HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 853 Local Government Ethics Reform
SPONSOR(S): Sirois and others
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Public Integrity & Elections Committee 18 Y, 0 N Pardo Rubottom
2) Local Administration & Veterans Affairs 18 Y, 0 N Miller Miller
Subcommittee
3) State Affairs Committee 21 Y, 0 N Miller Williamson
SUMMARY ANALYSIS
Current law provides a Code of Ethics for Public Officers and Employees (Code). The Code is intended to
ensure that public officials conduct themselves independently and impartially, not using their offices for private
gain other than compensation provided by law. While protecting the integrity of government, the Code is
designed to avoid creating unnecessary barriers to public service.
The bill makes numerous changes to the Code as it relates to local government officers and employees.
Specifically, the bill:
 Specifies that a material interest in a business is included in the Code’s prohibition on conflicting
employment or contractual relationships;
 Requires special district governing board members to complete four hours of ethics training annually, a
requirement mirroring the current law applicable to constitutional officers and elected municipal officers;
 Requires local officers that must abstain from voting on a measure due to a conflict of interest to
disclose the conflict prior to participating in the measure;
 Requires elected mayors and members of the governing body of a municipality with $10 million or more
in total revenue for three consecutive fiscal years to file a full and public disclosure of their financial
interests in lieu of the less detailed form of disclosure required under current law;
 Requires the Department of Financial Services to file a verified report with the Legislature and the
Commission on Ethics annually showing the total revenues for each municipality in each of the three
previous fiscal years and whether the municipality timely filed its annual financial report;
 Requires officers or members who must complete annual ethics training to provide the name of the
training provider on their respective statements of financial interest.
The bill may have an insignificant fiscal impact on elected municipal officers serving certain municipalities.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Code of Ethics for Public Officers and Employees (Code) is set forth in part III, chapter 112,
F.S. Foremost among the goals of the Code is to promote the public interest and maintain the
respect of the people for their government. The Code is intended to ensure that public officials
conduct themselves independently and impartially, not using their offices for private gain other
than compensation provided by law.1 While protecting the integrity of government, the Code is
designed to avoid creating unnecessary barriers to public service.2
The Code establishes standards for the conduct of elected and appointed officials and
government employees including, but not limited to, provisions on:
 Prohibited actions or conduct, including prohibitions on the solicitation or acceptance of
gifts, unauthorized compensation, misuse of public position, disclosure or use of certain
information, and solicitation or acceptance of honoraria;
 Prohibited employment and business relationships, including prohibitions on dual public
employment, doing business with one’s agency, as well as conflicting employment or
contractual relationships;
 Misuse of public position;
 Anti-nepotism;
 Post-office holding and post-employment restrictions;
 Voting conflicts of interest;
 Ethics training; and
 Financial disclosure.
These Code provisions apply to not only officials and employees of state entities, but also to
local government officers and employees.
Full and Public Disclosure of Financial Interests
Current Law
The Florida Constitution requires all elected constitutional officers, candidates for such offices,
and statewide elected officers, to file a full and public disclosure of their financial interests.3
Other public officers, candidates, and public employees may be required to file a full and public
disclosure of their financial interests as determined by law. 4
Pursuant to the Constitution, the term “full and public disclosure of financial interests” means the
reporting individual must disclose his or her net worth and the value of each asset and liability in
excess of $1,000.5 The disclosure must be accompanied by either a sworn statement with this
information or a copy of the reporting individual’s most recent federal income tax return.6
Pursuant to general law, the Commission on Ethics (Commission) created by rule CE Form 6 to
be used when making the required full and public financial disclosure.7
1
S. 112.311(1), F.S.
2
S. 112.311(4), F.S.
Art. II, ss. 8(a) and 8(i)(2), Fla. Const.
4
Art. II, s. 8(a), Fla. Const.
5
Art. II, s. 8(i)(1), Fla. Const.
6
Id.
7
Rule 34-8.002, F.A.C.
