Bill Text: FL S0690 | 2010 | Regular Session | Engrossed

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Bill Title: Local Government Accountability [EPSC]

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2010-04-30 - Died in Messages, companion bill(s) passed, see CS/HB 5101 (Ch. 2010-154) [S0690 Detail]

Download: Florida-2010-S0690-Engrossed.html

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CS for CS for SB 690                             First Engrossed 
2010690e1 
1                        A bill to be entitled 
2         An act relating to local government accountability; 
3         amending s. 11.40, F.S., relating to the Legislative 
4         Auditing Committee; clarifying when the Department of 
5         Community Affairs may institute procedures for 
6         declaring that a special district is inactive; 
7         amending s. 30.49, F.S.; specifying the level of 
8         detail required for each fund in the sheriff’s 
9         proposed budget; revising the categories for 
10         expenditures; amending s. 112.63, F.S., relating to 
11         the review of the actuarial reports and statements of 
12         retirement plans of governmental entities by the 
13         Department of Management Services; providing that the 
14         failure of a special district to make appropriate 
15         adjustments or provide additional information 
16         authorizes the department to seek a writ of 
17         certiorari; amending s. 129.01, F.S.; revising 
18         provisions relating to the preparation of county 
19         budgets; specifying the level of detail required for 
20         each fund in the budget; amending s. 129.02, F.S.; 
21         revising provisions relating to the preparation of 
22         special district budgets; specifying the level of 
23         detail required for each fund in the budget; amending 
24         s. 129.021, F.S.; conforming cross-references; 
25         amending s. 129.03, F.S.; deleting a time restriction 
26         on preparing and presenting a tentative county budget; 
27         requiring tentative county budgets to be posted on the 
28         county’s website; amending s. 129.06, F.S.; revising 
29         provisions relating to the execution and amendment of 
30         county budgets; requiring revised budgets to be posted 
31         on the county’s website; amending s. 129.07, F.S.; 
32         revising provisions relating to the prohibition 
33         against exceeding the county budget; amending s. 
34         129.201, F.S.; conforming and revising provisions 
35         relating to the budget of the supervisor of elections; 
36         specifying the level of detail required for each fund 
37         in the proposed budget; revising expenditure 
38         categories; amending s. 166.241, F.S.; revising 
39         provisions relating to the preparation or amendment of 
40         municipal budgets; specifying the level of detail for 
41         each fund in the budget; requiring such budgets and 
42         amendment to such budgets to be posted on the website 
43         of the municipality or related county; amending s. 
44         189.4044, F.S.; adding failure to file a registered 
45         office or agent with the department for 1 or more 
46         years as a criteria for declaring a special district 
47         inactive; amending s. 189.412, F.S.; adding the 
48         Legislative Auditing Committee to the list of entities 
49         that obtain special district noncompliance status 
50         reports; amending s. 189.418, F.S.; revising 
51         provisions relating to the preparation or amendment of 
52         special district budgets; specifying the level of 
53         detail for each fund in the budget; requiring such 
54         budgets to be posted on the website of the special 
55         district or related local general-purpose government 
56         or governing authority; requiring special districts to 
57         comply with certain reporting requirements; 
58         authorizing a local governing authority to request 
59         certain financial information from special districts 
60         located solely within the boundaries of the authority; 
61         requiring special districts to cooperate with such 
62         requests; amending s. 189.419, F.S.; revising 
63         procedures relating to a special district’s failure to 
64         file certain reports or information; amending s. 
65         189.421, F.S.; revising procedures relating to the 
66         failure of a special district to disclose financial 
67         reports; authorizing the Department of Community 
68         Affairs to seek a writ of certiorari; amending s. 
69         195.087, F.S.; requiring the final approved budget of 
70         the property appraiser and tax collector to be posted 
71         on their respective website or, if not available, the 
72         county’s website; amending s. 218.32, F.S.; revising 
73         the schedule for submitting a local governmental 
74         entity’s audit and annual financial reports to the 
75         Department of Financial Services; requiring the 
76         department to notify the Special District Information 
77         Program if it does not receive a financial report from 
78         a local government entity; requiring a local 
79         governmental entity to provide a link to the entity’s 
80         financial report on the department’s website; amending 
81         s. 218.35, F.S.; requiring the budget for certain 
82         county-related duties to be itemized in accordance 
83         with the uniform accounting system of the Department 
84         of Financial Services; specifying the level of detail 
85         for each fund in the clerk of the court’s budget; 
86         requiring the court clerk’s approved budget to be 
87         posted on the county’s website; amending s. 218.39, 
88         F.S.; revising the timeframe for completing a local 
89         governmental entity’s annual financial audit; 
90         requiring that an auditor prepare an audit report; 
91         requiring that such report be filed with the Auditor 
92         General within a specified time; requiring that the 
93         Auditor General notify the Legislative Auditing 
94         Committee of any audit report indicating that an 
95         audited entity has failed to take corrective action; 
96         requiring that the chair of a local governmental 
97         entity appear before the committee under certain 
98         circumstances; amending s. 218.503, F.S.; revising 
99         provisions relating to oversight by the Governor when 
100         an entity’s financial statements show it cannot cover 
101         a deficit of funds; amending s. 373.536, F.S.; 
102         requiring that water management district budgets be 
103         posted on the district website; amending s. 1011.03, 
104         F.S.; requiring the summary of the tentative budget, 
105         the tentative budget, and the budget of a district 
106         school board to be posted on the website of the 
107         district or related county; amending s. 1011.051, 
108         F.S.; revising provisions relating to the guidelines 
109         for district school boards to maintain an ending fund 
110         balance for the general fund; amending s. 1011.64, 
111         F.S.; revising obsolete accounting terminology; 
112         providing an effective date. 
113 
114  Be It Enacted by the Legislature of the State of Florida: 
115 
116         Section 1. Paragraph (b) of subsection (5) of section 
117  11.40, Florida Statutes, is amended to read: 
118         11.40 Legislative Auditing Committee.— 
119         (5) Following notification by the Auditor General, the 
120  Department of Financial Services, or the Division of Bond 
121  Finance of the State Board of Administration of the failure of a 
122  local governmental entity, district school board, charter 
123  school, or charter technical career center to comply with the 
124  applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or 
125  s. 218.38, the Legislative Auditing Committee may schedule a 
126  hearing. If a hearing is scheduled, the committee shall 
127  determine if the entity should be subject to further state 
128  action. If the committee determines that the entity should be 
129  subject to further state action, the committee shall: 
130         (b) In the case of a special district, notify the 
131  Department of Community Affairs that the special district has 
132  failed to comply with the law. Upon receipt of notification, the 
133  Department of Community Affairs shall proceed pursuant to s. 
134  189.4044 or the provisions specified in s. 189.421. 
135         Section 2. Subsections (1) through (4) of section 30.49, 
136  Florida Statutes, are amended to read: 
137         30.49 Budgets.— 
138         (1) Pursuant to s. 129.03(2), each sheriff shall annually 
139  prepare and submit certify to the board of county commissioners 
140  a proposed budget of expenditures for the carrying out of the 
141  powers, duties, and operations of the office for the next 
142  ensuing fiscal year of the county. The fiscal year of the 
143  sheriff shall henceforth commence on October 1 and end on 
144  September 30 of each year. 
145         (2)(a) The sheriff shall submit with the proposed budget 
146  his or her sworn certificate, stating that the proposed 
147  expenditures are reasonable and necessary for the proper and 
148  efficient operation of the office for the ensuing year. The 
149  proposed budget must shall show the estimated amounts of all 
150  proposed expenditures for operating and equipping the sheriff’s 
151  office and jail, excluding the cost of construction, repair, or 
152  capital improvement of county buildings during the such fiscal 
153  year. The expenditures must shall be categorized at the 
154  appropriate fund level in accordance with the following 
155  functional categories: 
156         1. General law enforcement. 
157         2. Corrections and detention alternative facilities. 
158         3. Court services, excluding service of process. 
159         (b) The sheriff shall submit with the proposed budget a 
160  sworn certificate stating that the proposed expenditures are 
161  reasonable and necessary for the proper and efficient operation 
162  of the office for the next fiscal year. 
163         (c) Within the appropriate fund and functional category, 
164  expenditures shall be itemized in accordance with the uniform 
165  accounting system chart of accounts prescribed by the Department 
166  of Financial Services, as follows: 
167         1. Personnel Personal services. 
168         2. Operating expenses. 
169         3. Capital outlay. 
170         4. Debt service. 
171         5. Grants and aids Nonoperating disbursements and 
172  contingency reserves. 
173         6. Other uses. 
174         (d)(c) The sheriff shall submit to the board of county 
175  commissioners for consideration and inclusion in the county 
176  budget, as deemed appropriate by the county, requests for 
177  construction, repair, or capital improvement of county buildings 
178  operated or occupied by the sheriff. 
