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       Florida Senate - 2010                             CS for SB 2386
       By the Policy and Steering Committee on Ways and Means; and
       Senator Alexander
       576-03808-10                                          20102386c1
    1                        A bill to be entitled                      
    2         An act relating to state financial matters; amending
    3         s. 17.29, F.S.; authorizing the Chief Financial
    4         Officer to adopt rules requiring that payments made by
    5         the state for goods, services, or anything of value be
    6         made by electronic means; requiring that the rules
    7         include methods for accommodating persons who may not
    8         be able to receive payment by electronic means;
    9         authorizing the Chief Financial Officer to make
   10         payments by warrant if administratively necessary;
   11         amending s. 43.16, F.S.; conforming a cross-reference;
   12         amending s. 215.322, F.S.; conforming provisions to
   13         changes made by the act to authorize state agencies,
   14         local governments, and the judicial branch to accept
   15         payments by electronic funds transfers; providing for
   16         the adoption of rules to facilitate such payments and
   17         to accommodate persons who may not be able to make
   18         payments by electronic means; authorizing the Chief
   19         Financial Officer to adopt rules establishing uniform
   20         security safeguards for cardholder data; creating s.
   21         215.971, F.S.; requiring that the Chief Financial
   22         Officer adopt and disseminate uniform minimum
   23         procedures to state agencies for agreements that
   24         provide state or federal financial assistance to a
   25         recipient or subrecipient; amending s. 216.3475, F.S.;
   26         requiring an agency that is awarded funding on a
   27         noncompetitive basis for certain services as specified
   28         in the General Appropriations Act to maintain
   29         specified documentation supporting a cost analysis;
   30         amending s. 287.056, F.S.; specifying the provisions
   31         to be included in state agency purchasing agreements;
   32         amending s. 287.057, F.S.; removing certain types of
   33         services from an exception to the competitive bid
   34         requirements for the purchase of contractual services;
   35         providing that certain types of health care services
   36         are except from competitive bid requirements for the
   37         purchase of contractual services; requiring that an
   38         agency document compliance with s. 216.3475, F.S., if
   39         the purchase of contractual services exceeds a certain
   40         amount and the services are not competitively
   41         procured; requiring that an agency’s contract manager
   42         attend training regarding accountability in contracts
   43         and grant management; providing for uniform procedures
   44         that the Chief Financial Officer must establish and
   45         disseminate to state agencies; subjecting users of
   46         certain state term contracts to a transaction or user
   47         fee; amending s. 287.0571, F.S.; conforming a cross
   48         reference; amending s. 287.058, F.S.; revising
   49         provisions regarding contracts for services;
   50         specifying provisions to be included in such
   51         contracts; amending ss. 295.187, 394.47865, 402.40,
   52         402.7305, 408.045, 427.0135, and 570.07, F.S.;
   53         conforming cross-references; requiring state agencies
   54         to provide specified information to the Department of
   55         Financial Services relating to the purchase of
   56         commodities or services; requiring state agencies to
   57         review and renegotiate contract renewals and
   58         reprocurements in an effort to reduce contract
   59         payments; requiring the Executive Office of the
   60         Governor to place savings from the renegotiation of
   61         contract renewals or reprocurements in reserve;
   62         restricting funding for travel by state employees;
   63         requiring that certain travel be approved in writing
   64         by the agency head; providing exceptions; requiring
   65         each state agency to review its contracts to ensure
   66         that contractors comply with applicable preferred
   67         pricing clauses; requiring certain contracts
   68         containing a preferred-pricing clause to require that
   69         the contractor submit an affidavit attesting to the
   70         contractor’s compliance with the clause; defining the
   71         term “preferred-pricing clause”; providing an
   72         appropriation to the Department of Financial Services
   73         and authorizing additional full-time equivalent
   74         positions; providing an effective date.
   76  Be It Enacted by the Legislature of the State of Florida:
   78         Section 1. Section 17.29, Florida Statutes, is amended to
   79  read:
   80         17.29 Authority to prescribe rules.—The Chief Financial
   81  Officer may adopt rules pursuant to ss. 120.536(1) and 120.54 to
   82  implement this chapter and the duties assigned by statute or the
   83  State Constitution. Such rules may include, but are not limited
   84  to, the following:
   85         (1) Procedures or policies relating to the processing of
   86  payments from salaries, other personal services, or any other
   87  applicable appropriation.
   88         (2) Procedures for processing interagency and intraagency
   89  payments that which do not require the issuance of a state
   90  warrant.
   91         (3) Procedures or policies requiring that payments made by
   92  the state for goods, services, or anything of value be made by
   93  electronic means, including, but not limited to, debit cards,
   94  credit cards, or electronic funds transfers.
   95         (4) A method that reasonably accommodates persons who,
   96  because of technological, financial, or other hardship, may not
   97  be able to receive payments by electronic means. The Chief
   98  Financial Officer may make payments by state warrant if deemed
   99  administratively necessary.
