actuarial impact, or collect the requested

24  material information. The cost to the department of performing

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

26  collecting the requested material information shall be charged

27  to the affected governmental entity of which the employees are

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

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

30  receipt by the affected governmental entity of the request for

31  payment, the department shall certify to the Department of

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 1  Revenue and the Department of Financial Services Chief

 2  Financial Officer the amount due, and the Department of

 3  Revenue and the Department of Financial Services Chief

 4  Financial Officer shall pay such amount to the Department of

 5  Management Services from any funds not pledged for

 6  satisfaction of bond debt service which are payable to the

 7  affected governmental entity of which the employees are

 8  covered by the retirement system or plan. If the

 9  administrative law judge recommends in favor of the affected

10  governmental entity local retirement system and the department

11  performs an actuarial review, prepares the statement of

12  actuarial impact, or collects the requested material

13  information, the cost to the department of performing the

14  actuarial review, preparing the statement, or collecting the

15  requested material information shall be paid by the Department

16  of Management Services.

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

18  Department of Management Services shall also notify the

19  Department of Community Affairs. Upon receipt of notification,

20  the Department of Community Affairs shall proceed pursuant to

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

22  district.

23         Section 9.  Section 130.04, Florida Statutes, is

24  amended to read:

25         130.04  Sale Notice for bids and disposition of

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

27  the result of such election, the county commissioners shall

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15  cases the county commissioners may accept less than 95 cents

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

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

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

19         Section 10.  Subsection (1) of section 132.02, Florida

20  Statutes, is amended to read:

21         132.02  Taxing units may refund obligations.--

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

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

24  other taxing district districts in this state, herein

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

26  or resolutions of the governing body thereof (meaning thereby

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

28  amount of tax levies required for taxing the taxable property

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

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

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

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

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

 3  certificates of indebtedness or interest on any such paving

 4  certificates of indebtedness, now or hereafter outstanding, or

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

 6  bonds, whether such unit created such indebtedness or has

 7  assumed, or may become liable therefor, and whether

 8  indebtedness to be refunded has matured or to thereafter

 9  become matured.

10         Section 11.  Section 132.09, Florida Statutes, is

11  amended to read:

12         132.09  Sale of bonds Notice of sale; bids and award;

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

14  otherwise expressly provided) shall be sold in the manner

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

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

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

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

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

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

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

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

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

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

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

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

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

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

29  are redeemable or become payable before maturity, the amount

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

31  if accepted, and such other pertinent information as the

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

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

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

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

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

 6  bidder making the most advantageous bid which shall be

 7  determined by the governing body in its absolute and

 8  uncontrolled discretion.  The right to reject all bids shall

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

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

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

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

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

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

15         Section 12.  Paragraph (a) of subsection (2) of section

16  163.05, Florida Statutes, is amended to read:

17         163.05  Small County Technical Assistance Program.--

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

19  Legislature declares that:

20         (a)  The financial difficulties fiscal emergencies

21  confronting small counties require an investment that will

22  facilitate efforts to improve the productivity and efficiency

23  of small counties' structures and operating procedures.

24         Section 13.  Subsection (2) of section 166.121, Florida

25  Statutes, is amended to read:

26         166.121  Issuance of bonds.--

27         (2)  The governing body of a municipality shall

28  determine the terms and manner of sale and distribution or

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

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

31  

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 1  any and all powers necessary or convenient to such

 2  disposition.

 3         Section 14.  Section 166.241, Florida Statutes, is

 4  amended to read:

 5         166.241  Fiscal years, financial reports,

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

 7         (1)  Each municipality shall report its finances

 8  annually as provided by general law.

 9         (1)(2)  Each municipality shall make provision for

10  establishing a fiscal year beginning October 1 of each year

11  and ending September 30 of the following year.

12         (2)(3)  The governing body of each municipality shall

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

14  ordinance or resolution unless otherwise specified in the

15  respective municipality's charter. The amount available from

16  taxation and other sources, including amounts carried over

17  from prior fiscal years, must equal the total appropriations

18  for expenditures and reserves. The budget must regulate

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

20  officer of a municipal government to expend or contract for

21  expenditures in any fiscal year except in pursuance of

22  budgeted appropriations.

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

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

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

26  follows:

27         (a)  Appropriations for expenditures within a fund may

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

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

30  not changed.

31  

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 1         (b)  The governing body may establish procedures by

 2  which the designated budget officer may authorize certain

 3  budget amendments within a department, provided that the total

 4  of the appropriations of the department is not changed.

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

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

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

 8  original budget unless otherwise specified in the charter of

 9  the respective municipality.

10         Section 15.  Paragraph (b) of subsection (1) of section

11  175.261, Florida Statutes, is amended to read:

12         175.261  Annual report to Division of Retirement;

13  actuarial valuations.--For any municipality, special fire

14  control district, chapter plan, local law municipality, local

15  law special fire control district, or local law plan under

16  this chapter, the board of trustees for every chapter plan and

17  local law plan shall submit the following reports to the

18  division:

19         (1)  With respect to chapter plans:

20         (b)  In addition to annual reports provided under

21  paragraph (a), by February 1 of each triennial year, an

22  actuarial valuation of the chapter plan must be made by the

23  division at least once every 3 years, as provided in s.

24  112.63, commencing 3 years from the last actuarial valuation

25  of the plan or system for existing plans, or commencing 3

26  years from issuance of the initial actuarial impact statement

27  submitted under s. 112.63 for newly created plans. To that

28  end, the chair of the board of trustees for each firefighters'

29  pension trust fund operating under a chapter plan shall report

30  to the division such data as it needs to complete an actuarial

31  valuation of each fund. The forms for each municipality and

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 1  special fire control district shall be supplied by the

 2  division.  The expense of this actuarial valuation shall be

 3  borne by the firefighters' pension trust fund established by

 4  ss. 175.041 and 175.121. The requirements of this section are

 5  supplemental to the actuarial valuations necessary to comply

 6  with s. ss. 218.321 and 218.39.

 7         Section 16.  Paragraph (b) of subsection (1) of section

 8  185.221, Florida Statutes, is amended to read:

 9         185.221  Annual report to Division of Retirement;

10  actuarial valuations.--For any municipality, chapter plan,

11  local law municipality, or local law plan under this chapter,

12  the board of trustees for every chapter plan and local law

13  plan shall submit the following reports to the division:

14         (1)  With respect to chapter plans:

15         (b)  In addition to annual reports provided under

16  paragraph (a), by February 1 of each triennial year, an

17  actuarial valuation of the chapter plan must be made by the

18  division at least once every 3 years, as provided in s.

