2011 Legislation Legislation Relating To Budget

Transcription

1 2011 Legislation 2011 Legislation Relating To Budget Budget/Implementing Bills/Conforming Bills SB 2002 Implementing the General Appropriations Act By Senate Budget Committee Effective Date: July 1, 2011 except as otherwise provided Approved by Governor: 5/26/2011; Chapter , Laws of Florida The only section of the implementing bill that impacts public schools is the incorporation of the calculations of the Florida Education Finance program for the fiscal year. Statutes Amended: Not applicable SB 2120 Relating to K-12 Education Funding By Senate Budget Committee Effective Date: Upon becoming law, except as otherwise provided Approved by Governor: 5/26/2011; Chapter , Laws of Florida This bill is the K 12 conforming bill. It is comprehensive and amends provisions relating to instructional materials, charter schools, digital learning (VIP and FLVS), Early Learning Coalitions, Class Size Reduction, Career and Professional Academies, Local Millage levies, merit award plan (MAP), and Lottery Bond Program. See enclosed comprehensive summary. Statutes Amended: ss , , , , , , , , , , , , , , , (new), , , , , , , , , , , , , , , , , , , , , and , Florida Statutes. SB 2150 Relating to Postsecondary Education By Senate Budget Committee Effective Date: July 1, 2001 Approved by Governor: 5/26/2011; Chapter , Laws of Florida 1

2 This bill primarily affects postsecondary institutions. Issues impacting K 12 education include: Florida Distance Learning (Section 5) The Florida Distance Learning Consortium shall develop and operate a central instructional content repository that allows public schools (and postsecondary schools) to search, locate, and contribute digital and electronic instructional resources and content, including accessing textbooks. Workforce Education Fees (Section 11) Effective July 1, 2011, for programs leading to career certificate or applied technology diploma, the tuition shall be $2.22 per contact hour (residents and non residents) and $6.66 for out-of-state students. For adult general education programs, a block tuition of $45 per half year or $30 per term (residents and non residents) and $135 per half year and $90 per term for out-of-state students. Each school district and college shall adopt policies and procedures for the collection of all fees and such fees may be used only for GED. Students may not be assessed fees authorized in subsections (5), (6) or (7). However, districts and colleges may continue to assess fees for capital uses outlined in the section. Fees may be assessed, including a convenience fee for automated or online collection, for the purpose of collecting tuition and fees. The convenience fee may not exceed the fee assessed by credit card companies. Scholarship Program Changes (Sections 18, 19, 20) Florida Academic Scholars: High school students graduating in and thereafter must have, in addition to current requirements, 100 hours of service work. Section 18. Florida Medallion Scholars: In addition to current requirements, students graduating in and thereafter must complete community service of 75 hours and identify a social problem and develop a plan for his/her involvement. A report must be made on the experience. Section 19. Gold Seal: In addition to current requirements, students graduating in and thereafter must complete community service of 30 hours and identify a social problem and develop a plan for his/her involvement. A report must be made on the experience. Section 20. Workforce Funding and Coenrollment (Section 35) A new funding model developed by the District Workforce Education funding Steering Committee shall be used by the DOE and a report given by March 1 of each year to the Legislature for appropriations planning purposes. The model is to ensure equitable funding for all districts. 2

3 A student coenrolled in a K-12 program and adult education program may not be reported for the purpose of funding adult education. However, in 11-12, students coenrolled in core curricula courses for credit recovery or dropout prevention may be reported for up to two courses per student. These students are exempt from the block tuition payment. College Center for Library Automation (CCLA) (Section 47) The DOE shall assist the CCLA to transfer the K-12 bibliographic database to the CCLA to make it searchable by school district students, staff, and parents no later than September 1, Statutes Amended relating to School Districts: ss , , , , , and , Florida Statutes. Martin Miller, MCG for FADSS May 7, Committee Conforming Bill SB 2120, Enrolled (ch , Laws of Florida) Issue Confidentiality and Information Sharing Section 1 s PECO Bonding Section 2 s Florida Knowledge Network Sections 4 & 6 s and.28 FIRN Section 5 s Education Section 7 Consortia s Charter Schools Section 8 s & Section 9 SB 2120, Enrolled (ch , Laws of Florida) Amends section on confidentiality sharing to add information related to s (6). Allows the PECO estimates to disregard a nonrecurring refund on gross receipts taxes. Creates additional PECO bond revenue for (re settlement with ATT) Provides the DOE the flexibility to publish Florida Knowledge Network materials on line instead of through television broadcast. Revises Commissioner responsibilities for the FIRN internet network to reflect current practice. Clarifies that education consortia funds will be determined as provided by the appropriations bill. Permits board of directors of regional consortium services to generate new revenue by various new means: patents, copyrights, trademarks, licenses. These revenues are to be internal funds that may only be used to support marketing, research and development activities. New section (10(e) 7 added to allow students in a development owned by a business entity that also provides a charter school in the development to have 50% of the seats in 3

