The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Appropriations Committee on Education
BILL: CS/SB 936
INTRODUCER: Education Pre-K -12 Committee and Senator DiCeglie
SUBJECT: Economic and Vocational Development
DATE: March 20, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Jahnke Bouck ED Fav/CS
2. Gray Elwell AED Favorable
3. FP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 936 extends the repeal date to July 1, 2027, for future review and repeal of the Florida
Development Finance Corporation.
The bill also extends the repeal date to October 1, 2027, for future review and repeal of the
Florida Endowment for Vocational Rehabilitation (The Able Trust), which is a direct-support
organization for the Division of Vocational Rehabilitation in the Department of Education.
The bill has no fiscal impact on state revenues or expenditures.
This bill is effective July 1, 2023.
II. Present Situation:
Florida Development and Finance Corporation
The Florida Development Finance Corporation (FDFC) was formed by the Florida Development
Finance Corporation Act of 1993 and is designated as a state-wide, special development
financing authority for economic development purposes.1 Its purpose is to assist new and
existing businesses and organizations (for-profit and not-for-profit) with access to capital
through financing that promotes business activity, job creation, and an improved standard of
1
Section 288.9604, F.S.
BILL: CS/SB 936 Page 2
living for the citizens of Florida.2 The primary mechanism for accessing the capital markets is
through tax-exempt and taxable bonds.3
The FDFC was conceived through the efforts of the Enterprise Florida Capital Partnership,
whereby the newly created Enterprise Florida would be a public-private partnership to address
the needs outlined in a report by the Florida Department of Commerce and the Florida Chamber
of Commerce titled Cornerstone. The four main areas of focus would include:
The commercialization of university research and development.
Job training.
Access to capital (Capital Partnership).
Distribution systems. 4
The FDFC is governed by a Board of Directors (Board). The FDFC Board consists of seven
directors with the Secretary of Economic Opportunity serving as the chair of the Board and the
director of the Division of Bond Finance of the State Board Administration serving as the
director of the Board. The remaining five directors are appointed by the Governor, subject to the
confirmation of the Senate. The appointed directors serve a four-year term of office and can be
reappointed. At three of the appointed directors must have experience in finance, and one of the
directors must have experience in economic development.5
The FDFC has been helping Florida business for 30 years, created over 8,900 jobs, and has over
180 closings.6
The authorizing statute for the FDFC is scheduled for repeal on July 1, 2023, unless reviewed
and reenacted by the Legislature.7
Citizen Support Organizations and Direct-Support Organizations
Citizen support organizations (CSOs) and direct-support organizations (DSOs) are statutorily
created private entities that are generally required to be non-profit corporations, and are
authorized to carry out specific tasks in support of public entities or public causes. The functions
and purpose of a CSO or DSO are prescribed by its enacting statute and, for most, by a written
contract with the agency the CSO or DSO was created to support.
CSO and DSO Transparency and Reporting Requirements
In 2014, the Legislature created s. 20.058, F.S., establishing a comprehensive set of transparency
and reporting requirements for CSOs and DSOs that are created or authorized pursuant to law or
2
Florida Development Finance Corporation, FDFC History, https://www.fdfcbonds.com/history (last visited March 13,
2023).
3
Florida Development Finance Corporation, About Us, https://www.fdfcbonds.com/about (last visited March 13, 2023).
4
Florida Development Finance Corporation, FDFC History, https://www.fdfcbonds.com/history (last visited March 13,
2023).
5
Section 288.9604(2), F.S.
6
Florida Development Finance Corporation, Home, FDFC Economic Development, https://www.fdfcbonds.com/ (last visited
March 13, 2023).
7
Section 288.9604(5), F.S.
BILL: CS/SB 936 Page 3
executive order and created, approved, or administered by a state agency.8 Specifically, the law
requires each CSO and DSO to annually submit, by August 1, the following information related
to its organization, mission, and finances to the agency it supports:9
The name, mailing address, telephone number, and website address of the organization;
The statutory authority or executive order that created the organization;
A brief description of the mission of, and results obtained by, the organization;
A brief description of the organization’s plans for the next three fiscal years;
A copy of the organization’s code of ethics; and
A copy of the organization’s most recent federal Internal Revenue Service (IRS) Return of
Organization Exempt from Income Tax form (Form 990). 10
Each agency receiving the above information must make the information available to the public
through the agency’s website. If the CSO or DSO maintains a website, the agency’s website
must provide a link to the website of the CSO or DSO. Additionally, any contract between an
agency and a CSO or DSO must be contingent upon the CSO or DSO submitting and posting the
information. If a CSO or DSO fails to submit the required information for two consecutive years,
the agency must terminate the contract with the CSO or DSO. The contract must also include a
provision for ending operations and returning state-issued funds to the state if the authorizing
statute is repealed, the contract is terminated, or the organization is dissolved.
