October 01, 2020
Print This PagePrint This Page

  *
Session:
Bill #:
Session:
Chamber: View Search Tips
Search Term:
Year: View Search Tips
Search Term:
       Florida Senate - 2010                             CS for SB 1706
       
       
       
       By the Policy and Steering Committee on Ways and Means; and
       Senator Alexander
       
       
       
       576-04455-10                                          20101706c1
    1                        A bill to be entitled                      
    2         An act relating to state financial matters; amending
    3         s. 216.011, F.S.; defining the term “lease or lease
    4         purchase of equipment”; amending s. 216.023, F.S.;
    5         requiring that specified information relating to
    6         certain contracts be included in an agency’s
    7         legislative budget request; amending s. 216.311, F.S.;
    8         defining the terms “contract” and “agreement”;
    9         prohibiting an agency or branch of state government,
   10         without legislative authority, from contracting to pay
   11         liquidated damages or early termination fees resulting
   12         from the breach or early termination of a contract or
   13         agreement, from paying interest because of
   14         insufficient budget authority to pay an obligation in
   15         the current year, from obligating the state to make
   16         future payments to cover unpaid payments, or from
   17         granting a party the right to collect fees or other
   18         revenues from nonparties; providing certain
   19         exemptions; prohibiting an agency from entering into
   20         certain leases without authorization by the
   21         Legislature or the Legislative Budget Commission;
   22         creating s. 216.312, F.S.; requiring the executive and
   23         judicial branch to notify the Governor and Legislature
   24         before entering into contracts containing certain
   25         provisions relating to expenditures; transferring,
   26         renumbering, and amending s. 287.0582, F.S.; requiring
   27         a state contract to identify the appropriation that
   28         funds a contract; expanding the statement that must be
   29         included in state contracts to include grounds for
   30         terminating the contract based on budget deficits;
   31         requiring the judicial branch to include the statement
   32         in its contracts; requiring the agency head, executive
   33         director, or chief judge, as appropriate, or a
   34         designated senior management employee, to sign
   35         contracts that exceed a specified amount; requiring
   36         the agency head, executive director, or chief judge to
   37         review certain contracts and certify compliance with
   38         ch. 216, F.S.; requiring contracts exceeding a
   39         specified amount to require written acceptance or
   40         rejection of contract deliverables; providing that
   41         contracts in violation of these provisions are null
   42         and void; providing penalties; amending s. 287.063,
   43         F.S.; prohibiting certain lease or deferred-payment
   44         purchases by state agencies unless expressly
   45         authorized by the Legislature in the General
   46         Appropriations Act or by the Legislative Budget
   47         Commission; amending s. 287.064, F.S.; prohibiting
   48         certain master equipment financing agreements unless
   49         expressly authorized by the Legislature in the General
   50         Appropriations Act or by the Legislative Budget
   51         Commission; 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. Present paragraph (vv) of subsection (1) of
   58  section 216.011, Florida Statutes, is redesignated as paragraph
   59  (ww), and a new paragraph (vv) is added to that subsection, to
   60  read:
   61         216.011 Definitions.—
   62         (1) For the purpose of fiscal affairs of the state,
   63  appropriations acts, legislative budgets, and approved budgets,
   64  each of the following terms has the meaning indicated:
   65         (vv) “Lease or lease-purchase of equipment” means the
   66  appropriations category used to fund the lease or lease-purchase
   67  of equipment, fixtures, and other tangible personal property.
   68         Section 2. Present subsections (6) through (9) of section
   69  216.023, Florida Statutes, are renumbered as subsections (7)
   70  through (10), respectively, and a new subsection (6) is added to
   71  that section, to read:
   72         216.023 Legislative budget requests to be furnished to
   73  Legislature by agencies.—
   74         (6) As part of the legislative budget request, each state
   75  agency must include the following information for each contract
   76  in which the state agency has granted a concession:
   77         (a) The name of the vendor.
   78         (b) A brief description of the services provided by the
   79  vendor.
   80         (c) The term of the contract and the years remaining on the
   81  contract.
   82         (d) The amount of revenue generated or expected to be
   83  generated by the vendor under the contract for the prior fiscal
   84  year, the current fiscal year, and the next fiscal year.
