This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0037c.SAC
DATE: 4/11/2023
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 37 Financial Disclosures for Local Officers
SPONSOR(S): State Affairs Committee, Ethics, Elections & Open Government Subcommittee, Roach and
others
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 774
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Ethics, Elections & Open Government
Subcommittee
16 Y, 2 N, As CS Poreda Toliver
2) Local Administration, Federal Affairs & Special
Districts Subcommittee
16 Y, 1 N Roy Darden
3) State Affairs Committee 16 Y, 0 N, As CS Poreda Williamson
SUMMARY ANALYSIS
The Code of Ethics for Public Officers and Employees (Code of Ethics) establishes ethical standards for public
officials and is intended to ensure that public officials conduct themselves independently and impartially. The
Commission on Ethics (Commission) is an independent commission that, in part, maintains financial disclosure
filings of constitutional officers and state officers and employees, administers fines for late filed annual financial
disclosures, and administers the executive branch lobbying registration and reporting laws.
The bill makes the following changes to the Code of Ethics:
Requires mayors and elected members of the governing body of a municipality to file the CE Form 6
(Form 6) annual disclosure starting January 1, 2024, instead of the CE Form 1 (Form 1) disclosure.
Maintains the current requirement that Form 6 filers submit their financial disclosures electronically
beginning January 1, 2023, and requires Form 1 filers to submit their disclosures electronically
beginning January 1, 2024.
Allows federal income tax returns and other attachments be included with Form 6 electronic
submissions.
Requires the Commission to provide certain notices regarding Form 1 and Form 6 electronic filings.
Extends the annual filing deadline for both Form 1 and Form 6 filers.
Provides that the computation of a fine for late filing of financial disclosures will use the electronic
submittal date.
Requires the Commission to investigate sworn complaints or random lobbying audit reports only when
individuals or entities have intentionally failed to disclose a material fact or has knowingly submitted
false information.
Authorizes the Commission to dismiss certain complaints or investigations if the public interest is not
served by proceeding further.
Increases the civil penalty that may be assessed for a violation of the Code of Ethics from $10,000 to
$20,000.
Allows commissioners of community redevelopment agencies to use the same training schedule as all
other public officers subject to the ethics training requirement.
Allows a candidate qualifying for office to submit a verification or receipt of electronic filing of a financial
disclosure to the local filing officer.
Grants the Commission an exception to the rulemaking requirements of the Administrative Procedure
Act for forms promulgated for the 2022 filing year.
The bill may have a negative, but likely insignificant, impact on state expenditures. See Fiscal Comments.
STORAGE NAME: h0037c.SAC PAGE: 2
DATE: 4/11/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
The Code of Ethics for Public Officers and Employees
The Code of Ethics for Public Officers and Employees (Code of Ethics)
1
establishes ethical standards
for public officials and 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.
2
The Code
of Ethics pertains to various ethical issues, such as ethics trainings, voting conflicts, full and public
disclosure of financial interests, standards of conduct, and the Commission on Ethics (Commission).
3
Commission on Ethics
The Commission was created by the Legislature in 1974 “to serve as guardian of the standards of
conduct” for state and local public officials and employees.
4
The State Constitution and state law
designate the Commission as the independent commission provided for in s. 8(f), Art. II of the state
constitution.
5
Constitutional duties of the Commission consist of conducting investigations and making
public reports on all breach of trust complaints towards public officers or employees not governed by
the judicial qualifications commission.
6
In addition to its constitutional duties, the Commission, in part:
Renders advisory opinions to public officials;
7
Makes recommendations to disciplinary officials when appropriate for violations of ethics and
disclosure laws;
8
Administers the executive Branch lobbying registration and reporting law;
9
Maintains financial disclosure filings of constitutional officers and state officers and
employees;
10
and
Administers automatic fines for public officers and employees who fail to timely file required
annual financial disclosure.
11
Lobbyist Registration and Compensation Reporting
Lobbyists must register to lobby the executive branch and the legislative branch in Florida. Executive
branch lobbying is regulated by the Code of Ethics and administered by the Commission.
12
Legislative
branch lobbying is regulated primarily by Joint Rule of the Florida Legislature and administered by the
Office of Legislative Services.
13
Both registration systems require lobbyists to annually register for each
principal
14
represented and to indicate the entities to be lobbied.
15
In addition, lobbying firms must file
1
See Pt. III, Ch. 112, F.S.; see also Art. II, s. 8(h)(1), FLA. CONST.
2
Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and Employees, available
at http://www.ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf (last visited March 20, 2023).