179         (3) The sheriff shall furnish to the board of county 
180  commissioners or the budget commission, if there is a budget 
181  commission in the county, all relevant and pertinent information 
182  concerning expenditures made in previous fiscal years and to the 
183  proposed expenditures which the such board or commission deems 
184  necessary, including expenditures at the subobject code level in 
185  accordance with the uniform accounting system prescribed by the 
186  Department of Financial Services. The board or commission may 
187  not amend, modify, increase, or reduce any expenditure at the 
188  subobject code level. except that The board or commission may 
189  not require confidential information concerning details of 
190  investigations. Confidential information concerning details of 
191  investigations is exempt from the provisions of s. 119.07(1). 
192         (4) The board of county commissioners or the budget 
193  commission, as appropriate the case may be, may require the 
194  sheriff to correct mathematical, mechanical, factual, and 
195  clerical errors and errors as to form in the proposed budget. At 
196  the hearings held pursuant to s. 200.065, the board or 
197  commission, as the case may be, may amend, modify, increase, or 
198  reduce any or all items of expenditure in the proposed budget, 
199  as certified by the sheriff pursuant to paragraphs (2)(a)-(c), 
200  and shall approve such budget, as amended, modified, increased, 
201  or reduced. The board or commission It must give written notice 
202  of its action to the sheriff and specify in such notice the 
203  specific items amended, modified, increased, or reduced. The 
204  budget must shall include the salaries and expenses of the 
205  sheriff’s office, cost of operation of the county jail, 
206  purchase, maintenance and operation of equipment, including 
207  patrol cars, radio systems, transporting prisoners, court 
208  duties, and all other salaries, expenses, equipment, and 
209  investigation expenditures of the entire sheriff’s office for 
210  the previous year. 
211         (a) The sheriff, within 30 days after receiving written 
212  notice of such action by the board or commission, either in 
213  person or in his or her office, may file an appeal by petition 
214  to the Administration Commission. Such appeal shall be by 
215  petition to the Administration commission. The petition must 
216  shall set forth the budget proposed by the sheriff, in the form 
217  and manner prescribed by the Executive Office of the Governor 
218  and approved by the Administration Commission, and the budget as 
219  approved by the board of county commissioners or the budget 
220  commission, as the case may be, and shall contain the reasons or 
221  grounds for the appeal. Such petition shall be filed with the 
222  Executive Office of the Governor, and a copy of the petition 
223  shall be served upon the board or commission from the decision 
224  of which appeal is taken by delivering the same to the chair or 
225  president thereof or to the clerk of the circuit court. 
226         (b) The board of county commissioners or the budget 
227  commission, as the case may be, shall have 5 days following from 
228  delivery of a copy of any such petition to file a reply with the 
229  Executive Office of the Governor a reply thereto, and it shall 
230  deliver a copy of such reply to the sheriff. 
231         Section 3. Subsection (4) of section 112.63, Florida 
232  Statutes, is amended to read: 
233         112.63 Actuarial reports and statements of actuarial 
234  impact; review.— 
235         (4) Upon receipt, pursuant to subsection (2), of an 
236  actuarial report, or upon receipt, pursuant to subsection (3), 
237  of a statement of actuarial impact, the Department of Management 
238  Services shall acknowledge such receipt, but shall only review 
239  and comment on each retirement system’s or plan’s actuarial 
240  valuations at least on a triennial basis. 
241         (a) If the department finds that the actuarial valuation is 
242  not complete, accurate, or based on reasonable assumptions or 
243  otherwise materially fails to satisfy the requirements of this 
244  part;, if the department requires additional material 
245  information necessary to complete its review of the actuarial 
246  valuation of a system or plan or material information necessary 
247  to satisfy the duties of the department pursuant to s. 
248  112.665(1);, or if the department does not receive the actuarial 
249  report or statement of actuarial impact, the department shall 
250  notify the administrator of the affected retirement system or 
251  plan and the affected governmental entity and request 
252  appropriate adjustment, the additional material information, or 
253  the required report or statement. The notification must inform 
254  the administrator of the affected retirement system or plan and 
255  the affected governmental entity of the consequences for failing 
256  failure to comply with the requirements of this subsection. 
257         (b) If, after a reasonable period of time, a satisfactory 
258  adjustment is not made or the report, statement, or additional 
259  material information is not provided, the department may notify 
260  the Department of Revenue and the Department of Financial 
261  Services of the such noncompliance, and in which case the 
262  Department of Revenue and the Department of Financial Services 
263  shall withhold any funds not pledged for satisfaction of bond 
264  debt service which are payable to the affected governmental 
265  entity until the adjustment is made or the report, statement, or 
266  additional material information is provided to the department. 
267  The Department of Management Services shall specify the date 
268  such action is to begin and notify, and notification by the 
269  department must be received by the Department of Revenue, the 
270  Department of Financial Services, and the affected governmental 
271  entity 30 days before the specified date the action begins. 
272         (c)(a) Within 21 days after receipt of the notice, the 
273  affected governmental entity may petition the Department of 
274  Management Services for a hearing under ss. 120.569 and 120.57 
275  with the Department of Management Services. The Department of 
276  Revenue and the Department of Financial Services may not be 
277  parties to the any such hearing, but may request to intervene if 
278  requested by the Department of Management Services or if the 
279  Department of Revenue or the Department of Financial Services 
280  determines its interests may be adversely affected by the 
281  hearing. 
282         1. If the administrative law judge recommends in favor of 
283  the department, the department shall perform an actuarial 
284  review, prepare the statement of actuarial impact, or collect 
285  the requested material information. The cost to the department 
286  of performing the such actuarial review, preparing the 
287  statement, or collecting the requested material information 
288  shall be charged to the affected governmental entity whose of 
289  which the employees are covered by the retirement system or 
290  plan. If payment of such costs is not received by the department 
291  within 60 days after receipt by the affected governmental entity 
292  receives of the request for payment, the department shall 
293  certify to the Department of Revenue and the Department of 
294  Financial Services the amount due, and the Department of Revenue 
295  and the Department of Financial Services shall pay such amount 
296  to the Department of Management Services from any funds not 
297  pledged for satisfaction of bond debt service which are payable 
298  to the affected governmental entity of which the employees are 
299  covered by the retirement system or plan. 
300         2. If the administrative law judge recommends in favor of 
301  the affected governmental entity and the department performs an 
302  actuarial review, prepares the statement of actuarial impact, or 
303  collects the requested material information, the cost to the 
304  department of performing the actuarial review, preparing the 
305  statement, or collecting the requested material information 
306  shall be paid by the Department of Management Services. 
307         (d)(b) In the case of an affected special district, the 
308  Department of Management Services shall also notify the 
309  Department of Community Affairs. Upon receipt of notification, 
310  the Department of Community Affairs shall proceed pursuant to 
311  the provisions of s. 189.421 with regard to the special 
312  district. 
313         1. Failure of a special district to provide a required 
314  report or statement, to make appropriate adjustments, or to 
315  provide additional material information after the procedures 
316  specified in s. 189.421(1) are exhausted shall be deemed final 
317  action by the special district. 
318         2. The Department of Management Services may notify the 
319  Department of Community Affairs of those special districts that 
320  failed to come into compliance. Upon receipt of notification, 
321  the Department of Community Affairs shall proceed pursuant to s. 
322  189.421(4). 
323         Section 4. Section 129.01, Florida Statutes, is amended to 
324  read: 
325         129.01 Budget system established.—There is hereby 
326  established A budget system for the control of the finances of 
327  the boards of county commissioners of the several counties of 
328  the state is established, as follows: 
329         (1) A budget There shall be prepared, approved, adopted, 
330  and executed, as prescribed in this chapter, for the fiscal year 
331  ending September 30, 1952, and for each fiscal year. At a 
332  minimum, the budget must show for each fund, as thereafter, an 
333  annual budget for such funds as may be required by law and or by 
334  sound financial practices, budgeted revenues and expenditures by 
335  organizational unit at a level of detail that is at least 
336  similar to the level of detail in the annual financial report 
337  required under s. 218.32(1) and generally accepted accounting 
338  principles. The budget shall control the levy of taxes and the 
339  expenditure of money for all county purposes during the ensuing 
340  fiscal year. 
341         (2) The Each budget must shall conform to the following 
342  general directions and requirements: 
343         (a) The budget must shall be prepared, summarized, and 
344  approved by the board of county commissioners of each county. 