4 Issue s (conforming) SB 2120, Enrolled (ch , Laws of Florida) the charter school chosen by lottery. Clarifies that C.O. funds shared by school districts with a charter school in the workplace prior to July 1, 2010, have met the expenditure requirements for capital outlay funding. Sponsors are limited to a withholding administrative fee of 2% for enrollment of up to 250 students in a high performing charter school and up to 500 students in a high performing charter school system. Virtual Instruction Programs - Section 10 s Private VPK Section 11 s Public VPK Section 12 s Early Learning Coalition CSR Core Courses Section 13 s Section 14 s Certain charter school systems shall be considered a local educational agency (LEA) for the purpose of receiving federal funds. Restrictions and requirements apply. Requires school districts to report contract prices for school district VIP by October 1 and requires school districts to expend the difference in funds provided per student in the district virtual program and the price paid for contracted virtual services for technology infrastructure. Changes the maximum number of students per PreK class in a private school-year VPK from 18 to 20. Also sets class size at 11 or fewer to require a CDA or equivalent instructor and at 12 or more to require additional instructors to meet Level 2 screenings. Changes the maximum number of students per PreK class in a public school-year VPK from 18 to 20. Also changes the class size from 11 to 12 or more to require additional instructors to meet Level 2 screenings. Reduces the early learning coalition administrative fee percentage from 4.5% to 4.0% in Amends definitions of core curricula courses to be more flexible for CSR requirements: (a) Courses in language arts/reading, mathematics, social studies, and science in pre K through 3, excluding any extracurricular courses pursuant to statute. (b) Courses in grades 4 8 in subjects that are measured by state assessment at any grade level and courses required for middle school promotion, excluding any extracurricular courses pursuant to statute. (c) Courses in grades 9 12 in subjects that are measured by state assessment at any grade level and courses that are specifically identified by name in statute as required for high school graduation and that are not measured by state assessment, excluding any extracurricular courses pursuant 4

5 Issue CSR Enrollment Section 15 s SB 2120, Enrolled (ch , Laws of Florida) to statute. (d) Exceptional student education courses. (e) English for Speakers of Other Language courses. Extracurricular courses are expanded to include courses that may result in college credit. Course in grades 4 8 enrolling students for high school credit must comply with high school caps (25). Middle School Career and Professional Academy Adult Education - Definition Instructional Materials Delivery Systems Digital Transition and Local Instructional Improvement System Section 16 s (new) Section 17 s Section 18 s Section 19 s Allows districts to place new enrollments that come after the October student membership count to be placed in an existing core-curricula classroom that temporarily exceeds the cap in an emergency if the district determines it to be impractical, educationally unsound, or disruptive to learning not to do so provided that the district submits a plan to be in compliance the following October. The number of students over the cap may not exceed 3 in grades K 3 and 5 in grades The DOE shall identify the core-curricular courses for satisfying the CSR requirements. Middle School Career and Professional Academy Courses. As part of the district 5 year plan and in collaboration with regional workforce boards, economic development agencies, and post secondary institutions, each district will include plans to implement a career and professional academy in at least one middle school. This component must ensure a smooth transition to a high school career professional academy. Requirements for such academies must be included in the plan are outlined in the section. In , the DOE shall collect data from districts implementing the academy. Removes language defining high school students taking an adult education course required for graduation as an adult education student. Inserts student or site licenses in the definition of instructional materials to ensure availability of digital materials. It Replaces the word textbook with instructional material to allow for multiple delivery systems. Codifies and changes the name of learning management system to local instructional improvement system to align with RTTT standards. Requires the system to manage continuous instructional improvement and to integrate instructional information with student data to predict future student 5

6 Issue Pilot Digital Instructional Materials Schools Instructional Materials Adoption Process Instructional Materials Technical Instructional Materials Technical Instructional Materials Committee Instructional Materials Review and Bids Accuracy of Materials Term of Adoption of Instructional Materials Instructional Materials - Section 20 s Section 21 s Section 3 s Sections 22, 24, 26, 29, 30 ss ,.32,.34,.38, and.39 Section 23 s Section 25 s Section 27 s Sections 28 ss Section 31 s SB 2120, Enrolled (ch , Laws of Florida) achievement. Districts must provide teachers, administrators, and students access to the system. It sets 6/30/14 as deadline for meeting compliance with the new requirements. Authorizes school districts to create pilot digital instructional materials schools with flexibility to transition to digital under certain circumstances. The pilot includes requirements to implement learning management systems that are based on electronic and digital materials. (see also section 19) Reporting requirements are also included in this section. Restructures adoption process to require reviewers to evaluate electronic format of materials; defines electronic and digital formats and provides dates to incorporate digital instructional materials in the classroom. The adoption committee process is replaced with reviewers and local representatives who review the material sent by state reviewers. Also requires by all instructional materials adopted for districts to be in digital format. Technical change to conform to new requirement for instructional materials reviewers. Conforms language in sections to changes in s Deletes the state instructional materials committee and conforms language to s Conforms language to s It also prohibits districts from requesting samples of materials in addition to those provided. Adds requirements for advertising for bids and forbids the DOE from adopting specifications that require references to FCAT and Next Generation Sunshine State Standards. Replaces reference to Commissioner to department. Aligns terminology with the restructuring of the adoption process and modifies bid specifications to include a 5 year adoption cycle (now 6 year). Requires school districts to use 50% of the instructional materials categorical for the purchase of electronic or digital 6