19  112.63, commencing 3 years from the last actuarial valuation

20  of the plan or system for existing plans, or commencing 3

21  years from the issuance of the initial actuarial impact

22  statement submitted under s. 112.63 for newly created plans.

23  To that end, the chair of the board of trustees for each

24  municipal police officers' retirement trust fund operating

25  under a chapter plan shall report to the division such data as

26  the division needs to complete an actuarial valuation of each

27  fund.  The forms for each municipality shall be supplied by

28  the division.  The expense of the actuarial valuation shall be

29  borne by the municipal police officers' retirement trust fund

30  established by s. 185.10. The requirements of this section are

31  

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 1  supplemental to the actuarial valuations necessary to comply

 2  with s. ss. 218.321 and 218.39.

 3         Section 17.  Section 189.4044, Florida Statutes, is

 4  amended to read:

 5         189.4044  Special procedures for inactive districts.--

 6         (1)  The department shall declare inactive any special

 7  district in this state by documenting that filing a report

 8  with the Speaker of the House of Representatives and the

 9  President of the Senate which shows that such special district

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

11  district must be based upon a finding:

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

13  following criteria:

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

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

16  the appropriate local general-purpose government notifies the

17  department in writing that the district has taken no action

18  for 2 or more calendar years;

19         2.  Following an inquiry from the department, the

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

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

22  local general-purpose government notifies the department in

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

24  sufficient number of governing board members to constitute a

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

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

27  the governing body of the appropriate local general-purpose

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

29  21 days; or 18 or more months;

30  

31  

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

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

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

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

 5  years, to pay fees assessed by the Special District

 6  Information Program pursuant to this chapter.

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

 8  general-purpose government published That a notice of the

 9  proposed declaration of inactive status has been published

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

11  in within the county or municipality in which wherein the

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

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

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

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

16  was organized and operating, a general description of the

17  territory included in the said special district, and a

18  statement stating that any objections must be filed pursuant

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

20  the proposed declaration or to any claims against the assets

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

22  following the date of last publication with the department;

23  and

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

25  publication date of the notice of proposed declaration of

26  inactive status and no administrative appeals were sustained

27  objections have been filed.

28         (2)  If any special district is declared inactive

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

30  special district are subject to legal process for payment of

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

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 1  of said inactive special district, the remainder of its

 2  property or assets shall escheat to the county or municipality

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

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

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

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

 7  general-purpose government wherein the same is situated and

 8  shall be assessed by the county property appraiser and

 9  collected by the county tax collector.

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

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

12  declaration of inactive status to notify the Speaker of the

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

14  notice of declaration of inactive status shall reference of

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

16  special district declared to be inactive under this

17  section.  The declaration of inactive status shall be

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

19  Constitution to authorize the Legislature to repeal any

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

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

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

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

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

25  district created by interlocal agreement, the department shall

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

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

28  which entered into the interlocal agreement.

29         (4)  The entity that created a special district

30  declared inactive under this section must dissolve the special

31  

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 1  district be dissolved by repealing repeal of its enabling laws

 2  or by other appropriate means.

 3         Section 18.  Subsection (1) of section 189.412, Florida

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

 5  section, to read:

 6         189.412  Special District Information Program; duties

 7  and responsibilities.--The Special District Information

 8  Program of the Department of Community Affairs is created and

 9  has the following special duties:

10         (1)  The collection and maintenance of special district

11  noncompliance compliance status reports from the Department of

12  Management Services Auditor General, the Department of

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

14  Board of Administration, and the Auditor General the

15  Department of Management Services, the Department of Revenue,

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

17  112.3144, 112.3145, 112.3148, 112.3149, 112.63, 200.068,

18  218.32, 218.38, and 218.39, and 280.17 and chapter 121 and

19  from state agencies administering programs that distribute

20  money to special districts. The noncompliance special district

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

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

23  which special districts that did not comply with the statutory

24  reporting requirements statutorily required by that agency.

25         (8)  Providing assistance to local general-purpose

26  governments and certain state agencies in collecting

27  delinquent reports or information, helping special districts

28  comply with reporting requirements, declaring special

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

30  Legislative Auditing Committee, initiating enforcement

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

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 1         Section 19.  Subsections (1) and (2) of section

 2  189.418, Florida Statutes, are amended, subsection (5) is

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

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

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

 6         189.418  Reports; budgets; audits.--

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

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

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

10  or other document that provides for the creation of the

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

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

13  dependent or independent and the basis for such

14  classification. In addition to the document or documents that

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

16  the district, showing any municipal boundaries that cross the

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

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

19  the local government or other entity and the district within

20  30 days after receipt of the document or documents that create

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

22  be dependent or independent.

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

24  document by which the district was created, including changes

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

26  days after adoption. The department may initiate proceedings

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

28  189.422 for failure to file the information required by this

29  subsection.

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

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

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

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

 3         (7)(6)  All reports or information required to be filed

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

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

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

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

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

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

10         (c)  When the local governing authority is a

11  municipality, be filed at the place designated by the

12  municipal governing body.

13         Section 20.  Section 189.419, Florida Statutes, is

14  amended to read:

15         189.419  Effect of failure to file certain reports or

16  information.--

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

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

19  189.417, s. 189.418, s. 218.32, or s. 218.39 and a description

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

21  governing authority, the person authorized to receive and read

22  the reports or information shall notify the district's

23  registered agent and the appropriate local governing authority

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

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

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

27  except that an extension may not exceed 30 days.

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

29  authorities or the board of county commissioners determines

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

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

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 1  petition the department and the department may proceed

 2  pursuant to initiate proceedings against the special district

 3  in the manner provided in s. 189.421.

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

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

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

 7  notify the department, and the department shall proceed

 8  pursuant to s. 189.421 may initiate proceedings against the

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

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

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

12  noncompliance.

13         Section 21.  Section 189.421, Florida Statutes, is

14  amended to read:

15         (Substantial rewording of section. See

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

17         189.421  Failure of district to disclose financial

18  reports.--

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

20  department shall attempt to assist a special district to

21  comply with its financial reporting requirements by sending a

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

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

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

25  description of the required report, including statutory

26  submission deadlines, a contact telephone number for technical

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

28  extension of time for filing the required report with the

29  appropriate entity, the address where the report must be

30  filed, and an explanation of the penalties for

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

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

 2  special district.  The department shall notify the appropriate

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

 4  district that did not timely file the reports or information

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

 6  technical assistance letter to the special district which

 7  summarizes the requirements and encourages the special

 8  district to take steps to prevent the noncompliance from

 9  reoccurring.

