June 24, 2019
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       ENROLLED
       2010 Legislature                   CS for SB 2386, 1st Engrossed
       
       
       
       
       
       
                                                             20102386er
    1  
    2         An act relating to state financial matters; amending
    3         s. 14.204, F.S.; conforming a cross-reference;
    4         amending s. 17.20, F.S.; providing that each agency is
    5         responsible for exercising due diligence in securing
    6         payment for all accounts receivable and other claims
    7         due the state; creating requirements for agencies for
    8         purposes of reporting delinquent accounts receivable;
    9         requiring agencies to report annually to the
   10         Legislature and Chief Financial Officer on accounts
   11         receivable and other claims due the state; requiring
   12         the Chief Financial Officer to report annually to the
   13         Governor and Legislature on claims for collections due
   14         the state; amending s. 17.29, F.S.; authorizing the
   15         Chief Financial Officer to adopt rules requiring that
   16         payments made by the state for goods, services, or
   17         anything of value be made by electronic means;
   18         requiring that the rules include methods for
   19         accommodating persons who may not be able to receive
   20         payment by electronic means; authorizing the Chief
   21         Financial Officer to make payments by warrant if
   22         administratively necessary; amending ss. 43.16,
   23         61.1826 and 112.3215, F.S.; conforming cross
   24         references; amending s. 215.322, F.S.; conforming
   25         provisions to changes made by the act to authorize
   26         state agencies, local governments, and the judicial
   27         branch to accept payments by electronic funds
   28         transfers; providing for the adoption of rules to
   29         facilitate such payments and to accommodate persons
   30         who may not be able to make payments by electronic
   31         means; authorizing the Chief Financial Officer to
   32         adopt rules establishing uniform security safeguards
   33         for cardholder data; creating s. 215.971, F.S.;
   34         requiring that agency agreements that provide state or
   35         federal financial assistance to a recipient or
   36         subrecipient include certain provisions; amending s.
   37         216.3475, F.S.; requiring an agency that is awarded
   38         funding on a noncompetitive basis for certain services
   39         as specified in the General Appropriations Act to
   40         maintain specified documentation supporting a cost
   41         analysis; amending s. 255.249, F.S.; conforming a
   42         provision to the repeal of s. 287.1345, F.S.; amending
   43         s. 255.25, F.S.; conforming a provision to the repeal
   44         of s. 287.1345, F.S.; conforming a cross-reference;
   45         amending s. 283.32, F.S.; conforming provisions to the
   46         repeal of s. 287.045, F.S.; amending s. 286.0113,
   47         F.S.; conforming a cross-reference; amending s.
   48         287.012, F.S.; revising, eliminating, and providing
   49         definitions; amending s. 287.017, F.S.; revising the
   50         threshold amounts for state purchasing categories;
   51         eliminating a requirement that the Department of
   52         Management Services adopt rules to adjust the
   53         threshold amounts; amending s. 287.022, F.S.;
   54         conforming a cross-reference; repealing s. 287.045,
   55         F.S., relating to procurement of products and
   56         materials with recycled content; amending s. 287.056,
   57         F.S.; specifying the provisions to be included in
   58         state agency purchasing agreements; amending s.
   59         287.057, F.S.; revising and organizing provisions
   60         relating to the procurement of commodities and
   61         contractual services by the state; specifying
   62         authorized uses for competitive solicitation
   63         processes; providing procedures and requirements with
   64         respect to competitive solicitation; specifying types
   65         of procurements for which invitations to bid, requests
   66         for proposals, and invitations to negotiate are to be
   67         used and providing procedures and requirements with
   68         respect thereto; revising contractual services and
   69         commodities that are not subject to competitive
   70         solicitation requirements; prohibiting an agency from
   71         dividing the solicitation of commodities or
   72         contractual services in order to avoid specified
   73         requirements; requiring that an agency avoid,
   74         neutralize, or mitigate significant potential
   75         organizational conflicts of interests before a
   76         contract is awarded; providing procedures and
   77         requirements with respect to mitigation of such
   78         conflicts of interest; authorizing an agency to
   79         proceed with a contract award when such conflict
   80         cannot be avoided or mitigated under specified
   81         circumstances and providing a restriction on such
   82         award; specifying conditions that constitute an unfair
   83         competitive advantage for a vendor; amending s.
   84         287.0571, F.S.; revising applicability of ss.
   85         287.0571-287.0574, F.S.; specifying procurements and
   86         contracts to which s. 287.0571, F.S., relating to
   87         agency business cases for outsourcing of specified
   88         projects, does not apply; requiring an agency to
   89         complete a business case for any outsourcing project
   90         that has an expected cost in excess of a specified
   91         amount within a single fiscal year; providing for the
   92         submission of the business case in accordance with
   93         provisions governing the submission of agency
   94         legislative budget requests; providing that a business
   95         case is not subject to challenge; providing required
   96         components of a business case; specifying required
   97         provisions for a contract for a proposed outsourcing;
   98         repealing s. 287.05721, F.S., relating to definitions;
   99         repealing s. 287.0573, F.S., relating to the Council
  100         on Efficient Government and its membership and duties;
  101         repealing s. 287.0574, F.S., relating to provisions
  102         governing business cases for outsourcing and the
  103         review and analysis conducted thereunder, the
  104         requirements of which are relocated in other sections
  105         of Florida Statutes set forth in the act; creating s.