7 Issue Purchases Instructional Materials Committee Funding Industry Certification / Adult Education Reimbursement / Instructional Materials - Expenditures Section 32 Section 33 s SB 2120, Enrolled (ch , Laws of Florida) materials by and provides flexibility in materials purchased with the remaining 50%. Repeals s that provided for the funding for instructional materials committee as well as materials for partially sighted students. s (1)(j) is deleted: the effect is to remove requirement to reimburse community colleges for coenrollment of students in community college adult education courses. s (1)(o) [was (p)] amendment adjusts the bonus weights for industry certification to vary from.1 to.3 based on 50% rigor and 50% employment value. Removes the calculation of an additional.114 FTE for FLVS. A new section (s (11)) establishes a formula to provide FLVS with additional funding. The formula is based on local district millage levies and compression factors. DJJ Section 34 s CSR Categorical Section 35 s Discretionary Section 36 Millage s CO Penalty Section 37 s Merit Pay Plan (MAP) Section 38 s s (6)(b) 5 amendment makes permanent the authorization for school boards to expend unspent instructional materials funds on hardware after March 1. Authorizes pro rata funding transfers in FEFP when DJJ students transfer after the enrollment count during a semester. Allows compliant districts flexibility in the use of their CSR operating categorical. Repeals school districts authority to levy additional discretionary (.25 mill). Allows the 16 school boards that received voter approval of the referendum on the 2010 general election to levy, the.25 mill for and Clarifies that revenues from the.25 mill will not be included in the FEFP. Districts that continue the levy will receive compression. Also amends (5)(b) references to property and casualty premiums (defined under and (1)(d), (f), (g), (h), (m)). The Commissioner may waive the s penalty of equal dollar reduction in district funding for expenditures in and in (prior to January 1, 2011) related to software and property / casualty insurance premiums (per s (2) and (5)). Notwithstanding the repeal of s in HB 7087, state funding of MAP is provided in for awards 7

8 Issue SB 2120, Enrolled (ch , Laws of Florida) Lottery Bond Program Section 39 s Amends CSR Lottery Revenue Bond Program to add Educational Facilities to the program. [Uncertain of impact.] Charter School District Addendum Section 40 Notwithstanding the repeal of s , educational facilities exemptions for the demolition and replacement of school buildings identified in Charter School District Addendum Number 2, and approved by the district school board prior to June 30, 2010, are extended to June 30, CSR Categorical Alternate Compliance Calculation Section 41 CSR Operating Categorical Calculation: Adopts by reference the alternate compliance calculation amounts to the CSR operating categorical as set forth in Budget Amendment EOG # (March 2, 2011) by the Governor as approved by the LBC. Payments for shall be modified consistent with the amendment and s Effective Date Section 42 Except as otherwise provided, the act takes effect July 1, SUBSTANTIVE LEGISLATION Finance/Administration HB 281 Property Taxation By Rep. Logan Effective Date: July 1, 2011, and is effective for VAB petitions filed on or after July 1, Approved by Governor: 6/21/2011; Chapter , Laws of Florida A December 2010 study by the Office of Program Policy Analysis and Government Accountability found that the time it takes value adjustment boards (VAB) to complete the appeal process has increased in recent years due to a growing number of petitions, changes in state law and administrative rules, and the involvement of property tax representatives; individuals who typically work on a contingency basis and may actively solicit appeals. Some property owners may also use the process to realize a financial benefit by not paying taxes until after a VAB has completed its hearing. The bill provides that a petitioner before a VAB challenging an assessment of property for property tax purposes must make a partial payment of at least 75 percent of ad valorem taxes before those taxes become delinquent, less any applicable discount. A petitioner before a VAB challenging the denial of a classification or an exemption must make a payment of the amount of tax which the taxpayer admits in good faith to owe before such taxes become delinquent, less any applicable discount. If the good faith payment made is grossly disproportionate to the amount found to be due by the VAB, a 10% per year penalty applies. 8