  100         Section 2. Subsection (1) of section 43.16, Florida
  101  Statutes, is amended to read:
  102         43.16 Justice Administrative Commission; membership, powers
  103  and duties.—
  104         (1) There is hereby created a Justice Administrative
  105  Commission, with headquarters located in the state capital. The
  106  necessary office space for use of the commission shall be
  107  furnished by the proper state agency in charge of state
  108  buildings. For purposes of the fees imposed on agencies pursuant
  109  to s. 287.057(24) s. 287.057(23), the Justice Administrative
  110  Commission shall be exempt from such fees.
  111         Section 3. Section 215.322, Florida Statutes, is amended to
  112  read:
  113         215.322 Acceptance of credit cards, charge cards, or debit
  114  cards, or electronic funds transfers by state agencies, units of
  115  local government, and the judicial branch.—
  116         (1) It is the intent of the Legislature to encourage state
  117  agencies, the judicial branch, and units of local government to
  118  make their goods, services, and information more convenient to
  119  the public through the acceptance of payments by credit cards,
  120  charge cards, and debit cards, or other means of electronic
  121  funds transfers to the maximum extent practicable when the
  122  benefits to the participating agency and the public substantiate
  123  the cost of accepting these types of payments.
  124         (2) A state agency as defined in s. 216.011, or the
  125  judicial branch, may accept credit cards, charge cards, or debit
  126  cards, or electronic funds transfers in payment for goods and
  127  services with the prior approval of the Chief Financial Officer.
  128  If the Internet or other related electronic methods are to be
  129  used as the collection medium, the Agency for Enterprise
  130  Information Technology shall review and recommend to the Chief
  131  Financial Officer whether to approve the request with regard to
  132  the process or procedure to be used.
  133         (3) The Chief Financial Officer shall adopt rules governing
  134  the establishment and acceptance of credit cards, charge cards,
  135  or debit cards, or electronic funds transfers by state agencies
  136  or the judicial branch, including, but not limited to, the
  137  following:
  138         (a) Use Utilization of a standardized contract between the
  139  financial institution or other appropriate intermediaries and
  140  the agency or judicial branch which shall be developed by the
  141  Chief Financial Officer or approval by the Chief Financial
  142  Officer of a substitute agreement.
  143         (b) Procedures that which permit an agency or officer
  144  accepting payment by credit card, charge card, or debit card, or
  145  electronic funds transfer to impose a convenience fee upon the
  146  person making the payment. However, the total amount of such
  147  convenience fees may shall not exceed the total cost to the
  148  state agency. A convenience fee is not refundable to the payor.
  149  However Notwithstanding the foregoing, this section does shall
  150  not be construed to permit the imposition of surcharges on any
  151  other credit card purchase in violation of s. 501.0117.
  152         (c) All service fees payable pursuant to this section when
  153  practicable shall be invoiced and paid by state warrant or such
  154  other manner that is satisfactory to the Chief Financial Officer
  155  in accordance with the time periods specified in s. 215.422, if
  156  practicable.
  157         (d) Submission of information to the Chief Financial
  158  Officer concerning the acceptance of credit cards, charge cards,
  159  or debit cards, or electronic funds transfers by all state
  160  agencies or the judicial branch.
  161         (e) A methodology for agencies to use when completing the
  162  cost-benefit analysis referred to in subsection (1). The
  163  methodology must consider all quantifiable cost reductions,
  164  other benefits to the agency, and the potential impact on
  165  general revenue. The methodology must also consider
  166  nonquantifiable benefits such as the convenience to individuals
  167  and businesses that would benefit from the ability to pay for
  168  state goods and services through the use of credit cards, charge
  169  cards, and debit cards, or electronic funds transfers.
  170         (4) The Chief Financial Officer may establish contracts
  171  with one or more financial institutions, credit card companies,
  172  or other entities that which may lawfully provide such services,
  173  in a manner consistent with chapter 287, for processing credit
  174  card, charge card, or debit card, or electronic funds transfer
  175  collections for deposit into the State Treasury or another
  176  qualified public depository. Any state agency, or the judicial
  177  branch, which accepts payment by credit card, charge card, or
  178  debit card, or electronic funds transfer shall use at least one
  179  of the contractors established by the Chief Financial Officer,
  180  unless the state agency or judicial branch obtains authorization
  181  from the Chief Financial Officer to use another contractor that
  182  which is more advantageous to the such state agency or the
  183  judicial branch. The Such contracts may authorize a unit of
  184  local government to use the services upon the same terms and
  185  conditions for deposit of credit card, charge card, or debit
  186  card, or electronic funds transfer transactions into its
  187  qualified public depositories.
  188         (5) A unit of local government, including which term means
  189  a municipality, special district, or board of county
  190  commissioners or other governing body of a county, however
  191  styled, including that of a consolidated or metropolitan
  192  government, and means any clerk of the circuit court, sheriff,
  193  property appraiser, tax collector, or supervisor of elections,
  194  is authorized to accept payment by use of credit cards, charge
  195  cards, and bank debit cards, and electronic funds transfers for
  196  financial obligations that are owing to such unit of local
  197  government and to surcharge the person who uses a credit card,
  198  charge card, or bank debit card, or electronic funds transfer in
  199  payment of taxes, license fees, tuition, fines, civil penalties,
  200  court-ordered payments, or court costs, or other statutorily
  201  prescribed revenues an amount sufficient to pay the service fee
  202  charges by the financial institution, vending service company,
  203  or credit card company for such services. A unit of local
  204  government shall verify both the validity of any credit card,
  205  charge card, or bank debit card, or electronic funds transfer
  206  used pursuant to this subsection and the existence of
  207  appropriate credit with respect to the person using the card or
  208  transfer. The unit of local government does not incur any
  209  liability as a result of such verification or any subsequent
  210  action taken.