  106         287.0575, F.S.; establishing duties and
  107         responsibilities of the Department of Children and
  108         Family Services, the Agency for Persons with
  109         Disabilities, the Department of Health, the Department
  110         of Elderly Affairs, and the Department of Veterans’
  111         Affairs, and service providers under contract to those
  112         agencies, with respect to coordination of contracted
  113         services; requiring state agencies contracting for
  114         health and human services to notify their contract
  115         service providers of certain requirements by a
  116         specified date or upon entering into any new contract
  117         for health and human services; requiring each service
  118         provider that has more than one contract with one or
  119         more state agencies to provide health and human
  120         services to provide to each of its contract managers a
  121         comprehensive list of its health and human services
  122         contracts by a specified date; specifying information
  123         to be contained in the list; providing for assignment,
  124         by a specified date, of a single lead administrative
  125         coordinator for each service provider from among
  126         agencies having multiple health and human services
  127         contracts; requiring that the lead administrative
  128         coordinator provide notice of his or her designation
  129         to the service provider and to the agency contract
  130         managers for each affected contract; providing the
  131         method of selecting the lead administrative
  132         coordinator; providing responsibilities of the
  133         designated lead administrative coordinator; providing
  134         duties of contract managers for agency contracts;
  135         providing for nonapplicability under certain
  136         circumstances; requiring annual performance
  137         evaluations of designated lead administrative
  138         coordinators by each agency contracting for health and
  139         human services; providing for a report to the Governor
  140         and Legislature; amending s. 287.058, F.S.; revising
  141         provisions regarding contracts for services;
  142         specifying provisions to be included in such
  143         contracts; amending s. 287.059, F.S.; conforming a
  144         cross-reference; repealing s. 287.1345, F.S., relating
  145         to surcharge on users of state term contracts;
  146         amending ss. 295.187, 394.457, 394.47865, 402.40,
  147         402.7305, 408.045, 427.0135, 445.024, 481.205, 570.07,
  148         627.311, 627.351, 765.5155, 893.055 and 1013.38, F.S.,
  149         and s. 21 of chapter 2009-55 and s. 31 of chapter
  150         2009-223, Laws of Florida; conforming cross
  151         references; providing that statutorily authorized
  152         transaction or user fees do not apply to certain
  153         contracts for services if the services were exempt
  154         from such fees before a specified date; requiring
  155         state agencies to provide specified information to the
  156         Department of Financial Services relating to the
  157         purchase of commodities or services; requiring state
  158         agencies to review and renegotiate contract renewals
  159         and reprocurements in an effort to reduce contract
  160         payments; requiring the Executive Office of the
  161         Governor to place savings from the renegotiation of
  162         contract renewals or reprocurements in reserve;
  163         requiring each state agency to review its contracts to
  164         ensure that contractors comply with applicable
  165         preferred-pricing clauses; requiring certain contracts
  166         containing a preferred-pricing clause to require that
  167         the contractor submit an affidavit attesting to the
  168         contractor’s compliance with the clause; defining the
  169         term “preferred-pricing clause”; requiring that each
  170         entity expending funds provided for in the 2010-2011
  171         fiscal year give preference to vendors or businesses
  172         that have a principal place of business in Florida and
  173         that commit contractually to maximize the use of state
  174         residents, products, and businesses; providing an
  175         exception; requiring state agencies to report
  176         contractor compliance with such requirement to the
  177         Agency for Workforce Innovation; providing an
  178         appropriation and authorizing additional positions;
  179         providing an effective date.
  180  
  181  Be It Enacted by the Legislature of the State of Florida:
  182  
  183         Section 1. Paragraph (d) of subsection (4) of section
  184  14.204, Florida Statutes, is amended to read:
  185         14.204 Agency for Enterprise Information Technology.—The
  186  Agency for Enterprise Information Technology is created within
  187  the Executive Office of the Governor.
  188         (4) The agency shall have the following duties and
  189  responsibilities:
  190         (d) Plan and establish policies for managing proposed
  191  statutorily authorized enterprise information technology
  192  services, which includes:
  193         1. Developing business cases that, when applicable, include
  194  the components identified in s. 287.0571 287.0574;
  195         2. Establishing and coordinating project-management teams;
  196         3. Establishing formal risk-assessment and mitigation
  197  processes; and
  198         4. Providing for independent monitoring of projects for
  199  recommended corrective actions.
  200         Section 2. Section 17.20, Florida Statutes, is amended to
  201  read:
  202         17.20 Assignment of claims for collection.—
  203         (1) The Chief Financial Officer shall charge the state
  204  attorneys with the collection of all claims that are placed in
  205  their hands for collection of money or property for the state or
  206  any county or special district, or that it otherwise requires
  207  them to collect. The charges are evidence of indebtedness of a
  208  state attorney against whom any charge is made for the full
  209  amount of the claim, until the charges have been collected and
  210  paid into the treasury of the state or of the county or special
  211  district or the legal remedies of the state have been exhausted,
  212  or until the state attorney demonstrates to the Chief Financial
  213  Officer that the failure to collect the charges is not due to
  214  negligence and the Chief Financial Officer has made a proper
  215  entry of satisfaction of the charge against the state attorney.
  216         (2) The Chief Financial Officer may assign the collection
  217  of any claim to a collection agent or agents who are is
  218  registered and in good standing pursuant to chapter 559, if the
  219  Chief Financial Officer determines the assignation to be cost
  220  effective. The Chief Financial Officer may pay an agent from any
  221  amount collected under the claim a fee that the Chief Financial
  222  Officer and the agent have agreed upon; may authorize the agent
  223  to deduct the fee from the amount collected; may require the
  224  appropriate state agency, county, or special district to pay the
  225  agent the fee from any amount collected by the agent on its
  226  behalf; or may authorize the agent or agents to add a the fee to
  227  the amount to be collected.