9 The bill provides that if the VAB determines that the petitioner owes ad valorem taxes in excess of the amounts paid, the unpaid amount accrues interest at the rate of 12 percent per year from April 1. If the VAB determines that the petitioner is owed a refund, the amount paid in excess of the amount due accrues interest at the rate of 12 percent per year from April 1. The bill also eliminates current language which provides for a four percent discount that applies for 30 days after the mailing of a tax notice resulting from the action of a value adjustment board when the tax notice is issued after the taxes become delinquent. If the payments required under the bill are not made, the VAB must deny the petition in writing by April 20. Statutes Amended: ss and , Florida Statutes. HB 1163 Ad Valorem Taxation By Rep. Dorworth Effective Date: January 1, 2012 if approved by voters in 2012 presidential preference primary; January 1, 2013 if approved by voters in the 2012 general election. Approved by Governor: 6/02/2011; Chapter , Laws of Florida The bill implements the proposed constitutional amendment contained in HJR 381. This constitutional provision reduces the annual growth in assessment limitation on certain nonhomestead property from 10 percent to 3 percent upon voter approval of the amendment. The bill clarifies that the non-homestead assessment limitation does not apply to improvements made to the property. Substantive provisions of the bill become effective upon approval of the constitutional amendment by the voters. Statutes Amended: ss , , , creates s , Florida Statutes. SB 2096 State Financial Information By Senate Budget Committee Effective Date: July 1, 2011 Approved by Governor: 5/26/2011; Chapter , Laws of Florida The bill expands the reporting requirements of the Auditor General. Beginning in 2012, the Auditor General must annually transmit by July 15, to the Legislature and the Department of Financial Services, a list of all school districts, charter schools, charter technical career centers, Florida College System institutions, state universities, and water management districts that have failed to comply with transparency requirements as identified in audit reports. The bill requires charter schools and charter technical career centers to post their financial information on the Transparency Florida website. 9

10 By November 1, 2012, and annually thereafter, the Legislative Auditing Committee must develop a schedule for adding additional information to the website. The bill also requires the Chief Financial Officer to provide public access to a state contract management system that provides information and documentation relating to contracts procured by governmental entities. Statutes Amended: ss , , Florida Statutes. SB 2110 Auditor General By Senate Budget Committee Effective Date: July 1, 2011 Approved by Governor: 5/26/2011; Chapter , Laws of Florida The bill modifies statutory requirements relating to the frequency of certain operational and financial audits conducted by the Auditor General. The bill amends the definition of financial audit to require that audits be conducted in accordance with auditing standards generally accepted in the United States. When applicable, the scope of financial audits must encompass the additional activities necessary to establish compliance with the Single Audit Act Amendments of 1996, 31 U.S.C. ss and other applicable federal law. Operational audit is redefined to mean an audit whose purpose is to evaluate management s performance in establishing and maintaining internal controls, including controls designed to prevent and detect fraud, waste, and abuse. One every 3 years, the Auditor General must conduct financial audits of the accounts and records of all district school boards in counties that have populations of 150,000 or more. At least every 3 years (rather than 2), the Auditor General must conduct operational audits of district school boards. At least once every 3 years, the Auditor General must conduct a performance audit of the Department of Revenue s administration of the ad valorem tax laws. The Auditor General may conduct audits of virtual education providers receiving state funds or funds from local ad valorem taxes. Statutes Amended: ss , , 28.35, , , (3), (3), , , 11.40(3), 11.45, , ; repealing s (7), Florida Statutes. SB 1292 Chief Financial Officer By Senate Budget Committee Effective Date: July 1, 2011 Approved by Governor: 5/26/2011; Chapter , Laws of Florida The bill establishes as the intent of the Legislature that a mechanism be provided for obtaining detailed, uniform reporting of government financial information to enable citizens to view compatible information on the use of public funds by governmental entities. Beginning October 1, 2011, the Chief Financial Officer (CFO) will begin conducting workshops with state agencies, local governments, educational entities and entities of higher education to gather information for the development of a uniform chart of accounts. An 10