345         (b) The budget must shall be balanced, so that; that is, 
346  the total of the estimated receipts available from taxation and 
347  other sources, including balances brought forward from prior 
348  fiscal years, equals shall equal the total of the appropriations 
349  for expenditures and reserves. It shall conform to the uniform 
350  classification of accounts prescribed by the appropriate state 
351  agency. The budgeted receipts must division of the budget shall 
352  include 95 percent of all receipts reasonably to be anticipated 
353  from all sources, including taxes to be levied, provided the 
354  percent anticipated from ad valorem levies is shall be as 
355  specified in s. 200.065(2)(a), and is 100 percent of the amount 
356  of the balances of both cash and liquid securities estimated to 
357  be brought forward at the beginning of the fiscal year. The 
358  appropriations must appropriation division of the budget shall 
359  include itemized appropriations for all expenditures authorized 
360  by law, contemplated to be made, or incurred for the benefit of 
361  the county during the said year and the provision for the 
362  reserves authorized by this chapter. Both the receipts and 
363  appropriations must appropriation divisions shall reflect the 
364  approximate division of expenditures between countywide 
365  expenditures and noncountywide expenditures and the division of 
366  county revenues derived from or on behalf of the county as a 
367  whole and county revenues derived from or on behalf of a 
368  municipal service taxing unit, special district included within 
369  the county budget, unincorporated area, service area, or program 
370  area, or otherwise not received for or on behalf of the county 
371  as a whole. 
372         (c) Provision may be made for the following reserves: 
373         1. A reserve for contingencies may be provided which does 
374  in a sum not to exceed 10 percent of the total appropriations of 
375  the budget. 
376         2. A reserve for cash balance to be carried over may be 
377  provided for the purpose of paying expenses from October 1 of 
378  the next ensuing fiscal year until the time when the revenues 
379  for that year are expected to be available. This reserve may be 
380  not be more than 20 percent of the total appropriations. 
381  However, receipts and balances of the budget; provided that for 
382  the bond interest and sinking fund budget, this reserve may not 
383  exceed be not more than the total maturities of debt, (both 
384  principal and interest), which that will occur during the next 
385  ensuing fiscal year, plus the sinking fund requirements, 
386  computed on a straight-line basis, for any outstanding 
387  obligations to be paid from the fund. 
388         (d) An appropriation for “outstanding indebtedness” shall 
389  be made to provide for the payment of vouchers that which have 
390  been incurred in and charged against the budget for the current 
391  year or a prior year, but that which are expected to be unpaid 
392  at the beginning of the next fiscal ensuing year for which the 
393  budget is being prepared. The appropriation for the payment of 
394  such vouchers shall be to made in the same fund in which for 
395  which the expenses were originally incurred. 
396         (e) Any surplus arising from an excess of the estimated 
397  cash balance over the estimated amount of unpaid obligations to 
398  be carried over in a fund at the end of the current fiscal year 
399  may be transferred to any of the other funds of the county, and 
400  the amount so transferred shall be budgeted as a receipt to such 
401  other funds. However, a; provided, that no such surplus: 
402         1. In a fund raised for debt service may not shall be 
403  transferred to another fund until, except to a fund raised for 
404  the same purposes in the same territory, unless the debt for 
405  which the fund was established of such territory has been 
406  extinguished., in which case it may be transferred to any other 
407  fund raised for that territory; provided, further, that no such 
408  surplus 
409         2. In a capital outlay reserve fund may not be transferred 
410  to another fund until such time as the projects for which the 
411  such capital outlay reserve fund was raised have been completed 
412  and all obligations paid. 
413         Section 5. Subsection (6) of section 129.02, Florida 
414  Statutes, is amended to read: 
415         129.02 Requisites of budgets.—Each budget shall conform to 
416  the following specific directions and requirements: 
417         (6) For each special district included within the county 
418  budget, the operating fund budget must show budgeted revenues 
419  and expenditures by organizational unit at a level of detail 
420  that is at least similar to the level of detail in the annual 
421  financial report required under s. 218.32(1). The amount 
422  available from taxation and other sources, including balances 
423  brought forward from prior fiscal years, must equal the total 
424  appropriations for expenditures and reserves. The budget must 
425  include shall contain an estimate of receipts by source and 
426  balances as provided herein, and an itemized estimate of 
427  expenditures necessary that will need to be incurred to carry on 
428  all functions and activities of the special district as now or 
429  hereafter provided by law, including and of the indebtedness of 
430  the special district and the provision for required reserves; 
431  also of the reserves for contingencies and the balances, as 
432  hereinbefore provided, which should be carried forward at the 
433  end of the year. 
434         Section 6. Section 129.021, Florida Statutes, is amended to 
435  read: 
436         129.021 County officer budget information.—Notwithstanding 
437  other provisions of law, the budgets of all county officers, as 
438  submitted to the board of county commissioners, must shall be in 
439  sufficient detail and contain such information as the board of 
440  county commissioners may require in furtherance of their powers 
441  and responsibilities provided in ss. 125.01(1)(q), and (r), and 
442  (v), and (6) and 129.01(2)(b). 
443         Section 7. Subsection (3) of section 129.03, Florida 
444  Statutes, is amended to read: 
445         129.03 Preparation and adoption of budget.— 
446         (3) No later than 15 days after certification of value by 
447  the property appraiser pursuant to s. 200.065(1), The county 
448  budget officer, after tentatively ascertaining the proposed 
449  fiscal policies of the board for the next ensuing fiscal year, 
450  shall prepare and present to the board a tentative budget for 
451  the next ensuing fiscal year for each of the funds provided in 
452  this chapter, including all estimated receipts, taxes to be 
453  levied, and balances expected to be brought forward and all 
454  estimated expenditures, reserves, and balances to be carried 
455  over at the end of the year. 
456         (a) The board of county commissioners shall receive and 
457  examine the tentative budget for each fund and, subject to the 
458  notice and hearing requirements of s. 200.065, shall require 
459  such changes to be made as it deems shall deem necessary,; 
460  provided the budget remains shall remain in balance. The county 
461  budget officer’s estimates of receipts other than taxes, and of 
462  balances to be brought forward, may shall not be revised except 
463  by a resolution of the board, duly passed and spread on the 
464  minutes of the board. However, the board may allocate to any of 
465  the funds of the county any anticipated receipts, other than 
466  taxes levied for a particular fund, except receipts designated 
467  or received to be expended for a particular purpose. 
468         (b) Upon receipt of the tentative budgets and completion of 
469  any revisions made by the board, the board shall prepare a 
470  statement summarizing all of the adopted tentative budgets. The 
471  This summary statement must shall show, for each budget and the 
472  total of all budgets, the proposed tax millages, the balances, 
473  the reserves, and the total of each major classification of 
474  receipts and expenditures, classified according to the uniform 
475  classification of accounts adopted prescribed by the appropriate 
476  state agency. The board shall cause this summary statement to be 
477  advertised one time in a newspaper of general circulation 
478  published in the county, or by posting at the courthouse door if 
479  there is no such newspaper, and the advertisement must shall 
480  appear adjacent to the advertisement required pursuant to s. 
481  200.065. 
482         (c) The board shall hold public hearings to adopt tentative 
483  and final budgets pursuant to s. 200.065. The hearings shall be 
484  primarily for the purpose of hearing requests and complaints 
485  from the public regarding the budgets and the proposed tax 
486  levies and for explaining the budget and any proposed or adopted 
487  amendments thereto, if any. The tentative budget must be posted 
488  on the county’s official website at least 2 days before the 
489  public hearing to consider such budget. The final budget must be 
490  posted on the website within 30 days after adoption. The 
491  tentative budgets, adopted tentative budgets, and final budgets 
492  shall be filed in the office of the county auditor as a public 
493  record. Sufficient reference in words and figures to identify 
494  the particular transactions shall be made in the minutes of the 
495  board to record its actions with reference to the budgets. 
496         Section 8. Subsection (1) and paragraphs (a) and (f) of 
497  subsection (2) of section 129.06, Florida Statutes, are amended 
498  to read: 
499         129.06 Execution and amendment of budget.— 
500         (1) Upon the final adoption of the budgets as provided in 
501  this chapter, the budgets so adopted must shall regulate the 
502  expenditures of the county and each special district included 
503  within the county budget, and the itemized estimates of 
504  expenditures must shall have the effect of fixed appropriations 
505  and may shall not be amended, altered, or exceeded except as 
506  provided in this chapter. 
507         (a) The modified-accrual basis or accrual basis of 
508  accounting must be followed for all funds in accordance with 
509  generally accepted accounting principles. 
510         (b) The cost of the investments provided in this chapter, 
511  or the receipts from their sale or redemption, may must not be 
512  treated as expense or income, and but the investments on hand at 
513  the beginning or end of each fiscal year must be carried as 
514  separate items at cost in the fund balances; however, the 
515  amounts of profit or loss received on their sale must be treated 
516  as income or expense, as applicable the case may be. 