  211         (6) Any action required to be performed by a state officer
  212  or agency pursuant to this section shall be performed within 10
  213  working days after receipt of the request for approval or be
  214  deemed approved if not acted upon within that time.
  215         (7) Nothing contained in This section does not shall be
  216  construed to prohibit a state agency or the judicial branch from
  217  continuing to accept charge cards, or debit cards, or electronic
  218  funds transfers pursuant to a contract that which was lawfully
  219  entered into before prior to the effective date of this act,
  220  unless specifically directed otherwise in the General
  221  Appropriations Act. However, such contract may shall not be
  222  extended or renewed after the effective date of this act unless
  223  such renewal and extension conforms to the requirements of this
  224  section.
  225         (8) When deemed administratively necessary, a state agency,
  226  as defined in s. 216.011, or the judicial branch may adopt rules
  227  requiring that payments for goods, services, or anything of
  228  value be made by electronic means, including, but not limited
  229  to, credit cards, charge cards, debit cards, or electronic funds
  230  transfers. The rules must provide a method to reasonably
  231  accommodate persons who, because of technological, financial, or
  232  other hardship, may not be able to make payment by electronic
  233  means.
  234         (9) For payment programs in which credit cards, charge
  235  cards, or debit cards are accepted by state agencies, the
  236  judicial branch, or units of local government, the Chief
  237  Financial Officer, in consultation with the Agency for
  238  Enterprise Information Technology, may adopt rules to establish
  239  uniform security safeguards for cardholder data and to ensure
  240  compliance with the Payment Card Industry Data Security
  241  Standards.
  242         Section 4. Section 215.971, Florida Statutes, is created to
  243  read:
  244         215.971Agreements funded by federal or state financial
  245  assistance.—The Chief Financial Officer shall adopt and
  246  disseminate uniform minimum procedures to state agencies
  247  pursuant to s. 17.03 for agreements that provide state or
  248  federal financial assistance to a recipient or subrecipient.
  249         Section 5. Section 216.3475, Florida Statutes, is amended
  250  to read:
  251         216.3475 Maximum rate of payment for services funded under
  252  General Appropriations Act or awarded on a noncompetitive
  253  basis.—A person or entity that is designated by the General
  254  Appropriations Act, or that is awarded funding on a
  255  noncompetitive basis, to provide services for which funds are
  256  appropriated by that act may not receive a rate of payment in
  257  excess of the competitive prevailing rate for those services
  258  unless expressly authorized in the General Appropriations Act.
  259  Each agency shall maintain documentation to support a cost
  260  analysis, which includes a detailed budget submitted by the
  261  person or entity awarded funding and the agency’s documented
  262  review of individual cost elements from the submitted budget for
  263  allowability, reasonableness, and necessity.
  264         Section 6. Subsection (1) of section 287.056, Florida
  265  Statutes, is amended to read:
  266         287.056 Purchases from purchasing agreements and state term
  267  contracts.—
  268         (1) Agencies shall, and eligible users may, purchase
  269  commodities and contractual services from purchasing agreements
  270  established and state term contracts procured, pursuant to s.
  271  287.057, by the department. Each agency agreement made under
  272  this subsection shall include:
  273         (a) A provision specifying a scope of work that clearly
  274  establishes all tasks that the contractor is required to
  275  perform.
  276         (b) A provision dividing the contract into quantifiable,
  277  measurable, and verifiable units of deliverables that must be
  278  received and accepted in writing by the contract manager before
  279  payment. Each deliverable must be directly related to the scope
  280  of work and specify the required minimum level of service to be
  281  performed and the criteria for evaluating the successful
  282  completion of each deliverable.
  283         Section 7. Present subsections (6) through (24) of section
  284  287.057, Florida Statutes, are redesignated as subsections (7)
  285  through (25), respectively, a new subsection (6) is added to
  286  that section, and present subsections (5) and (15) of that
  287  section are amended, to read:
  288         287.057 Procurement of commodities or contractual
  289  services.—
  290         (5) When the purchase price of commodities or contractual
  291  services exceeds the threshold amount provided in s. 287.017 for
  292  CATEGORY TWO, no purchase of commodities or contractual services
  293  may be made without receiving competitive sealed bids,
  294  competitive sealed proposals, or competitive sealed replies
  295  unless:
  296         (a) The agency head determines in writing that an immediate
  297  danger to the public health, safety, or welfare or other
  298  substantial loss to the state requires emergency action. After
  299  the agency head makes such a written determination, the agency
  300  may proceed with the procurement of commodities or contractual
  301  services necessitated by the immediate danger, without receiving
  302  competitive sealed bids, competitive sealed proposals, or
  303  competitive sealed replies. However, such emergency procurement
  304  shall be made by obtaining pricing information from at least two
  305  prospective vendors, which must be retained in the contract
  306  file, unless the agency determines in writing that the time
  307  required to obtain pricing information will increase the
  308  immediate danger to the public health, safety, or welfare or
  309  other substantial loss to the state. The agency shall furnish
  310  copies of all written determinations certified under oath and
  311  any other documents relating to the emergency action to the
  312  department. A copy of the statement shall be furnished to the
  313  Chief Financial Officer with the voucher authorizing payment.
  314  The individual purchase of personal clothing, shelter, or
  315  supplies which are needed on an emergency basis to avoid
  316  institutionalization or placement in a more restrictive setting
  317  is an emergency for the purposes of this paragraph, and the
  318  filing with the department of such statement is not required in
  319  such circumstances. In the case of the emergency purchase of
  320  insurance, the period of coverage of such insurance shall not
  321  exceed a period of 30 days, and all such emergency purchases
  322  shall be reported to the department.
  323         (b) The purchase is made by an agency from a state term
  324  contract procured, pursuant to this section, by the department
  325  or by an agency, after receiving approval from the department,
  326  from a contract procured, pursuant to subsection (1), subsection
  327  (2), or subsection (3), by another agency.
  328         (c) Commodities or contractual services available only from
  329  a single source may be excepted from the competitive
  330  solicitation requirements. When an agency believes that
  331  commodities or contractual services are available only from a
  332  single source, the agency shall electronically post a
  333  description of the commodities or contractual services sought
  334  for a period of at least 7 business days. The description must
  335  include a request that prospective vendors provide information
  336  regarding their ability to supply the commodities or contractual
  337  services described. If it is determined in writing by the
  338  agency, after reviewing any information received from
  339  prospective vendors, that the commodities or contractual
  340  services are available only from a single source, the agency
  341  shall:
  342         1. Provide notice of its intended decision to enter a
  343  single-source purchase contract in the manner specified in s.
  344  120.57(3), if the amount of the contract does not exceed the
  345  threshold amount provided in s. 287.017 for CATEGORY FOUR.
  346         2. Request approval from the department for the single
  347  source purchase, if the amount of the contract exceeds the
  348  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
  349  agency shall initiate its request for approval in a form
  350  prescribed by the department, which request may be
  351  electronically transmitted. The failure of the department to
  352  approve or disapprove the agency’s request for approval within
  353  21 days after receiving such request shall constitute prior
  354  approval of the department. If the department approves the
  355  agency’s request, the agency shall provide notice of its
  356  intended decision to enter a single-source contract in the
  357  manner specified in s. 120.57(3).
  358         (d) When it is in the best interest of the state, the
  359  secretary of the department or his or her designee may authorize
  360  the Support Program to purchase insurance by negotiation, but
  361  such purchase shall be made only under conditions most favorable
  362  to the public interest.
  363         (e) Prescriptive assistive devices for the purpose of
  364  medical, developmental, or vocational rehabilitation of clients
  365  are excepted from competitive-solicitation requirements and
  366  shall be procured pursuant to an established fee schedule or by
  367  any other method which ensures the best price for the state,
  368  taking into consideration the needs of the client. Prescriptive
  369  assistive devices include, but are not limited to, prosthetics,
  370  orthotics, and wheelchairs. For purchases made pursuant to this
  371  paragraph, state agencies shall annually file with the
  372  department a description of the purchases and methods of
  373  procurement.
  374         (f) The following contractual services and commodities are
  375  not subject to the competitive-solicitation requirements of this
  376  section:
  377         1. Artistic services. For the purposes of this subsection,
  378  the term “artistic services” does not include advertising. As
  379  used in this subparagraph, the term “advertising” means the
  380  making of a representation in any form in connection with a
  381  trade, business, craft, or profession in order to promote the
  382  supply of commodities or services by the person promoting the
  383  commodities or contractual services.
  384         2. Academic program reviews if the fee for such services
  385  does not exceed $50,000.
  386         3. Lectures by individuals.
  387         4.Auditing services.
  388         4.5. Legal services, including attorney, paralegal, expert
  389  witness, appraisal, or mediator services.
  390         6.Health services involving examination, diagnosis,
  391  treatment, prevention, medical consultation, or administration.
  392         5.7. Services provided to persons with mental or physical
  393  disabilities by not-for-profit corporations which have obtained
  394  exemptions under the provisions of s. 501(c)(3) of the United
  395  States Internal Revenue Code or when such services are governed
  396  by the provisions of Office of Management and Budget Circular A
  397  122. However, in acquiring such services, the agency shall
  398  consider the ability of the vendor, past performance,
  399  willingness to meet time requirements, and price.
  400         8.Medicaid services delivered to an eligible Medicaid
  401  recipient by a health care provider who has not previously
  402  applied for and received a Medicaid provider number from the
  403  Agency for Health Care Administration. However, this exception
  404  shall be valid for a period not to exceed 90 days after the date
  405  of delivery to the Medicaid recipient and shall not be renewed
  406  by the agency.
  407         6.9. Family placement services.