11 educational entity is defined as a school district or an entity created by a school district. The CFO will provide to the state agencies, local governments, educational entities and entities of higher education a draft chart of accounts by July 1, The CFO shall accept comments and input from state agencies, local governments, educational entities and entities of higher education regarding the draft chart of accounts through November 1, By January 15, 2014, the CFO will present a report to the Governor, President of the Senate and the Speaker of the House of Representatives recommending a uniform chart of accounts which requires specific enterprise-wide information related to revenues and expenditures of state agencies, local governments, educational entities and entities of higher education. The report will include the estimated cost of adopting and implementing a uniform enterprise-wide chart of accounts. Statutes Created: s , Florida Statutes. HB 7005 Unemployment Compensation By Rep. Adkins Effective Date: Upon become law except as otherwise expressly provided. Approved by Governor: 6/27/2011; Chapter , Laws of Florida This bill reforms the unemployment compensation (UC) law in the following manner: The bill changes qualifying requirements by (effective August 1, 2011): o Requiring claimants to participate in an initial skills review using an online education or training program as part of reporting for benefits; o Requiring claimants to make a systematic and sustained effort to find work, and to contact at least five prospective employers each week or report in person to a One- Stop Career Center to meet with a representative for reemployment services each week; and o Requiring claimants to file continuing claims by Internet, rather than by phone or mail. The bill changes the criteria by which claimants are disqualified from receiving benefits by: o Changing the standard to show misconduct from willful (a high standard) to conscious (a lower standard); o Changes the definition of misconduct to specify certain acts of misconduct that would disqualify an individual from benefits, such as absenteeism; o Adds a disqualification for any weeks in which an individual receives severance pay from an employer (effective August 1, 2011); o Expands disqualification to include being fired for all crimes committed in connection with work (rather than only those punishable by imprisonment) (effective August 1, 2011); and o Adds a specific disqualification for individuals who are incarcerated or imprisoned (effective August 1, 2011). The bill creates a sliding scale for benefits beginning in 2012 by correlating the maximum weeks of benefits available with the rate of unemployment. The maximum amount of benefits available is 23 weeks when the unemployment rate is 10.5 percent or 11

12 greater, and this scales down to 12 weeks of benefits when the unemployment rate is 5 percent or less. The bill codifies the executive order extending the temporary state extended benefits program and amends the program to conform to new federal law. The bill eliminates the payment of benefits by mail (effective August 1, 2011). Related to unemployment taxes, the bill: o Allows employers to continue to have the option to pay their taxes in installments over 2012, 2013, and 2014; o Provides tax relief for employers beginning in 2012 by adjusting the tax calculation; o Increases the number of employee leasing companies who may obtain tax information for their clients by filing a memorandum of understanding, instead of filing a power of attorney for each client, with the Department of Revenue. The bill allows appeals of orders by the Unemployment Appeals Commission to be filed in district courts of appeal where the claimant resides, where the business was located, or where the order was issued (effective August 1, 2011). The bill codifies certain agency rules related to the exclusion of evidence that is irrelevant or repetitious, and revises the admissibility of hearsay evidence to allow it to be used to establish a fact under certain circumstances (effective August 1, 2011). The bill creates a rebuttable presumption that the date on a document mailed by AWI or DOR is the date that the document was mailed. The bill amends law related to statutory construction to repeal language which requires that unemployment laws be liberally construed in favor of a claimant. The bill permits AWI to contract with consumer reporting agencies to access wage records and requires that any revenues from the contract be used for administration of the unemployment system. Statutes Amended: ss and ch. 443, Florida Statutes. HB 97 Health Insurance By Senator Gaetz Effective Date: July 1, 2011 Approved by Governor: 6/02/2011; Chapter , Laws of Florida Under the Patient Protection and Affordable Care Act (PPACA), the state is required to create an insurance exchange by If the state does not take the necessary steps to create the exchange, as determined by the United States Secretary of Health and Human Services, the Secretary will establish and operate the exchange. The exchange will provide an insurance market place whereby individuals and small business can purchase health insurance. Under the PPACA, most citizens will be required to purchase health insurance, or will be required to pay a tax penalty. Certain individuals who meet certain income thresholds will be given premium tax credits and cost sharing subsidies to help them purchase their health insurance. The bill prohibits the use of state or federal funds to provide coverage for abortions in health insurance policies purchased through health insurance exchanges created under the PPACA. The bill provides exceptions for abortions in situations of rape or incest, or if a physician 12