By August 15 of each year, the agency must report to the Governor, the President of the Senate,
the Speaker of the House of Representatives, and the Office of Program Policy Analysis and
Government Accountability (OPPAGA) the information provided by the CSO or DSO. The
report must also include a recommendation by the agency, with supporting rationale, to continue,
terminate, or modify the agency’s association with each CSO or DSO.
Finally, a law creating or authorizing the creation of a CSO or DSO must state that the creation
or authorization for the CSO or DSO is repealed on October 1 of the fifth year after enactment,
unless reviewed and saved from repeal by the Legislature. 11
CSO and DSO Audit Requirements
Section 215.981, F.S., requires each CSO and DSO created or authorized pursuant to law with
annual expenditures in excess of $100,000 to provide for an annual financial audit of its accounts
and records.12 The audit must be conducted by an independent certified public accountant in
accordance with rules adopted by the Auditor General and the state agency that created,
approved, or administers the CSO or DSO. The audit report must be submitted within nine
months after the end of the fiscal year to the Auditor General and to the state agency the CSO or
DSO supports.
8
Ch. 2014-96, s. 3, Laws of Fla.
9
Section 20.058(1), F.S.
10
Section 20.058(1), F.S.
11
Section 20.058, F.S
12
The independent audit requirement does not apply to a CSO or DSO for a university, district board of trustees of a
community college, or district school board. Additionally, the expenditure threshold for an independent audit is $300,000 for
a CSO or DSO for the Department of Environmental Protection and the Department of Agriculture and Consumer Services.
BILL: CS/SB 936 Page 4
Additionally, the Auditor General may conduct audits or other engagements of the accounts and
records of the CSO or DSO, pursuant to his or her own authority, or at the direction of the
Legislative Auditing Committee. The Auditor General is authorized to require and receive any
records from the CSO or DSO, or its independent auditor. 13
CSO and DSO Ethics Code Requirement
Section 112.3251, F.S., requires a CSO or DSO created or authorized pursuant to law to adopt its
own ethics code. The ethics code must contain the specified standards of conduct and disclosures
provided in ss. 112.313 and 112.3143(2), F.S. A CSO or DSO may adopt additional or more
stringent standards of conduct and disclosure requirements and must conspicuously post its code
of ethics on its website.14
Division of Vocational Rehabilitation
Vocational Rehabilitation (VR) is a federal-state program that helps people who have physical or
mental disabilities get or keep a job. VR is committed to helping people with disabilities find
meaningful careers.15
The Division of Vocational Rehabilitation (DVR) is one of several divisions within the
Department of Education (DOE).16 The DVR is the administrative unit designated at the state
level to ensure compliance with the Vocational Rehabilitation Act of 1973, as amended.17 The
DVR’s mission is “to help people with disabilities find and maintain employment and enhance
their independence.”18
Florida Endowment Foundation for Vocational Rehabilitation
In 1990, the Legislature created the Florida Endowment Foundation for Vocational
Rehabilitation (Foundation or The Able Trust19) as a direct-support organization of the DVR
within the DOE for the purpose of encouraging public and private support to enhance vocational
rehabilitation and employment of citizens who are disabled.20 The Able Trust endowment fund
was created as a long-term, stable, and growing source of revenue to be administered by the
Foundation as a direct-support organization of the DVR.21
The Foundation operates under contract with the DVR to exclusively raise funds; submit
requests and receive grants from the Federal Government, the state, private foundations, and
individuals; and to receive, hold, and administer property.
13
Section 11.45, F.S.
14
Section 112.3251, F.S.
15
Florida Division of Vocational Rehabilitation, New Providers, New Provider FAQs,
https://www.rehabworks.org/providers/providers-new-faqs.html (last visited March 6, 2023).
16
Section 20.15(3)(e), F.S.
17
Section 413.202, F.S.
18
Florida Division of Vocational Rehabilitation, About, About Us, https://www.rehabworks.org//about/about-us.html (last
visited March 6, 2023).
19
The Foundation conducts business as The Able Trust. The Able Trust, http://www.abletrust.org/ (last visited March 6,
2023).