  228         (3) Each agency shall be responsible for exercising due
  229  diligence in securing full payment of all accounts receivable
  230  and other claims due the state.
  231         (a) No later than 120 days after the date on which the
  232  account or other claim was due and payable, unless another
  233  period is approved by the Chief Financial Officer, and after
  234  exhausting other lawful measures available to the agency, each
  235  agency shall report the delinquent accounts receivable as
  236  directed by the Chief Financial Officer to the appropriate
  237  collection agent for further action, excluding those agencies
  238  that collect delinquent accounts pursuant to independent
  239  statutory authority.
  240         (b) An agency that has delinquent accounts receivable,
  241  which the agency considers to be of a nature that assignment to
  242  a collection agency would be inappropriate, may request in
  243  writing for an exemption for those accounts. The request shall
  244  fully explain the nature of the delinquent accounts receivable
  245  and the reasons the agency believes such accounts would be
  246  precluded from being assigned to a collection agency. The Chief
  247  Financial Officer shall disapprove the request in writing unless
  248  the agency shows that a demonstrative harm to the state will
  249  occur as a result of assignment to a collection agency.
  250         (c) Agencies that have delinquent accounts receivable,
  251  which accounts are of such a nature that it would not be
  252  appropriate to transfer collection of those delinquent accounts
  253  to the Chief Financial Officer within 120 days after the date
  254  they are due and payable, may request in writing a different
  255  period of time for transfer of collection of such accounts. The
  256  request shall fully explain the nature of the delinquent
  257  accounts receivable and include a recommendation as to an
  258  appropriate period.
  259         (4) Beginning October 1, 2010, and each October 1
  260  thereafter, each agency shall submit a report to the President
  261  of the Senate, the Speaker of the House of Representatives, and
  262  the Chief Financial Officer which includes:
  263         (a) A detailed list and total of all accounts that were
  264  referred for collection and the status of such accounts,
  265  including the date referred, any amounts collected, and the
  266  total that remains uncollected.
  267         (b) A list and total of all delinquent accounts that were
  268  not referred to a collection agency, the reasons for not
  269  referring those accounts, and the actions taken by the agency to
  270  collect.
  271         (c) A list of all accounts or claims, including a
  272  description and the total amount of each account or claim, which
  273  were written off or waived by the agency for any reason during
  274  the prior fiscal year, the reason for being written off, and
  275  whether any of those accounts continue to be pursued by a
  276  collection agent.
  277         (5) Beginning December 1, 2010, and each December 1
  278  thereafter, the Chief Financial Officer shall provide to the
  279  Governor, the President of the Senate, and the Speaker of the
  280  House of Representatives a report that details the following
  281  information for any contracted collection agent:
  282         (a) The amount of claims referred for collection by each
  283  agency, cumulatively and annually.
  284         (b) The number of accounts by age and amount.
  285         (c) A listing of those agencies that failed to report known
  286  claims to the Chief Financial Officer in a timely manner as
  287  prescribed in subsection (3).
  288         (d) The total amount of claims collected, cumulatively and
  289  annually.
  290         (6)(3) Notwithstanding any other provision of law, in any
  291  contract providing for the location or collection of unclaimed
  292  property, the Chief Financial Officer may authorize the
  293  contractor to deduct its fees and expenses for services provided
  294  under the contract from the unclaimed property that the
  295  contractor has recovered or collected under the contract. The
  296  Chief Financial Officer shall annually report to the Governor,
  297  President of the Senate, and the Speaker of the House of
  298  Representatives the total amount collected or recovered by each
  299  contractor during the previous fiscal year and the total fees
  300  and expenses deducted by each contractor.
  301         Section 3. Section 17.29, Florida Statutes, is amended to
  302  read:
  303         17.29 Authority to prescribe rules.—The Chief Financial
  304  Officer may adopt rules pursuant to ss. 120.536(1) and 120.54 to
  305  implement this chapter and the duties assigned by statute or the
  306  State Constitution. Such rules may include, but are not limited
  307  to, the following:
  308         (1) Procedures or policies relating to the processing of
  309  payments from salaries, other personal services, or any other
  310  applicable appropriation.
  311         (2) Procedures for processing interagency and intraagency
  312  payments that which do not require the issuance of a state
  313  warrant.
  314         (3) Procedures or policies requiring that payments made by
  315  the state for goods, services, or anything of value be made by
  316  electronic means, including, but not limited to, debit cards,
  317  credit cards, or electronic funds transfers.
  318         (4) A method that reasonably accommodates persons who,
  319  because of technological, financial, or other hardship, may not
  320  be able to receive payments by electronic means. The Chief
  321  Financial Officer may make payments by state warrant if deemed
  322  administratively necessary.
  323         Section 4. Subsection (1) of section 43.16, Florida
  324  Statutes, is amended to read:
  325         43.16 Justice Administrative Commission; membership, powers
  326  and duties.—
  327         (1) There is hereby created a Justice Administrative
  328  Commission, with headquarters located in the state capital. The
  329  necessary office space for use of the commission shall be
  330  furnished by the proper state agency in charge of state
  331  buildings. For purposes of the fees imposed on agencies pursuant
  332  to s. 287.057(22)(23), the Justice Administrative Commission
  333  shall be exempt from such fees.