517         (2) The board at any time within a fiscal year may amend a 
518  budget for that year, and may within the first 60 days of a 
519  fiscal year amend the budget for the prior fiscal year, as 
520  follows: 
521         (a) Appropriations for expenditures within in any fund may 
522  be decreased or and other appropriations in the same fund 
523  correspondingly increased by motion recorded in the minutes, 
524  provided that the total of the appropriations of the fund does 
525  not change may not be changed. The board of county 
526  commissioners, however, may establish procedures by which the 
527  designated budget officer may authorize certain 
528  intradepartmental budget amendments, provided that the total 
529  appropriations appropriation of the fund does not change 
530  department may not be changed. 
531         (f) Unless otherwise prohibited by law, if an amendment to 
532  a budget is required for a purpose not specifically authorized 
533  in paragraphs (a)-(e), unless otherwise prohibited by law, the 
534  amendment may be authorized by resolution or ordinance of the 
535  board of county commissioners adopted following a public 
536  hearing. 
537         1. The public hearing must be advertised at least 2 days, 
538  but not more than 5 days, before the date of the hearing. The 
539  advertisement must appear in a newspaper of paid general 
540  circulation and must identify the name of the taxing authority, 
541  the date, place, and time of the hearing, and the purpose of the 
542  hearing. The advertisement must also identify each budgetary 
543  fund to be amended, the source of the funds, the use of the 
544  funds, and the total amount of each fund’s appropriations 
545  budget. 
546         2. If the board amends the budget pursuant to this 
547  paragraph, the adopted amendment must be posted on the county’s 
548  official website within 5 days after adoption. 
549         Section 9. Section 129.07, Florida Statutes, is amended to 
550  read: 
551         129.07 Unlawful to exceed the budget; certain contracts 
552  void; commissioners contracting excess indebtedness personally 
553  liable.—It is unlawful for The board of county commissioners may 
554  not to expend or enter into a contract requiring expenditures 
555  for the expenditure in any fiscal year for more than the amount 
556  of appropriations budgeted in each fund’s budget, except as 
557  provided herein, and in no case shall the total appropriations 
558  of any budget may not be exceeded, except as provided in s. 
559  129.06., and Any indebtedness contracted for any purpose against 
560  either of the funds enumerated in this chapter or for any 
561  purpose, the expenditure for which is chargeable to either of 
562  the said funds, is shall be null and void, and no suit may or 
563  suits shall be prosecuted in any court in this state for the 
564  collection of such indebtedness. same, and The members of the 
565  board of county commissioners voting for and contracting for 
566  such indebtedness amounts and the bonds of such members of said 
567  boards also shall be liable for any the excess indebtedness so 
568  contracted for. 
569         Section 10. Section 129.201, Florida Statutes, is amended 
570  to read: 
571         129.201 Budget of supervisor of elections; manner and time 
572  of preparation and presentation.— 
573         (1) Pursuant to ss. 129.01 and s. 129.03(2), each 
574  supervisor of elections shall annually prepare and submit 
575  certify to the board of county commissioners, or county budget 
576  commission if there is one in the county, a proposed budget for 
577  carrying out the powers, duties, and operations of income and 
578  expenditures to fulfill the duties, responsibilities, and 
579  operation of the office of the supervisor of elections for the 
580  next ensuing fiscal year of the county. The fiscal year of the 
581  supervisor of elections commences shall commence on October 1 of 
582  each year and ends shall end on September 30 of the following 
583  year. 
584         (2)(a) Expenditures must be itemized in accordance with the 
585  uniform accounting system prescribed by the Department of 
586  Financial Services Each expenditure item in the budget for the 
587  supervisor of elections shall be itemized generally as follows: 
588         (a)1. Personnel services. Compensation for the supervisor 
589  of elections and all other personnel of the office. 
590         (b)2. Operating expenses. 
591         (c)3. Capital outlay. 
592         (d) Debt service. 
593         (e)4. Grants and aids. Contingencies and transfers. 
594         (f) Other uses. 
595         (b) To the extent appropriate, the budget shall be further 
596  itemized in conformance with the Uniform Accounting System for 
597  Local Units of Government in Florida adopted by rule of the 
598  Chief Financial Officer. 
599         (3) The supervisor of elections shall furnish to the board 
600  of county commissioners or the county budget commission all 
601  relevant and pertinent information that the which such board or 
602  commission deems shall deem necessary, including expenditures at 
603  the subobject code level in accordance with the uniform 
604  accounting system prescribed by the Department of Financial 
605  Services. The board or commission may not amend, modify, 
606  increase, or reduce any expenditure at the subobject code level. 
607         (4) The board or commission, as appropriate the case may 
608  be, may require the supervisor of elections to correct 
609  mathematical, mechanical, factual, and clerical errors and 
610  errors of form in the proposed budget. At the hearings held 
611  pursuant to s. 200.065, the board or commission may amend, 
612  modify, increase, or reduce any or all items of expenditure in 
613  the proposed budget as submitted under subsections (1) and (2); 
614  and, as amended, modified, increased, or reduced, such budget 
615  shall be approved by the board or commission, which must provide 
616  giving written notice of its action to specific items amended, 
617  modified, increased, or reduced. 
618         (5) The board or commission shall include in the county 
619  budget the items of proposed expenditures as set forth in the 
620  budget which are required by this section to be submitted, after 
621  the budget has been reviewed and approved. The board or 
622  commission shall include the supervisor of elections’ reserve 
623  for contingencies provided herein in the general county budget’s 
624  reserve for contingencies account in the general county budget. 
625         (6) The supervisor of elections’ reserve for contingencies 
626  is in the budget of a supervisor of elections shall be governed 
627  by the same provisions governing the amount and use of the 
628  reserve for contingencies appropriated in the county budget. 
629         (7) The proposed budget shall be submitted to the board of 
630  county commissioners or county budget commission pursuant to s. 
631  129.03(2), and the budget shall be included by the board or 
632  commission in the general county budget. 
633         (8) The items placed in the budget of the board are 
634  pursuant to this act shall be subject to the same provisions of 
635  law as the county annual budget; however, an no amendment may be 
636  made to the appropriations of the office of the supervisor of 
637  elections may not be made without due notice of the change to 
638  the supervisor of elections. 
639         (9) The budget of the supervisor of elections may be 
640  increased by the board of county commissioners to cover such 
641  expenses for emergencies and unanticipated expenses as are 
642  recommended and justified by the supervisor of elections. 
643         Section 11. Section 166.241, Florida Statutes, is amended 
644  to read: 
645         166.241 Fiscal years, appropriations, budgets, and budget 
646  amendments.— 
647         (1) Each municipality shall establish make provision for 
648  establishing a fiscal year beginning October 1 of each year and 
649  ending September 30 of the following year. 
650         (2) The governing body of each municipality shall adopt a 
651  budget each fiscal year. The budget must be adopted by ordinance 
652  or resolution unless otherwise specified in the respective 
653  municipality’s charter. The amount available from taxation and 
654  other sources, including balances brought forward amounts 
655  carried over from prior fiscal years, must equal the total 
656  appropriations for expenditures and reserves. At a minimum, the 
657  adopted budget must show for each fund, as required by law and 
658  sound financial practices, budgeted revenues and expenditures by 
659  organizational unit at a level of detail at least similar to the 
660  level of detail in the annual financial report required under s. 
661  218.32(1). The adopted budget must regulate expenditures of the 
662  municipality, and an it is unlawful for any officer of a 
663  municipal government may not to expend or contract for 
664  expenditures in any fiscal year except pursuant to the adopted 
665  budget in pursuance of budgeted appropriations. 
666         (3) The tentative budget must be posted on the 
667  municipality’s official website at least 2 days before the 
668  budget hearing, held pursuant to s. 200.065 or other law, to 
669  consider such budget. The final adopted budget must be posted on 
670  the municipality’s official website within 30 days after 
671  adoption. If the municipality does not operate an official 
672  website, the municipality must, within a reasonable period of 
673  time as established by the county or counties in which the 
674  municipality is located, transmit the tentative budget and final 
675  budget to the manager or administrator of such counties who 
676  shall post the budgets on the county’s website. 
677         (4)(3) The governing body of each municipality at any time 
678  within a fiscal year or within up to 60 days following the end 
679  of the fiscal year may amend a budget for that year as follows: 
680         (a) Appropriations for expenditures within a fund may be 
681  decreased or increased by motion recorded in the minutes if, 
682  provided that the total of the appropriations of the fund is not 
683  changed. 
684         (b) The governing body may establish procedures by which 
685  the designated budget officer may authorize certain budget 
686  amendments if within a department, provided that the total of 
687  the appropriations of the fund department is not changed. 
688         (c) If a budget amendment is required for a purpose not 
689  specifically authorized in paragraph (a) or paragraph (b), the 
690  budget amendment must be adopted in the same manner as the 
691  original budget unless otherwise specified in the municipality’s 
692  charter of the respective municipality. 
