October 01, 2020
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       Florida Senate - 2010                                    SB 1706
       
       
       
       By Senator Alexander
       
       
       
       
       17-01901A-10                                          20101706__
    1                        A bill to be entitled                      
    2         An act relating to state financial matters; amending
    3         s. 216.311, F.S.; defining the terms “contract” and
    4         “agreement”; prohibiting an agency or branch of state
    5         government from contracting, without legislative
    6         authority, to pay liquidated damages or early
    7         termination fees resulting from the breach or early
    8         termination of a contract or agreement, to pay
    9         interest because of insufficient budget authority to
   10         pay an obligation in the current year, from obligating
   11         the state to make future payments to cover unpaid
   12         payments, or from granting to a party the right to
   13         collect fees or other revenues from nonparties;
   14         providing exceptions for certain agency contracts or
   15         agreements; prohibiting an agency from entering into
   16         certain lease or lease-purchase agreements unless
   17         expressly authorized by the Legislature; providing an
   18         exception for the State Board of Administration to
   19         enter into contracts and other agreements that are
   20         necessary to carry out the investment duties of the
   21         board; creating s. 216.312, F.S.; requiring the
   22         executive and judicial branch to notify the Governor
   23         and the Legislature before entering into contracts or
   24         agreements in excess of a certain amount, which
   25         authorize expenditures in anticipation of revenues, or
   26         for which payment is delayed for a certain time after
   27         expenditure; transferring, renumbering, and amending
   28         s. 287.0582, F.S.; requiring a state contract to
   29         identify the appropriation that funds the contract;
   30         providing an exception; expanding the statement that
   31         must be included in state contracts to include grounds
   32         for terminating the contract based on budget deficits;
   33         requiring the judicial branch to include the statement
   34         in its contracts; requiring the agency head, executive
   35         director, or chief judge, as appropriate, or a
   36         designated senior management employee to sign
   37         contracts that exceed a certain amount; requiring the
   38         agency head, executive director, or chief judge to
   39         review certain contracts and certify compliance with
   40         ch. 216, F.S.; requiring contracts exceeding a
   41         specified amount to require written acceptance or
   42         rejection of contract deliverables; providing that
   43         contracts in violation of these provisions are null
   44         and void; providing penalties; amending s. 287.063,
   45         F.S.; prohibiting certain lease or deferred-payment
   46         purchases by state agencies unless expressly
   47         authorized by the Legislature in the appropriations
   48         act; amending s. 287.064, F.S.; prohibiting certain
   49         master equipment financing agreements unless expressly
   50         authorized by the Legislature in the appropriations
   51         act; amending ss. 376.3075 and 403.1837, F.S.;
   52         conforming cross-references; providing for
   53         application; providing an effective date.
   54  
   55  Be It Enacted by the Legislature of the State of Florida:
   56  
   57         Section 1. Section 216.311, Florida Statutes, is amended to
   58  read:
   59         216.311 Unauthorized contracts in excess of appropriations;
   60  penalty.—
   61         (1) As used in this section and ss. 216.312 and 216.313,
   62  the terms “contract” and “agreement” include the initial
   63  contract or agreement, any amendment to the contract or
   64  agreement, and any extension or renewal of the contract or
   65  agreement.
   66         (2)(1)An No agency or branch of state government may not
   67  enter into any shall contract to spend, or enter into any
   68  agreement:
   69         (a) To spend, any moneys in excess of the amount
   70  appropriated to such agency or branch unless specifically
   71  authorized by law, and any contract or agreement in violation of
   72  this chapter shall be null and void.
   73         (b) That requires the state to pay liquidated damages or
   74  early termination fees for a breach or early termination of a
   75  contract or agreement by such agency or branch due to an act of
   76  the Legislature which provides less than full funding for the
   77  contract during the fiscal year.
   78         (c) That requires the state to pay interest, other than
   79  interest paid pursuant to s. 215.422, to another party because
   80  the agency or branch has insufficient budget authority to pay
   81  the underlying obligation of the contract or agreement in the
   82  current year.
   83         (d) That binds the state to make future-year payments to
   84  offset payments not made in a prior year due to insufficient
   85  budget authority, unless the Legislature expressly authorizes
   86  the agency or branch to enter into such contract or agreement.
   87         (e) To grant to any party the right or privilege to collect
   88  and retain fees or other revenues from persons who are not a
   89  party to the contract which would otherwise be payable to the
   90  state and deposited into the State Treasury, unless the
   91  Legislature expressly authorizes the agency or branch to enter
   92  into such contract or agreement.
