SB 1566: Local Government Finances - Florida

S 1566 c2 → S 1566 c3 · 7 edits

MODERATE

The bill was expanded from focusing solely on local government budget transparency to also include strict regulations on impact fees, transportation concurrency, and interlocal agreements. It adds new requirements for counties and municipalities to hold budget workshops, publish development calendars, and post quarterly compensation summaries. Additionally, the effective date was moved from July 2026 to January 2027.

Scope change

The bill's scope broadened significantly to include impact fee studies, transportation planning, and specific financial reporting for both counties and municipalities, whereas the previous version focused primarily on budget posting timelines.

REQUIREMENT

Counties and municipalities must now hold budget workshops to perform a 10% budget reduction exercise and publish a budget development calendar by January 30.

Local governments must prepare and post quarterly compensation summaries listing job titles, names, and salaries for all employees funded by appropriations.

New rules were established for impact fees, requiring them to be based on localized data, prohibiting certain deductions, and limiting how quickly fee rates can be increased.

Interlocal agreements between counties and municipalities regarding transportation fees must now be executed by October 1, 2025, or specific fee calculation rules will apply.

The timeframe for posting proposed budget amendments on county and municipal websites was reduced from 7 days to 5 days.

DEFINITION

New definitions were added for 'impact fee' and 'plan-based methodology' to standardize how local governments calculate fees for new development.

TIMELINE

The effective date of the act was changed from July 1, 2026, to January 1, 2027.

S 1566 c1 → S 1566 c2 · 5 edits

MODERATE

The bill was revised to remove provisions requiring counties and municipalities to reinvest utility revenues into infrastructure and to develop long-term budget forecasts. The committee also streamlined the summary of changes to focus solely on budget transparency and posting timelines. These changes significantly narrow the bill's scope by eliminating new financial mandates for local utilities while retaining requirements for public access to budget data.

Scope change

The bill's scope was reduced by removing all provisions related to utility revenue reinvestment and long-term budget forecasting strategies for both counties and municipalities.

REQUIREMENT

Deleted the requirement for counties to reinvest utility service revenues back into utility infrastructure for operational integrity.

Deleted the requirement for county utilities to develop 5-year budget forecasts and strategies for population growth and climate change.

Deleted the requirement for municipalities to reinvest utility service revenues back into utility infrastructure for operational integrity.

Deleted the requirement for municipal utilities to develop 5-year budget forecasts and strategies for population growth and climate change.

SUMMARY

Updated the bill's summary description to remove references to utility reinvestment and budget forecasting, focusing only on budget posting timelines.

S 1566 Filed → S 1566 c1 · 7 edits

MODERATE

The bill was significantly rewritten to remove controversial provisions banning Diversity, Equity, and Inclusion (DEI) spending and replacing them with new requirements for counties and municipalities to reinvest utility revenues into infrastructure. The scope expanded to include utility management and budget forecasting for both government and private utilities, while the DEI-related enforcement mechanisms, fines, and definitions were entirely deleted.

Scope change

The bill's scope shifted from a mix of budget transparency and a DEI spending ban to primarily focusing on utility revenue reinvestment and budget transparency. The applicability was expanded to include municipal utilities and private utility providers, which were not previously addressed.

REQUIREMENT

Deleted all provisions prohibiting local governments from spending public funds on Diversity, Equity, and Inclusion (DEI) initiatives.

Added new requirements for counties and municipalities to reinvest utility service revenues back into utility infrastructure for operational integrity.

Mandated that utilities develop 5-year budget forecasts and strategies to address population growth, new industries, and climate-related damages.

Revised budget posting timeframes, changing the requirement for tentative budgets to be posted from 14 days to 7 days before public hearings.

Simplified budget transparency requirements by removing granular data requests for individual employee salaries and travel expenses, replacing them with aggregate data views.

ENFORCEMENT

Removed the creation of a governmental efficiency hotline, the authority for the Chief Financial Officer to conduct evaluations, and administrative fines for DEI violations.

DEFINITION

Deleted the specific legal definition of 'diversity, equity, and inclusion' that listed prohibited concepts such as critical race theory and systemic oppression.

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