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 Appropriations
BILL: SB 2510
INTRODUCER: Appropriations Committee
SUBJECT: Trust Funds/Correctional Facilities Improvement Trust Fund/Department of Corrections
DATE: February 1, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
Harkness Sadberry AP Submitted as Comm. Bill/Fav
I. Summary:
SB 2510 creates section 944.75, Florida Statutes, establishing the Correctional Facilities
Improvement Trust Fund. The purpose of the trust fund is to address the critical fixed capital
outlay needs of state-operated correctional facilities. The trust fund will receive funds as
provided in the General Appropriations Act.
The bill is effective July 1, 2024.
II. Present Situation:
Trust Funds
Establishment of Trust Funds
A trust fund may be created by law only by the Legislature and only if passed by a three-fifths
vote of the membership of each house in a separate bill for that purpose only. Except for trust
funds being re-created by the Legislature, each trust fund must be created by statutory language
that specifies at least the following:
The name of the trust fund.
The agency or branch of state government responsible for administering the trust fund.
The requirements or purposes that the trust fund is established to meet.
The sources of moneys to be credited to the trust fund or specific sources of receipts to be
deposited in the trust fund.
1
Florida Constitutional Requirement for Trust Funds
The Florida Constitution requires that state trust funds must terminate not more than four years
after the effective date of the act authorizing the initial creation of the trust fund.
2
By law the
Legislature may set a shorter time period for which any trust fund is authorized.
3
1
Section 215.3207, F.S.
2
Art. III, s. 19(f)(2), Fla. Const.
3
Id.
REVISED: BILL: SB 2510 Page 2
Review of Trust Funds
The Legislature must review all state trust funds at least once every 4 years,
4
prior to the regular
session of the Legislature immediately preceding the date on which any executive or judicial
branch trust fund is scheduled to be terminated,
5
or such earlier date as the Legislature may
specify.
6
The agency responsible for the administration of the trust fund and the Governor, for executive
branch trust funds, or the Chief Justice, for judicial branch trust funds, must recommend to the
President of the Senate and the Speaker of the House of Representatives whether the trust fund
should be allowed to terminate or should be re-created.
7
Each recommendation must be based on
a review of the purpose and use of the trust fund and a determination of whether the trust fund
will continue to be necessary.
8
A recommendation to re-create the trust fund may include
suggested modifications to the purpose, sources of receipts, and allowable expenditures for the
trust fund.
9
When the Legislature terminates a trust fund, the agency or branch of state government that
administers the trust fund must pay any outstanding debts or obligations of the trust fund as soon
as practicable.
10
The Legislature may also provide for the distribution of moneys in that trust
fund. If no such distribution is provided, the moneys remaining after all outstanding obligations
of the trust fund are met must be deposited in the General Revenue Fund.
11
Department of Corrections Fixed Capital Outlay Needs
The Fiscal Year 2022-2023 General Appropriations Act directed the Department of Management
Services to contract with an independent third-party consulting firm to conduct a review of state-
operated correctional institutions, as defined in s. 944.02, F.S., and develop a multi-year master
plan (“master plan”) that addresses the repair, maintenance, or replacement of state-operated
institutions in the prison system.
12
The plan estimated that the department’s estimated capital
costs over the next 20 years to be approximately $11.8 billion. This estimate is comprised of
three main cost drivers:
Immediate Capital Needs: The report concluded that approximately $2.1 billion is needed to
address immediate capital needs across the department, maintain existing infrastructure, and
continue the provision of essential services. These needs include, for example, electrical
distribution and panel boards, plumbing fixtures, and finishes, windows, and roofs.
Key Enablers: The report identified another $1.3 billion in key enablers, which play a role in
contributing to a more secure, efficient, and cost-effective correctional system. These
enablers include HVAC, LAN fiber connectivity, WAN fiber connectivity and camera
systems.
4
Section 215.3208(1), F.S.
5
Pursuant to Art. III, s. 19(f), Fla. Const.
6
Section 215.3206(1), F.S.
7
Id.
8
Id.
9
Id.
10
Section 215.3208(2)(a), F.S.
11
Section 215.3208(b), F.S.
12
Specific Appropriation 2781A, Ch. 2022-156, L.O.F. BILL: SB 2510 Page 3
New Construction Costs: Finally, to address the projected increase in the prison population
coupled with staffing challenges, the department will need new dorms at existing facilities,
staff housing, new prisons and new hospitals estimated to cost $8.4 billion. These costs
include three new prisons (14,400 beds), two new hospitals (900 beds), and 4,640 beds in
new dorms at existing sites.
13
According to the plan, the department currently budgets approximately $11.9 million annually
for routine maintenance across all sites. Of this, $5.4 million is allocated for discretionary
repairs, while the remaining $6.5 million is allocated for maintenance-related contracts, such as
generator maintenance, water/wastewater plant testing services, perimeter detection service, and
related services. Over the past ten years, the Legislature has appropriated on average $6.9 million
per year for the department’s maintenance-related fixed capital outlay (FCO). Combined with the
$11.9 million for routine maintenance, this $18.8 million annual total equates to $0.84 per square
foot per year across the FDC portfolio.
14
III. Effect of Proposed Changes:
The bill creates s. 944.75, F.S., to establish the Correctional Facilities Improvement Trust Fund.
The purpose of the trust fund is to address the critical fixed capital outlay needs of state-operated
correctional facilities.
Moneys shall be deposited into and expenditures made from the trust fund as provided in s.
944.751, F.S.
15
Notwithstanding s. 216.301, F.S., and pursuant to s. 216.351, F.S, any balance in
the trust fund at the end of any fiscal year shall remain in the trust fund at the end of the year and
shall be available for carrying out the purpose of the trust fund.
As required by the Florida Constitution, the Correctional Facilities Improvement Trust Fund
terminates on July 1, 2028, unless terminated sooner or recreated by the Legislature.
16
Additionally, the trust fund shall be reviewed as provided in s. 215.3206, F.S., before its
scheduled termination.
The bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
13
Final Multi-Year Master Plan (FAR-D16), Charting a Path to a Safer, More Efficient Correctional System, KPMG,
December 27, 2023.
14
Id.
15
SB 2512 (2024 Reg. Session).
16
Fla. Const. art. III, s. 19(f). BILL: SB 2510 Page 4
C. Trust Funds Restrictions:
Article III, s. 19(f)(1) of the Florida Constitution specifies that a trust fund may be
created or re-created only by a three-fifths vote of the membership of each house of the
Legislature in a separate bill for that purpose only.
Article III, s. 19(f)(2) of the Florida Constitution specifies that state trust funds must
terminate not more than four years after the effective date of the act authorizing the initial
creation of the trust fund. By law the Legislature may set a shorter time period for which
any trust fund is authorized.
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:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill creates section 944.75 of the Florida Statutes. BILL: SB 2510 Page 5
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.