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 The form provides that individuals holding the following positions must file CE Form 6:
Governor; Lieutenant Governor; cabinet members; legislators; state attorneys; public defenders;
clerks of circuit courts; sheriffs; tax collectors; property appraisers; supervisors of elections;
county commissioners; elected superintendents of schools; district school board members;
Jacksonville City Council members (including mayor); compensation claims judges; Duval
County Superintendent of Schools; Florida Housing Finance Corporation Board members;
Florida Prepaid College Board members; and each expressway authority, transportation
authority (except the Jacksonville Transportation Authority), bridge authority, or toll authority
created pursuant to ch. 348 or 343, F.S., or any other general law.8
Reporting individuals must file CE Form 6 with the Commission by July 1 of each year.9 Additionally,
candidates for a constitutional office are required to make a full and public disclosure of their financial
interests at the time of qualifying.10
While elected city commissioners may have similar authority and spending power as county
commissioners and other public officers who are required to file CE Form 6, state law only requires city
commissioners to file CE Form 1, a less detailed form of financial disclosure.11 Elected municipal
officers, and candidates for such offices, must file this form at the time of qualifying and annually by
July 1.12
Florida law requires municipalities to submit a financial report annually to the Department of Financial
Services (DFS).13 DFS in turn verifies the data and publishes a report on its website showing, among
other things, municipal revenues,14 expenditures, and long-term debt.15
Effect of Proposed Changes
The bill requires an elected mayor or city commissioner serving a municipality that had $10
million or more in total revenue for the three consecutive fiscal years before the disclosure
period to file the more detailed CE Form 6 annually, beginning with the 2021-filing year. Each
mayor and commissioner must continue to file a CE Form 6 until the municipality has less than
$10 million in total revenue for three consecutive fiscal years. For purposes of these
requirements, the verified report that DFS files with the Commission must be the sole basis to
determine whether a municipality has $10 million or more in total revenue. However, a
municipality that has not had its annual financial report certified on or before November 30 of
the year in which it is due must be considered to have $10 million or more in total revenue for
such year. If a report not certified by DFS is subsequently certified, the certified report must be
used in any disclosure period beginning after the report is certified.
The bill requires DFS by December 1 of each year to file a verified report with the Legislature
and Commission showing the total revenues for each municipality in each of the prior three
fiscal years and whether the municipality timely filed its annual financial report. The verified
report must indicate each municipality having no certified annual financial report in each such
year.
8
Rule 34-8.003, F.A.C.
9
Rule 34-8.002, F.A.C.
10
S. 99.061(5), F.S.
11
S. 112.3145(3), F.S.; see also Rule 34-8.202, F.A.C.
12
Rule 34-8.202, F.A.C.
13
S. 218.32(1), F.S.
14
According to DFS, for purposes of the annual financial reporting requirement, “revenue” includes ad valorem taxes; local option
taxes; utility service taxes; local business taxes, permits, fees and special assessments; federal, state and local grants; state revenue
sharing; service charges; court filing fees, fines and forfeitures; interest and dividends; increase in fair value of investments; rents and
royalties; sale of surplus materials; contributions and donations; settlements; other miscellaneous revenues. See Rule 69I-51.0012(1),
F.A.C., and material incorporated.
15
S. 218.32(2), F.S.
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 Based on data provided by DFS, the number of municipalities that reported $10 million or more
in total revenue in recent years was as follows:
 Fiscal year (FY) 2016 – 224
 FY 2017 – 226
 FY 2018 – 225
 FY 2019 – 229
Conflicting Employment or Contractual Relationships
Current Law
The Code prohibits a public officer or agency employee from having an employment or
contractual relationship with a business entity or agency that is subject to the regulation of, or is
doing business with, his or her agency.16 The Code further prohibits a public officer or agency
employee from having an employment or a contractual relationship that will create a continuing
or frequently recurring conflict between his or her private interests and the performance of his or
her public duties or that would impede the full and faithful discharge of his or her public duties.17
However, the Code does contain exceptions to these prohibitions relating to special taxing
districts and drainage districts,18 legislative bodies where regulatory power resides in another
agency or is strictly through enactment of laws or ordinances,19 and lawful or required practice
in a particular profession or occupation.20 The Code also contains several exemptions to these
prohibitions related to:
 Appointed advisory board members;21
 When business transactions in a county or municipality are conducted under a rotation
system;22
 When business is awarded under a system of sealed, competitive bidding and certain
criteria are met;23
16
S. 112.313(7), F.S.
17
Id.