   85         (e) The amount of revenue remitted or expected to be
   86  remitted to the state agency by the vendor for the prior fiscal
   87  year, the current fiscal year, and the next fiscal year.
   88         (f) The value of capital improvements, if any, on state
   89  property which have been funded by the vendor over the term of
   90  the contract.
   91         (g) The remaining amount of capital improvements, if any,
   92  on state property which have not been fully amortized by June 30
   93  of the prior fiscal year.
   94         (h) The amount, if any, of state appropriations made to the
   95  state agency to pay for services provided by the vendor.
   96         Section 3. Section 216.311, Florida Statutes, is amended to
   97  read:
   98         216.311 Unauthorized contracts in excess of appropriations;
   99  penalty.—
  100         (1) As used in this section and ss. 216.312 and 216.313,
  101  the terms “contract” and “agreement” include the initial
  102  contract or agreement, any amendment to the contract or
  103  agreement, and any extension or renewal of the contract or
  104  agreement.
  105         (2)(1)Unless specifically authorized by law, an No agency
  106  or branch of state government may not enter into any shall
  107  contract to spend, or enter into any agreement:
  108         (a) To spend, any moneys in excess of the amount
  109  appropriated to such agency or branch unless specifically
  110  authorized by law, and any contract or agreement in violation of
  111  this chapter shall be null and void.
  112         (b) That requires the state to pay liquidated damages or
  113  early termination fees for a breach or early termination of a
  114  contract or agreement by such agency or branch due to an act of
  115  the Legislature which provides less than full funding for the
  116  contract during the fiscal year.
  117         (c) That requires the state to pay interest, other than
  118  interest paid pursuant to s. 215.422, to another party because
  119  the agency or branch has insufficient budget authority to pay
  120  the underlying obligation of the contract or agreement in the
  121  current year.
  122         (d) That binds the state to make future-year payments to
  123  offset payments not made in a prior year due to insufficient
  124  budget authority.
  125         (e) To grant to any party the right or privilege to collect
  126  and retain fees or other revenues from persons who are not a
  127  party to the contract which would otherwise be payable to the
  128  state and deposited into the State Treasury.
  129         (3) Notwithstanding subsection (2), the following agencies
  130  may enter into the following contracts or agreements:
  131         (a) In order to spend funds appropriated for the approved
  132  5-year work program, the Department of Transportation may enter
  133  into contracts and other agreements that require the state to
  134  pay liquidated damages as a result of a breach of those
  135  contracts or agreements.
  136         (b) In order to administer the state group insurance
  137  program as provided in s. 110.123, the Department of Management
  138  Services may enter into contracts and other agreements that
  139  permit health care providers, health maintenance organizations,
  140  preferred provider organizations, and insurers to collect
  141  premiums and copayments from participants in the group insurance
  142  program.
  143         (c) In order to administer the state Medicaid plan and the
  144  Florida Healthy Kids program, the Agency for Health Care
  145  Administration may enter into contracts and other agreements
  146  that permit health care providers to collect premiums and
  147  copayments from participants in the Medicaid plan and the
  148  Healthy Kids program.
  149         (d) In order to administer the state parks system, the
  150  Department of Environmental Protection may enter into contracts
  151  and other agreements that require the state to pay liquidated
  152  damages or early termination fees as a result of a breach of
  153  those contracts or agreements, but only if the vendor makes
  154  significant capital improvements to state property and the costs
  155  of such improvements is amortized over no more than 3 years.
  156  Such contracts are subject to the notice requirements of s.
  157  216.312.
  158         (4) Notwithstanding any law authorizing an agency to enter
  159  into a lease, an agency may not enter into a lease or lease
  160  purchase agreement for tangible personal property which requires
  161  the state to pay more than $500,000 over the term of the lease
  162  or agreement if the term of the lease or agreement exceeds 1
  163  fiscal year unless such lease or agreement is expressly
  164  authorized by the Legislature or the Legislative Budget
  165  Commission has approved a transfer of budget authority from a
  166  traditional appropriation category to the appropriation category
  167  established for the lease or lease-purchase of equipment.