693         (5) If the governing body of a municipality amends the 
694  budget pursuant to paragraph (4)(c), the adopted amendment must 
695  be posted on the official website of the municipality within 5 
696  days after adoption. If the municipality does not operate an 
697  official website, the municipality must, within a reasonable 
698  period of time as established by the county or counties in which 
699  the municipality is located, transmit the adopted amendment to 
700  the manager or administrator of such county or counties who 
701  shall post the adopted amendment on the county’s website. 
702         Section 12. Paragraph (a) of subsection (1) of section 
703  189.4044, Florida Statutes, is amended to read: 
704         189.4044 Special procedures for inactive districts.— 
705         (1) The department shall declare inactive any special 
706  district in this state by documenting that: 
707         (a) The special district meets one of the following 
708  criteria: 
709         1. The registered agent of the district, the chair of the 
710  governing body of the district, or the governing body of the 
711  appropriate local general-purpose government notifies the 
712  department in writing that the district has taken no action for 
713  2 or more years; 
714         2. Following an inquiry from the department, the registered 
715  agent of the district, the chair of the governing body of the 
716  district, or the governing body of the appropriate local 
717  general-purpose government notifies the department in writing 
718  that the district has not had a governing board or a sufficient 
719  number of governing board members to constitute a quorum for 2 
720  or more years or the registered agent of the district, the chair 
721  of the governing body of the district, or the governing body of 
722  the appropriate local general-purpose government fails to 
723  respond to the department’s inquiry within 21 days; or 
724         3. The department determines, pursuant to s. 189.421, that 
725  the district has failed to file any of the reports listed in s. 
726  189.419; or. 
727         4. The district has not had a registered office and agent 
728  on file with the department for 1 or more years. 
729         Section 13. Subsection (1) of section 189.412, Florida 
730  Statutes, is amended to read: 
731         189.412 Special District Information Program; duties and 
732  responsibilities.—The Special District Information Program of 
733  the Department of Community Affairs is created and has the 
734  following special duties: 
735         (1) The collection and maintenance of special district 
736  noncompliance status reports from the Department of Management 
737  Services, the Department of Financial Services, the Division of 
738  Bond Finance of the State Board of Administration, and the 
739  Auditor General, and the Legislative Auditing Committee, for the 
740  reporting required in ss. 112.63, 218.32, 218.38, and 218.39. 
741  The noncompliance reports must list those special districts that 
742  did not comply with the statutory reporting requirements. 
743         Section 14. Subsections (3) through (7) of section 189.418, 
744  Florida Statutes, are amended to read: 
745         189.418 Reports; budgets; audits.— 
746         (3) The governing body of each special district shall adopt 
747  a budget by resolution each fiscal year. The total amount 
748  available from taxation and other sources, including balances 
749  brought forward amounts carried over from prior fiscal years, 
750  must equal the total of appropriations for expenditures and 
751  reserves. At a minimum, the adopted budget must show for each 
752  fund, as required by law and sound financial practices, budgeted 
753  revenues and expenditures by organizational unit at a level of 
754  detail that is at least similar to the level of detail in the 
755  annual financial report required under s. 218.32(1). The adopted 
756  budget must regulate expenditures of the special district, and 
757  an it is unlawful for any officer of a special district may not 
758  to expend or contract for expenditures in any fiscal year except 
759  pursuant to the adopted budget in pursuance of budgeted 
760  appropriations. 
761         (4) The tentative budget must be posted on the special 
762  district’s official website at least 2 days before the budget 
763  hearing, held pursuant to s. 200.065 or other law, to consider 
764  such budget. The final adopted budget must be posted on the 
765  special district’s official website within 30 days after 
766  adoption. If the special district does not operate an official 
767  website, the special district must, within a reasonable period 
768  of time as established by the local general-purpose government 
769  or governments in which the special district is located or the 
770  local governing authority to which the district is dependent, 
771  transmit the tentative budget or final budget to the manager or 
772  administrator of the local general-purpose government or the 
773  local governing authority. The manager or administrator shall 
774  post the tentative budget or final budget on the website of the 
775  local general-purpose government or governing authority. This 
776  subsection and subsection (3) do not apply to water management 
777  districts as defined in s. 373.019. 
778         (5)(4) The proposed budget of a dependent special district 
779  must shall be presented in accordance with generally accepted 
780  accounting principles, contained within the general budget of 
781  the local governing authority to which it is dependent, and be 
782  clearly stated as the budget of the dependent district. However, 
783  with the concurrence of the local governing authority, a 
784  dependent district may be budgeted separately. The dependent 
785  district must provide any budget information requested by the 
786  local governing authority at the time and place designated by 
787  the local governing authority. 
788         (6)(5) The governing body of each special district at any 
789  time within a fiscal year or within up to 60 days following the 
790  end of the fiscal year may amend a budget for that year as 
791  follows:. 
792         (a)� Appropriations for expenditures within a fund may be 
793  decreased or increased by motion recorded in the minutes if the 
794  total appropriations of the fund do not change. 
795         (b)� The governing body may establish procedures by which 
796  the designated budget officer may authorize certain budget 
797  amendments if the total appropriations of the fund is not 
798  changed. 
799         (c)� If a budget amendment is required for a purpose not 
800  specifically authorized in paragraph (a) or paragraph (b), the 
801  budget amendment must be adopted by resolution. 
802         (7) If the governing body of a special district amends the 
803  budget pursuant to paragraph (6)(c), the adopted amendment must 
804  be posted on the official website of the special district within 
805  5 days after adoption. If the special district does not operate 
806  an official website, the special district must, within a 
807  reasonable period of time as established by the local general 
808  purpose government or governments in which the special district 
809  is located or the local governing authority to which the 
810  district is dependent, transmit the adopted amendment to the 
811  manager or administrator of the local general-purpose government 
812  or governing authority. The manager or administrator shall post 
813  the adopted amendment on the website of the local general 
814  purpose government or governing authority. 
815         (8)(6) A local general-purpose government governing 
816  authority may, in its discretion, review the budget or tax levy 
817  of any special district located solely within its boundaries. 
818         (9) All special districts must comply with the financial 
819  reporting requirements of ss. 218.32 and 218.39. A local 
820  general-purpose government or governing authority may request, 
821  from any special district located solely within its boundaries, 
822  financial information in order to comply with its reporting 
823  requirements under ss. 218.32 and 218.39. The special district 
824  must cooperate with such request and provide the financial 
825  information at the time and place designated by the local 
826  general-purpose government or governing authority. 
827         (10)(7) All reports or information required to be filed 
828  with a local general-purpose government or governing authority 
829  under ss. 189.415, 189.416, and 189.417 and subsection (8) this 
830  section shall: 
831         (a) If When the local general-purpose government or 
832  governing authority is a county, be filed with the clerk of the 
833  board of county commissioners. 
834         (b) If When the district is a multicounty district, be 
835  filed with the clerk of the county commission in each county. 
836         (c) If When the local general-purpose government or 
837  governing authority is a municipality, be filed at the place 
838  designated by the municipal governing body. 
839         Section 15. Section 189.419, Florida Statutes, is amended 
840  to read: 
841         189.419 Effect of failure to file certain reports or 
842  information.— 
843         (1) If an independent a special district fails to file the 
844  reports or information required under s. 189.415, s. 189.416, or 
845  s. 189.417, or s. 189.418(9) with the local general-purpose 
846  government or governments in which it is located governing 
847  authority, the person authorized to receive and read the reports 
848  or information or the local general-purpose government shall 
849  notify the district’s registered agent and the appropriate local 
850  governing authority or authorities. If requested by the 
851  district, the local general-purpose government governing 
852  authority shall grant an extension of time of up to 30 days for 
853  filing the required reports or information. 
854         (2) If the governing body of at any time the local general 
855  purpose government or governments governing authority or 
856  authorities or the board of county commissioners determines that 
857  there has been an unjustified failure to file these the reports 
858  or information described in subsection (1), it may notify the 
859  department, and the department may proceed pursuant to s. 
860  189.421(1). 
861         (2) If a dependent special district fails to file the 
862  reports or information required under s. 189.416, s. 189.417, or 
863  s. 189.418(9) with the local governing authority to which it is 
864  dependent, the local governing authority shall take whatever 
865  steps it deems necessary to enforce the special district’s 
866  accountability. Such steps may include, as authorized, 
867  withholding funds, removing governing board members at will, 
868  vetoing the special district’s budget, conducting the oversight 
869  review process set forth in s. 189.428, or amending, merging, or 
870  dissolving the special district in accordance with the 
871  provisions contained in the ordinance that created the dependent 
872  special district. 
873         (3) If a special district fails to file the reports or 
874  information required under s. 112.63, s. 218.32, s. 218.38, or 
875  s. 218.39 with the appropriate state agency, the agency shall 
876  notify the department, and the department shall send a certified 
877  technical assistance letter to the special district which 
878  summarizes the requirements and encourages the special district 
879  to take steps to prevent the noncompliance from reoccurring 
880  proceed pursuant to s. 189.421. 