  408         7.10. Prevention services related to mental health,
  409  including drug abuse prevention programs, child abuse prevention
  410  programs, and shelters for runaways, operated by not-for-profit
  411  corporations. However, in acquiring such services, the agency
  412  shall consider the ability of the vendor, past performance,
  413  willingness to meet time requirements, and price.
  414         8.11. Training and education services provided to injured
  415  employees pursuant to s. 440.491(6).
  416         9.12. Contracts entered into pursuant to s. 337.11.
  417         10.13. Services or commodities provided by governmental
  418  agencies.
  419         11.Health care services involving examinations, diagnosis,
  420  or treatment provided by licensed Florida health care providers
  421  or facilities that meet national and state standards or
  422  accreditation requirements and that are willing to be reimbursed
  423  at the Medicaid reimbursement rate.
  424         (g) Continuing education events or programs that are
  425  offered to the general public and for which fees have been
  426  collected that pay all expenses associated with the event or
  427  program are exempt from requirements for competitive
  428  solicitation.
  429         (6) An agency must document its compliance with s. 216.3475
  430  if the purchase of contractual services exceeds the threshold
  431  amount provided in s. 287.017 for CATEGORY TWO and such services
  432  are not competitively procured.
  433         (16)(15) For each contractual services contract, the agency
  434  shall designate an employee to function as contract manager who
  435  shall be responsible for enforcing performance of the contract
  436  terms and conditions and serve as a liaison with the contractor.
  437  Each contract manager who is responsible for contracts in excess
  438  of the threshold amount for CATEGORY TWO must attend training
  439  conducted by the Chief Financial Officer for accountability in
  440  contracts and grant management. The Chief Financial Officer
  441  agency shall establish and disseminate uniform procedures
  442  pursuant to s. 17.03(3) to ensure that contractual services have
  443  been rendered in accordance with the contract terms before the
  444  agency processes prior to processing the invoice for payment.
  445  The procedures shall include, but need not be limited to,
  446  procedures for monitoring and documenting contractor
  447  performance, reviewing and documenting all deliverables for
  448  which payment is requested by vendors, and providing written
  449  certification by contract managers of the agency’s receipt of
  450  goods and services.
  451         Section 8. Contracts for academic program reviews, auditing
  452  services, health services, and Medicaid services are subject the
  453  transaction or user fees imposed under ss. 287.057(23) and
  454  287.1345, Florida Statutes, only to the extent that such
  455  contracts were subjected to such transaction or user fees before
  456  July 1, 2010.
  457         Section 9. Paragraph (a) of subsection (4) of section
  458  287.0571, Florida Statutes, is amended to read:
  459         287.0571 Applicability of ss. 287.0571-287.0574.—
  460         (4) Sections 287.0571-287.0574 do not apply to:
  461         (a) A procurement of commodities and contractual services
  462  listed in s. 287.057(5)(e), (f), and (g) and (23)(22).
  463         Section 10. Subsection (1) of section 287.058, Florida
  464  Statutes, is amended to read:
  465         287.058 Contract document.—
  466         (1) Every procurement of contractual services in excess of
  467  the threshold amount provided in s. 287.017 for CATEGORY TWO,
  468  except for the providing of health and mental health services or
  469  drugs in the examination, diagnosis, or treatment of sick or
  470  injured state employees or the providing of other benefits as
  471  required by the provisions of chapter 440, shall be evidenced by
  472  a written agreement embodying all provisions and conditions of
  473  the procurement of such services, which provisions and
  474  conditions shall, where applicable, include, but shall not be
  475  limited to, a provision:
  476         (a) A provision That bills for fees or other compensation
  477  for services or expenses be submitted in detail sufficient for a
  478  proper preaudit and postaudit thereof.
  479         (b) A provision That bills for any travel expenses be
  480  submitted in accordance with s. 112.061. A state agency may
  481  establish rates lower than the maximum provided in s. 112.061.
  482         (c) A provision Allowing unilateral cancellation by the
  483  agency for refusal by the contractor to allow public access to
  484  all documents, papers, letters, or other material made or
  485  received by the contractor in conjunction with the contract,
  486  unless the records are exempt from s. 24(a) of Art. I of the
  487  State Constitution and s. 119.07(1).
  488         (d) Specifying a scope of work that clearly establishes all
  489  tasks the contractor is required to perform.
  490         (e)(d)A provision Dividing the contract into quantifiable,
  491  measurable, and verifiable units of deliverables, which shall
  492  include, but not be limited to, reports, findings, and drafts,
  493  that must be received and accepted in writing by the contract
  494  manager before prior to payment. Each deliverable must be
  495  directly related to the scope of work and specify the required
  496  minimum level of service to be performed and criteria for
  497  evaluating the successful completion of each deliverable.
  498         (f)(e)A provision Specifying the criteria and the final
  499  date by which such criteria must be met for completion of the
  500  contract.
  501         (g)(f)A provision Specifying that the contract may be
  502  renewed for a period that may not exceed 3 years or the term of
  503  the original contract, whichever period is longer, specifying
  504  the renewal price for the contractual service as set forth in
  505  the bid, proposal, or reply, specifying that costs for the
  506  renewal may not be charged, and specifying that renewals shall
  507  be contingent upon satisfactory performance evaluations by the
  508  agency and subject to the availability of funds. Exceptional
  509  purchase contracts pursuant to s. 287.057(5)(a) and (c) may not
  510  be renewed.