  168  However, in order to administer the real estate and other
  169  investment portfolios as provided in s. 215.47, the State Board
  170  of Administration may enter into contracts and such other
  171  agreements as necessary to carry out the investment duties of
  172  the board.
  173         (5) Any contract or agreement in violation of this section
  174  is null and void.
  175         (6)(2) Any public officer or employee person who willfully
  176  enters into a contract or other agreement in violation of this
  177  section commits contracts to spend, or enters into an agreement
  178  to spend, any money in excess of the amount appropriated to the
  179  agency or branch for whom the contract or agreement is executed
  180  is guilty of a misdemeanor of the first degree, punishable as
  181  provided in s. 775.082 or s. 775.083.
  182         Section 4. Section 216.312, Florida Statutes, is created to
  183  read:
  184         216.312 Reporting contract expenditures.—
  185         (1) A state agency must provide written notification of the
  186  terms and conditions of the contract to the Governor, the
  187  President of the Senate, and the Speaker of the House of
  188  Representatives at least 30 days before executing a contract, or
  189  a series of contracts between the same parties, for the purchase
  190  of services or tangible personal property that:
  191         (a) Requires payments by the state in excess of $10 million
  192  in any fiscal year;
  193         (b) Requires minimal or no payments by the state during the
  194  fiscal year;
  195         (c) Authorizes the other party to make expenditures in
  196  anticipation of collecting revenues from a third party,
  197  including other state agencies, rather than receiving payments
  198  from the state agency executing the contract; or
  199         (d) Requires initial expenditures by the other party and
  200  for which the other party will not receive payment from the
  201  state within 180 days after the expenditure.
  202         (2) The execution of any contract or agreement described in
  203  subsection (1) is an action or proposed action subject to s.
  204  216.177(2)(b).
  205         Section 5. Section 287.0582, Florida Statutes, is
  206  transferred, renumbered as section 216.313, Florida Statutes,
  207  and amended to read:
  208         216.313 287.0582Contract appropriation Contracts which
  209  require annual appropriation; contingency statement;
  210  requirements; penalty.—
  211         (1) An executive or judicial branch public officer or
  212  employee may not enter into any contract or agreement on behalf
  213  of the state or judicial branch which binds the state or its
  214  executive agencies or the judicial branch for the purchase of
  215  services or tangible personal property unless the contract
  216  identifies the specific appropriation of state funds from which
  217  the state will make payment under the contract in the first year
  218  of the contract, or unless the Legislature expressly authorizes
  219  the agency or the judicial branch to enter into such contract
  220  absent a specific appropriation of funds.
  221         (2) An No executive or judicial branch public officer or
  222  employee may not shall enter into any contract or agreement on
  223  behalf of the state, which contract binds the state or its
  224  executive agencies for the purchase of services or tangible
  225  personal property for a period in excess of 1 fiscal year,
  226  unless the following statements are statement is included in the
  227  contract:
  228         (a) “The State of Florida’s performance and obligation to
  229  pay under this contract is contingent upon an annual
  230  appropriation by the Legislature.”
  231         (b) “This contract may be terminated by the state upon 10
  232  days’ written notice if funding for this contract is
  233  specifically eliminated pursuant to a deficit reduction plan
  234  implemented by:
  235         1. The Governor or the Chief Justice or by an act of the
  236  Legislature after certification pursuant to section 216.221,
  237  Florida Statutes, that a deficit will occur in the General
  238  Revenue Fund; or
  239         2. The Governor or Chief Justice pursuant to section
  240  216.221(10), Florida Statutes, or by an act of the Legislature,
  241  after a determination by the Chief Financial Officer that a
  242  deficit will occur with respect to appropriations from a
  243  specific trust fund in the current fiscal year.”
  244         (3) A contract or other agreement that exceeds:
  245         (a) The CATEGORY TWO threshold amount provided in s.
  246  287.017 must be signed by the agency head, executive director,
  247  or chief judge, as appropriate, or a designated senior
  248  management employee.
  249         (b) A term of 12 months may not be executed by any
  250  executive or judicial branch agency unless the agency head,
  251  executive director, or chief judge, as appropriate, or a
  252  designated senior management employee, determines that the
  253  contract is in compliance with the requirements of this chapter
  254  and certifies such compliance in writing within the contract or
  255  agreement.