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

11  financial reporting requirements after the procedures of

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

13  the special district.  The financial reporting requirements

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

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

16  subsection (3).

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

18  Auditing Committee shall notify the department of those

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

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

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

22  later, the department shall proceed as follows:

23  notwithstanding the provisions of chapter 120, the department

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

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

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

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

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

29  certiorari shall be issued unless a respondent establishes

30  that the notification of the Legislative Auditing Committee

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

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 1  this subsection shall otherwise be governed by the Rules of

 2  Appellate Procedure.

 3         Section 22.  Subsection (5) of section 189.428, Florida

 4  Statutes, is amended to read:

 5         189.428  Special districts; oversight review process.--

 6         (5)  Those conducting the oversight review process

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

 8  evaluating the special district, but may also consider any

 9  additional factors relating to the district and its

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

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

12  considered. The criteria to be considered by the reviewer

13  include:

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

15  offered by the special district are essential or contribute to

16  the well-being of the community.

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

18  services currently provided by the special district.

19         (c)  The extent of municipal annexation or

20  incorporation activity occurring or likely to occur within the

21  boundaries of the special district and its impact on the

22  delivery of services by the special district.

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

24  of delivering the service or services that would adequately

25  provide the district residents with the services provided by

26  the district.

27         (e)  Whether transfer of the responsibility for

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

29  the special district being reviewed could be accomplished

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

31  or outstanding indebtedness.

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 1         (f)  Whether the Auditor General has notified the

 2  Legislative Auditing Committee that the special district's

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

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

 5  218.503(1) or that a deteriorating financial condition exists

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

 7  if actions are not taken to address such condition.

 8         (g)  Whether the Auditor General has determined that

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

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

11  the Legislative Auditing Committee.

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

13  the official list of special districts, and whether the

14  district is meeting and discharging its responsibilities as

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

16  decreases in district activity.

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

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

19  including preparation of the public facilities report.

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

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

22  complied with all open public records and meeting

23  requirements.

24         Section 23.  Paragraph (a) of subsection (1) of section

25  189.439, Florida Statutes, is amended to read:

26         189.439  Bonds.--

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

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

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

30  including, without limitation, the power to obtain working

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

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 1  refund any bonds or other indebtedness at the time outstanding

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

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

 4  advertisement, if any, as the board considers

 5  advisable.  Bonds may be authorized by resolution of the

 6  board.

 7         Section 24.  Subsections (1) and (2) of section

 8  191.005, Florida Statutes, are amended to read:

 9         191.005  District boards of commissioners; membership,

10  officers, meetings.--

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

12  boards are appointed collectively by the Governor, the county

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

14  business affairs of each district shall be conducted and

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

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

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

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

19  thereafter. The board shall be elected in nonpartisan

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

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

22  the manner prescribed by law for holding general elections in

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

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

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

26  a district shall qualify with the county supervisor of

27  elections in whose jurisdiction the district is located.  If

28  the district is a multicounty district, candidates shall

29  qualify with the Department of State.  All candidates may

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

31  signatures of at least 25 registered electors of the district

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 1  on petition forms provided by the supervisor of elections

 2  which petitions shall be submitted and checked in the same

 3  manner as petitions filed by nonpartisan judicial candidates

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

 5  candidate who does not collect contributions and whose only

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

 7  campaign treasurer or designate a primary campaign depository.

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

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

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

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

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

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

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

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

16  seat designation does not designate a geographical subdistrict

17  unless such subdistrict exists on the effective date of this

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

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

20  the election for the member from that subdistrict.  Each

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

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

23  candidate is qualifying.  The name of each candidate who

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

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

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

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

28  for the seat shall be elected to the board.

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

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

31  election shall be conducted in accordance with this section,

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

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

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

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

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

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

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

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

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

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

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

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

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

14  existing seats all expire within 6 months of the first

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

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

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

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

19  designated to remain three members by special act adopted in

20  1997 or thereafter, the terms of the board members shall be

21  staggered. In the first election following the effective date

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

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

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

25  legislative delegation that represents the area within the

26  district to create by special law geographical subdistricts

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

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

29  shall continue to elect board members from such previously

30  designated subdistricts, and this act shall not require the

31  elimination of board seats from such boards.

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

 2  elector at the time he or she qualifies and continually

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

 4  a qualified elector is automatically removed pursuant to this

 5  act.

 6         Section 25.  Section 218.075, Florida Statutes, is

 7  amended to read:

 8         218.075  Reduction or waiver of permit processing

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

10  Department of Environmental Protection and the water

11  management districts shall reduce or waive permit processing

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

13  1, 1994, until such counties exceed a population of 75,000 and

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

15  county or municipality not included within a metropolitan

16  statistical area. Fee reductions or waivers shall be approved

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

18  particular project or activity. The governing body must

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

20  hardship due to one of the following factors:

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

22  statewide average for the current fiscal year;

23         (2)  Percentage of assessed property value that is

24  exempt from ad valorem taxation is higher than the statewide

25  average for the current fiscal year;

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

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

28  that determines a state of financial emergency;

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

30  fiscal year is greater than 8 mills; or

31  

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

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

 3  indicates an inability to pay the permit processing fee during

 4  that fiscal year.

 5  

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

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

 8  municipality and the project for which the fee reduction or

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

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

11  $100.

12         Section 26.  Subsection (3) is added to section 218.32,

13  Florida Statutes, to read:

14         218.32  Annual financial reports; local governmental

15  entities.--

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

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

18  municipality that has not reported any financial activity for

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

20  initiate dissolution procedures as described in s.

21  165.051(1)(a).  Any special law authorizing the incorporation

22  or creation of the municipality must be included within the

23  notification.

24         Section 27.  Section 218.321, Florida Statutes, is

25  repealed.

26         Section 28.  Subsection (3) of section 218.39, Florida

27  Statutes, is amended to read:

28         218.39  Annual financial audit reports.--

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

30  for an annual financial audit by being included within the

31  audit of another local governmental entity upon which it is

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 1  dependent.  An independent special district may not make

 2  provision for an annual financial audit by being included

 3  within the audit of another local governmental entity.