  334         Section 5. Paragraph (e) of subsection (1) of section
  335  61.1826, Florida Statutes, is amended to read:
  336         61.1826 Procurement of services for State Disbursement Unit
  337  and the non-Title IV-D component of the State Case Registry;
  338  contracts and cooperative agreements; penalties; withholding
  339  payment.—
  340         (1) LEGISLATIVE FINDINGS.—The Legislature finds that the
  341  clerks of court play a vital role, as essential participants in
  342  the establishment, modification, collection, and enforcement of
  343  child support, in securing the health, safety, and welfare of
  344  the children of this state. The Legislature further finds and
  345  declares that:
  346         (e) The potential loss of substantial federal funds poses a
  347  direct and immediate threat to the health, safety, and welfare
  348  of the children and citizens of the state and constitutes an
  349  emergency for purposes of s. 287.057(3)(5)(a).
  350  
  351  For these reasons, the Legislature hereby directs the Department
  352  of Revenue, subject to the provisions of subsection (5), to
  353  contract with the Florida Association of Court Clerks and each
  354  depository to perform duties with respect to the operation and
  355  maintenance of a State Disbursement Unit and the non-Title IV-D
  356  component of the State Case Registry as further provided by this
  357  section.
  358         Section 6. Paragraph (h) of subsection (1) of section
  359  112.3215, Florida Statutes, is amended to read:
  360         112.3215 Lobbying before the executive branch or the
  361  Constitution Revision Commission; registration and reporting;
  362  investigation by commission.—
  363         (1) For the purposes of this section:
  364         (h) “Lobbyist” means a person who is employed and receives
  365  payment, or who contracts for economic consideration, for the
  366  purpose of lobbying, or a person who is principally employed for
  367  governmental affairs by another person or governmental entity to
  368  lobby on behalf of that other person or governmental entity.
  369  “Lobbyist” does not include a person who is:
  370         1. An attorney, or any person, who represents a client in a
  371  judicial proceeding or in a formal administrative proceeding
  372  conducted pursuant to chapter 120 or any other formal hearing
  373  before an agency, board, commission, or authority of this state.
  374         2. An employee of an agency or of a legislative or judicial
  375  branch entity acting in the normal course of his or her duties.
  376         3. A confidential informant who is providing, or wishes to
  377  provide, confidential information to be used for law enforcement
  378  purposes.
  379         4. A person who lobbies to procure a contract pursuant to
  380  chapter 287 which contract is less than the threshold for
  381  CATEGORY ONE as provided in s. 287.017(1)(a).
  382         Section 7. Section 215.322, Florida Statutes, is amended to
  383  read:
  384         215.322 Acceptance of credit cards, charge cards, or debit
  385  cards, or electronic funds transfers by state agencies, units of
  386  local government, and the judicial branch.—
  387         (1) It is the intent of the Legislature to encourage state
  388  agencies, the judicial branch, and units of local government to
  389  make their goods, services, and information more convenient to
  390  the public through the acceptance of payments by credit cards,
  391  charge cards, and debit cards, or other means of electronic
  392  funds transfers to the maximum extent practicable when the
  393  benefits to the participating agency and the public substantiate
  394  the cost of accepting these types of payments.
  395         (2) A state agency as defined in s. 216.011, or the
  396  judicial branch, may accept credit cards, charge cards, or debit
  397  cards, or electronic funds transfers in payment for goods and
  398  services with the prior approval of the Chief Financial Officer.
  399  If the Internet or other related electronic methods are to be
  400  used as the collection medium, the Agency for Enterprise
  401  Information Technology shall review and recommend to the Chief
  402  Financial Officer whether to approve the request with regard to
  403  the process or procedure to be used.
  404         (3) The Chief Financial Officer shall adopt rules governing
  405  the establishment and acceptance of credit cards, charge cards,
  406  or debit cards, or electronic funds transfers by state agencies
  407  or the judicial branch, including, but not limited to, the
  408  following:
  409         (a) Use Utilization of a standardized contract between the
  410  financial institution or other appropriate intermediaries and
  411  the agency or judicial branch which shall be developed by the
  412  Chief Financial Officer or approval by the Chief Financial
  413  Officer of a substitute agreement.
  414         (b) Procedures that which permit an agency or officer
  415  accepting payment by credit card, charge card, or debit card, or
  416  electronic funds transfer to impose a convenience fee upon the
  417  person making the payment. However, the total amount of such
  418  convenience fees may shall not exceed the total cost to the
  419  state agency. A convenience fee is not refundable to the payor.
  420  However Notwithstanding the foregoing, this section does shall
  421  not be construed to permit the imposition of surcharges on any
  422  other credit card purchase in violation of s. 501.0117.
  423         (c) All service fees payable pursuant to this section when
  424  practicable shall be invoiced and paid by state warrant or such
  425  other manner that is satisfactory to the Chief Financial Officer
  426  in accordance with the time periods specified in s. 215.422, if
  427  practicable.
  428         (d) Submission of information to the Chief Financial
  429  Officer concerning the acceptance of credit cards, charge cards,
  430  or debit cards, or electronic funds transfers by all state
  431  agencies or the judicial branch.
  432         (e) A methodology for agencies to use when completing the
  433  cost-benefit analysis referred to in subsection (1). The
  434  methodology must consider all quantifiable cost reductions,
  435  other benefits to the agency, and the potential impact on
  436  general revenue. The methodology must also consider
  437  nonquantifiable benefits such as the convenience to individuals
  438  and businesses that would benefit from the ability to pay for
  439  state goods and services through the use of credit cards, charge
  440  cards, and debit cards, or electronic funds transfers.