20
Ch. 90-330, s. 9, Laws of Fla., codified as s. 413.615(5), F.S.
21
Section 413.615(4), F.S.
BILL: CS/SB 936 Page 5
The authorizing statute for the Foundation is scheduled for repeal on October 1, 2023, unless
reviewed and reenacted by the Legislature.22
Legislative Findings and Recommendations
Senate professional staff reviewed documents related to the Foundation for compliance with
accountability and authorizing statutes. The Foundation appears to be substantially in compliance
with such statutes. Findings and recommendations are summarized below.
Foundation Compliance with Accountability Requirements
The Foundation must submit specified information to the Department of Education (DOE) by
August 1.23
Finding: The Foundation submitted the information by the specified deadline.24
The DOE must make the information received from the Foundation available to the public
through the agency’s website. If the Foundation maintains a website, the DOE’s website
must provide a link to the Foundation’s website.25
Finding: The DOE includes a link to The Able Trust on the Division of Vocational
Rehabilitation (DVR) webpage, but the required report is only available through the
Florida Fiscal Portal.26
Recommendation: Provide a link to the required report27 directly on the DOE website.
The DOE must report, by August 15 of each year, to the Governor, Legislature, and
OPPAGA the information provided by the Foundation. The report must also include a
recommendation by the DOE, with supporting rationale, to continue, terminate, or modify the
DOE’s association with the Foundation.28
Finding: The DOE has complied with the requirement to report this information and
include specified information.29
The contract between the Foundation and the DVR must include a provision for the orderly
cessation of operations and reversion to the state of state funds held in trust by the
organization within 30 days after its authorizing statute is repealed, the contract is
terminated, or the organization is dissolved.30
22
Section 413.615(14), F.S.
23
Section 20.058(1), F.S.
24
Florida Fiscal Portal, Education, Required Report Pursuant to Chapter 2014-096 Citizen Support and Direct Support
Organizations (Aug. 5, 2022) available at http://floridafiscalportal.state.fl.us/Document.aspx?ID=24364&DocType=PDF.
25
Section 20.058(2), F.S.
26
The Florida Fiscal Portal is maintained by the Executive Office of the Governor to house a collection of documents that
detail the fiscal status of the State of Florida. Florida Fiscal Portal, http://floridafiscalportal.state.fl.us/ (last visited March 6,
2023).
27
Florida Fiscal Portal, Education, Required Report Pursuant to Chapter 2014-096 Citizen Support and Direct Support
Organizations (Aug. 5, 2022) available at http://floridafiscalportal.state.fl.us/Document.aspx?ID=24364&DocType=PDF.
28
Section 20.058(3), F.S.
29
Florida Fiscal Portal, Education, Required Report Pursuant to Chapter 2014-096 Citizen Support and Direct Support
Organizations (Aug. 5, 2022) available at http://floridafiscalportal.state.fl.us/Document.aspx?ID=24364&DocType=PDF, at
44.
30
Section 20.058(4), F.S.
BILL: CS/SB 936 Page 6
Finding: The current contract includes a provision regarding the orderly cessation of
operations and includes a provision regarding the reversion of state funds within 45
days.31
Recommendation: The contract should include a provision specifying 30 days, rather than
45 days, for the reversion of state funds.
The Foundation’s Code of Ethics must be conspicuously posted on the Foundation’s
website,32 and must address specified standards of conduct.33
Finding: The Able Trust Code of Ethics is posted and includes required provisions.34
The Foundation must provide for an annual financial audit of its accounts and records to be
conducted by an independent certified public accountant in accordance with rules adopted by
the Auditor General and the DOE. The audit report must be submitted within 9 months after
the end of the fiscal year to the Auditor General and to the DOE.35
Finding: The Able Trust has provided for an audit for the 2021-2022 fiscal year within
the specified timeframe.36
Foundation Compliance with Authorizing Requirements
The Foundation must separately account for funds received from state sources37 from
bequests, gifts, grants, and donations. Earnings on funds received from state sources and
funds received from public or private sources must also be accounted for separately.38
Finding: The Able Trust has separately accounted for revenues39 and earnings on funds40
between state and private sources.
The Foundation must have a contract with the DVR, and must:
o Be a Florida corporation not for profit.
o Be organized and operated exclusively to raise funds; to submit requests and receive
grants from the Federal Government, the state, private foundations, and individuals; to
receive, hold, and administer property; and to make expenditures to or for the benefit of
the VR programs approved by the Found