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 Committee on Ethics and Elections
BILL: SB 774
INTRODUCER: Senator Brodeur
SUBJECT: Financial Disclosures for Local Officers
DATE: March 13, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Cleary Roberts EE Pre-meeting
2. RC
I. Summary:
SB 774 requires specified local officers to file a more detailed financial disclosure than that
which they are currently required to file.
The bill takes effect July 1, 2023.
II. Present Situation:
Commission on Ethics
The Commission on Ethics (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.
1
The
Florida constitution and state law designate the Commission as the independent commission
provided for in s. 8(g), Art. II of the Florida Constitution.
2
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.
3
In addition to constitutional duties, the Commission, in part:
Renders advisory opinions to public officials;
4
Makes recommendations to disciplinary officials when appropriate for violations of ethics
and disclosure laws;
5
Administers the Executive Branch Lobbying Registration and Reporting Law;
6
1
Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and Employees, p.
1., available at https://ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf?cp=2023310 (last visited March
10, 2023); see also s. 112.320, F.S.
2
Section (8)(j)(3), art. II, Fla. Const.; s. 112.320, F.S.
3
Section (8)(g), art. II., Fla. Const.
4
Section 112.322(3)(a), F.S.
5
Section 112.322(2)(b), F.S.
6
Sections 112.3215, 112.32155, F.S.
REVISED: BILL: SB 774 Page 2
Maintains financial disclosure filings of constitutional officers and state officers and
employees;
7
and
Administers automatic fines for public officers and employees who fail to timely file a
required annual financial disclosure.
8
The Code of Ethics for Public Officers and Employees
The Code of Ethics for Public Officers and Employees (Code of Ethics)
9
establishes ethical
standards for public officials and is intended to ensure that public officials conduct themselves
independently and impartially, not using their officers for private gain other than compensation
provided by law.
10
The Code of Ethics addresses various issues, such as ethics trainings, voting
conflicts, full and public disclosure of financial interests, standards of conduct, and the
Commission on Ethics, among others.
11
Disclosure of Financial Interests
Full and Public Disclosure (Form 6)
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.
12
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.
13
Under the Florida Constitution, the term “full and public disclosure of financial interests” means
the reporting individual must disclose his or her net worth and the value for each asset and
liability in excess of $1,000.
14
The disclosure must be accompanied by either a sworn statement
that identifies each separate source and amount of income that exceeds $1,000 or a copy of the
reporting individual’s most recent federal income tax return.
15
Pursuant to general law, the Commission has created by rule CE Form 6 (Form 6), which is used
to make the required full and public financial disclosure.
16
Reporting individuals are required to
file a Form 6 annually with the Commission by July 1 through the Commission’s electronic
filing system.
17
Individuals holding the following positions must presently file a Form 6: governor; lieutenant
governor; cabinet members; legislators; state attorneys; public defenders; clerks of circuit courts;
7
Section 112.3144, F.S.
8
Section 112.3144, F.S.; s. 112.3145, F.S.; s. 112.31455, F.S.
9
See pt. III. Ch. 112, F.S.
10
Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and Employees,
p. 1., available at https://ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf?cp=2023310 (last visited March
10, 2023)
11
See pt. III. 112, F.S.
12
Section 8(a), art. II, Fla. Const.; see ss. 112.3144(1)(b), 112.3145, F.S.
13
Id.
14
Section (8)(j)(1), art. II, Fla. Const.
15
See 112.3144(6)(c) and (7)(a), F.S. (Beginning January 1, 2023, the Commission may not accept federal income tax returns
for proof of income)
16
Section 112.3144(8), F.S.; see R. 34-8.002, F.A.C.
17
Section (8)(j)(1), art. II, Fla. Const.; see s. 112.3144(2), F.S. BILL: SB 774 Page 3
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); compensation claims judges; Duval County superintendent of
schools; Florida Housing Finance Corporation Board Members; Florida Prepaid College Board
Members; and members of each expressway authority, transportation authority (except
Jacksonville Transportation Authority), bridge authority, or toll authority created pursuant to ch.
348 or 343, F.S., or any other general law.
18
Candidates for office who are not already required to file a Form 6 must file their Form 6 with
the election office in which they file their qualifying papers at the time they qualify.
19
A
candidate who is an incumbent running for the same office or who holds another position
currently requiring the annual filing of a Form 6 and who qualifies as a candidate after he or she
has filed a Form 6 with the Commission may file a copy of the Form 6, verification or receipt of
the filing of the Form 6, with the qualifying officer.
20
The Form 6 requires filers to report their net worth, assets, and liabilities.
21
The filer must report
the specific identification and value of each asset which exceeds $1,000 in value and provide the
name and addresses for the creditor for each liability which exceeds $1,000 in amount and its
amount, and must submit a statement of the value of the reporting person’s net worth as of
December 31 of the preceding year or a more current date.