13 certifies in writing that the abortion is necessary to save the life of the mother. The bill clarifies that it does not prohibit insurance plans from providing separate coverage for abortion, as long as that coverage is not purchased in whole or in part with any federal or state funds. Statutes Amended: Creates ss , , ; amends ss , , Florida Statutes. SB 224 Local Government Accountability By Senator Dean Effective Date: October 1, 2011 Approved by Governor: 6/17/2011; Chapter , Laws of Florida This bill provides minimum budgeting standards for counties, county officers, municipalities, and special districts and also impact school boards and districts. The bill amends s , F.S., to require district school boards, charter schools, and charter technical career centers, to file their annual financial audit report within 9 months after the end of the fiscal year (instead of 12 months). The bill specifies that the entity s revenues or total expenditures and expenses are as reported on the fund financial statements. The bill requires auditors to prepare auditing reports in accordance with the rules of the Auditor General. These reports must be filed with the Auditor General within 45 days after the delivery of the report to the audited entity but no later than 9 months after the end of the fiscal year. The bill also requires the Auditor General to notify the Legislative Auditing Committee or LAC of any audit report that indicates an audited entity has failed to take full corrective action in response to a recommendation that was included in the two preceding financial audit reports. It provides the LAC with the authority to direct a local governmental entity to provide a written statement concerning the lack of corrective action or describing corrective action that will be taken in the future. If LAC determines that the written statement is not sufficient, it may require the entity to appear before the Committee. The bill further authorizes LAC to take certain actions prescribed in s (5), F.S., against an audited entity that has failed to take full corrective action and for which there is no justifiable reason for the entity s inaction, or if the entity has failed to comply with the committee s requests. The bill amends s , F.S., to clarify that a deficit in the fund financial statements of entities required to report under governmental financial reporting standards or on nonprofit financial statements shall constitute a financial distress indicator that shall subject the entity to review and oversight for financial emergency. The bill replaces the term fixed or capital assets with property, plant, and essential equipment as types of property that if necessary will not be considered resources available to cover the deficit. The bill amends s , F.S., to require district school boards to post a summary of their tentative budgets on the district s official website within 2 days before the budget hearing. The bill also states that the district school board s final adopted budget must be posted on the 13

14 district s official website within 30 days after adoption, and any budget amendments must be posted on their official websites within 5 days after adoption. Statutes Amended: 11.40, 30.49, , , , , , , , , , , , , , , , , , , , , , , and , Florida Statutes. SB 1312 Relating to School Nutrition Programs By Sen. Siplin Effective Date: Upon becoming law except as otherwise provided Approved by Governor: 6/23/2011; Chapter , Laws of Florida This bill creates the Healthy Schools for Healthy Lives Act. It provides for a type two transfer of the administration of school food and nutrition programs from the Department of Education (DOE) to the Department of Agriculture and Consumer Services (DACS). It provides for the administration of the U.S. Department of Agriculture child food and nutrition programs by the DACS. It also creates the Healthy Schools for Healthy Lives Council within the DACS. The bill requires the DOE, in consultation with the DACS, to develop and submit a waiver request to the U.S. Department of Agriculture (USDA) to transfer administration of the school food service and nutrition programs from the DOE to the DACS, within 30 days of the bill becoming law. Statutes amended: ss is renumbered as and amended, is renumbered to and amended, and is renumbered to and amended. SB 1430 Regulation of Smoking By Senator Altman Effective Date: July 1, 2011 Approved by Governor: 6/02/2011; Chapter , Laws of Florida The bill provides an exception to the state s preemption of smoking regulation to authorize district school boards to restrict smoking by persons on school district property. Statutes Amended: s , Florida Statutes. SB 444 Scrutinized Companies By Senator Bogdanoff Effective Date: July 1, 2011 Approved by Governor: 6/02/2011; Chapter , Laws of Florida The bill prohibits a company on the Scrutinized Companies with Activities in Sudan List or on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List from bidding on, submitting a proposal for, or entering into or renewing a contract with an agency or local governmental entity for goods or services of $1 million or more. Statutes Created: s , Florida Statutes. 14

15 HB 7151 Postsecondary Education By Rep. Stargel Effective Date: July 1, 2011 Approved by Governor: 6/17/2011; Chapter , Laws of Florida This bill amends several sections relating to postsecondary education. Below is summary of those that impact the K-12 system. The Higher Education Coordinating Council is required to make detailed recommendations on the primary core mission of public and nonpublic postsecondary education institutions; performance outputs and outcomes designed to meet annual and long-term state goals, and the state s articulation policies and practices to ensure that cost benefits to the state are maximized without jeopardizing quality. In addition, the council is to recommend a plan for workforce development education that addresses: The alignment of school district and Florida College System workforce development education programs to ensure cost efficiency and mission delineation, including an examination of the need for both college credit and noncollege credit certificate programs, an evaluation of the merit of retaining the associate in applied science degree, and the consolidation of adult general education programs within school districts. The consistency of workforce education data collected and reported by Florida College System institutions and school districts, including the establishment of common elements and definitions for any data that is used for state and federal funding and program accountability. The council must submit a report outlining its detailed recommendations to the Governor, Legislature, Board of Governors, and State Board of Education by December 31, 2011 that specifically includes recommendations for consideration by the Legislature for implementation in the fiscal year. The bill adds language that is to strengthen the relationship and collaborations between the Department of Education and postsecondary educational institutions so that articulation policies and budget items are implemented consistently. The Commissioner of Education, in consultation with the Chancellor of the State University System, must establish the Articulation Coordinating Committee, which must make recommendations related to statewide articulation policies to the Higher Education Coordination Council, the State Board of Education, and the Board of Governors. The committee, which includes representation from public K-12 education, must monitor the alignment between the exit requirements of one system and the admissions requirements of another; propose guidelines for interinstitutional agreements between and among public schools, career and technical education centers, Florida College System institutions, state universities, and nonpublic postsecondary institutions; annually recommend dual enrollment course and high school subject area equivalencies for approval by the State Board and Board of Governors; annually review the statewide articulation agreements; annually review the statewide course numbering system; annually publish a list of courses that meet common 15