881         (4) If a special district fails to file the reports or 
882  information required under s. 112.63 with the appropriate state 
883  agency, the agency shall notify the department and the 
884  department shall proceed pursuant to s. 189.421(1). 
885         (5) If a special district fails to file the reports or 
886  information required under s. 218.32 or s. 218.39 with the 
887  appropriate state agency or office, the state agency or office 
888  shall, and the Legislative Auditing Committee may, notify the 
889  department and the department shall proceed pursuant to s. 
890  189.421. 
891         Section 16. Section 189.421, Florida Statutes, is amended 
892  to read: 
893         189.421 Failure of district to disclose financial reports.— 
894         (1)(a) If When notified pursuant to s. 189.419(1), (4), or 
895  (5) 189.419, the department shall attempt to assist a special 
896  district in complying to comply with its financial reporting 
897  requirements by sending a certified letter to the special 
898  district, and, if the special district is dependent, sending a 
899  copy of that the letter to the chair of the governing body of 
900  the local governing authority. The letter must include general 
901  purpose government, which includes the following: a description 
902  of the required report, including statutory submission 
903  deadlines, a contact telephone number for technical assistance 
904  to help the special district comply, a 60-day deadline extension 
905  of time for filing the required report with the appropriate 
906  entity, the address where the report must be filed, and an 
907  explanation of the penalties for noncompliance. 
908         (b) A special district that is unable to meet the 60-day 
909  reporting deadline must provide written notice to the department 
910  before the expiration of the deadline stating the reason the 
911  special district is unable to comply with the deadline, the 
912  steps the special district is taking to prevent the 
913  noncompliance from reoccurring, and the estimated date that the 
914  special district will file the report with the appropriate 
915  agency. The district’s written response does not constitute an 
916  extension by the department; however, the department shall 
917  forward the written response as follows: 
918         1. If the written response refers to the reports required 
919  under s. 218.32 or s. 218.39, forward the written response to 
920  the Legislative Auditing Committee for its consideration in 
921  determining whether the special district should be subject to 
922  further state action in accordance with s. 11.40(5)(b). 
923         2. If the written response refers to the reports or 
924  information requirements listed in s. 189.419(1), forward the 
925  written response to the local general-purpose government or 
926  governments for its consideration in determining whether the 
927  oversight review process set forth in s. 189.428 should be 
928  undertaken. 
929         3. If the written response refers to the reports or 
930  information required under s. 112.63, forward the written 
931  response to the Department of Management Services for its 
932  consideration in determining whether the special district should 
933  be subject to further state action in accordance with s. 
934  112.63(4)(d)2. The department may grant an additional 30-day 
935  extension of time if requested to do so in writing by the 
936  special district. The department shall notify the appropriate 
937  entity of the new extension of time. In the case of a special 
938  district that did not timely file the reports or information 
939  required by s. 218.38, the department shall send a certified 
940  technical assistance letter to the special district which 
941  summarizes the requirements and encourages the special district 
942  to take steps to prevent the noncompliance from reoccurring. 
943         (2) Failure of a special district to comply with the 
944  actuarial and financial reporting requirements under s. 112.63, 
945  s. 218.32, or s. 218.39 after the procedures of subsection (1) 
946  are exhausted shall be deemed final action of the special 
947  district. The actuarial and financial reporting requirements are 
948  declared to be essential requirements of law. Remedy for 
949  noncompliance shall be by writ of certiorari as set forth in 
950  subsection (4) (3). 
951         (3) Pursuant to s. 11.40(5)(b), the Legislative Auditing 
952  Committee shall notify the department of those districts that 
953  fail failed to file the required reports report. If the 
954  procedures described in subsection (1) have not yet been 
955  initiated, the department shall initiate such procedures upon 
956  receiving the notice from the Legislative Auditing Committee. 
957  Otherwise, within 60 30 days after receiving such this notice, 
958  or within 60 30 days after the expiration of the 60-day deadline 
959  extension date provided in subsection (1), whichever occurs 
960  later, the department, shall proceed as follows: notwithstanding 
961  the provisions of chapter 120, the department shall file a 
962  petition for writ of certiorari with the circuit court. Venue 
963  for all actions pursuant to this subsection is shall be in Leon 
964  County. The court shall award the prevailing party attorney’s 
965  fees and costs in all cases filed pursuant to this section 
966  unless affirmatively waived by all parties. A writ of certiorari 
967  shall be issued unless a respondent establishes that the 
968  notification of the Legislative Auditing Committee was issued as 
969  a result of material error. Proceedings under this subsection 
970  shall otherwise be governed by the Rules of Appellate Procedure. 
971         (4) Pursuant to s. 112.63(4)(d)2., the Department of 
972  Management Services may notify the department of those special 
973  districts that have failed to file the required adjustments, 
974  additional information, or report or statement after the 
975  procedures of subsection (1) have been exhausted. Within 60 days 
976  after receiving such notice or within 60 days after the 60-day 
977  deadline provided in subsection (1), whichever occurs later, the 
978  department, notwithstanding chapter 120, shall file a petition 
979  for writ of certiorari with the circuit court. Venue for all 
980  actions pursuant to this subsection is in Leon County. The court 
981  shall award the prevailing party attorney’s fees and costs in 
982  all cases filed pursuant to this section unless affirmatively 
983  waived by all parties. A writ of certiorari shall be issued 
984  unless a respondent establishes that the notification of the 
985  Department of Management Services was issued as a result of 
986  material error. Proceedings under this subsection are otherwise 
987  governed by the Rules of Appellate Procedure. 
988         Section 17. Subsection (6) is added to section 195.087, 
989  Florida Statutes, to read: 
990         195.087 Property appraisers and tax collectors to submit 
991  budgets to Department of Revenue.— 
992         (6) Each property appraiser and tax collector must post 
993  their final approved budget on their official website within 30 
994  days after adoption. Each county’s official website must have a 
995  link to the websites of the property appraiser or tax collector 
996  where the final approved budget is posted. If the property 
997  appraiser or tax collector does not have an official website, 
998  the final approved budget must be posted on the county’s 
999  official website. 
1000         Section 18. Paragraphs (d), (e), and (f) of subsection (1) 
1001  of section 218.32, Florida Statutes, are amended, and paragraph 
1002  (g) is added to that subsection, to read: 
1003         218.32 Annual financial reports; local governmental 
1004  entities.— 
1005         (1) 
1006         (d) Each local governmental entity that is required to 
1007  provide for an audit under in accordance with s. 218.39(1) must 
1008  submit the annual financial report with the audit report. a copy 
1009  of the audit report and annual financial report must be 
1010  submitted to the department within 45 days after the completion 
1011  of the audit report but no later than 9 12 months after the end 
1012  of the fiscal year. 
1013         (e) Each local governmental entity that is not required to 
1014  provide for an audit under report in accordance with s. 218.39 
1015  must submit the annual financial report to the department no 
1016  later than 9 months after the end of the fiscal April 30 of each 
1017  year. The department shall consult with the Auditor General in 
1018  the development of the format of annual financial reports 
1019  submitted pursuant to this paragraph. The format must shall 
1020  include balance sheet information used to be utilized by the 
1021  Auditor General pursuant to s. 11.45(7)(f). The department must 
1022  forward the financial information contained within the these 
1023  entities’ annual financial reports to the Auditor General in 
1024  electronic form. This paragraph does not apply to housing 
1025  authorities created under chapter 421. 
1026         (f) If the department does not receive a completed annual 
1027  financial report from a local governmental entity within the 
1028  required period, it shall notify the Legislative Auditing 
1029  Committee and the Special District Information Program of the 
1030  Department of Community Affairs of the local governmental 
1031  entity’s failure to comply with the reporting requirements. The 
1032  committee shall proceed in accordance with s. 11.40(5). 
1033         (g) Each local governmental entity’s website must provide a 
1034  link to the department’s website to view the entity’s annual 
1035  financial report submitted to the department pursuant to this 
1036  section. If the local governmental entity does not have an 
1037  official website, the county government’s website must provide 
1038  the required link for the local governmental entity. 
1039         Section 19. Section 218.35, Florida Statutes, is amended to 
1040  read: 
1041         218.35 County fee officers; financial matters.— 
1042         (1) Each county fee officer shall establish an annual 
1043  budget for carrying out the powers, duties, and operations of 
1044  his or her office for the next county fiscal year which shall 
1045  clearly reflect the revenues available to said office and the 
1046  functions for which money is to be expended. The budget must 
1047  shall be balanced so that; that is, the total of estimated 
1048  receipts, including balances brought forward, equals shall equal 
1049  the total of estimated expenditures and reserves. The budgeting 
1050  of segregated funds must shall be made in a such manner that 
1051  retains the relation between program and revenue source, as 
1052  provided by law is retained. 