18
“When the agency referred to is that certain kind of special tax district created by general or special law and is limited specifically to
constructing, maintaining, managing, and financing improvements in the land area over which the agency has jurisdiction, or when the
agency has been organized pursuant to chapter 298, then employment with, or entering into a contractual relationship with, such
business entity by a public officer or employee of such agency shall not be prohibited by this subsection or be deemed a conflict per
se. However, conduct by such officer or employee that is prohibited by, or otherwise frustrates the intent of, this section shall be
deemed a conflict of interest in violation of the standards of conduct set forth by this section.” S. 112.313(7)(a)1., F.S.
19
“When the agency referred to is a legislative body and the regulatory power over the business entity resides in another agency, or
when the regulatory power which the legislative body exercises over the business entity or agency is strictly through the enactment of
laws or ordinances, then employment or a contractual relationship with such business entity by a public officer or employee of a
legislative body shall not be prohibited by this subsection or be deemed a conflict.” S. 112.313(7)(a)2., F.S.
20
“This subsection shall not prohibit a public officer or employee from practicing in a particular profession or occupation when such
practice by persons holding such public office or employment is required or permitted by law or ordinance.” S. 112.313(7)(b), F.S.
21
“The requirements of subsections (3) and (7) as they pertain to persons serving on advisory boards may be waived in a particular
instance by the body which appointed the person to the advisory board, upon a full disclosure of the transaction or relationship to the
appointing body prior to the waiver and an affirmative vote in favor of waiver by two-thirds vote of that body. In instances in which
appointment to the advisory board is made by an individual, waiver may be effected, after public hearing, by a determination by the
appointing person and full disclosure of the transaction or relationship by the appointee to the appointing person.” S. 112.313(12), F.S.
22
“Within a city or county the business is transacted under a rotation system whereby the business transactions are rotated among all
qualified suppliers of the goods or services within the city or county.” S. 112.313(12)(a), F.S.
23
“The business is awarded under a system of sealed, competitive bidding to the lowest or best bidder and: (1) the official or the
official's spouse or child has in no way participated in the determination of the bid specifications or the determination of the lowest or
best bidder; (2) the official or the official's spouse or child has in no way used or attempted to use the official's influence to persuade
the agency or any personnel thereof to enter such a contract other than by the mere submission of the bid; and (3) the official, prior to
or at the time of the submission of the bid, has filed a statement with the Commission on Ethics, if the official is a state officer or
employee, or with the supervisor of elections of the county in which the agency has its principal office, if the official is an officer or
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  Purchases or sales for legal advertising, utilities service, or passage on a common
carrier;24
 Emergency purchases that must be made to protect public health, safety, or welfare;25
 When the business entity involved is the only source of supply within the political
subdivision and there is full disclosure by the officer or employee;26
 When the aggregate of such transactions does not exceed $500 in a calendar year;27
 When business transacted is the deposit of agency funds in a bank of which a county,
city, or district official is an officer, director, or stockholder, so long as agency records
show that the governing body has determined that the member did not favor his or her
bank over other qualified banks;28
 When the public officer or employee purchases in a private capacity goods or services
from an entity regulated by, or doing business with, his or her agency, at a price and
under terms available to similarly situated members of the general public;29 and
 When the elected public officer is employed by a tax exempt organization contracting
with his or her agency and the officer’s employment is not directly or indirectly
compensated as a result of such contract or business relationship and the officer has in
no way participated in the agency's decision to contract or to enter into the business
relationship with his or her employer. In addition, the officer must abstain from voting on
any matter that may come before the agency involving the officer's employer, publicly
state to the assembly the nature of the officer's interest in the matter from which he or
she is abstaining, and file the required written memorandum.30
In its annual reports to the Legislature for the past several years, the Commission has
recommended the Code be amended. Specifically, the Commission has advised that, under the
current law, a public offi