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

 5  defined by generally accepted accounting principles, of a

 6  local government entity shall provide the local governmental

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

 8  local governmental entity, with financial information

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

10  component unit to provide this financial information must be

11  noted in the annual financial audit report of the local

12  governmental entity.

13         Section 29.  Subsection (3) of section 218.36, Florida

14  Statutes, is amended to read:

15         218.36  County officers; record and report of fees and

16  disposition of same.--

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

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

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

20  with the provisions of this section.  Such notification shall

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

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

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

24         Section 30.  Section 218.369, Florida Statutes, is

25  amended to read:

26         218.369  Definitions applicable to ss.

27  218.37-218.386.--As used in this section and in ss. 218.37,

28  218.38, 218.385, and 218.386, the term "unit of local

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

30  municipality, special district, district school board, local

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

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 1  any other local governmental body or public body corporate and

 2  politic authorized or created by general or special law and

 3  granted the power to issue general obligation or revenue

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

 5  shall be interpreted to include within their scope general

 6  obligation bonds, revenue bonds, special assessment bonds,

 7  limited revenue bonds, special obligation bonds, debentures,

 8  and other similar instruments, but not bond anticipation

 9  notes.

10         Section 31.  Part V of chapter 218, Florida Statutes,

11  entitled "Financial Emergencies" is renamed "Local

12  Governmental Entity and District School Board Financial

13  Emergencies."

14         Section 32.  Section 218.50, Florida Statutes, is

15  amended to read:

16         218.50  Short title.--Sections 218.50-218.504 may be

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

18  District School Board Government Financial Emergencies Act."

19         Section 33.  Section 218.501, Florida Statutes, is

20  amended to read:

21         218.501  Purposes.--The purposes of ss. 218.50-218.504

22  are:

23         (1)  To promote preserve and protect the fiscal

24  responsibility solvency of local governmental entities and

25  district school boards.

26         (2)  To assist local governmental entities and district

27  school boards in providing essential services without

28  interruption and in meeting their financial obligations.

29         (3)  To assist local governmental entities and district

30  school boards through the improvement of local financial

31  management procedures.

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 1         Section 34.  Section 218.502, Florida Statutes, is

 2  amended to read:

 3         218.502  Definition.--As used in ss. 218.50-218.504,

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

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

 6         Section 35.  Section 218.503, Florida Statutes, is

 7  amended to read:

 8         218.503  Determination of financial emergency.--

 9         (1)  A Local governmental entities and district school

10  boards shall be subject to review and oversight by the

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

12  of financial emergency when any one of the following

13  conditions occurs:

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

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

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

17  result of a lack of funds.

18         (b)  Failure to pay uncontested claims from creditors

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

20  lack of funds.

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

22  due to lack of funds:

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

24         2.  Employer and employee contributions for:

25         a.  Federal social security; or

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

27  employee.

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

29  of funds:

30         1.  Wages and salaries owed to employees; or

31         2.  Retirement benefits owed to former employees.

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

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

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

 4  the general purpose or basic financial statements, for which

 5  sufficient resources of the local governmental entity, as

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

 7  the general purpose or basic financial statements, are not

 8  available to cover the deficit for 2 successive years.

 9  Resources available to cover reported deficits include net

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

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

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

13  which would impair the ability of a local governmental entity

14  to carry out its functions, are not considered resources

15  available to cover reported deficits.

16         (e)  Noncompliance of the local government retirement

17  system with actuarial conditions provided by law.

18         (2)  A local governmental entity shall notify the

19  Governor and the Legislative Auditing Committee, and a

20  district school board shall notify the Commissioner of

21  Education and the Legislative Auditing Committee, when one or

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

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

24  local governmental entity or district school board.  In

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

26  determination that one or more of the conditions specified in

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

28  taken to assist the local governmental entity or district

29  school board the identification of the financial emergency,

30  notify the Governor or the Commissioner of Education, as

31  appropriate, and the Legislative Auditing Committee when one

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

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

 3  local governmental entity.

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

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

 6  designee shall contact the local governmental entity or the

 7  Commissioner of Education or his or her designee shall contact

 8  the district school board to determine what actions have been

 9  taken by the local governmental entity or the district school

10  board to resolve the condition financial emergency. The

11  Governor or the Commissioner of Education, as appropriate,

12  shall determine whether the local governmental entity or the

13  district school board needs state assistance to resolve the

14  condition.  If state assistance is needed, the local

15  governmental entity or district school board is considered to

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

17  Commissioner of Education, as appropriate, has the authority

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

19  assist the local governmental entity or district school board

20  in resolving resolve the financial emergency.  Such measures

21  may include, but are not limited to:

22         (a)  Requiring approval of the local governmental

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

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

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

26  governmental entity and providing for repayment of same.

27         (c)  Prohibiting a local governmental entity or

28  district school board from issuing bonds, notes, certificates

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

30  it is no longer subject to this section.

31  

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

 2  information, reports, and assets of the local governmental

 3  entity or district school board. The appropriate local

 4  officials shall cooperate in such, in which inspections and

 5  reviews the appropriate local officials shall cooperate.

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

 7  local governmental entity or the district school board and the

 8  appropriate state officials agency regarding any steps

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

10  financial procedures, and reports into compliance with state

11  requirements.

12         (f)  Providing technical assistance to the local

13  governmental entity or the district school board.

14         (g)1.  Establishing a financial emergency emergencies

15  board to oversee the activities of the local governmental

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

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

18  shall be appointed by the Governor shall appoint board members

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

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

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

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

23  necessary. The financial emergency board shall adopt such

24  rules as are necessary for conducting board business. The

25  board may:

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

27  of the local governmental entity or the district school board

28  as are needed.

29         b.  Consult with the officials and auditors of the

30  local governmental entity or the district school board and the

31  appropriate state officials regarding any steps necessary to

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 1  bring the books of account, accounting systems, financial

 2  procedures, and reports of the local governmental entity or

 3  the district school board into compliance with state

 4  requirements.

 5         c.  Review the operations, management, efficiency,

 6  productivity, and financing of functions and operations of the

 7  local governmental entity or the district school board.

 8         2.  The recommendations and reports made by the

 9  financial emergency board must be submitted to the Governor

10  for local governmental entities or to the Commissioner of

11  Education and the State Board of Education for district school

12  boards for appropriate action.