1053         (2) The clerk of the circuit court, functioning in his or 
1054  her capacity as clerk of the circuit and county courts and as 
1055  clerk of the board of county commissioners, shall prepare his or 
1056  her budget in two parts: 
1057         (a) The budget for funds necessary to perform court-related 
1058  functions as provided for in s. 28.36, which shall detail the 
1059  methodologies used to apportion costs between court-related and 
1060  non-court-related functions performed by the clerk. 
1061         (b) The budget relating to the requirements of the clerk as 
1062  clerk of the board of county commissioners, county auditor, and 
1063  custodian or treasurer of all county funds and other county 
1064  related duties, which shall be annually prepared and submitted 
1065  to the board of county commissioners pursuant to s. 129.03(2), 
1066  for each fiscal year. Expenditures shall be itemized in 
1067  accordance with the uniform accounting system prescribed by the 
1068  Department of Financial Services as follows: 
1069         1. Personnel services. 
1070         2. Operating expenses. 
1071         3. Capital outlay. 
1072         4. Debt service. 
1073         5. Grants and aids. 
1074         6. Other uses. 
1075         (3) The clerk of the circuit court shall furnish to the 
1076  board of county commissioners or the county budget commission 
1077  all relevant and pertinent information that the board or 
1078  commission deems necessary, including expenditures at the 
1079  subobject code level in accordance with the uniform accounting 
1080  system prescribed by the Department of Financial Services. 
1081         (4) The final approved budget of the clerk of the circuit 
1082  court must be posted on the county’s official website within 30 
1083  days after adoption. The final approved budget of the clerk of 
1084  the circuit court may be included in the county’s budget. 
1085         (5)(3) Each county fee officer shall establish make 
1086  provision for establishing a fiscal year beginning October 1 and 
1087  ending September 30 of the following year, and shall report his 
1088  or her finances annually upon the close of each fiscal year to 
1089  the county fiscal officer for inclusion in the annual financial 
1090  report by the county. 
1091         (6)(4) The proposed budget of a county fee officer shall be 
1092  filed with the clerk of the county governing authority by 
1093  September 1 preceding the fiscal year for the budget, except for 
1094  the budget prepared by the clerk of the circuit court for court 
1095  related functions as provided in s. 28.36. 
1096         Section 20. Section 218.39, Florida Statutes, is amended to 
1097  read: 
1098         218.39� Annual financial audit reports.— 
1099         (1) If, by the first day in any fiscal year, a local 
1100  governmental entity, district school board, charter school, or 
1101  charter technical career center has not been notified that a 
1102  financial audit for that fiscal year will be performed by the 
1103  Auditor General, each of the following entities shall have an 
1104  annual financial audit of its accounts and records completed 
1105  within 9 12 months after the end of its fiscal year by an 
1106  independent certified public accountant retained by it and paid 
1107  from its public funds: 
1108         (a)� Each county. 
1109         (b)� Any municipality with revenues or the total of 
1110  expenditures and expenses in excess of $250,000. 
1111         (c)� Any special district with revenues or the total of 
1112  expenditures and expenses in excess of $100,000. 
1113         (d)� Each district school board. 
1114         (e)� Each charter school established under s. 1002.33. 
1115         (f)� Each charter technical center established under s. 
1116  1002.34. 
1117         (g)� Each municipality with revenues or the total of 
1118  expenditures and expenses between $100,000 and $250,000 that has 
1119  not been subject to a financial audit pursuant to this 
1120  subsection for the 2 preceding fiscal years. 
1121         (h)� Each special district with revenues or the total of 
1122  expenditures and expenses between $50,000 and $100,000 that has 
1123  not been subject to a financial audit pursuant to this 
1124  subsection for the 2 preceding fiscal years. 
1125         (2)� The county audit report must shall be a single document 
1126  that includes a financial audit of the county as a whole and, 
1127  for each county agency other than a board of county 
1128  commissioners, an audit of its financial accounts and records, 
1129  including reports on compliance and internal control, management 
1130  letters, and financial statements as required by rules adopted 
1131  by the Auditor General. In addition to such requirements, if a 
1132  board of county commissioners elects to have a separate audit of 
1133  its financial accounts and records in the manner required by 
1134  rules adopted by the Auditor General for other county agencies, 
1135  the such separate audit must shall be included in the county 
1136  audit report. 
1137         (3)(a)� A dependent special district may provide make 
1138  provision for an annual financial audit by being included in 
1139  within the audit of the another local governmental entity upon 
1140  which it is dependent. An independent special district may not 
1141  make provision for an annual financial audit by being included 
1142  in within the audit of another local governmental entity. 
1143         (b)� A special district that is a component unit, as defined 
1144  by generally accepted accounting principles, of a local 
1145  governmental entity shall provide the local governmental entity, 
1146  within a reasonable time period as established by the local 
1147  governmental entity, with financial information necessary to 
1148  comply with this section. The failure of a component unit to 
1149  provide this financial information must be noted in the annual 
1150  financial audit report of the local governmental entity. 
1151         (4)� A management letter shall be prepared and included as a 
1152  part of each financial audit report. 
1153         (5)� At the conclusion of the audit, the auditor shall 
1154  discuss with the chair of the governing body of the each local 
1155  governmental entity or the chair’s designee, or with the elected 
1156  official of each county agency or with the elected official’s 
1157  designee, or with the chair of the district school board or the 
1158  chair’s designee, or with the chair of the board of the charter 
1159  school or the chair’s designee, or with the chair of the board 
1160  of the charter technical career center or the chair’s designee, 
1161  as appropriate, all of the auditor’s comments that will be 
1162  included in the audit report. If the officer is not available to 
1163  discuss the auditor’s comments, their discussion is presumed 
1164  when the comments are delivered in writing to his or her office. 
1165  The auditor shall notify each member of the governing body of a 
1166  local governmental entity, district school board, charter 
1167  school, or charter technical career center for which 
1168  deteriorating financial conditions exist that may cause a 
1169  condition described in s. 218.503(1) to occur if actions are not 
1170  taken to address such conditions. 
1171         (6)� The officer’s written statement of explanation or 
1172  rebuttal concerning the auditor’s findings, including corrective 
1173  action to be taken, must be filed with the governing body of the 
1174  local governmental entity, district school board, charter 
1175  school, or charter technical career center within 30 days after 
1176  the delivery of the auditor’s findings. 
1177         (7) All audits conducted pursuant to this section must be 
1178  conducted in accordance with the rules of the Auditor General 
1179  adopted pursuant to s. 11.45. Upon completion of the audit, the 
1180  auditor shall prepare an audit report in accordance with the 
1181  rules of the Auditor General. The audit report shall be filed 
1182  with the Auditor General within 45 days after delivery of the 
1183  audit report to the governing body of the audited entity, but no 
1184  later than 9 months after the end of the audited entity’s fiscal 
1185  year. The audit report must include a written statement 
1186  describing corrective actions to be taken in response to each of 
1187  the auditor’s recommendations included in the audit report. 
1188         (8)� The Auditor General shall notify the Legislative 
1189  Auditing Committee of any audit report prepared pursuant to this 
1190  section which indicates that an audited entity has failed to 
1191  take full corrective action in response to a recommendation that 
1192  was included in the two preceding financial audit reports. The 
1193  committee may direct the governing body of the audited entity to 
1194  provide a written statement to the committee explaining why full 
1195  corrective action has not been taken or, if the governing body 
1196  intends to take full corrective action, describing the 
1197  corrective action to be taken and when it will occur. If the 
1198  committee determines that the written statement is not 
1199  sufficient, it may require the chair of the governing body of 
1200  the local governmental entity or the chair’s designee, the 
1201  elected official of each county agency or the elected official’s 
1202  designee, the chair of the district school board or the chair’s 
1203  designee, the chair of the board of the charter school or the 
1204  chair’s designee, or the chair of the board of the charter 
1205  technical career center or the chair’s designee, as appropriate, 
1206  to appear before the committee. If the committee determines that 
1207  an audited entity has failed to take full corrective action for 
1208  which there is no justifiable reason for not taking such action, 
1209  or has failed to comply with committee requests made pursuant to 
1210  this section, the committee may proceed in accordance with s. 
1211  11.40(5). 
1212         (9)(7)� The predecessor auditor of a district school board 
1213  shall provide the Auditor General access to the prior year’s 
1214  working papers in accordance with the Statements on Auditing 
1215  Standards, including documentation of planning, internal 
1216  control, audit results, and other matters of continuing 
1217  accounting and auditing significance, such as the working paper 
1218  analysis of balance sheet accounts and those relating to 
1219  contingencies. 
