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ITEM: DISCUSSION OF SB1134 COMPLIANCE AUDIT
REQUEST: Presentation and Council Discussion of Senate Bill 1134 Compliance Efforts.
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EXPLANATION: During the 2026 legislative session, the Florida Legislature adopted Senate Bill 1134, subsequently signed into law as Chapter 2026-43, Laws of Florida. The legislation establishes new restrictions on certain official actions, expenditures, programs, policies, and contractual relationships of Florida municipalities and counties relating to diversity, equity, and inclusion (DEI). The legislation becomes effective January 1, 2027, and requires local governments to evaluate existing practices and implement appropriate measures to ensure compliance.
In anticipation of the effective date, staff initiated a comprehensive review of its operations, policies, programs, expenditures, contracts, and relationships with community organizations to identify potential areas affected by the legislation.
This effort is intended to accomplish three primary objectives:
1. Ensure that Village operations and expenditures comply with the requirements of state law.
2. Identify and address potential impacts on existing programs, community partnerships, contractual obligations, and Village-sponsored activities.
3. Preserve, to the extent legally permissible, the Village's ability to provide public services, support community organizations, and maintain the programs and activities that contribute to Wellington's quality of life.
Senate Bill 1134 establishes restrictions on municipal and county governmental actions relating to diversity, equity, and inclusion.
Among its principal provisions, the legislation:
• Prohibits municipalities and counties from funding, promoting, or taking certain official actions relating to DEI.
• Prohibits expenditures for establishing, supporting, sustaining, or staffing DEI offices or officers.
• Restricts the use of local government funds by employees, contractors, and other parties for prohibited initiatives.
• Requires prospective recipients of certain municipal and county contracts or grants to provide certifications concerning the use of government funds.
• Establishes enforcement provisions, including potential civil actions and consequences for public officials who violate the law.
• Provides exceptions and limitations, including certain actions necessary to comply with federal or state law.
The legislation also establishes applicability provisions for existing contracts and contracts executed or renewed after January 1, 2027. These requirements have implications beyond programs expressly identified as DEI initiatives. They require municipalities to evaluate the substance, purpose, funding, and administration of programs and activities, including arrangements with third-party organizations.
Accordingly, compliance requires an examination of existing Village practices rather than relying solely on program titles, organizational names, or historical funding classifications.
Following enactment of the legislation, the Village undertook a review of municipal operations and activities potentially affected by the new statutory requirements and also engaged the firm of Weiss Serota Helfman Cole + Bierman to conduct a comprehensive audit of its governing documents, policies, and programming to proactively determine the Village's compliance with Chapter 2026-43, Laws of Florida (CS/CS/SB 1134),
The compliance assessment encompasses the following principal areas:
A. Municipal Policies and Administrative Practices
Review of Village policies, procedures, administrative practices, and official activities to identify provisions that may require modification, clarification, or discontinuation under the legislation.
B. Community Partnerships and Financial Support
Evaluation of Village financial assistance, sponsorships, grants, in-kind contributions, facility use arrangements, and other forms of support provided to outside organizations.
This review recognizes that community partnerships take many forms and that the applicable statutory restrictions may depend on the nature of the activity, the use of public resources, and the terms of the arrangement.
C. Special Events, Recognition Programs, and Community Activities
Review of Village-sponsored events, proclamations, recognitions, educational activities, promotional efforts, and community programming to determine whether modifications may be necessary.
D. Contracts, Grants, and Procurement
Evaluation of applicable contracts, grant agreements, procurement documents, and funding arrangements to incorporate statutory certifications and other compliance requirements.
E. Employee Training and Internal Operations
Review of relevant employee training materials, administrative practices, and departmental activities to ensure that Village resources are used consistently with the new statutory requirements.
The Village's compliance efforts are focused on establishing a consistent, documented, and legally supportable approach across all departments. Implementation measures include:
1. Legal and Administrative Review
Coordination between Village Administration, the Village Attorney's Office, and affected departments to evaluate statutory requirements and identify necessary changes.
2. Inventory of Potentially Affected Activities
Identification of programs, expenditures, contracts, sponsorships, and other Village activities requiring additional review.
3. Review of Existing Funding Commitments
Assessment of existing financial commitments and agreements to determine their applicability under the legislation, including applicable contract transition provisions.
4. Contractual and Procurement Updates
Development of appropriate certifications, contractual provisions, and administrative procedures for future contracts and grants, consistent with statutory requirements.
5. Community Partner Outreach
Preparation of correspondence and informational materials advising community partners of the new legislation and its potential effect on financial support, sponsorships, in-kind assistance, and other Village resources.
Community partners will be encouraged to coordinate with Village staff regarding proposed activities or requests for support to determine whether those arrangements can continue under the new statutory framework.
6. Internal Guidance and Departmental Coordination
Development and distribution of administrative guidance to promote consistent implementation across Village departments.
7. Ongoing Compliance Monitoring
Continued evaluation of statutory interpretation, legal guidance, and implementation issues as they arise.
The Village's objective is to establish compliance procedures that are practical, consistent, and transparent, while minimizing unnecessary disruption to otherwise permissible municipal services and activities.
BUDGET AMENDMENT REQUIRED:
PUBLIC HEARING: QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY:
FISCAL IMPACT: TBD
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Presentation and Council discussion of Senate Bill 1134 Compliance Efforts.