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

14  officials of the appropriate state agency in conjunction with

15  the local governmental entity or the district school board in

16  consultation with the appropriate state officials, prescribing

17  actions that will cause the local governmental entity or

18  district school board to no longer be subject to this

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

20         1.  Provision for payment in full of obligations

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

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

23  obligations, pension payments, and all payments and charges

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

25  judgments and past due accounts, as priority items of

26  expenditures.

27         2.  Establishment of a basis of priority budgeting or

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

29  items that are not affordable.

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

31  be sustained only with nonrecurring revenues.

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

 2  governmental entity or district school board may not seek

 3  application of laws under the bankruptcy provisions of the

 4  United States Constitution except with the prior approval of

 5  the Governor for local governmental entities or the

 6  Commissioner of Education for district school boards.

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

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

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

10  emergency pursuant to this section may impose a discretionary

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

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

13  facilities within the municipality which are open for use to

14  the general public.

15         (b)  A municipal governing authority that imposes the

16  surcharge authorized by this subsection may use the proceeds

17  of such surcharge for the following purposes only:

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

19  of the surcharge proceeds shall be used by the governing

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

21  reduce or eliminate non-ad valorem assessments.

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

23  shall be used by the governing authority to increase its

24  budget reserves; however, the governing authority shall not

25  reduce the amount it allocates for budget reserves from other

26  sources below the amount allocated for reserves in the fiscal

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

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

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

30  fiscal years, the remaining proceeds from this subparagraph

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

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 1  to outstanding obligations backed or secured by a covenant to

 2  budget and appropriate from non-ad valorem revenues.

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

 4         Section 36.  Section 218.504, Florida Statutes, is

 5  amended to read:

 6         218.504  Cessation of state action.--The Governor or

 7  the Commissioner of Education, as appropriate, has the

 8  authority to terminate all state actions pursuant to ss.

 9  218.50-218.504.  Cessation of state action must not occur

10  until the Governor or the Commissioner of Education, as

11  appropriate, has determined that:

12         (1)  The local governmental entity or district school

13  board:

14         (a)  Has established and is operating an effective

15  financial accounting and reporting system.

16         (b)  Has resolved corrected or eliminated the fiscal

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

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

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

20         Section 37.  Chapter 131, Florida Statutes, consisting

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

22  131.06, Florida Statutes, is repealed.

23         Section 38.  Section 132.10, Florida Statutes, is

24  repealed.

25         Section 39.  Section 165.052, Florida Statutes, is

26  repealed.

27         Section 40.  Section 189.409, Florida Statutes, is

28  repealed.

29         Section 41.  Section 189.422, Florida Statutes, is

30  repealed.

31  

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 1         Section 42.  Section 200.0684, Florida Statutes, is

 2  repealed.

 3         Section 43.  Paragraph (h) of subsection (1) of section

 4  218.37, Florida Statutes, is repealed.

 5         Section 44.  Section 215.195, Florida Statutes, is

 6  amended to read:

 7         215.195  Agency deposits relating to the Statewide Cost

 8  Allocation Plan.--

 9         (1)  APPLICATION FOR ALLOCABLE STATEWIDE

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

11  application for federal grant or contract funds shall, in

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

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

14  services provided by state central service agencies which are

15  reimbursable to the state pursuant to the provisions of Office

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

17  Statewide Cost Allocation Plan and coordination thereof with

18  all applicable parties is the responsibility of the Department

19  of Financial Services. The Department of Financial Services

20  shall ensure that the SWCAP presents the most favorable

21  allocation of central services cost allowable to the state by

22  the Federal Government.

23         (2)  DEPOSIT OF OVERHEAD IN THE GENERAL REVENUE

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

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

26  federal grant or contract shall identify that portion

27  representing reimbursement of allocable statewide overhead and

28  deposit that amount into the General Revenue Fund unallocated

29  as directed by the Department of Financial Services Executive

30  Office of the Governor. The Department of Financial Services

31  

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 1  shall be responsible for monitoring agency compliance with

 2  this section.

 3         Section 45.  Section 215.97, Florida Statutes, is

 4  amended to read:

 5         215.97  Florida Single Audit Act.--

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

 7         (a)  Establish uniform state audit requirements for

 8  state financial assistance provided by state agencies to

 9  nonstate entities to carry out state projects.

10         (b)  Promote sound financial management, including

11  effective internal controls, with respect to state financial

12  assistance administered by nonstate entities.

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

14  the extent possible on already required audits of federal

15  financial assistance provided to nonstate entities.

16         (d)  Provide for identification of state financial

17  assistance transactions in the appropriations act, state

18  accounting records, and recipient organization records.

19         (e)  Promote improved coordination and cooperation

20  within and between affected state agencies providing state

21  financial assistance and nonstate entities receiving state

22  assistance.

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

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

25  financial assistance provided to nonstate entities.

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

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

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

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

30  conducted in accordance with this section. Each nonstate

31  entity that expends a total amount of state financial

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

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

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

 4  independent auditor, for such fiscal year in accordance with

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

 6  General, after consulting with the Executive Office of the

 7  Governor, the Department of Financial Services Chief Financial

 8  Officer, and all state awarding agencies that provide state

 9  financial assistance to nonstate entities, shall review the

10  threshold amount for requiring audits under this section and

11  may adjust such threshold dollar amount consistent with the

12  purposes purpose of this section.

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

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

15  for-profit organizations, nonprofit organizations, or local

16  governmental entities.

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

18  comprehensive listing of state projects. The Catalog of State

19  Financial Assistance shall be issued by the Department of

20  Financial Services Executive Office of the Governor after

21  conferring with the Chief Financial Officer and all state

22  awarding agencies that provide state financial assistance to

23  nonstate entities. The Catalog of State Financial Assistance

24  shall include for each listed state project: the responsible

25  state awarding agency; standard state project number

26  identifier; official title; legal authorization; and

27  description of the state project, including objectives,

28  restrictions, application and awarding procedures, and other

29  relevant information determined necessary.

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

31  agency that provides the predominant amount of state financial

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 1  assistance expended by a recipient, as determined by the

 2  recipient's Schedule of Expenditures of State Financial

 3  Assistance. To provide continuity, the determination of the

 4  predominant amount of state financial assistance shall be

 5  based upon state financial assistance expended in the

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

 7  every third year thereafter.

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

 9  nonstate entities' financial statements, Schedule of

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

11  management letter, auditee's written responses or corrective

12  action plan, correspondence on followup of prior years'

13  corrective actions taken, and such other information

14  determined by the Auditor General to be necessary and

15  consistent with the purposes of this section.