  441         (4) The Chief Financial Officer may establish contracts
  442  with one or more financial institutions, credit card companies,
  443  or other entities that which may lawfully provide such services,
  444  in a manner consistent with chapter 287, for processing credit
  445  card, charge card, or debit card, or electronic funds transfer
  446  collections for deposit into the State Treasury or another
  447  qualified public depository. Any state agency, or the judicial
  448  branch, which accepts payment by credit card, charge card, or
  449  debit card, or electronic funds transfer shall use at least one
  450  of the contractors established by the Chief Financial Officer,
  451  unless the state agency or judicial branch obtains authorization
  452  from the Chief Financial Officer to use another contractor that
  453  which is more advantageous to the such state agency or the
  454  judicial branch. The Such contracts may authorize a unit of
  455  local government to use the services upon the same terms and
  456  conditions for deposit of credit card, charge card, or debit
  457  card, or electronic funds transfer transactions into its
  458  qualified public depositories.
  459         (5) A unit of local government, including which term means
  460  a municipality, special district, or board of county
  461  commissioners or other governing body of a county, however
  462  styled, including that of a consolidated or metropolitan
  463  government, and means any clerk of the circuit court, sheriff,
  464  property appraiser, tax collector, or supervisor of elections,
  465  is authorized to accept payment by use of credit cards, charge
  466  cards, and bank debit cards, and electronic funds transfers for
  467  financial obligations that are owing to such unit of local
  468  government and to surcharge the person who uses a credit card,
  469  charge card, or bank debit card, or electronic funds transfer in
  470  payment of taxes, license fees, tuition, fines, civil penalties,
  471  court-ordered payments, or court costs, or other statutorily
  472  prescribed revenues an amount sufficient to pay the service fee
  473  charges by the financial institution, vending service company,
  474  or credit card company for such services. A unit of local
  475  government shall verify both the validity of any credit card,
  476  charge card, or bank debit card, or electronic funds transfer
  477  used pursuant to this subsection and the existence of
  478  appropriate credit with respect to the person using the card or
  479  transfer. The unit of local government does not incur any
  480  liability as a result of such verification or any subsequent
  481  action taken.
  482         (6) Any action required to be performed by a state officer
  483  or agency pursuant to this section shall be performed within 10
  484  working days after receipt of the request for approval or be
  485  deemed approved if not acted upon within that time.
  486         (7) Nothing contained in This section does not shall be
  487  construed to prohibit a state agency or the judicial branch from
  488  continuing to accept charge cards, or debit cards, or electronic
  489  funds transfers pursuant to a contract that which was lawfully
  490  entered into before prior to the effective date of this act,
  491  unless specifically directed otherwise in the General
  492  Appropriations Act. However, such contract may shall not be
  493  extended or renewed after the effective date of this act unless
  494  such renewal and extension conforms to the requirements of this
  495  section.
  496         (8) When deemed administratively necessary, a state agency,
  497  as defined in s. 216.011, or the judicial branch may adopt rules
  498  requiring that payments for goods, services, or anything of
  499  value be made by electronic means, including, but not limited
  500  to, credit cards, charge cards, debit cards, or electronic funds
  501  transfers. However, the rules may not conflict with any similar
  502  rules adopted by the Chief Financial Officer. The rules must
  503  provide a method to reasonably accommodate persons who, because
  504  of technological, financial, or other hardship, may not be able
  505  to make payment by electronic means.
  506         (9) For payment programs in which credit cards, charge
  507  cards, or debit cards are accepted by state agencies, the
  508  judicial branch, or units of local government, the Chief
  509  Financial Officer, in consultation with the Agency for
  510  Enterprise Information Technology, may adopt rules to establish
  511  uniform security safeguards for cardholder data and to ensure
  512  compliance with the Payment Card Industry Data Security
  513  Standards.
  514         Section 8. Section 215.971, Florida Statutes, is created to
  515  read:
  516         215.971Agreements funded with federal and state
  517  assistance.—For an agency agreement that provides state
  518  financial assistance to a recipient or subrecipient, as those
  519  terms are defined in s. 215.97, or that provides federal
  520  financial assistance to a subrecipient, as defined by applicable
  521  United States Office of Management and Budget circulars, the
  522  agreement shall include:
  523         (1) A provision specifying a scope of work that clearly
  524  establishes the tasks that the recipient or subrecipient is
  525  required to perform; and
  526         (2) A provision dividing the agreement into quantifiable
  527  units of deliverables that must be received and accepted in
  528  writing by the agency before payment. Each deliverable must be
  529  directly related to the scope of work and must specify the
  530  required minimum level of service to be performed and the
  531  criteria for evaluating the successful completion of each
  532  deliverable.
  533         Section 9. Section 216.3475, Florida Statutes, is amended
  534  to read:
  535         216.3475 Maximum rate of payment for services funded under
  536  General Appropriations Act or awarded on a noncompetitive
  537  basis.—A person or entity that is designated by the General
  538  Appropriations Act, or that is awarded funding on a
  539  noncompetitive basis, to provide services for which funds are
  540  appropriated by that act may not receive a rate of payment in
  541  excess of the competitive prevailing rate for those services
  542  unless expressly authorized in the General Appropriations Act.
  543  Each agency shall maintain records to support a cost analysis,
  544  which includes a detailed budget submitted by the person or
  545  entity awarded funding and the agency’s documented review of
  546  individual cost elements from the submitted budget for
  547  allowability, reasonableness, and necessity.
  548         Section 10. Subsection (6) of section 255.249, Florida
  549  Statutes, is amended to read:
  550         255.249 Department of Management Services; responsibility;
  551  department rules.—
  552         (6) The department may contract for real estate consulting
  553  or tenant brokerage services in order to carry out its duties
  554  relating to the strategic leasing plan. The contract shall be
  555  procured pursuant to s. 287.057. The vendor that is awarded the
  556  contract shall be compensated by the department, subject to the
  557  provisions of the contract, and such compensation is subject to
  558  appropriation by the Legislature. The real estate consultant or
  559  tenant broker may not receive compensation directly from a
  560  lessor for services that are rendered pursuant to the contract.