22
Statement of Financial Interests (Form 1)
In addition to provisions governing the Form 6, current law provides for a less detailed
disclosure of financial interests using the Commission’s CE Form 1 (Form 1).
23
A Form 1 must
be filed by a large group of local officers, including all officers holding elected positions in any
political subdivision of the state, other than counties, and specified appointed officers.
24
Other
persons required to file a Form 1 include specified state officers and employees and persons
seeking to qualify as candidates for these specified state or local office.
25
Currently, mayors; city
commissioners; elected members of a city council, town council, village council, or other
governing body of a city, town or village; and city, county, town, or village managers are
required to file a Form 1.
26
Form 1 requires filers to disclose specified information related to sources of income, real
property; intangible personal property, liabilities, and interests in specified businesses.
27
18
Section (8)(j)(1), art. II, Fla. Const.; see s. 112.3144, F.S.; see R. 34-8.003, F.A.C.
19
Sections 99.061(5), 99.061(7)(a)5., F.S.
20
Section 112.3144(4), F.S.; s. 99.061(7)(a)(5), F.S. (Currently, unlike the Code of Ethics under s. 112.3144(4), F.S., the
Election Code under s. 99.061(7)(a)(5), F.S. only allows the filing of a copy of the full and public disclosure at the time of
qualifying.)
21
See s. (8)(j), art. II, Fla. Const.; s. 112.3144(5),(6), F.S.; R. 34-8.004, F.A.C.
22
Id.
23
See s. 112.3145, F.S.; R. 34-8.202, F.A.C.
24
See s. 112.3145, F.S.; ss. 99.061(5) and 99.061(7)(a)(5), F.S.; R. 34.8.202, F.A.C.
25
Id.; see Florida Commission on Ethics, Guide to the Sunshine Amendment and Code of Ethics for Public Officers and
Employees, p. 16-18., available at https://ethics.state.fl.us/Documents/Publications/GuideBookletInternet.pdf?cp=2023310
(last visited March 10, 2023).
26
See s. 112.3145(1), F.S.; R. 34.8.202, F.A.C.
27
Section 112.3145, F.S. BILL: SB 774 Page 4
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.
28
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 the filer had a material interest in where their gross income was in
excess of $5,000 and in excess of 10% of the businesses gross income; any property, except for
their residence or vacation home, in which the person owns more than 5% of the value of the
property; any intangible personal property in excess of $10,000; and any liability in excess of
$10,000.
29
A Form 1 must be filed annually with the Commission by July 1, 2023.
30
Currently, a local officer
31
must file a Form 1 within 30 days of appointment or employment and
then annually by July 1 of each year with the supervisor of election in the county in which he or
she permanently resides.
32
Currently, specified state employees
33
and state officers
34
are required
to file a Form 1 with the Commission within 30 days of appointment or employment and then
annually by July 1 of each year.
35
Candidates for local elective office who were not previously
required to file an annual financial disclosure are required to file their Form 1 with the qualifying
officer at the time of qualifying.
36
Requirements for Form 6 and Form 1
All persons required to file a Form 6 and Form 1 must disclose interests in specified businesses
granted a privilege to operate in the state of Florida.
37
All Form 6 and Form 1 filers also must file
quarterly reports naming clients represented for a fee before agencies at the filer’s level of
government.
38
Certain Form 6 and Form 1 filers must certify their completion of any required
ethics training on their respective financial disclosure form.
39
General law also requires an
individual subject to filing Form 6 or Form 1 to file a final disclosure statement within 60 days
after leaving his or her public position.
40
Any person required to File a Form 6 or Form 1, whose name is on the Commission’s list, and to
whom notice has been sent, but fails to timely file is assessed a fine of $25 per day for each day
late up to a maximum of $1,500.
41
However, this limitation on automatic fines does not limit the
civil penalty that may be imposed if the statement is filed more than 60 days after the deadline
has passed.
42
The Commission is required to promulgate rules for determining the amount of the
28
See s. 112.3145(3)(a)(b), F.S. (Beginning January 1, 2023, filers may only use the threshold based on dollar value when
filing their Form 1.)
29
Section 112.3145(3)(b), F.S.
30
Section 112.3145(2)(b), F.S.
31
As defined in s. 112.3145(1)(a), F.S.
32
Section 112.3145(2)(b), F.S.
33
As defined in s. 112.3145(1)(b), F.S.
34
Not required to file Form 6 as defined in s. 112.3145(1)(c), F.S.
35
Section 112.3145(2)(b), F.S.
36
Section 112.3145(2)(d), F.S.
37
Section 112.3145(7), F.S. (Lists specific entities including banks, insurance companies, cemetery companies, public
utilities and others.)
38
Section 112.3145(6), F.S.
39
See s. 112.3142, F.S.; s. 112.3144(1)(a), F.S.; s. 112.3145(5), F.S.
40
Section 112.3144(10), F.S.; s. 112.3145(2)(b), F.S.
41
Section 112.3145(8)(g), F.S.