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

17  assistance from federal sources passed through the state and

18  provided to nonstate organizations entities to carry out a

19  federal program. "Federal financial assistance" includes all

20  types of federal assistance as defined in applicable United

21  States Office of Management and Budget circulars.

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

23  organization or sole proprietor but is not a local

24  governmental entity or a nonprofit organization.

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

26  external state or local government auditor or a certified

27  public accountant licensed under chapter 473 who meets the

28  independence standards.

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

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

31  other personnel, designed to provide reasonable assurance

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 1  regarding the achievement of objectives in the following

 2  categories:

 3         1.  Effectiveness and efficiency of operations.

 4         2.  Reliability of financial operations.

 5         3.  Compliance with applicable laws and regulations.

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

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

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

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

10  which independently exercises any type of governmental

11  function within the state.

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

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

14  of Financial Services Executive Office of the Governor. Such

15  criteria shall be established after consultation with all the

16  Chief Financial Officer and appropriate state awarding

17  agencies that provide state financial assistance and shall

18  consider the amount of state project expenditures and or

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

20  audited in accordance with the requirements of this section.

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

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

23         1.  Is operated primarily for scientific, educational

24  service, charitable, or similar purpose in the public

25  interest;

26         2.  Is not organized primarily for profit;

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

28  the operations of the organization; and

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

30  to its members, directors, or officers.

31  

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

 2  entity, nonprofit organization, or for-profit organization

 3  that receives state financial assistance resources.

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

 5  receives state financial assistance directly from a state

 6  awarding agency.

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

 8  Assistance" means a document prepared in accordance with the

 9  rules of the Department of Financial Services Chief Financial

10  Officer and included in each financial reporting package

11  required by this section.

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

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

14  financial assistance to a the nonstate entity.

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

16  assistance from state resources, not including federal

17  financial assistance and state matching on federal programs,

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

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

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

21  Department of Financial Services Executive Office of the

22  Governor established in consultation with all the Chief

23  Financial Officer and appropriate state awarding agencies that

24  provide state financial assistance. It includes State

25  financial assistance may be provided directly by state

26  awarding agencies or indirectly by nonstate entities

27  recipients of state awards or subrecipients. State financial

28  assistance It does not include procurement contracts used to

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

30  procurement contracts with vendors are outside of the scope of

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

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

 2  excluded from the audit requirements of this section.

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

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

 5  financial participation matching requirements of federal

 6  programs.

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

 8  activities undertaken to realize identifiable goals and

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

10  legislative intent requiring accountability for state

11  resources.

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

13  provides all state financial assistance to a nonstate

14  organization and that must be entity assigned a single state

15  project number identifier in the Catalog of State Financial

16  Assistance.

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

18  document issued by the Department of Financial Services

19  Executive Office of the Governor, in consultation with the

20  Chief Financial Officer and all state awarding agencies that

21  provide state financial assistance. The State Projects

22  Compliance Supplement shall identify state projects, the

23  significant compliance requirements, eligibility requirements,

24  matching requirements, suggested audit procedures, and other

25  relevant information determined necessary.

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

27  of one state project performed in accordance with the

28  requirements of subsection (10) (9).

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

30  nonstate entity's financial statements and state financial

31  assistance. Such audits shall be conducted in accordance with

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

 2  General.

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

 4  receives state financial assistance through another nonstate

 5  entity.

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

 7  or other seller providing goods or services that are required

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

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

10  beneficiaries of the state project.

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

12  responsible for notifying the Department of Financial Services

13  of any actions during the budgetary process which impact the

14  Catalog of State Financial Assistance.:

15         (a)  Upon conferring with the Chief Financial Officer

16  and all state awarding agencies, adopt rules necessary to

17  provide appropriate guidance to state awarding agencies,

18  recipients and subrecipients, and independent auditors of

19  state financial assistance relating to the requirements of

20  this section, including:

21         1.  The types or classes of financial assistance

22  considered to be state financial assistance which would be

23  subject to the requirements of this section. This would

24  include guidance to assist in identifying when the state

25  agency or recipient has contracted with a vendor rather than

26  with a recipient or subrecipient.

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

28         3.  The criteria for selecting state projects for

29  audits based on inherent risk.

30         (b)  Be responsible for coordinating the initial

31  preparation and subsequent revisions of the Catalog of State

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 1  Financial Assistance after consultation with the Chief

 2  Financial Officer and all state awarding agencies.

 3         (c)  Be responsible for coordinating the initial

 4  preparation and subsequent revisions of the State Projects

 5  Compliance Supplement, after consultation with the Chief

 6  Financial Officer and all state awarding agencies.

 7         (4)  The Department of Financial Services Chief

 8  Financial Officer shall:

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

10  Governor and all state awarding agencies, adopt rules

11  necessary to provide appropriate guidance to state awarding

12  agencies, nonstate entities, and independent auditors of state

13  financial assistance relating to the requirements of this

14  section, including:

15         1.  The types or classes of state resources considered

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

17  requirements of this section. This would include guidance to

18  assist in identifying when the state awarding agency or a

19  nonstate entity has contracted with a vendor rather than with

20  a recipient or subrecipient.

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

22         3.  The criteria for selecting state projects for

23  audits based on inherent risk.

24         (b)  Be responsible for coordinating revisions to the

25  Catalog of State Financial Assistance after consultation with

26  the Executive Office of the Governor and all state awarding

27  agencies.

28         (c)  Be responsible for coordinating with the Executive

29  Office of the Governor actions affecting the budgetary process

30  under paragraph (b).

31  

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 1         (d)  Be responsible for coordinating revisions to the

 2  State Projects Compliance Supplement, after consultation with

 3  the Executive Office of the Governor and all state awarding

 4  agencies.

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

 6  system to provide for the:

 7         1.  Recording of state financial assistance and federal

 8  financial assistance appropriations and expenditures within

 9  the state awarding agencies' operating funds.

10         2.  Recording of state project number identifiers, as

11  provided in the Catalog of State Financial Assistance, for

12  state financial assistance.

13         3.  Establishment and recording of an identification

14  code for each financial transaction, including awarding state

15  agencies' disbursements of state financial assistance and

16  federal financial assistance, as to the corresponding type or

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

18  governmental agencies, nonprofit organizations, and for-profit

19  organizations), and disbursements of federal financial

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

21  is not a nonstate entity recipient or subrecipient.