  561  Moneys paid to the real estate consultant or tenant broker are
  562  exempt from any charge imposed under s. 287.1345. Moneys paid by
  563  a lessor to the department under a facility-leasing arrangement
  564  are not subject to the charges imposed under s. 215.20.
  565         Section 11. Paragraph (h) of subsection (3) of section
  566  255.25, Florida Statutes, is amended to read:
  567         255.25 Approval required prior to construction or lease of
  568  buildings.—
  569         (3)
  570         (h) The Department of Management Services may, pursuant to
  571  s. 287.042(2)(a), procure a term contract for real estate
  572  consulting and brokerage services. A state agency may not
  573  purchase services from the contract unless the contract has been
  574  procured under s. 287.057(1), (2), or (3) after March 1, 2007,
  575  and contains the following provisions or requirements:
  576         1. Awarded brokers must maintain an office or presence in
  577  the market served. In awarding the contract, preference must be
  578  given to brokers that are licensed in this state under chapter
  579  475 and that have 3 or more years of experience in the market
  580  served. The contract may be made with up to three tenant brokers
  581  in order to serve the marketplace in the north, central, and
  582  south areas of the state.
  583         2. Each contracted tenant broker shall work under the
  584  direction, supervision, and authority of the state agency,
  585  subject to the rules governing lease procurements.
  586         3. The department shall provide training for the awarded
  587  tenant brokers concerning the rules governing the procurement of
  588  leases.
  589         4. Tenant brokers must comply with all applicable
  590  provisions of s. 475.278.
  591         5. Real estate consultants and tenant brokers shall be
  592  compensated by the state agency, subject to the provisions of
  593  the term contract, and such compensation is subject to
  594  appropriation by the Legislature. A real estate consultant or
  595  tenant broker may not receive compensation directly from a
  596  lessor for services that are rendered under the term contract.
  597  Moneys paid to a real estate consultant or tenant broker are
  598  exempt from any charge imposed under s. 287.1345. Moneys paid by
  599  a lessor to the state agency under a facility leasing
  600  arrangement are not subject to the charges imposed under s.
  601  215.20. All terms relating to the compensation of the real
  602  estate consultant or tenant broker shall be specified in the
  603  term contract and may not be supplemented or modified by the
  604  state agency using the contract.
  605         6. The department shall conduct periodic customer
  606  satisfaction surveys.
  607         7. Each state agency shall report the following information
  608  to the department:
  609         a. The number of leases that adhere to the goal of the
  610  workspace-management initiative of 180 square feet per FTE.
  611         b. The quality of space leased and the adequacy of tenant
  612  improvement funds.
  613         c. The timeliness of lease procurement, measured from the
  614  date of the agency’s request to the finalization of the lease.
  615         d. Whether cost-benefit analyses were performed before
  616  execution of the lease in order to ensure that the lease is in
  617  the best interest of the state.
  618         e. The lease costs compared to market rates for similar
  619  types and classifications of space according to the official
  620  classifications of the Building Owners and Managers Association.
  621         Section 12. Subsections (2) and (3) of section 283.32,
  622  Florida Statutes, are amended to read:
  623         283.32 Recycled paper to be used by each agency; printing
  624  bids certifying use of recycled paper; percentage preference in
  625  awarding contracts.—
  626         (2) Each agency shall require a vendor that submits a bid
  627  for a contract for printing and that wishes to be considered for
  628  the price preference described in s. 287.045 to certify in
  629  writing the percentage of recycled content of the material used
  630  for such printing. Such vendor may certify that the material
  631  contains no recycled content.
  632         (3) Upon evaluation of bids for each printing contract, the
  633  agency shall identify the lowest responsive bid and any other
  634  responsive bids in which it has been certified that the
  635  materials used in printing contain at least the minimum
  636  percentage of recycled content that is set forth by the
  637  department. In awarding a contract for printing, the agency may
  638  allow up to a 10-percent price preference, as provided in s.
  639  287.045, to a responsible and responsive vendor that has
  640  certified that the materials used in printing contain at least
  641  the minimum percentage of recycled content established by the
  642  department. If no vendors offer materials for printing that
  643  contain the minimum prescribed recycled content, the contract
  644  shall be awarded to the responsible vendor that submits the
  645  lowest responsive bid.
  646         Section 13. Paragraph (a) of subsection (2) of section
  647  286.0113, Florida Statutes, is amended to read:
  648         286.0113 General exemptions from public meetings.—
  649         (2)(a) A meeting at which a negotiation with a vendor is
  650  conducted pursuant to s. 287.057(1)(3) is exempt from s. 286.011
  651  and s. 24(b), Art. I of the State Constitution.
  652         Section 14. Section 287.012, Florida Statutes, is amended
  653  to read:
  654         287.012 Definitions.—As used in this part, the term:
  655         (1) “Agency” means any of the various state officers,
  656  departments, boards, commissions, divisions, bureaus, and
  657  councils and any other unit of organization, however designated,
  658  of the executive branch of state government. “Agency” does not
  659  include the university and college boards of trustees or the
  660  state universities and colleges.
  661         (2) “Agency head” means, with respect to an agency headed
  662  by a collegial body, the executive director or chief
  663  administrative officer of the agency.
  664         (3) “Artistic services” “Artist” means the rendering by a
  665  contractor of its time and effort to create or perform an
  666  artistic work in the fields an individual or group of
  667  individuals who profess and practice a demonstrated creative
  668  talent and skill in the area of music, dance, drama, folk art,
  669  creative writing, painting, sculpture, photography, graphic
  670  arts, craft arts, industrial design, costume design, fashion
  671  design, motion pictures, television, radio, or tape and sound
  672  recording or in any other related field.