  511         (h) Specifying the financial consequences that the agency
  512  must apply if the contractor fails to perform in accordance with
  513  the contract.
  514         (i) Addressing the property rights of any intellectual
  515  property related to the contract and the specific rights of the
  516  state regarding the intellectual property if the contractor
  517  fails to provide the services or is no longer providing
  518  services.
  520  In lieu of a written agreement, the department may authorize the
  521  use of a purchase order for classes of contractual services, if
  522  the provisions of paragraphs (a)-(i) (a)-(f) are included in the
  523  purchase order or solicitation. The purchase order must include,
  524  but need not be limited to, an adequate description of the
  525  services, the contract period, and the method of payment. In
  526  lieu of printing the provisions of paragraphs (a)-(i) (a)-(f) in
  527  the contract document or purchase order, agencies may
  528  incorporate the requirements of paragraphs (a)-(i) (a)-(f) by
  529  reference.
  530         Section 11. Paragraph (b) of subsection (4) of section
  531  295.187, Florida Statutes, is amended to read:
  532         295.187 Florida Service-Disabled Veteran Business
  533  Enterprise Opportunity Act.—
  534         (4) VENDOR PREFERENCE.—
  535         (b) Notwithstanding s. 287.057(13) s. 287.057(12), if a
  536  service-disabled veteran business enterprise entitled to the
  537  vendor preference under this section and one or more businesses
  538  entitled to this preference or another vendor preference
  539  provided by law submit bids, proposals, or replies for
  540  procurement of commodities or contractual services that are
  541  equal with respect to all relevant considerations, including
  542  price, quality, and service, then the state agency shall award
  543  the procurement or contract to the business having the smallest
  544  net worth.
  545         Section 12. Paragraph (a) of subsection (1) of section
  546  394.47865, Florida Statutes, is amended to read:
  547         394.47865 South Florida State Hospital; privatization.—
  548         (1) The Department of Children and Family Services shall,
  549  through a request for proposals, privatize South Florida State
  550  Hospital. The department shall plan to begin implementation of
  551  this privatization initiative by July 1, 1998.
  552         (a) Notwithstanding s. 287.057(15) s. 287.057(14), the
  553  department may enter into agreements, not to exceed 20 years,
  554  with a private provider, a coalition of providers, or another
  555  agency to finance, design, and construct a treatment facility
  556  having up to 350 beds and to operate all aspects of daily
  557  operations within the facility. The department may subcontract
  558  any or all components of this procurement to a statutorily
  559  established state governmental entity that has successfully
  560  contracted with private companies for designing, financing,
  561  acquiring, leasing, constructing, and operating major privatized
  562  state facilities.
  563         Section 13. Paragraph (c) of subsection (5) and subsection
  564  (8) of section 402.40, Florida Statutes, are amended to read:
  565         402.40 Child welfare training.—
  566         (5) CORE COMPETENCIES.—
  567         (c) Notwithstanding s. 287.057(5) and (23)(22), the
  568  department shall competitively solicit and contract for the
  569  development, validation, and periodic evaluation of the training
  570  curricula for the established single integrated curriculum. No
  571  more than one training curriculum may be developed for each
  572  specific subset of the core competencies.
  573         (8) ESTABLISHMENT OF TRAINING ACADEMIES.—The department
  574  shall establish child welfare training academies as part of a
  575  comprehensive system of child welfare training. In establishing
  576  a program of training, the department may contract for the
  577  operation of one or more training academies to perform one or
  578  more of the following: to offer one or more of the training
  579  curricula developed under subsection (5); to administer the
  580  certification process; to develop, validate, and periodically
  581  evaluate additional training curricula determined to be
  582  necessary, including advanced training that is specific to a
  583  region or contractor, or that meets a particular training need;
  584  or to offer the additional training curricula. The number,
  585  location, and timeframe for establishment of training academies
  586  shall be approved by the Secretary of Children and Family
  587  Services who shall ensure that the goals for the core
  588  competencies and the single integrated curriculum, the
  589  certification process, the trainer qualifications, and the
  590  additional training needs are addressed. Notwithstanding s.
  591  287.057(5) and (23)(22), the department shall competitively
  592  solicit all training academy contracts.
  593         Section 14. Subsections (2) and (3) of section 402.7305,
  594  Florida Statutes, are amended to read:
  595         402.7305 Department of Children and Family Services;
  596  procurement of contractual services; contract management.—
  598         (a) Notwithstanding s. 287.057(5)(f)10. s.
  599  287.057(5)(f)13., whenever the department intends to contract
  600  with a public postsecondary institution to provide a service,
  601  the department must allow all public postsecondary institutions
  602  in this state which that are accredited by the Southern
  603  Association of Colleges and Schools to bid on the contract.
  604  Thereafter, notwithstanding any other provision to the contrary,
  605  if a public postsecondary institution intends to subcontract for
  606  any service awarded in the contract, the subcontracted service
  607  must be procured by competitive procedures.