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

23  the Governor and all state awarding agencies, adopt rules

24  necessary to provide appropriate guidance to state awarding

25  agencies, nonstate entities recipients and subrecipients, and

26  independent auditors of state financial assistance relating to

27  the format for the Schedule of Expenditures of State Financial

28  Assistance.

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

30  investigations, or audits of state financial assistance

31  considered necessary in carrying out the Department of

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 1  Financial Services Chief Financial Officer's legal

 2  responsibilities for state financial assistance or to comply

 3  with the requirements of this section.

 4         (5)  Each state awarding agency shall:

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

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

 7  including:

 8         1.  The audit and accountability requirements for state

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

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

11  Financial Services Chief Financial Officer, and rules of the

12  Auditor General.

13         2.  Information from the Catalog of State Financial

14  Assistance, including the standard state project number

15  identifier; official title; legal authorization; and

16  description of the state project including objectives,

17  restrictions, and other relevant information determined

18  necessary.

19         3.  Information from the State Projects Compliance

20  Supplement, including the significant compliance requirements,

21  eligibility requirements, matching requirements, suggested

22  audit procedures, and other relevant information determined

23  necessary.

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

25  state financial assistance, to allow the state awarding

26  agency, the Department of Financial Services Chief Financial

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

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

29  papers as necessary for complying with the requirements of

30  this section.

31  

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

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

 3  arrange for the conduct of additional audits or evaluations of

 4  state financial assistance or limit the authority of any state

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

 6  other state official.

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

 8  package prepared in accordance with the requirement of this

 9  section.

10         (e)  Review the recipient's recipient financial

11  reporting package, including the management letters and

12  corrective action plans, to the extent necessary to determine

13  whether timely and appropriate corrective action has been

14  taken with respect to audit findings and recommendations

15  pertaining to state financial assistance that are specific to

16  provided by the state awarding agency.

17         (f)  Designate within the state awarding agency a

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

19  responsible for reviewing financial reporting packages

20  pursuant to paragraph (e).

21  

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

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

24  designated division, bureau, or other organizational unit

25  shall communicate to the coordinating agency the state

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

27  action plan with respect to findings and recommendations that

28  are not specific to the state awarding agency.

29         (6)  Each coordinating agency shall:

30         (a)  Review the recipient's financial reporting

31  package, including the management letter and corrective action

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 1  plan, to identify audit findings and recommendations that

 2  affect state financial assistance which are not specific to a

 3  particular state awarding agency.

 4         (b)  For any such findings and recommendations

 5  determine:

 6         1.  Whether timely and appropriate corrective action

 7  has been taken.

 8         2.  Promptly inform the state awarding agency's

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

10  the recipient to comply with the approved corrective action

11  plan.

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

13  use of any succeeding coordinating agency.

14         (7)(6)  As a condition of receiving state financial

15  assistance, each nonstate entity recipient that provides state

16  financial assistance to a subrecipient shall:

17         (a)  Provide to each a subrecipient information needed

18  by the subrecipient to comply with the requirements of this

19  section, including:

20         1.  Identification of the state awarding agency.

21         2.  The audit and accountability requirements for state

22  projects as stated in this section and applicable 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.

26         3.  Information from the Catalog of State Financial

27  Assistance, including the standard state project number

28  identifier; official title; legal authorization; and

29  description of the state project, including objectives,

30  restrictions, and other relevant information.

31  

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 1         4.  Information from the State Projects Compliance

 2  Supplement including the significant compliance requirements,

 3  eligibility requirements, matching requirements, and suggested

 4  audit procedures, and other relevant information determined

 5  necessary.

 6         (b)  Review the financial reporting package of the

 7  subrecipient audit reports, including the management letter

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

 9  determine whether timely and appropriate corrective action has

10  been taken with respect to audit findings and recommendations

11  pertaining to state financial assistance provided by a the

12  state awarding agency or nonstate entity.

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

14  terms and conditions of the written agreement with the state

15  awarding agency or nonstate entity, including any required

16  monitoring of the subrecipient's use of state financial

17  assistance through onsite visits, limited scope audits, or

18  other specified procedures.

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

20  state financial assistance, to permit the independent auditor

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

22  Department of Financial Services the Chief Financial Officer,

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

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

25  necessary to comply with the requirements of this section.

26         (8)(7)  Each recipient or subrecipient of state

27  financial assistance shall comply with the following:

28         (a)  Each nonstate entity that receives state financial

29  assistance and meets the audit threshold requirements, in any

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

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

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 1  for such fiscal year in accordance with the requirements of

 2  this act and with additional requirements established in rules

 3  of the Executive Office of the Governor, rules of the

 4  Department of Financial Services Chief Financial Officer, and

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

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

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

 8  of the state project for that fiscal year.

 9         (b)  Each nonstate entity that receives state financial

10  assistance and does not meet the audit threshold requirements,

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

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

13  fiscal year from the state single audit requirements of this

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

15  conditions specified in the written agreement with the state

16  awarding agency or nonstate entity.

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

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

19  nonstate entity from compliance with provisions of law

20  relating to maintaining records concerning state financial

21  assistance to such nonstate entity or allowing access and

22  examination of those records by the state awarding agency,

23  nonstate entity, the Department of Financial Services Chief

24  Financial Officer, or the Auditor General.

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

26  performed annually.

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

28  conducted by independent auditors in accordance with auditing

29  standards as stated in rules of the Auditor General.

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

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

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

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

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

 4  package shall be filed with the nonstate entity recipient that

 5  provided the state financial assistance and the Auditor

 6  General. The financial reporting package shall be filed in

 7  accordance with the rules of the Auditor General.

 8         (g)  All financial reporting packages prepared pursuant

 9  to the requirements of this section shall be available for

10  public inspection.

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

12  discloses any significant audit findings relating to state

13  financial assistance, including material noncompliance with

14  individual state project compliance requirements or reportable

15  conditions in internal controls of the nonstate entity, the

16  nonstate entity shall submit as part of the financial

17  reporting audit package to the state awarding agency or

18  nonstate entity a plan for corrective action to eliminate such

19  audit findings or a statement describing the reasons that

20  corrective action is not necessary.

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

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

23  federal Single Audit Act and other federal laws and

24  regulations. To the extent that such federally required audits

25  provide the state awarding agency or nonstate entity with

26  information it requires to carry out its responsibilities

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

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

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

30  pursuant to this section are is allowable charges to state

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

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

 2  audit requirements of this section in relation to other audit

 3  requirements. The nonstate entity should allocate such

 4  incremental costs to all state projects for which it expended

 5  state financial assistance.

