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FASD Legislative Update Week 6

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FASD Legislative Update Week 6 Attorneys at Law llw‐law.com FASD Legislative Update Week 6 By Chris Lyon, Terry Lewis, Lori Killinger and Kasey Lewis April 9, 2021 It was nice seeing everyone in Tallahassee this week for the FASD April Quarterly Meeting. The Legislature just completed its sixth week of the 2021 Legislative Session, with only three weeks left before adjournment on April 30th. This week, the House and Senate both passed their respective budgets and will begin the process of negotiating the differences in what is referred to as “Budget Conference”. This week’s report also includes a new section titled “Bills Likely Dead,” which contains legislation that is unlikely to pass both chambers before Session concludes. Included below is an update regarding the status of bills of importance to Florida’s special districts. PRIORITY ISSUES Special Districts Accountability – HB 1103 (Maggard)/SB 1624 (Albritton) In November 2020, House Speaker Chris Sprowls publicly stated in a speech to the Florida House of Representatives his intent to examine public and quasi-public entities that spend taxpayer dollars or have taxing authority. Undoubtedly part of this effort, HB 1103 and SB 1624 require “performance audits” of certain special districts and require new financial reporting requirements for all special districts. As originally filed, these bills required independent special fire control districts and hospitals districts to engage independent firms to perform performance audits beginning October 1, 2021 (fire districts) and October 1, 2022 (hospital districts) and every five years thereafter. The term “performance audit” was defined in Section 11.45(1), Florida Statutes. The bills required a similar performance audit to be performed of independent mosquito control districts and soil and water conservation districts by September 30, 2023 and September 30, 2024, respectively. However, these audits were to be performed by the Office of Program Policy Analysis and Government Accountability (OPPAGA). The bills also required all special districts to include additional information in their annual financial reports, specifically: 1. Total number of district employees; 2. Amounts budgeted for employee salaries and benefits; JACKSONVILLE ST. PETERSBURG TALLAHASSEE WEST PALM BEACH 245 Riverside Ave., Suite 150 100 Second Ave., South, Suite 501‐S 315 South Calhoun St., Suite 830 515 North Flagler Dr., Suite 1500 Jacksonville, Florida 32202 St. Petersburg, Florida 33701 Tallahassee, Florida 32301 West Palm Beach, Florida 33401 T: 904.353.6410 T: 727.245.0820 T: 850.222.5702 T: 561.640.0820 F: 904.353.7619 F: 727.290.4057 F: 850.224.9242 F: 561.640.8202 01480317‐1 See Things Differently® 3. Each construction project approved to begin after October 1 of the fiscal year being reported, together with the amount budgeted for such project; 4. For independent districts that impose ad valorem taxes, the district’s millage rate, total amount of ad valorem taxes collected and the total amount of outstanding bonds issued by the district and terms of such bonds; and 5. For independent districts that impose non-ad valorem assessments, the assessment rates, the total amount of assessments collected and the total amount and terms of outstanding bonds. Finally, the bills required community redevelopment agencies with revenues or expenses greater than $100,000 to conduct an annual financial audit. This week, HB 1103 was heard in its second committee and an amendment offered by the sponsor was adopted. The amendment addresses a number of issues raised by FASD and makes the following changes to the bill. 1. It requires a “performance review” rather than a “performance audit” and provides a new definition for “performance review”; 2. It delays the first performance reviews for 1 year (Fire Districts – October 1, 2022/Hospital Districts – October 1, 2023); 3. It exempts any fire or hospital districts in a rural area of opportunity as defined in s. 288.0656(2) from having to hire a firm to do the review. Instead, OPPAGA will perform their reviews; 4. OPPAGA no longer will compile the list of firms eligible to conduct performance reviews. Instead the district will choose the firm but the firm must have at least 5 years of experience conducting performance reviews of organizations similar in size and function and must have “no affiliation with or financial involvement in the reviewed district”; 5. Mosquito districts and soil & water conservation districts reviews we still be performed by OPPAGA but it now says OPPAGA can contract with a firm as needed; and 6. It modifies the reporting of construction projects to include any project with a total cost of at least $65,000. SB 1624 has not yet been amended with these changes. HB 1103 has one more committee of reference as well before it is ready for the House floor. SB 1624 has one more committee of reference as well before it is ready for the Senate floor. Local Government Ethics Reform – HB 853 (Sirois) - MONITOR HB 853 contains several revisions to law recommended by the Florida