3
See Pt. III, Ch. 112, F.S.
4
Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and Employees, available
at http://www.ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf (last visited March 20, 2023); See also S. 112.320,
F.S.
5
Article II, s. 8(i)(3), FLA. CONST.; S. 112.320, F.S.
6
Article II, s. 8(f), FLA. CONST.
7
Section 112.322(3)(a), F.S.
8
Section 112.322(2)(b), F.S.
9
Sections 112.3215 and 112.32155, F.S.
10
Section 112.3144, F.S.
11
Section 112.31455, F.S.; see also Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public
Officers and Employees, available at http://www.ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf (last visited
March 20, 2023).
12
Section 112.3215, F.S.
13
Section 11.045, F.S. and Joint Rule 1.
14
Section 112.3215(1)(i), F.S.
15
Section 112.3215(3), F.S.; Joint Rule 1.2 STORAGE NAME: h0037c.SAC PAGE: 3
DATE: 4/11/2023
quarterly compensation reports.
16
Both the Commission and the Legislature have instituted electronic
registration and compensation reporting.
17
Executive branch lobbyists, however, must supply a written
oath to complete each registration as well as a signed statement of authority from the principal.
18
State agency employees and employees of legislative and judicial branch entities acting in the normal
course of their duties are exempt from executive branch lobbying registration.
19
However, local
government officers and employees must register to lobby the state executive branch.
Compensation reporting is subject to random audits and, in the case of executive branch lobbying
firms, findings of non-compliance are reported to the Commission for investigation.
20
The executive branch lobbyist registration and reporting law provides specific procedures for its
enforcement.
21
The Commission reports probable cause findings to the Governor and Cabinet for
appropriate action, which can include a fine up to $5,000 and prohibition from lobbying for up to two
years.
22
A person accused of violating the lobbyist registration law may also request a hearing within 14
days of the mailing of the probable cause notification.
23
Procedures on Complaints and Violations
Current law requires the Commission to investigate possible violations and other alleged breaches of
the public trust within the Code of Ethics when in receipt of a complaint signed under oath or affirmation
or when a written referral is received from the Governor, the Department of Law Enforcement, a state
attorney, or a United States Attorney.
24
The Commission then begins a preliminary investigation of
each legally sufficient complaint to determine if there is probable cause that a violation has occurred.
25
The Commission may, at its discretion, dismiss any complaint or referral at any stage of disposition
should it determine that the public interest would not be served by proceeding further but a report must
be issued stating with particularity its reasons for dismissal.
26
The Commission may also dismiss any
complaint or referral if it determines that the violation that is alleged or has occurred is a de minimis
violation attributable to inadvertent or unintentional error;
27
however, the Commission may not dismiss
complaints alleging de minimis violations involving financial disclosure statements.
28
Penalties
Current law provides a range of penalty provisions for violations of the Code of Ethics that cover public
officers and employees, former public officers and employees, candidates, and lobbyists and lobbying
firms.
29
Depending on the position that the individual holds, there are different penalties that can be
enforced, including:
30
Impeachment, removal from office, or dismissal of employment;
Suspension from office or employment;
Disqualification from being on the ballot;
Demotion;
Reduction in salary;
Forfeiture of no more than one-third of his or her salary per month for no more than 12 months;
Public censure and reprimand;
16
Section 112.3215(5)(a)1., F.S.; Joint Rule 1.4
17
Section 112.32155, F.S.; Joint Rule 1.1(2)(f)
18
Section 112.3215(3), F.S.
19
Section 112.3215(1)(h)2., F.S.
20
Section 112.3215(8)(c), F.S.
21
Section 112.3215(8) and (9), F.S.
22
Sections 112.3215(9) and 112.3215(10), F.S.
23
Section 112.3215(9), F.S.
24
Section 112.324(1), F.S.
25
Section 112.324(3), F.S.
26
Section 112.324(12), F.S.
27
Section 112.324(11)(a), F.S.
28
Section 112.324(11)(b), F.S.
29
Section 112.317(1), F.S.
30
Id. STORAGE NAME: h0037c.SAC PAGE: 4
DATE: 4/11/2023
A civil penalty not to exceed $10,000;
Restitution of any pecuniary benefits received because of the violation committed.
Although the Commission does not have the authority to directly impose the above penalties, in its
findings, the Commission makes recommendations to the appropriate disciplinary authority for the
individual or entity who was found in violation of the Code of the Ethics.
31
Disclosure of Financial Interests
The State Constitution requires elected constitutional officers, candidates for such offices, and
statewide elected officers to file full and public disclosure of their financial interests.
32
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.