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

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

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

 9  nonstate entity fails to have an audit conducted consistent

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

11  agencies may take appropriate corrective action to enforce

12  compliance.

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

14  agency or nonstate entity from including terms and conditions

15  in the written agreement which require additional assurances

16  that state financial assistance meets the applicable

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

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

19  provides state financial assistance to nonstate entities and

20  conducts or arranges for audits of state financial assistance

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

22  including audits of nonstate entities that do not meet the

23  audit threshold requirements, shall, consistent with other

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

25  additional audits.

26         (9)(8)  The independent auditor when conducting a state

27  single audit of a nonstate entity recipients or subrecipients

28  shall:

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

30  statements are presented fairly in all material respects in

31  conformity with generally accepted accounting principles.

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 1         (b)  Determine whether state financial assistance shown

 2  on the Schedule of Expenditures of State Financial Assistance

 3  is presented fairly in all material respects in relation to

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

 5         (c)  With respect to internal controls pertaining to

 6  each major state project:

 7         1.  Obtain an understanding of internal controls;

 8         2.  Assess control risk;

 9         3.  Perform tests of controls unless the controls are

10  deemed to be ineffective; and

11         4.  Determine whether the nonstate entity has internal

12  controls in place to provide reasonable assurance of

13  compliance with the provisions of laws and rules pertaining to

14  state financial assistance that have a material effect on each

15  major state project.

16         (d)  Determine whether each major state project

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

18  identified in the State Projects Compliance Supplement, or

19  otherwise identified by the state awarding agency, which have

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

21  state projects are less than 50 percent of the nonstate

22  entity's total expenditures for all state financial

23  assistance, the auditor shall select and test additional state

24  projects as major state projects as necessary to achieve audit

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

26  state financial assistance provided to the nonstate entity.

27  Additional state projects needed to meet the 50-percent

28  requirement may be selected on an inherent risk basis as

29  stated in the rules of the Department of Financial Services

30  Executive Office of the Governor.

31  

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

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

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

 4  Financial Services Chief Financial Officer, and rules of the

 5  Auditor General. Financial reporting packages must Audit

 6  reports shall include summaries of the auditor's results

 7  regarding the nonstate entity's financial statements; Schedule

 8  of Expenditures of State Financial Assistance; internal

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

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

11  rules of the Auditor General.

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

13  available the working papers relating to the audit conducted

14  pursuant to the requirements of this section to the state

15  awarding agency, the Department of Financial Services Chief

16  Financial Officer, or the Auditor General for review or

17  copying.

18         (10)(9)  The independent auditor, when conducting a

19  state project-specific audit of a nonstate entity recipients

20  or subrecipients, shall:

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

22  of Expenditure of State Financial Assistance is presented

23  fairly in all material respects in conformity with stated

24  accounting policies.

25         (b)  Obtain an understanding of internal controls

26  control and perform tests of internal controls control over

27  the state project consistent with the requirements of a major

28  state project.

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

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

31  identified in the State Projects Compliance Supplement, or

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 1  otherwise identified by the state awarding agency, which could

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

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

 4  project-specific audit consistent with the requirements of the

 5  state single audit and issue a management letter as prescribed

 6  in the rules of the Auditor General.

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

 8  available the working papers relating to the audit conducted

 9  pursuant to the requirements of this section to the state

10  awarding agency, the Department of Financial Services Chief

11  Financial Officer, or the Auditor General for review or

12  copying.

13         (11)(10)  The Auditor General shall:

14         (a)  Have the authority to audit state financial

15  assistance provided to any nonstate entity when determined

16  necessary by the Auditor General or when directed by the

17  Legislative Auditing Committee.

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

19  independent auditors are to follow for audits of nonstate

20  entities required by this section.

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

22  filing deadlines for the financial reporting package.

23         (d)  Provide technical advice upon request of the

24  Department of Financial Services Chief Financial Officer,

25  Executive Office of the Governor, and state awarding agencies

26  relating to financial reporting and audit responsibilities

27  contained in this section.

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

29  package prepared in accordance with the requirements of this

30  section.

31  

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

 2  reporting packages filed pursuant to the requirements of this

 3  section to determine compliance with the reporting

 4  requirements of this section and applicable rules of the

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

 6  Financial Services Chief Financial Officer, and rules of the

 7  Auditor General.

 8         Section 46.  Section 1010.47, Florida Statutes, is

 9  amended to read:

10         1010.47  Receiving bids and sale of bonds.--

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

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

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

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

15  by publication in some newspaper published in the district

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

17  at the office of the district school superintendent. The

18  notice shall be published twice, and the first publication

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

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

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

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

23  and shall give the schedule of maturities of the proposed

24  bonds and such other pertinent information as may be

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

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

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

28  interest and invite bids thereon. In addition to publication

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

30  subsection, the district school board shall notify in writing

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

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 1  the same time, notify the Department of Education concerning

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

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

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

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

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

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

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

 9  value except as specifically authorized by the Department of

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

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

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

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

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

15  be less advantageous to the district school board than that

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

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

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

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

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

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

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

23  tables shall govern, provided that the determination of the

24  district school board as to the highest and best bidder shall

25  be final.

26         Section 47.  Subsection (1) of section 288.9610,

27  Florida Statutes, is amended to read:

28         288.9610  Annual reports of Florida Development Finance

29  Corporation.--By December 1 of each year, the Florida

30  Development Finance Corporation shall submit to the Governor,

31  the President of the Senate, the Speaker of the House of

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 1  Representatives, the Senate Minority Leader, the House

 2  Minority Leader, and the city or county activating the Florida

 3  Development Finance Corporation a complete and detailed report

 4  setting forth:

 5         (1)  The evaluation required in s. 11.45(3)(j) s.

 6  11.45(3)(a)11.

 7         Section 48.  Section 373.556, Florida Statutes, is

 8  repealed.

 9         Section 49.  Effective July 1, 2004, one full-time

10  equivalent position is transferred from the Executive Office

11  of the Governor to the Department of Financial Services.

12         Section 50.  This act shall take effect upon becoming a

13  law.

14  

15          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
16                            CS/SB 708

17                                 

18  The committee substitute for committee substitute for SB 708
    changes statutory citations to conform  with the bill,
19  corrects a cross-reference, and repeals an obsolete section
    relating to investment of funds by  a water management
20  district.

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

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