Commission on Ethics. Of interest to special districts, one provision of the bill requires all special district and water management district governing board members to obtain four hours of annual ethics training. The same requirement applies to constitutional officers, county commissioners and city commissioners. HB 853 is ready for consideration by the full House. There is currently no Senate companion to this bill. 2 01480317-1 Legal Notices – HB 35 (Fine)/SB 402 (R. Rodrigues) - SUPPORT HB 35 gives governmental agencies, including special districts, the option to public legal notices on a publicly accessible website in lieu of newspaper publication if certain conditions are met. SB 402 is similar to HB 35 but not identical. SB 402 gives government agencies the option to publish legal notices on a newspaper website instead of a print based newspaper. To exercise this option, the agency must provide an additional notice in a print edition of a local newspaper to inform the general public that additional legal notices may be found on the statewide legal notice website maintained by the Florida Press Association. The bill also expands the types of publications that qualify for the posting of legal notices. Currently, a newspaper must, among other requirements, be “for sale to the general public” and be qualified to be admitted and entered as a periodical matter at the local post office. SB 402 removes these requirements that will allow legal notices to be published in smaller publications that are free to the public. HB 35 passed the Florida House on a 85-34 vote and awaits consideration by the full Senate. SB 402 passed through its first of three committee references and is on the agenda for next week in its second committee. TRACKED LEGISLATION The bills outlined below are just a few of the bills we are closely monitoring for FASD. Liability: Civil Liability for Damages Relating to COVID-19 – HB 7 (McClure)/SB 72 (Brandes) These bills provide several COVID-19-related liability protections for businesses, educational institutions, government entities (including special districts), religious organizations and others. SB 72 passed both chambers and was signed into law by the Governor. It became effective on March 29, 2021. Firefighters: Drones – SB 44 (Wright)/HB 1049 (Giallombardo) These bills expand the permissible use of drones to include certified fire department personnel to use drones to perform tasks within the scope and practice authorized under their certification. Both bills received three committee references. SB 44 passed the full Senate and awaits consideration by the full House. HB 1049 awaits a hearing in its last committee of reference. 3 01480317-1 Firefighters Bill of Rights - SB 970 (Hooper)/HB 313 (Busatta Cabrera) These bills amend the Firefighters Bill of Rights to require that an informal inquiry be conducted at a reasonable time and for a reasonable duration, allowing reasonable periods of rest of the firefighter. A representative of an employee organization of which the firefighter is a member may represent the firefighter and be present during the informal inquiry. The bills also provide that during a formal investigation, a firefighter may not be threatened with transfer, dismissal, or disciplinary action as inducement to answer any questions. Both bills received three committee references. SB 970 has passed through one committee and HB 313 is scheduled to be heard next week on the House floor. Water/Stormwater: Reclaimed Water – SB 64 (Albritton)/HB 263 (Maggard) These bills make a number of changes to eliminate non-beneficial surface water discharges within five years. The bills also encourage the reuse of water by making reuse projects eligible for alternative water supply funding, incentivizing the development of potable reuse projects, and incentivizing developments that use greywater technologies. Both bills received three committee references. SB 64 passed the Senate and is ready to be heard in the House, as is HB 263. The bills are scheduled to be heard on the House floor next week. Government Accountability/Transparency: Fiscal Accountability for Nongovernmental Entities – HB 195 (Persons-Mulicka)/SB 506 (Garcia) These bills have been amended to require a non-governmental entity, which is defined as a nonprofit corporation, that receives at least 50% of its revenue from a governmental entity, or expensed at least $750,000 of government funds in any fiscal year to submit report to the Department of Management Services contains salary and benefit information for certain employees. Though governmental entities have now been removed from the provisions of the bills, we will continue to monitor them for changes. HB 195 passed two of three committee references. SB 506 awaits a hearing in its second committee. Fiduciary Duty of Care for Appointed Public Officials and Executive Officers – HB 573 (Beltran)/SB 758 (Diaz) These bills provide that each appointed public official and executive officer owes a fiduciary duty of care to the governmental entity he or she serves as well as to the constituents in the area and defines the elements of the duty of care.
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