  673         (4) “Best value” means the highest overall value to the
  674  state based on objective factors that include, but are not
  675  limited to, price, quality, design, and workmanship.
  676         (5) “Commodity” means any of the various supplies,
  677  materials, goods, merchandise, food, equipment, information
  678  technology, and other personal property, including a mobile
  679  home, trailer, or other portable structure with floor space of
  680  less than 5,000 square feet, purchased, leased, or otherwise
  681  contracted for by the state and its agencies. “Commodity” also
  682  includes interest on deferred-payment commodity contracts
  683  approved pursuant to s. 287.063 entered into by an agency for
  684  the purchase of other commodities. However, commodities
  685  purchased for resale are excluded from this definition. Further,
  686  a prescribed drug, medical supply, or device required by a
  687  licensed health care provider as a part of providing health
  688  services involving examination, diagnosis, treatment,
  689  prevention, medical consultation, or administration for clients
  690  at the time the service is provided is not considered to be a
  691  “commodity.” Printing of publications shall be considered a
  692  commodity when let upon contract pursuant to s. 283.33, whether
  693  purchased for resale or not.
  694         (6) “Competitive solicitation sealed bids,“competitive
  695  sealed proposals,” or “competitive sealed replies” means the
  696  process of requesting and receiving two or more sealed bids,
  697  proposals, or replies submitted by responsive vendors in
  698  accordance with the terms of a competitive process, regardless
  699  of the method of procurement and includes bids, proposals, or
  700  replies transmitted by electronic means in lieu of or in
  701  addition to written bids, proposals, or replies.
  702         (7) “Competitive solicitation” or “solicitation” means an
  703  invitation to bid, a request for proposals, or an invitation to
  704  negotiate.
  705         (7)(8) “Contractor” means a person who contracts to sell
  706  commodities or contractual services to an agency.
  707         (8)(9) “Contractual service” means the rendering by a
  708  contractor of its time and effort rather than the furnishing of
  709  specific commodities. The term applies only to those services
  710  rendered by individuals and firms who are independent
  711  contractors, and such services may include, but are not limited
  712  to, evaluations; consultations; maintenance; accounting;
  713  security; management systems; management consulting; educational
  714  training programs; research and development studies or reports
  715  on the findings of consultants engaged thereunder; and
  716  professional, technical, and social services. “Contractual
  717  service” does not include any contract for the furnishing of
  718  labor or materials for the construction, renovation, repair,
  719  modification, or demolition of any facility, building, portion
  720  of building, utility, park, parking lot, or structure or other
  721  improvement to real property entered into pursuant to chapter
  722  255 and rules adopted thereunder.
  723         (9)(10) “Department” means the Department of Management
  724  Services.
  725         (10)(11) “Electronic posting” or “electronically post”
  726  means the noticing posting of solicitations, agency decisions or
  727  intended decisions, or other matters relating to procurement on
  728  a centralized Internet website designated by the department for
  729  this purpose.
  730         (11)(12) “Eligible user” means any person or entity
  731  authorized by the department pursuant to rule to purchase from
  732  state term contracts or to use the online procurement system.
  733         (12)(13) “Exceptional purchase” means any purchase of
  734  commodities or contractual services excepted by law or rule from
  735  the requirements for competitive solicitation, including, but
  736  not limited to, purchases from a single source; purchases upon
  737  receipt of less than two responsive bids, proposals, or replies;
  738  purchases made by an agency, after receiving approval from the
  739  department, from a contract procured, pursuant to s. 287.057(1),
  740  or (2), or (3), by another agency; and purchases made without
  741  advertisement in the manner required by s. 287.042(3)(b).
  742         (13)(14) “Extension” means an increase in the time allowed
  743  for the contract period due to circumstances which, without
  744  fault of either party, make performance impracticable or
  745  impossible, or which prevent a new contract from being executed,
  746  with or without a proportional increase in the total dollar
  747  amount, with any increase to be based on the method and rate
  748  previously established in the contract.
  749         (14)(15) “Information technology” has the meaning ascribed
  750  in s. 282.0041.
  751         (15)(16) “Invitation to bid” means a written or
  752  electronically posted solicitation for competitive sealed bids.
  753  The invitation to bid is used when the agency is capable of
  754  specifically defining the scope of work for which a contractual
  755  service is required or when the agency is capable of
  756  establishing precise specifications defining the actual
  757  commodity or group of commodities required. A written
  758  solicitation includes a solicitation that is electronically
  759  posted.
  760         (16)(17) “Invitation to negotiate” means a written or
  761  electronically posted solicitation for competitive sealed
  762  replies to select one or more vendors with which to commence
  763  negotiations for the procurement of commodities or contractual
  764  services. The invitation to negotiate is used when the agency
  765  determines that negotiations may be necessary for the state to
  766  receive the best value. A written solicitation includes a
  767  solicitation that is electronically posted.
  768         (17)(18) “Minority business enterprise” has the meaning
  769  ascribed in s. 288.703.
  770         (18)(19) “Office” means the Office of Supplier Diversity of
  771  the Department of Management Services.
  772         (19) “Outsource” means the process of contracting with a
  773  vendor to provide a service as defined in s. 216.011(1)(f), in
  774  whole or in part, or an activity as defined in s.
  775  216.011(1)(rr), while a state agency retains the responsibility
  776  and accountability for the service or activity and there is a
  777  transfer of management responsibility for the delivery of
  778  resources and the performance of those resources.