42
Id. BILL: SB 774 Page 5
fine for a late filing,
43
an appeal process, procedures for grounds for waiving the fine based on
unusual circumstances, and notice requirements.
44
III. Effect of Proposed Changes:
Section 1. Amends s. 112.3144(1), F.S., by adding a new paragraph (d) to subsection (1). The
new paragraph (d) requires certain local officers, who are currently required to file a Form 1
financial disclosure statement annually, to now file a Form 6 financial disclosure.
Specifically, the bill requires the following local officers to file the Form 6 financial disclosure
annually:
Mayors.
City commissioners.
Elected members of a city council, town council, village council, or other governing body of
a city, town, or village.
City, county, town, or village managers.
Section 2. Amends s. 112.3145(1)(a), F.S., by changing the definition of the term “local officer”
to expressly exclude from that definition mayors; city council commissioners; elected members
of a city council, town council, or village council, or any other governing body of a city, town, or
village; or city, county, town, or village managers. This change is necessary because “local
officers”
45
are required to file a Form 1 financial disclosure. Removing these officers from the
definition of “local officer” removes these office holders from having to file a Form 1 financial
disclosure annually, ensuring that the above listed local office holders only have to make one
financial disclosure annually.
Section 2 also amends s. 112.31455(3), F.S., by striking, “[a]ny person holding one or more of
the following positions; mayor, county or city manager.” This deletion makes subsection (3)
consistent with the changes made to subsection (1)(a).
Section 3. Provides an effective date for this act of July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
The bill imposes additional financial disclosures on certain officers of local government,
but the burden on the governments themselves does not appear to reach the threshold
required to be affected by s. 18, Art. VII, Fla. Const.
B. Public Records/Open Meetings Issues:
None.
43
See s. 112.3145(8)(g)1-3, F.S. (Form 1); s. 112.3144(8)(f)1-3, F.S. (Form 6); R. 34-8.011(3), F.A.C.; R. 34-8.210(2),
F.A.C.
44
See R. 34-8.015, F.A.C.; R. 34-8.215, F.A.C.
45
Defined under s. 112.3145(1)(a), F.S. BILL: SB 774 Page 6
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
The bill imposes additional financial disclosures on certain officers of local government
that will create an indeterminate but most likely insignificant impact. These new Form 6
filers will increase the number of Form 6 disclosures filed with the Commission through
the Commission’s electronic filing system, which is now active. This increase in the
number of Form 6 filings may increase the amount of time and resources that
Commission staff requires to review, redact, and publish such disclosures and may
require some programming changes to the electronic filing system for these specified
local officers to now file the Form 6 on the electronic filing system. However, with all
Form 1 filers soon being required to file their Form 1 disclosures solely with the
Commission through the electronic filing system, and with the Commission actively
preparing for these increased disclosures and changes to the electronic system, any
changes to the process required by adding these specified local offices is most likely
negligible.
46
VI. Technical Deficiencies:
The bill currently changes the definition of “local officer” in s. 112.3145(1)(a)1., F.S., to exclude
certain specified officers from the definition. However, that subparagraph relates to persons
elected to offices. City, county, town, or village managers, listed as a subset of the local officers
excluded from the definition of “local officer” in this bill, are not elected officials. The
Legislature may wish to consider eliminating the change in definition of “local officer” and
46
See Sections 94-95, ch. 2022-157, Laws of Florida (Based on the fiscal year 2022-23 implementing bill, all Form 1 filers
are required to file their Form 1 financial disclosures with the Commission through the Commission’s electronic filing
system beginning January 1, 2024, but this bill is set to expire on July 1, 2023.) BILL: SB 774 Page 7
instead providing language under s. 112.3145(2)(b), F.S., exempting the local officers specified
in s. 112.3144(1)(d), F.S. from having to file a Form 1.
VII. Related Issues:
The bill’s current language uses terminology and language such as village, city, and town, to
define the type of specified local officers included under the bill’s coverage. These descriptive
terms are not consistent with the terms used under Florida’s Constitution or current statutes. To
make the language of the bill more consistent with current law, the Legislature may wish to
instead use “municipal” or “municipality,” as applicable.
As currently drafted, the act will take effect on July 1, 2023. The Legislature may wish to
provide a later effective date, such as January 1, 2024, because disclosure requirements are based
on the calendar year. Having an implementation date of January 1 will allow for the smooth
implementation of the proposed legislation.
47
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 112.3144 and
112.3145.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
47
The Florida Commission on Ethics in its Agency analysis of HB 37 (similar bill), recommends an effective date of January
1, 2024, because disclosure requirements are based on the calendar year, having an implementation date of January 1 will
allow for the smooth implementation of the proposed legislation. See Agency Bill Analysis for Bill HB 37, Conducted by
Florida Commission Ethics, available at http://abar.laspbs.state.fl.us/ABaR/Document.aspx?id=30117&yr=2023 (last viewed
March 10, 2023)