   93         (3) Notwithstanding subsection (2), the following agencies
   94  may enter into the following contracts or agreements:
   95         (a) In order to spend funds appropriated for the approved
   96  5-year work program, the Department of Transportation may enter
   97  into contracts and other agreements that require the state to
   98  pay liquidated damages as a result of a breach of those
   99  contracts or agreements.
  100         (b) In order to administer the state group insurance
  101  program as provided in s. 110.123, the Department of Management
  102  Services may enter into contracts and other agreements that
  103  permit health care providers, health maintenance organizations,
  104  preferred provider organizations, and insurers to collect
  105  premiums and copayments from participants in the group insurance
  106  program.
  107         (c) In order to administer the state Medicaid plan and the
  108  Florida Healthy Kids program, the Agency for Health Care
  109  Administration may enter into contracts and other agreements
  110  that permit health care providers to collect premiums and
  111  copayments from participants in the Medicaid plan and the
  112  Healthy Kids program.
  113         (4) Notwithstanding any law authorizing an agency to enter
  114  into a lease, an agency may not enter into a lease or lease
  115  purchase agreement for tangible personal property which requires
  116  the state to pay more than $500,000 over the term of the lease
  117  or agreement if the term of the lease or agreement exceeds 1
  118  fiscal year unless such lease or agreement is expressly
  119  authorized by the Legislature. However, in order to administer
  120  the real estate and other investment portfolios as provided in
  121  s. 215.47, the State Board of Administration may enter into
  122  contracts and such other agreements as necessary to carry out
  123  the investment duties of the board.
  124         (5) Any contract or agreement in violation of this section
  125  is null and void.
  126         (6)(2) Any public officer or employee person who willfully
  127  enters into a contract or other agreement in violation of this
  128  section commits contracts to spend, or enters into an agreement
  129  to spend, any money in excess of the amount appropriated to the
  130  agency or branch for whom the contract or agreement is executed
  131  is guilty of a misdemeanor of the first degree, punishable as
  132  provided in s. 775.082 or s. 775.083.
  133         Section 2. Section 216.312, Florida Statutes, is created to
  134  read:
  135         216.312 Reporting contract expenditures.—
  136         (1) At least 30 days before an executive or judicial branch
  137  public officer or employee enters into a contract or agreement,
  138  or a series of contracts or agreements between the same parties,
  139  on behalf of the state which require payments by the state in
  140  excess of $10 million in any fiscal or calendar year, the
  141  officer or employee must notify the Governor, the President of
  142  the Senate, and the Speaker of the House of Representatives of
  143  the intent to enter into such contract or agreement or series of
  144  contracts or agreements.
  145         (2) At least 30 days before an executive or judicial branch
  146  public officer or employee enters into a contract or agreement
  147  on behalf of the state which requires minimal or no payments by
  148  the state or authorizes the other party to make expenditures in
  149  anticipation of revenues, the officer or employee must notify
  150  the Governor, the President of the Senate, and the Speaker of
  151  the House of Representatives of the intent to enter into such
  152  contract or agreement.
  153         (3) At least 30 days before an executive or judicial branch
  154  public officer or employee enters into a contract or agreement
  155  on behalf of the state which requires initial expenditures by
  156  the other party and for which the other party will not receive
  157  payment from the state within 180 days after the expenditure,
  158  the officer or employee must notify the Governor, the President
  159  of the Senate, and the Speaker of the House of Representatives
  160  of the intent to enter into such contract or agreement.
  161         (4) The execution of any contract or agreement described in
  162  this section is an action or proposed action subject to s.
  163  216.177(2)(b).
  164         Section 3. Section 287.0582, Florida Statutes, is
  165  transferred and renumbered as section 216.313, Florida Statutes,
  166  and amended to read:
  167         216.313 287.0582Contract appropriation Contracts which
  168  require annual appropriation; contingency statement;
  169  requirements; penalty.—
  170         (1) An executive or judicial branch public officer or
  171  employee may not enter into any contract or agreement on behalf
  172  of the state or judicial branch which binds the state or its
  173  executive agencies or the judicial branch for the purchase of
  174  services or tangible personal property unless the contract
  175  identifies the specific appropriation of state funds from which
  176  the state will make payment under the contract in the first year
  177  of the contract, or unless the Legislature expressly authorizes
  178  the agency or the judicial branch to enter into such contract
  179  absent a specific appropriation of funds.