16 general education and common degree program prerequisite requirements; examine statewide data regarding articulation; and recommend roles of public education entities in interfacing with single, statewide computer-assisted student advising system. The bill requires that DOE annually identify and publish the minimum scores, maximum credit, and courses for which credit is to be awarded for each CLEP subject exam, College Board AP exam, AICE exam, and IB exam. The department must use student performance data in subsequent postsecondary courses to determine the appropriate examination scores and courses for which credit is to be granted. Minimum scores may vary by subject area based on available performance data. Statutes Amended: ss , , , , , , , , , , , , , , , , , , , , ; repeals and , Florida Statutes. Personnel/Retirement SB 736 Educational Personnel By Senator Wise Effective Date: July 1, 2011; except as otherwise expressly provided in the act. Approved by Governor: 3/24/2011; Chapter , Laws of Florida This bill is a comprehensive education personnel initiative that provides for a reform of the evaluations of instructional personnel and school administrators; compensation; and employment practices. Please see enclosed comprehensive summary. Statutes Amended: ss , , , , , , , , , , , ; creates s ; repeals s , Florida Statutes. SB 2100 Relating to Retirement By Senate Budget Committee Effective Date: June 30, 2011 Approved by Governor: 5/26/2011; Chapter , Laws of Florida The bill made several changes to the factors that determine retirement benefits and to how contributions are made to the FRS. The defined benefit plan is now the Florida Retirement System Pension Plan and the Public Employee Optional Retirement Plan is now the Florida Retirement System Investment Plan. NOT ADDRESSED: o There is no compulsory enrollment in the investment plan required. 16

17 o Reenrollment in the FRS was not addressed. Employee contributions: Effective July 1, 2011, a 3% employee contribution will be required for all FRS members. DROP participants are not required to pay employee contributions. Employees entering DROP on or after July 1, 2011, will stop making contributions upon entering DROP. Employees who separate from service for 3 months or longer are entitled to a refund without interest for contributions made by the employee. Average Final Compensation: For members initially enrolled on or after July 1, 2011 (new employees newly enrolled in FRS), average final compensation means the average of the compensation for the 8 highest fiscal years of creditable service prior to retirement, termination, or death. It is currently the 5 highest years. Note: there were no changes in the use of compensation for accumulated annual leave or overtime. Normal Retirement Date: The normal retirement date for all members (other than special risk) initially enrolled on or after July 1, 2011 will be 65 years of age (now 62) and the creditable service will be 33 years (now 30). For Special Risk Class (mainly police and firefighters), the normal retirement date increases from 55 to 60 years of age; and increases the years of creditable service from 25 to 30. DROP: Maintains DROP; however, members entering DROP on or after July 1, 2011, will earn interest at a reduced accrual rate of 1.3%. [If you are currently in DROP nothing changes.] If you are not currently in DROP you will be able to enter DROP now, or on or after July 1, 2011 based on the rules and the current laws that specify how DROP operates. However, if you enter DROP on or after July 1, 2011, the interest you earn will be 1.3% per year. Vesting: o Pension Plan: For members initially enrolled in the pension plan (formerly known as the Defined Benefit Plan) on or after July 1, 2011, such members will be vested upon completion of 8 years of creditable service. o Investment Plan: No change. o Cost of Living Adjustment for those retiring after July 1, 2011: The cost-of-livingadjustment (COLA) (now 3%) that is applied to retirement benefits for current retirees is based on a formula that applies the 3% to years of service. For current retirees and those in DROP, there will be no change. o Under the new provision, for service earned on or after July 1, 2011 by those not in DROP or not retired, the factor applied to the next 5 years of service (until 2016) will be 0%. The COLA formula will expire effective June 30, 2016, and the 3% cost-ofliving adjustment will be reinstated. In other words, a person with 25 years of service who plans on retiring or going into DROP in 5 years, will only have 25 years applied to the COLA adjustment for retirees the remaining 5 years will be calculated at 0%. o The Health Insurance Subsidy (HIS) that provides up to $150 a month to help pay for post-retirement health insurance costs has not been changed. 17