  608         (b) When it is in the best interest of a defined segment of
  609  its consumer population, the department may competitively
  610  procure and contract for systems of treatment or service that
  611  involve multiple providers, rather than procuring and
  612  contracting for treatment or services separately from each
  613  participating provider. The department must ensure that all
  614  providers that participate in the treatment or service system
  615  meet all applicable statutory, regulatory, service quality, and
  616  cost control requirements. If other governmental entities or
  617  units of special purpose government contribute matching funds to
  618  the support of a given system of treatment or service, the
  619  department shall formally request information from those funding
  620  entities in the procurement process and may take the information
  621  received into account in the selection process. If a local
  622  government contributes matching funds to support the system of
  623  treatment or contracted service and if the match constitutes at
  624  least 25 percent of the value of the contract, the department
  625  shall afford the governmental match contributor an opportunity
  626  to name an employee as one of the persons required by s.
  627  287.057(18) s. 287.057(17) to evaluate or negotiate certain
  628  contracts, unless the department sets forth in writing the
  629  reason why the inclusion would be contrary to the best interest
  630  of the state. Any employee so named by the governmental match
  631  contributor shall qualify as one of the persons required by s.
  632  287.057(18) s. 287.057(17). A governmental entity or unit of
  633  special purpose government may not name an employee as one of
  634  the persons required by s. 287.057(18) s. 287.057(17) if it, or
  635  any of its political subdivisions, executive agencies, or
  636  special districts, intends to compete for the contract to be
  637  awarded. The governmental funding entity or contributor of
  638  matching funds must comply with all procurement procedures set
  639  forth in s. 287.057 when appropriate and required.
  640         (c) The department may procure and contract for or provide
  641  assessment and case management services independently from
  642  treatment services.
  644  Department of Children and Family Services shall review the time
  645  period for which the department executes contracts and shall
  646  execute multiyear contracts to make the most efficient use of
  647  the resources devoted to contract processing and execution.
  648  Whenever the department chooses not to use a multiyear contract,
  649  a justification for that decision must be contained in the
  650  contract. Notwithstanding s. 287.057(16) s. 287.057(15), the
  651  department is responsible for establishing a contract management
  652  process that requires a member of the department’s Senior
  653  Management or Selected Exempt Service to assign in writing the
  654  responsibility of a contract to a contract manager. The
  655  department shall maintain a set of procedures describing its
  656  contract management process which must minimally include the
  657  following requirements:
  658         (a) The contract manager shall maintain the official
  659  contract file throughout the duration of the contract and for a
  660  period not less than 6 years after the termination of the
  661  contract.
  662         (b) The contract manager shall review all invoices for
  663  compliance with the criteria and payment schedule provided for
  664  in the contract and shall approve payment of all invoices before
  665  their transmission to the Department of Financial Services for
  666  payment.
  667         (c) The contract manager shall maintain a schedule of
  668  payments and total amounts disbursed and shall periodically
  669  reconcile the records with the state’s official accounting
  670  records.
  671         (d) For contracts involving the provision of direct client
  672  services, the contract manager shall periodically visit the
  673  physical location where the services are delivered and speak
  674  directly to clients receiving the services and the staff
  675  responsible for delivering the services.
  676         (e) The contract manager shall meet at least once a month
  677  directly with the contractor’s representative and maintain
  678  records of such meetings.
  679         (f) The contract manager shall periodically document any
  680  differences between the required performance measures and the
  681  actual performance measures. If a contractor fails to meet and
  682  comply with the performance measures established in the
  683  contract, the department may allow a reasonable period for the
  684  contractor to correct performance deficiencies. If performance
  685  deficiencies are not resolved to the satisfaction of the
  686  department within the prescribed time, and if no extenuating
  687  circumstances can be documented by the contractor to the
  688  department’s satisfaction, the department must terminate the
  689  contract. The department may not enter into a new contract with
  690  that same contractor for the services for which the contract was
  691  previously terminated for a period of at least 24 months after
  692  the date of termination. The contract manager shall obtain and
  693  enforce corrective action plans, if appropriate, and maintain
  694  records regarding the completion or failure to complete
  695  corrective action items.
  696         (g) The contract manager shall document any contract
  697  modifications, which shall include recording any contract
  698  amendments as provided for in this section.
  699         (h) The contract manager shall be properly trained before
  700  being assigned responsibility for any contract.
  701         Section 15. Subsection (2) of section 408.045, Florida
  702  Statutes, is amended to read:
  703         408.045 Certificate of need; competitive sealed proposals.—
  704         (2) The agency shall make a decision regarding the issuance
  705  of the certificate of need in accordance with the provisions of
  706  s. 287.057(18) s. 287.057(17), rules adopted by the agency
  707  relating to intermediate care facilities for the developmentally
  708  disabled, and the criteria in s. 408.035, as further defined by
  709  rule.
  710         Section 16. Subsection (3) of section 427.0135, Florida
  711  Statutes, is amended to read:
  712         427.0135 Purchasing agencies; duties and responsibilities.