  180         (2) An No executive or judicial branch public officer or
  181  employee may not shall enter into any contract or agreement on
  182  behalf of the state, which contract binds the state or its
  183  executive agencies for the purchase of services or tangible
  184  personal property for a period in excess of 1 fiscal year,
  185  unless the following statements are statement is included in the
  186  contract:
  187         (a) “The State of Florida’s performance and obligation to
  188  pay under this contract is contingent upon an annual
  189  appropriation by the Legislature.”
  190         (b) “This contract may be terminated by the state upon 30
  191  days’ written notice if funding for this contract is
  192  specifically eliminated pursuant to a deficit reduction plan
  193  implemented by:
  194         1. The Governor or the Chief Justice or by an act of the
  195  Legislature after certification pursuant to section 216.221,
  196  Florida Statutes, that a deficit will occur in the General
  197  Revenue Fund; or
  198         2. The Governor or Chief Justice pursuant to section
  199  216.221(10), Florida Statutes, or by an act of the Legislature,
  200  after a determination by the Chief Financial Officer that a
  201  deficit will occur with respect to appropriations from a
  202  specific trust fund in the current fiscal year.”
  203         (3) A contract or other agreement that exceeds:
  204         (a) The CATEGORY TWO threshold amount provided in s.
  205  287.017 must be signed by the agency head, executive director,
  206  or chief judge, as appropriate, or a designated senior
  207  management employee.
  208         (b) A term of 12 months may not be executed by any
  209  executive or judicial branch agency unless the agency head,
  210  executive director, or chief judge, as appropriate, determines
  211  that the contract is in compliance with the requirements of this
  212  chapter and certifies such compliance in writing within the
  213  contract or agreement.
  214         (c) The CATEGORY FIVE threshold amount provided in s.
  215  287.017 must require the written acceptance or rejection of
  216  contract deliverables.
  217         (4) Any contract or other agreement in violation of this
  218  section is null and void.
  219         (5) Any public officer or employee who willfully enters
  220  into a contract or other agreement in violation of this section
  221  commits a misdemeanor of the first degree, punishable as
  222  provided in s. 775.082 or s. 775.083.
  223         Section 4. Subsection (4) of section 287.063, Florida
  224  Statutes, is amended to read:
  225         287.063 Deferred-payment commodity contracts; preaudit
  226  review.—
  227         (4) Beginning July 1, 2010, an agency may not enter into a
  228  lease or deferred payment purchase arrangement for the
  229  acquisition of equipment that has a total cost greater than
  230  $500,000 unless the Legislature has expressly authorized such
  231  lease or deferred payment purchase arrangement in the General
  232  Appropriations Act. For purposes of this section, deferred
  233  payment commodity contracts for replacing the state accounting
  234  and cash management systems may include equipment, accounting
  235  software, and implementation and project management services.
  236         Section 5. Subsection (9) of section 287.064, Florida
  237  Statutes, is amended to read:
  238         287.064 Consolidated financing of deferred-payment
  239  purchases.—
  240         (9) Beginning July 1, 2010, an agency may not enter into a
  241  master equipment financing agreement that has a total cost
  242  greater than $500,000 unless the Legislature has expressly
  243  authorized such agreement in the General Appropriations Act. For
  244  purposes of this section, deferred-payment commodity contracts
  245  for replacing the state accounting and cash management systems
  246  may include equipment, accounting software, and implementation
  247  and project management services.
  248         Section 6. Subsections (4) and (9) of section 376.3075,
  249  Florida Statutes, are amended to read:
  250         376.3075 Inland Protection Financing Corporation.—
  251         (4) The corporation may enter into one or more service
  252  contracts with the department to provide services to the
  253  department in connection with financing the functions and
  254  activities provided in ss. 376.30-376.317. The department may
  255  enter into one or more such service contracts with the
  256  corporation and provide payment for payments under such
  257  contracts pursuant to s. 376.3071(4)(o), subject to annual
  258  appropriation by the Legislature. The proceeds from such service
  259  contracts may be used for the corporation’s administrative costs
  260  and expenses after payments as set forth in subsection (5). Each
  261  service contract may have a term of up to 20 years. Amounts
  262  annually appropriated and applied to make payments under such
  263  service contracts may not include any funds derived from
  264  penalties or other payments received from any property owner or
  265  private party, including payments received under s.