  256         (c) The CATEGORY FIVE threshold amount provided in s.
  257  287.017 must require the written acceptance or rejection of
  258  contract deliverables.
  259         (4) Any contract or other agreement in violation of this
  260  section is null and void.
  261         (5) Any public officer or employee who willfully enters
  262  into a contract or other agreement in violation of this section
  263  commits a misdemeanor of the first degree, punishable as
  264  provided in s. 775.082 or s. 775.083.
  265         Section 6. Subsection (4) of section 287.063, Florida
  266  Statutes, is amended to read:
  267         287.063 Deferred-payment commodity contracts; preaudit
  268  review.—
  269         (4) Beginning July 1, 2010, an agency may not enter into a
  270  lease or deferred-payment purchase arrangement for the
  271  acquisition of equipment which has a total cost greater than
  272  $500,000 unless the Legislature has expressly authorized such
  273  lease or deferred-payment purchase arrangement in the General
  274  Appropriations Act or the Legislative Budget Commission has
  275  approved a transfer of budget authority from a traditional
  276  appropriation category to the special appropriation category for
  277  deferred-payment commodity contracts. For purposes of this
  278  section, deferred-payment commodity contracts for replacing the
  279  state accounting and cash management systems may include
  280  equipment, accounting software, and implementation and project
  281  management services.
  282         Section 7. Subsection (9) of section 287.064, Florida
  283  Statutes, is amended to read:
  284         287.064 Consolidated financing of deferred-payment
  285  purchases.—
  286         (9) Beginning July 1, 2010, an agency may not enter into a
  287  master equipment financing agreement that has a total cost
  288  greater than $500,000 unless the Legislature has expressly
  289  authorized such agreement in the General Appropriations Act or
  290  the Legislative Budget Commission has approved a transfer of
  291  budget authority from a traditional appropriation category to
  292  the special appropriation category for deferred-payment
  293  commodity contracts. For purposes of this section, deferred
  294  payment commodity contracts for replacing the state accounting
  295  and cash management systems may include equipment, accounting
  296  software, and implementation and project management services.
  297         Section 8. Subsections (4) and (9) of section 376.3075,
  298  Florida Statutes, are amended to read:
  299         376.3075 Inland Protection Financing Corporation.—
  300         (4) The corporation may enter into one or more service
  301  contracts with the department to provide services to the
  302  department in connection with financing the functions and
  303  activities provided in ss. 376.30-376.317. The department may
  304  enter into one or more such service contracts with the
  305  corporation and provide payment for payments under such
  306  contracts pursuant to s. 376.3071(4)(o), subject to annual
  307  appropriation by the Legislature. The proceeds from such service
  308  contracts may be used for the corporation’s administrative costs
  309  and expenses after payments as set forth in subsection (5). Each
  310  service contract may have a term of up to 20 years. Amounts
  311  annually appropriated and applied to make payments under such
  312  service contracts may not include any funds derived from
  313  penalties or other payments received from any property owner or
  314  private party, including payments received under s.
  315  376.3071(6)(b). In compliance with s. 216.313 287.0641 and other
  316  applicable provisions of law, the obligations of the department
  317  under such service contracts do not constitute a general
  318  obligation of the state or a pledge of the faith and credit or
  319  taxing power of the state nor may such obligations be construed
  320  in any manner as an obligation of the State Board of
  321  Administration or entities for which it invests funds, other
  322  than the department as provided in this section, but are payable
  323  solely from amounts available in the Inland Protection Trust
  324  Fund, subject to annual appropriation. In compliance with this
  325  subsection and s. 287.0582, The service contract must expressly
  326  include the statements required under s. 216.313. following
  327  statement: “The State of Florida’s performance and obligation to
  328  pay under this contract is contingent upon an annual
  329  appropriation by the Legislature.”
  330         (9) The corporation is not a special district for the
  331  purposes of chapter 189 or a unit of local government for the
  332  purposes of part III of chapter 218. The provisions of chapters
  333  120 and 215, except the limitation on interest rates provided by
  334  s. 215.84 which applies to obligations of the corporation issued
  335  pursuant to this section, and part I of chapter 287, except s.