  713  Each purchasing agency, in carrying out the policies and
  714  procedures of the commission, shall:
  715         (3) Not procure transportation disadvantaged services
  716  without initially negotiating with the commission, as provided
  717  in s. 287.057(5)(f)10. s. 287.057(5)(f)13., or unless otherwise
  718  authorized by statute. If the purchasing agency, after
  719  consultation with the commission, determines that it cannot
  720  reach mutually acceptable contract terms with the commission,
  721  the purchasing agency may contract for the same transportation
  722  services provided in a more cost-effective manner and of
  723  comparable or higher quality and standards. The Medicaid agency
  724  shall implement this subsection in a manner consistent with s.
  725  409.908(18) and as otherwise limited or directed by the General
  726  Appropriations Act.
  727         Section 17. Subsection (41) of section 570.07, Florida
  728  Statutes, is amended to read:
  729         570.07 Department of Agriculture and Consumer Services;
  730  functions, powers, and duties.—The department shall have and
  731  exercise the following functions, powers, and duties:
  732         (41) Notwithstanding the provisions of s. 287.057(24) which
  733  s. 287.057(23) that require all agencies to use the online
  734  procurement system developed by the Department of Management
  735  Services, the department may continue to use its own online
  736  system. However, vendors using utilizing such system must shall
  737  be prequalified as meeting mandatory requirements and
  738  qualifications and shall remit fees pursuant to s. 287.057(24)
  739  s. 287.057(23), and any rules implementing s. 287.057.
  740         Section 18. (1) Each state agency, as defined in s.
  741  216.011, Florida Statutes, shall provide the following
  742  information to the Department of Financial Services regarding
  743  the agency’s contracted activities:
  744         (a) The nature of the commodities or services purchased.
  745         (b) The term of the contract.
  746         (c) The final obligation made by the agency.
  747         (d) A summary of any time constraints that apply to the
  748  procurement.
  749         (e) The justification for not using the competitive sealed
  750  bid process, including any statutory exemption or exception.
  751         (f) Other information regarding the contract or the
  752  procurement which may be required by the Department of Financial
  753  Services.
  754         (2) This section applies to any contract executed on or
  755  after July 1, 2010, for the purchase of commodities or
  756  contractual services in excess of the CATEGORY TWO threshold
  757  amount provided in s. 287.017, Florida Statutes, which is not:
  758         (a) Awarded by competitive sealed bid pursuant to s.
  759  287.057(1), (2), or (3), Florida Statutes; or
  760         (b) Purchased from a purchasing agreement or state term
  761  contract pursuant to s. 287.056, Florida Statutes.
  762         (3) An agency must submit the required information to the
  763  Department of Financial Services within 3 calendar days after
  764  executing the contract.
  765         Section 19. Each state agency, as defined in s. 216.011,
  766  Florida Statutes, shall review existing contract renewals and
  767  reprocurements with private providers and public-private
  768  providers in an effort to reduce contract payments by 3 percent.
  769  It is the statewide goal to achieve substantial savings;
  770  however, it is the intent of the Legislature that the level and
  771  quality of services not be affected. Each agency shall
  772  renegotiate and reprocure contracts consistent with this
  773  section. Any savings that accrue through renegotiating the
  774  renewal or reprocurement of an existing contract shall be placed
  775  in reserve by the Executive Office of the Governor.
  776         Section 20. It is the policy of the state that funds
  777  appropriated to each state agency, as defined in s. 216.011,
  778  Florida Statutes, which may be used for travel by state
  779  employees be limited to travel for activities that are critical
  780  to the state agency’s mission. Funds may not be used to pay for
  781  travel by state employees to foreign countries, other states,
  782  conferences, staff-training activities, or other administrative
  783  functions unless the agency head approves in writing that such
  784  activities are critical to the agency’s mission. The agency head
  785  must consider the use of teleconferencing and other forms of
  786  electronic communication to meet the needs of the proposed
  787  activity before approving mission-critical travel. This section
  788  does not apply to travel for law enforcement purposes, military
  789  purposes, emergency management activities, and public health
  790  activities.
  791         Section 21. (1) Each state agency, as defined in s.
  792  216.011, Florida Statutes, shall review its contracts to ensure
  793  that each contractor complies with any applicable preferred
  794  pricing clause.
  795         (2) Each contract executed, renewed, extended, or modified
  796  on or after July 1 , 2010, which includes a preferred-pricing
  797  clause, must require an affidavit from an authorized
  798  representative of the contractor attesting under penalty of
  799  perjury that the contract is in compliance with the preferred
  800  pricing clause. Such affidavit must be submitted at least
  801  annually. A contractor’s failure to comply with a preferred
  802  pricing clause is grounds for terminating the contract at the
  803  state agency’s sole discretion.
  804         (3) As used in this section, the term “preferred-pricing
  805  clause” means a contractual provision under which the state is
  806  offered the most favorable price that the contractor offers any
  807  client.
  808         Section 22. The sum of $311,915 from the General Revenue
  809  Fund is appropriated and five full-time equivalent positions and
  810  associated salary rate are authorized to the Department of
  811  Financial Services to implement the provisions of this act.
  812         Section 23. This act shall take effect July 1, 2010.

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