18 Other provisions in the bill impact the contribution rates for FRS employers. Employer Unfunded Class Contribution Rate Actuarial Rate Total Regular: * 3.77 In 2012: Elected: * In 2012: Senior Mgmt * 5.13 In 2012: The Unfunded Actuarial Rates increase in 2012 to the amounts noted on the next line. Statutes amended: All sections of ch 121, , , , , 185.1, , , , , , Florida Statutes. SB 88 Public Employee Compensation By Senator Gaetz Effective Date: July 1, 2011 Approved by Governor: 6/17/2011; Chapter , Laws of Florida Current law prohibits extra compensation from being made to any officer, agent, employee, or contractor after the service has been rendered or the contract made. However, when adopting salary schedules for a fiscal year, a district school board or community college district board of trustees may apply the schedule for payment of all services rendered subsequent to July 1 of that fiscal year. The bill adds new language restricting bonuses and severance pay. Any policy designed to implement a bonus scheme must: a. Base the award on work performance. b. Describe performance standards and evaluation process. c. Notify all employees of the policy before the beginning of the evaluation period. d. Consider all employees for the bonus. On or after July 1, 2011, a unit of government that enters into a contract or employment agreement, or renewal of renegotiation of an existing contract or agreements that contains a severance pay provision must include the following in the contract: a. A requirement that severance pay not exceed an amount greater than 20 weeks of compensation. b. A prohibition of severance pay when the officer or employee has been fired for misconduct. 18

19 On or after July 1, 2011, an officer or employee may receive severance pay that is not provided for in a contract if such pay represents the settlement of an employment dispute. Such pay may not exceed an amount greater than 6 weeks of compensation. The settlement may not include provisions that limit the ability of any party to the settlement to discuss the dispute or settlement. Severance pay is defined as actual or constructive compensation, including salary, benefits or perquisites for services yet to be rendered which is provided to an employee who is or is about to be terminated. The term does not include earned and accrued annual, sick, compensatory, or administrative leave; early retirement, or any subsidy for the cost of group health insurance plan available to an employee upon normal or disability retirement. Any contract, executed on or after July 1, 2011, which involves extra compensation between a unit of government and an officer or employee may not include provisions that limit the ability of any party to the contract to discuss the contract. Statutes amended: ss , , , , repealing s , Florida Statutes. HB 445 Wellness or Health Improvement Programs By Rep. Ingram Effective Date: July 1, 2011 Approved by Governor: 6/17/2011; Chapter , Laws of Florida The bill authorizes insurers and health maintenance organizations to offer a voluntary wellness or health improvement program and may encourage or reward participation in the program by authorizing rewards or incentives. An insurer or health maintenance organization may require a member of a health benefit plan to provide verification that the member s medical condition makes it unreasonably difficult or inadvisable to participate in the wellness of health improvement program in order for that nonparticipant to receive the reward or incentive. A reward or incentive must be disclosed in the policy or certificate. This does not prohibit insurers or health maintenance organizations from offering other incentive or rewards if otherwise authorized by state or federal law. Statutes Amended: ss and , Florida Statutes. SB 926 Limitation of Liability for Employers Who Employ Persons with Developmental Disability By Senator Storms Effective Date: July 1, 2011, and applies to causes of action occurring on or after that date. Approved by Governor: 6/27/2011; Chapter , Laws of Florida This bill creates a new section of the Florida Statutes providing an employer who employs an individual who has developmental disability immunity from liability for negligent or intentional acts or omissions by that individual if: 19

20 The employee receives or has received supported employment services through a supported employment service provider; and The employer does not have actual notice of the employee s actions that created the unsafe conditions in the workplace. The bill also allows a supported employment service provider that has provided employment services to a person with a developmental disability to be immune from liability for the actions or conduct of the person that occur within the scope of the person s employment. Statutes Created: s , Florida Statutes. Curriculum HB 7087 & HB 7091 Education Law Repeals By House K-20 Innovation Committee Effective Date: Upon become law except as otherwise expressly provided. Approved by Governor: 5/5/2011; Chapter , Laws of Florida The bill repeals the requirement for students who took Algebra I in the middle grades from through to take the Algebra I end-of-course assessment in the school year. Approximately, 39,600 students would not have to take the Algebra I assessment, in some instances, several years after completion of the Algebra I course. Additionally, the bill repeals the provisions of law governing the criteria for awarding continuing contracts and professional service contracts (s (3)(a)-(c), F.S.). The intent of this repeal is to close the gap of those teachers who are in the pipeline (second, third, and fourth year teachers) and preclude them from being offered a professional service contract that is effective on or after July 1, SB 736 which has been signed into law only authorizes annual contracts effective on or after July 1, The bill also repeals programs that were never implemented or are no longer funded. The programs are: Digital Divide Council and the associated Pilot Project for Discounted Computers and Internet Access for Low-Income Students; Institute on Urban Policy and Commerce; Community and Faith-based Organizations Initiative; Community and Library Technology Access Partnership; Community computer access grant program; Adult Literacy Centers; Florida Literacy Corps; Preteacher and Teacher Education Pilot programs; Teacher Education Pilot Programs for High-Achieving Students; Merit Award Program; and 20