  266  376.3071(6)(b). In compliance with s. 216.313 287.0641 and other
  267  applicable provisions of law, the obligations of the department
  268  under such service contracts do not constitute a general
  269  obligation of the state or a pledge of the faith and credit or
  270  taxing power of the state nor may such obligations be construed
  271  in any manner as an obligation of the State Board of
  272  Administration or entities for which it invests funds, other
  273  than the department as provided in this section, but are payable
  274  solely from amounts available in the Inland Protection Trust
  275  Fund, subject to annual appropriation. In compliance with this
  276  subsection and s. 287.0582, The service contract must expressly
  277  include the statements required under s. 216.313(2). following
  278  statement: “The State of Florida’s performance and obligation to
  279  pay under this contract is contingent upon an annual
  280  appropriation by the Legislature.”
  281         (9) The corporation is not a special district for the
  282  purposes of chapter 189 or a unit of local government for the
  283  purposes of part III of chapter 218. The provisions of chapters
  284  120 and 215, except the limitation on interest rates provided by
  285  s. 215.84 which applies to obligations of the corporation issued
  286  pursuant to this section, and part I of chapter 287, except s.
  287  ss. 287.0582 and 287.0641, does do not apply to this section,
  288  the corporation, the service contracts entered into pursuant to
  289  this section, or debt obligations issued by the corporation as
  290  contemplated in this section.
  291         Section 7. Subsections (5) and (10) of section 403.1837,
  292  Florida Statutes, are amended to read:
  293         403.1837 Florida Water Pollution Control Financing
  294  Corporation.—
  295         (5) The corporation may enter into one or more service
  296  contracts with the department under which the corporation shall
  297  provide services to the department in connection with financing
  298  the functions, projects, and activities provided for in s.
  299  403.1835. The department may enter into one or more service
  300  contracts with the corporation and provide payment for payments
  301  under those contracts pursuant to s. 403.1835(9), subject to
  302  annual appropriation by the Legislature. The service contracts
  303  may provide for the transfer of all or a portion of the funds in
  304  the Wastewater Treatment and Stormwater Management Revolving
  305  Loan Trust Fund to the corporation for use by the corporation
  306  for costs incurred by the corporation in its operations,
  307  including, but not limited to, payment of debt service,
  308  reserves, or other costs in relation to bonds issued by the
  309  corporation, for use by the corporation at the request of the
  310  department to directly provide the types of local financial
  311  assistance provided for in s. 403.1835(3), or for payment of the
  312  administrative costs of the corporation. The department may not
  313  transfer funds under any service contract with the corporation
  314  without specific appropriation for such purpose in the General
  315  Appropriations Act, except for administrative expenses incurred
  316  by the State Board of Administration or other expenses necessary
  317  under documents authorizing or securing previously issued bonds
  318  of the corporation. The service contracts may also provide for
  319  the assignment or transfer to the corporation of any loans made
  320  by the department. The service contracts may establish the
  321  operating relationship between the department and the
  322  corporation and must shall require the department to request the
  323  corporation to issue bonds before any issuance of bonds by the
  324  corporation, to take any actions necessary to enforce the
  325  agreements entered into between the corporation and other
  326  parties, and to take all other actions necessary to assist the
  327  corporation in its operations. In compliance with s. 287.0641
  328  and other applicable provisions of law, the obligations of the
  329  department under the service contracts do not constitute a
  330  general obligation of the state or a pledge of the faith and
  331  credit or taxing power of the state, nor may the obligations be
  332  construed in any manner as an obligation of the State Board of
  333  Administration or entities for which it invests funds, or of the
  334  department except as provided in this section as payable solely
  335  from amounts available under any service contract between the
  336  corporation and the department, subject to appropriation. The In
  337  compliance with this subsection and s. 287.0582, service
  338  contracts must expressly include the statements required under
  339  s. 216.313(2). following statement: “The State of Florida’s
  340  performance and obligation to pay under this contract is
  341  contingent upon an annual appropriation by the Legislature.”
  342         (10) The corporation is not a special district for purposes
  343  of chapter 189 or a unit of local government for purposes of
  344  part III of chapter 218. The provisions of chapters 120 and 215,
  345  except the limitation on interest rates provided by s. 215.84,
  346  which applies to obligations of the corporation issued under
  347  this section, and part I of chapter 287, except s. ss. 287.0582
  348  and 287.0641, does do not apply to this section, the corporation
  349  created in this section, the service contracts entered into
  350  under this section, or debt obligations issued by the
  351  corporation as provided in this section.
  352         Section 8. This act shall take effect July 1, 2010, and
  353  applies to initial contracts and agreements, amendments to a
  354  contract or agreement, and extensions or renewals of a contract
  355  or agreement which are executed on or after that date.

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