33
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.
34
The disclosure must
be accompanied by either a copy of the filer’s most recent federal income tax return or a sworn
statement that identifies each separate source and amount of income that exceeds $1,000.
35
The
Commission has created by rule CE Form 6 (Form 6) to be used to make the required full and public
financial disclosure.
36
Currently, individuals holding the following positions must file Form 6:
37
Governor;
Lieutenant Governor;
Cabinet members;
Legislators;
State attorneys;
Public defenders;
Clerks of circuit court;
Sheriffs;
Tax collectors;
Property appraisers;
Supervisors of elections;
County commissioners;
Elected Superintendents of schools;
District school board members;
Jacksonville City Council members, including the mayor;
Judges of compensation claims;
Duval County Superintendent of Schools;
Florida Housing Finance Corporation board members;
Each member of a large-hub commercial service airport; and
Each member of an expressway authority, a transportation authority (except the Jacksonville
Transportation Authority), a bridge authority, or a toll authority created pursuant to chapter 348
or chapter 343, F.S., or any other general law.
Reporting individuals must file Form 6 annually with the Commission by 5 p.m. on July 1.
38
Additionally,
candidates for a constitutional office must make a full and public disclosure of their financial interests at
the time of qualifying.
31
Section 112.324(3), F.S.
32
Article II, s. 8(a), FLA. CONST.
33
See s. 112.3144(1)(b), F.S.
34
Article II, s. 8(j)(1), FLA. CONST.
35
Id.; see also s. 112.3144, F.S.
36
Section 112.3144(8), F.S.
37
Rule 34-8.003, F.A.C.; see also Commission on Ethics, Filing Information, available at
https://www.ethics.state.fl.us/Documents/Forms/Form1.html#form_6 (last visited March 20, 2023).
38
Section 112.3144(8)(d), F.S. STORAGE NAME: h0037c.SAC PAGE: 5
DATE: 4/11/2023
Current law requires a less detailed disclosure of financial interests using the Commission’s CE Form 1
(Form 1) for certain local officers, including all officers holding elected positions in political subdivisions
of the state, other than counties, as well as specified appointive officers.
39
Other persons filing Form 1
include specified state officers and employees and persons seeking to qualify as candidates for state or
local office.
40
Form 1 requires those individuals to disclose their primary sources of income, other than their public
position, secondary sources of income, real property, intangible personal property, liabilities, and
interests in specific businesses.
41
Although no specific dollar values of incomes, property or liabilities are required to be reported, the filer
must report which assets or liabilities exceed certain dollar thresholds.
42
Form 1 filers must disclose all
sources of income in excess of $2,500, excluding public salary, all sources of income from a business
entity that the filers had a material interest in where their gross income was in excess of $5,000 and in
excess of 10 percent of the business’ gross income. Form 1 filers must also disclose any property,
except for their residence or vacation home, in which the person owns more than 5 percent of the value
of the property, as well as any intangible property in excess of $10,000 and any liability in excess of
$10,000.
43
Form 1 must be filed annually with the Commission by 5 p.m. on July 1.
44
Candidate Qualifications Respecting Financial Disclosures
Under current law, at the time of qualifying for office, each candidate for a constitutional office must file
a full and public disclosure of financial interests pursuant to s. 8, Art. II of the State Constitution, which
must be verified under oath or affirmation. A candidate for any other office, including local elective
office, must file a statement of financial interests.
45
When a candidate has qualified for office prior to the
deadline to file an annual financial disclosure, the disclosure filed with the candidate’s qualifying papers
is deemed to satisfy the annual disclosure requirement.
46
Beginning January 1, 2023, under the Code of Ethics, an incumbent in an elective office or a candidate
holding another position subject to an annual filing requirement may submit a copy of the financial
disclosure form filed with the Commission, or a verification or receipt of the filing, with the officer before
whom he or she qualifies.
47
A candidate not subject to an annual filing requirement does not file with
the Commission, but may complete and print the appropriate financial disclosure form to file with the
officer before whom he or she qualifies.
48
Under current law, in order for a candidate to be qualified for nomination or election to office, the filing
officer must receive the full and public disclosure or statement of financial interests by the end of the
qualifying period.
49
If the filing officer receives qualifying papers during the qualifying period prior to the
last day of qualifying, which do not include all statutorily required items, the filing officer must make a
reasonable effort to notify the candidate of any missing or incomplete items and must inform the
candidate that all required items must be received by the close of qualifying.
50
39
Section 112.3145, F.S.
40
Id.
41
Id.
42
Section 112.3145(3), F.S
43
Section 112.3145(3)(b), F.S.