1220         (8)� All audits conducted in accordance with this section 
1221  must be conducted in accordance with the rules of the Auditor 
1222  General promulgated pursuant to s. 11.45. All audit reports and 
1223  the officer’s written statement of explanation or rebuttal must 
1224  be submitted to the Auditor General within 45 days after 
1225  delivery of the audit report to the entity’s governing body, but 
1226  no later than 12 months after the end of the fiscal year. 
1227         (10)(9)� Each charter school and charter technical career 
1228  center must file a copy of its audit report with the sponsoring 
1229  entity; the local district school board, if not the sponsoring 
1230  entity; the Auditor General; and with the Department of 
1231  Education. 
1232         (11)(10)� This section does not apply to housing authorities 
1233  created under chapter 421. 
1234         (12)(11)� Notwithstanding the provisions of any local law, 
1235  the provisions of this section shall govern. 
1236         Section 21. Paragraph (e) of subsection (1) of section 
1237  218.503, Florida Statutes, is amended to read: 
1238         218.503 Determination of financial emergency.— 
1239         (1) Local governmental entities, charter schools, charter 
1240  technical career centers, and district school boards shall be 
1241  subject to review and oversight by the Governor, the charter 
1242  school sponsor, the charter technical career center sponsor, or 
1243  the Commissioner of Education, as appropriate, when any one of 
1244  the following conditions occurs: 
1245         (e) A An unreserved or total fund balance or retained 
1246  earnings deficit in total or for that portion of fund balance 
1247  classified as neither restricted or nonspendable, or a 
1248  unrestricted or total or unrestricted net assets deficit, as 
1249  reported on the balance sheet or statement of net assets on the 
1250  general purpose or fund financial statements of entities 
1251  required to report under governmental financial reporting 
1252  standards, or on the basic financial statements of entities 
1253  required to report under not-for-profit financial reporting 
1254  standards, for which sufficient resources of the local 
1255  governmental entity, charter school, charter technical career 
1256  center, or district school board, as reported on the balance 
1257  sheet or statement of net assets on the general purpose or fund 
1258  financial statements, are not available to cover the deficit. 
1259  Resources available to cover reported deficits include fund 
1260  balance or net assets that are not otherwise restricted by 
1261  federal, state, or local laws, bond covenants, contractual 
1262  agreements, or other legal constraints. Property, plant, and 
1263  equipment Fixed or capital assets, the disposal of which would 
1264  impair the ability of a local governmental entity, charter 
1265  school, charter technical career center, or district school 
1266  board to carry out its functions, are not considered resources 
1267  available to cover reported deficits. 
1268         Section 22. Paragraph (c) of subsection (5) of section 
1269  373.536, Florida Statutes, is amended, and paragraph (c) is 
1270  added to subsection (6) of that section, to read: 
1271         373.536 District budget and hearing thereon.— 
1272         (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND 
1273  APPROVAL.— 
1274         (c) Each water management district shall, by August 1 of 
1275  each year, submit for review a tentative budget to the Governor, 
1276  the President of the Senate, the Speaker of the House of 
1277  Representatives, the chairs of all legislative committees and 
1278  subcommittees with substantive or fiscal jurisdiction over water 
1279  management districts, as determined by the President of the 
1280  Senate or the Speaker of the House of Representatives as 
1281  applicable, the secretary of the department, and the governing 
1282  body of each county in which the district has jurisdiction or 
1283  derives any funds for the operations of the district. The 
1284  tentative budget must be posted on the water management 
1285  district’s official website at least 2 days before budget 
1286  hearings held pursuant to s. 200.065 or other law. 
1287         (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN; 
1288  WATER RESOURCE DEVELOPMENT WORK PROGRAM.— 
1289         (c) The final adopted budget must be posted on the water 
1290  management district’s official website within 30 days after 
1291  adoption. 
1292         Section 23. Subsections (1) and (5) of section 1011.03, 
1293  Florida Statutes, are amended, and subsection (6) is added to 
1294  that section, to read: 
1295         1011.03 Public hearings; budget to be submitted to 
1296  Department of Education.— 
1297         (1) Each district school board must cause a summary of its 
1298  tentative budget, including the proposed millage levies as 
1299  provided for by law, and graphs illustrating a historical 
1300  summary of financial and demographic data, to be advertised at 
1301  least once one time as a full-page advertisement in the 
1302  newspaper with the largest circulation published in the district 
1303  or to be posted at the courthouse door if there be no such 
1304  newspaper. The board shall post the summary of its tentative 
1305  budget on the district’s official website. If the district does 
1306  not operate an official website, the board must, within a 
1307  reasonable period of time as established by the county in which 
1308  the district is located, transmit the summary to the manager or 
1309  administrator of the county. The manager or administrator shall 
1310  post the summary of the tentative budget on the county’s 
1311  website. 
1312         (5) The board shall hold public hearings to adopt tentative 
1313  and final budgets pursuant to s. 200.065. The hearings shall be 
1314  primarily for the purpose of hearing requests and complaints 
1315  from the public regarding the budgets and the proposed tax 
1316  levies and for explaining the budget and proposed or adopted 
1317  amendments thereto, if any. The tentative budget must be posted 
1318  on the district’s official website at least 2 days before the 
1319  budget hearing held pursuant to s. 200.065 or other law. The 
1320  final adopted budget must be posted on the district’s official 
1321  website within 30 days after adoption. If the district does not 
1322  operate an official website, the board must, within a reasonable 
1323  period of time as established by the county in which the 
1324  district is located, transmit the tentative budget or final 
1325  budget to the manager or administrator of the county. The 
1326  manager or administrator shall post the tentative budget or 
1327  final budget on the county’s website. The district school board 
1328  shall then require the superintendent to transmit forthwith two 
1329  copies of the adopted budget to the Department of Education for 
1330  approval as prescribed by law and rules of the State Board of 
1331  Education. 
1332         (6) If the governing body of a district amends the budget, 
1333  the adopted amendment must be posted on the official website of 
1334  the district within 5 days after adoption. If the district does 
1335  not operate an official website, the board must, within a 
1336  reasonable period of time as established by the county in which 
1337  the district is located, transmit the adopted amendment to the 
1338  manager or administrator of the county. The manager or 
1339  administrator shall post the tentative budget and final budget 
1340  on the county’s website. 
1341         Section 24. Section 1011.051, Florida Statutes, is amended 
1342  to read: 
1343         1011.051 Guidelines for general funds.—The district school 
1344  board shall maintain a an unreserved general fund ending fund 
1345  balance that is sufficient to address normal contingencies. 
1346         (1) If at any time the portion of the unreserved general 
1347  fund’s ending fund fund balance classified as neither restricted 
1348  or nonspendable in the district’s approved operating budget is 
1349  projected to fall during the current fiscal year below 3 percent 
1350  of projected general fund revenues during the current fiscal 
1351  year, the superintendent shall provide written notification to 
1352  the district school board and the Commissioner of Education. 
1353         (2) If at any time the portion of the unreserved general 
1354  fund’s ending fund fund balance classified as neither restricted 
1355  or nonspendable in the district’s approved operating budget is 
1356  projected to fall during the current fiscal year below 2 percent 
1357  of projected general fund revenues during the current fiscal 
1358  year, the superintendent shall provide written notification to 
1359  the district school board and the Commissioner of Education. 
1360  Within 14 days after receiving such notification, if the 
1361  commissioner determines that the district does not have a plan 
1362  that is reasonably anticipated to avoid a financial emergency as 
1363  determined pursuant to s. 218.503, the commissioner shall 
1364  appoint a financial emergency board that shall operate 
1365  consistent with the requirements, powers, and duties specified 
1366  in s. 218.503(3)(g). 
1367         Section 25. Paragraph (a) of subsection (3) of section 
1368  1011.64, Florida Statutes, is amended to read: 
1369         1011.64 School district minimum classroom expenditure 
1370  requirements.— 
1371         (3)(a) Annually the Department of Education shall calculate 
1372  for each school district: 
1373         1. Total K-12 operating expenditures, which are defined as 
1374  the amount of total general fund expenditures for K-12 programs 
1375  as reported in accordance with the accounts and codes prescribed 
1376  in the most recent issuance of the Department of Education 
1377  publication entitled “Financial and Program Cost Accounting and 
1378  Reporting for Florida Schools” and as included in the most 
1379  recent annual financial report submitted to the Commissioner of 
1380  Education, less the student transportation revenue allocation 
1381  from the state appropriation for that purpose, amounts 
1382  transferred to other funds, and increases to the amount of the 
1383  general fund’s fund unreserved ending fund balance classified as 
1384  neither restricted or nonspendable when the total unreserved 
1385  ending fund balance classified as neither restricted or 
1386  nonspendable is in excess of 5 percent of the total general fund 
1387  revenues. 
1388         2. Expenditures for classroom instruction, which shall be 
1389  the sum of the general fund expenditures for K-12 instruction 
1390  and instructional staff training. 
1391         Section 26. This act shall take effect October 1, 2010.