  336  ss. 287.0582 and 287.0641, does do not apply to this section,
  337  the corporation, the service contracts entered into pursuant to
  338  this section, or debt obligations issued by the corporation as
  339  contemplated in this section.
  340         Section 9. Subsections (5) and (10) of section 403.1837,
  341  Florida Statutes, are amended to read:
  342         403.1837 Florida Water Pollution Control Financing
  343  Corporation.—
  344         (5) The corporation may enter into one or more service
  345  contracts with the department under which the corporation shall
  346  provide services to the department in connection with financing
  347  the functions, projects, and activities provided for in s.
  348  403.1835. The department may enter into one or more service
  349  contracts with the corporation and provide payment for payments
  350  under those contracts pursuant to s. 403.1835(9), subject to
  351  annual appropriation by the Legislature. The service contracts
  352  may provide for the transfer of all or a portion of the funds in
  353  the Wastewater Treatment and Stormwater Management Revolving
  354  Loan Trust Fund to the corporation for use by the corporation
  355  for costs incurred by the corporation in its operations,
  356  including, but not limited to, payment of debt service,
  357  reserves, or other costs in relation to bonds issued by the
  358  corporation, for use by the corporation at the request of the
  359  department to directly provide the types of local financial
  360  assistance provided for in s. 403.1835(3), or for payment of the
  361  administrative costs of the corporation. The department may not
  362  transfer funds under any service contract with the corporation
  363  without specific appropriation for such purpose in the General
  364  Appropriations Act, except for administrative expenses incurred
  365  by the State Board of Administration or other expenses necessary
  366  under documents authorizing or securing previously issued bonds
  367  of the corporation. The service contracts may also provide for
  368  the assignment or transfer to the corporation of any loans made
  369  by the department. The service contracts may establish the
  370  operating relationship between the department and the
  371  corporation and must shall require the department to request the
  372  corporation to issue bonds before any issuance of bonds by the
  373  corporation, to take any actions necessary to enforce the
  374  agreements entered into between the corporation and other
  375  parties, and to take all other actions necessary to assist the
  376  corporation in its operations. In compliance with s. 287.0641
  377  and other applicable provisions of law, the obligations of the
  378  department under the service contracts do not constitute a
  379  general obligation of the state or a pledge of the faith and
  380  credit or taxing power of the state, nor may the obligations be
  381  construed in any manner as an obligation of the State Board of
  382  Administration or entities for which it invests funds, or of the
  383  department except as provided in this section as payable solely
  384  from amounts available under any service contract between the
  385  corporation and the department, subject to appropriation. The In
  386  compliance with this subsection and s. 287.0582, service
  387  contracts must expressly include the statements required under
  388  s. 216.313. following statement: “The State of Florida’s
  389  performance and obligation to pay under this contract is
  390  contingent upon an annual appropriation by the Legislature.”
  391         (10) The corporation is not a special district for purposes
  392  of chapter 189 or a unit of local government for purposes of
  393  part III of chapter 218. The provisions of chapters 120 and 215,
  394  except the limitation on interest rates provided by s. 215.84,
  395  which applies to obligations of the corporation issued under
  396  this section, and part I of chapter 287, except s. ss. 287.0582
  397  and 287.0641, does do not apply to this section, the corporation
  398  created in this section, the service contracts entered into
  399  under this section, or debt obligations issued by the
  400  corporation as provided in this section.
  401         Section 10. This act shall take effect July 1, 2010, and
  402  applies to initial contracts and agreements, amendments to a
  403  contract or agreement, and extensions or renewals of a contract
  404  or agreement which are executed on or after that date.

Site Map
Session:   Bills ·   Calendars ·   Bound Journals ·   Citator ·   Search ·   Appropriations ·   Redistricting ·   Bill Information Reports
Committee Publications
Historical Information
Statutes:   Introduction ·   View Statutes ·   Search Statutes
Flsenate.gov
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.    Copyright © 2000-2020 State of Florida.     Privacy Statement     Contact Us     Get Acrobat Reader