44
Section 112.3145(2)(b), F.S.
45
Section 99.061(5), F.S.
46
Sections 112.3144(3) and 112.3145(2)(a), F.S.
47
Sections 112.3144(4) and 112.3145(2)(c), F.S.
48
Section 112.3144(4), F.S.
49
Section 99.061(7)(a)5., F.S.
50
Section 99.061(7)(b), F.S. STORAGE NAME: h0037c.SAC PAGE: 6
DATE: 4/11/2023
Mandatory Annual Ethics Training
Current law requires constitutional officers,
51
elected municipal officers, and commissioners of
community redevelopment agencies to complete four hours of ethics training annually that, at a
minimum, addresses s. 8, Art. II of the State Constitution, the Code of Ethics, and Florida law on public
records and public meetings.
52
Each officer subject to the annual ethics training requirement must
certify on his or her Form 1 and Form 6 disclosure that he or she has completed the required training.
53
Additionally, current law requires the Commission to adopt rules establishing minimum course
content for the portion of an ethics training class that addresses the constitutional ethics
provisions and the Code of Ethics.
54
The Commission’s current rule
55
requires course content to
include one or more of the following subjects:
Doing business with one’s own agency;
Conflicting employment or contractual relationships;
Misuse of position;
Disclosure or use of certain information;
Gifts and honoraria, including solicitation and acceptance of gifts, and unauthorized
compensation;
Post-office holding restrictions;
Restrictions on the employment of relatives;
Voting conflicts when the constitutional officer is a member of a collegial body and votes
in his or her official capacity;
Financial disclosure requirements, including the automatic fine and appeal process;
Commission procedures on ethics complaints and referrals; and
The importance of and process for obtaining advisory opinions rendered by the
Commission.
Effect of the Bill
Financial Disclosure
The bill requires mayors and elected members of the governing body of a municipality to begin filing the
Form 6 annual disclosure starting January 1, 2024, instead of the Form 1 annual disclosure. The bill
also clarifies that when qualifying for office or when appointed to fill a vacancy of these offices, the
person filling a vacancy must file within 30 days of appointment.
The bill maintains the current requirement that Form 6 filers submit their financial disclosures
electronically beginning January 1, 2023. The bill requires Form 1 filers to submit their disclosures
electronically beginning January 1, 2024. It extends the annual filing deadline for both Form 1 and Form
6 filers from 5:00 p.m. to 11:59 p.m.
The bill makes the following changes relating to electronic filing of Form 1 and Form 6 disclosures:
Allows federal income tax returns and other attachments be included with electronic
submissions but requires all attachments and schedules associated with the tax return also be
submitted.
Requires the Commission to notify by email all persons required to file a financial disclosure and
specifies the information that must be in such notice.
Prohibits the Commission from providing paper forms to file Form 1 and Form 6 disclosures.
Clarifies that the Commission must send a delinquency notice by email for late Form 1 and
Form 6 filers instead of current law that requires the notices be mailed.
51
The term “constitutional officers” includes the Governor, the Lieutenant Governor, the Attorney General, the Chief Financial
Officer, the Commissioner of Agriculture, state attorneys, public defenders, sheriffs, tax collectors, property appraisers, supervisors of
elections, clerks of the circuit court, county commissioners, district school board members, and superintendents of schools.” Section
112.3142(1), F.S.
52
Section 112.3142(2), F.S.
53
Sections 112.3144(1)(a) and 112.3145(5), F.S.
54
Section 112.3142(2)(d), F.S.
55
Rule 34-7.025, F.A.C. STORAGE NAME: h0037c.SAC PAGE: 7
DATE: 4/11/2023
Requires the Commission to publish a notice on the electronic filing system to remind users to
redact social security numbers, bank account numbers, PIN information, and taxpayer ID
numbers.
Provides that the computation of a fine for late filing of financial disclosures will use the
electronic submittal date.
Allows a candidate qualifying for office to submit a verification or receipt of electronic filing of a
financial disclosure to the local filing officer to satisfy the requirement that such filing occur
before qualifying.
Provides that a candidate for local office who is required to file a Form 6 while in office, must
also file a Form 6 at the time of qualifying for that same office.
The bill requires local officers to file their quarterly reports of the names of clients represented for a fee
or commission through the Commission’s electronic filing system beginning January 1, 2024.
Ethics Training
The bill allows commissioners of community redevelopment agencies to use the same training
schedule as all other public officers subject to the ethics training requirement.
Commission Investigations
The bill requires the Commission to investigate any lobbying firm, lobbyist, principal, agency, officer, or
employee only when individuals or entities have intentionally failed to disclose a material fact or has
knowingly submitted false information.
The bill authorizes the Commission to dismiss a complaint or investigation originating from a random
audit of lobbying reports if “the public interest is not served by proceeding further,” and requires the
Commission to issue a report stating the reasons for the dismissal. It also authorizes the Commission
to dismiss de minimis violations concerning filing disclosures as well as the authority to dismiss
proceedings involving lobbying registrations and reports if the public interest is not served by
proceeding further.
The bill increases the civil penalty that may be assessed for a violation of the Code of Ethics from
$10,000 to $20,000.
Commission Rulemaking Authority
The bill requires the Commission to revise its financial disclosure forms and instructions and any
related rules to conform to this act as necessary but creates an exemption from rulemaking
requirements under the Administrative Procedure Act for revisions to disclosure forms and instructions
pertaining to the 2022 filing year.
B. SECTION DIRECTORY:
Section 1 amends s. 99.061, F.S., relating to method of qualifying for nomination or election to federal,
state, county, or district office.
Section 2 amends s. 112.3142, F.S., relating to ethics training for specified constitutional officers,
elected municipal officers, and commissioners.
Section 3 reenacts and amends s. 112.3144, F.S., relating to full and public disclosure of financial
interests.
Section 4 amends s. 112.31445, F.S., relating to the electronic filing system; full and public disclosure
of financial interests.
Section 5 amends s. 112.31446, F.S., relating to the electronic filing system for financial disclosure.
Section 6 reenacts and amends s. 112.3145, F.S., relating to disclosure of financial interests and
clients represented before agencies.
STORAGE NAME: h0037c.SAC PAGE: 8
DATE: 4/11/2023
Section 7 amends s. 112.317, F.S., relating to penalties.
Section 8 amends s. 112.3215, F.S., relating to lobbying before the executive branch or the
Constitution Revision Commission; registration and reporting; investigation by commission.
Section 9 amends s. 112.324, F.S., relating to procedures on complaints of violations and referrals;
public records and meeting exemptions.
Section 10 creates an unnumbered section of law that provides an exemption from the rulemaking
requirements of the Administrative Procedure Act for forms created by Commission on Ethics pertaining
to the 2022 filing year.
Section 11 provides for an effective date of upon becoming a law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The bill imposes new financial disclosure requirements on certain elected officers of local government
that will have a negative but likely insignificant fiscal impact on the Commission due to the increased
number of Form 6 submissions that will need to be processed.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
an action requiring the expenditures of funds; reduce the authority that counties or municipalities
have to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties
or municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY: STORAGE NAME: h0037c.SAC PAGE: 9
DATE: 4/11/2023
The bill requires the Commission to revise rules concerning certain forms and instructions; however,
the bill provides an exemption from the Administrative Procedure Act for any forms promulgated for the
2022 filing year.
C. DRAFTING ISSUES OR OTHER COMMENT S:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 25, 2023, the Ethics, Elections & Open Government Subcommittee adopted a proposed
committee substitute (PCS) and reported the bill favorably as a committee substitute. The PCS differed
from the bill in that it changed the relating to clause to remove the word “elected” as some of the officers
included in the bill are not elected. The PCS also changed references to “villages, towns, and cities” within
the bill to the term “municipalities” and exempts the local officers that the bill now requires to file a Form 6
from the specific provisions of statute that require the filing of a Form 1, instead of altering the definition of
the term “Local Officer.” Lastly, the PCS changed the effective date of the bill from July 1, 2023, to January
1, 2024.
On April 11, 2023, the State Affairs Committee adopted a PCS and reported the bill favorably as a
committee substitute. The PCS differed from the bill in that it removed county and municipal managers
from the bill’s requirement to file Form 6 disclosures but maintained the requirement for mayors and city
commissioners. The PCS also made conforming changes to the Code of Ethics to implement the
Commission’s newly operational financial disclosure electronic filing system. These changes included
allowing a person to submit attachments, including his or her Federal Income Tax Return, to the financial
disclosure, requiring the Commission to send notices via email instead of by paper mail, and allowing
candidates qualifying for office to submit a verification or receipt of electronic filing of a financial disclosure
as proof of disclosure. In addition, the PCS increased the civil penalty that may be accessed for violating
the Code of Ethics from $10,000 to $20,000 and authorized the Commission to dismiss certain trivial
complaints or complaints where the public interest is not served by proceeding further.
The analysis is drafted to the committee substitute as adopted by the State Affairs Committee.