  779         (20) “Renewal” means contracting with the same contractor
  780  for an additional contract period after the initial contract
  781  period, only if pursuant to contract terms specifically
  782  providing for such renewal.
  783         (21) “Request for information” means a written or
  784  electronically posted request made by an agency to vendors for
  785  information concerning commodities or contractual services.
  786  Responses to these requests are not offers and may not be
  787  accepted by the agency to form a binding contract.
  788         (22) “Request for proposals” means a written or
  789  electronically posted solicitation for competitive sealed
  790  proposals. The request for proposals is used when it is not
  791  practicable for the agency to specifically define the scope of
  792  work for which the commodity, group of commodities, or
  793  contractual service is required and when the agency is
  794  requesting that a responsible vendor propose a commodity, group
  795  of commodities, or contractual service to meet the
  796  specifications of the solicitation document. A written
  797  solicitation includes a solicitation that is electronically
  798  posted.
  799         (23) “Request for a quote” means an oral or written request
  800  for written pricing or services information from a state term
  801  contract vendor for commodities or contractual services
  802  available on a state term contract from that vendor.
  803         (24) “Responsible vendor” means a vendor who has the
  804  capability in all respects to fully perform the contract
  805  requirements and the integrity and reliability that will assure
  806  good faith performance.
  807         (25) “Responsive bid,” “responsive proposal,” or
  808  “responsive reply” means a bid, or proposal, or reply submitted
  809  by a responsive and responsible vendor that conforms in all
  810  material respects to the solicitation.
  811         (26) “Responsive vendor” means a vendor that has submitted
  812  a bid, proposal, or reply that conforms in all material respects
  813  to the solicitation.
  814         (27) “State term contract” means a term contract that is
  815  competitively procured by the department pursuant to s. 287.057
  816  and that is used by agencies and eligible users pursuant to s.
  817  287.056.
  818         (28) “Term contract” means an indefinite quantity contract
  819  to furnish commodities or contractual services during a defined
  820  period.
  821         Section 15. Section 287.017, Florida Statutes, is amended
  822  to read:
  823         287.017 Purchasing categories, threshold amounts;
  824  procedures for automatic adjustment by department.—
  825         (1) The following purchasing categories are hereby created:
  826         (1)(a) CATEGORY ONE: $20,000 $15,000.
  827         (2)(b) CATEGORY TWO: $35,000 $25,000.
  828         (3)(c) CATEGORY THREE: $65,000 $50,000.
  829         (4)(d) CATEGORY FOUR: $195,000 $150,000.
  830         (5)(e) CATEGORY FIVE: $325,000 $250,000.
  831         (2) The department shall adopt rules to adjust the amounts
  832  provided in subsection (1) based upon the rate of change of a
  833  nationally recognized price index. Such rules shall include, but
  834  not be limited to, the following:
  835         (a) Designation of the nationally recognized price index or
  836  component thereof used to calculate the proper adjustment
  837  authorized in this section.
  838         (b) The procedure for rounding results.
  839         (c) The effective date of each adjustment based upon the
  840  previous calendar year data.
  841         Section 16. Subsection (1) of section 287.022, Florida
  842  Statutes, is amended to read:
  843         287.022 Purchase of insurance.—
  844         (1) Insurance, while not a commodity, nevertheless shall be
  845  purchased for all agencies by the department, except that
  846  agencies may purchase title insurance for land acquisition and
  847  may make emergency purchases of insurance pursuant to s.
  848  287.057(3)(5)(a). The procedures for purchasing insurance,
  849  whether the purchase is made by the department or by the
  850  agencies, shall be the same as those set forth herein for the
  851  purchase of commodities.
  852         Section 17. Section 287.045, Florida Statutes, is repealed.
  853         Section 18. Subsections (1) and (2) of section 287.056,
  854  Florida Statutes, are amended to read:
  855         287.056 Purchases from purchasing agreements and state term
  856  contracts.—
  857         (1) Agencies shall, and eligible users may, purchase
  858  commodities and contractual services from purchasing agreements
  859  established and state term contracts procured, pursuant to s.
  860  287.057, by the department. Each agency agreement made under
  861  this subsection shall include:
  862         (a) A provision specifying a scope of work that clearly
  863  establishes all tasks that the contractor is required to
  864  perform.
  865         (b) A provision dividing the contract into quantifiable,
  866  measurable, and verifiable units of deliverables that must be
  867  received and accepted in writing by the contract manager before
  868  payment. Each deliverable must be directly related to the scope
  869  of work and specify the required minimum level of service to be
  870  performed and the criteria for evaluating the successful
  871  completion of each deliverable.
  872         (2) Agencies may have the option to purchase commodities or
  873  contractual services from state term contracts procured,
  874  pursuant to s. 287.057, by the department which contain a user
  875  surcharge pursuant to s. 287.1345 as determined by the
  876  department.
  877         Section 19. Section 287.057, Florida Statutes, is amended
  878  to read:
  879         287.057 Procurement of commodities or contractual
  880  services.—
  881         (1) The competitive solicitation processes authorized in
  882  this section shall be used for procurement of commodities or
  883  contractual services in excess of the threshold amount provided
  884  for CATEGORY TWO in s. 287.017. Any competitive solicitation
  885  shall be made available simultaneously to all vendors, must
  886  include the time and date for the receipt of bids, proposals, or
  887  replies and of the public opening, and must include all
  888  contractual terms and conditions applicable to the procurement,
  889  including the criteria to be used in determining acceptability
  890  and relative merit of the bid, proposal, or reply.
  891         (a) Invitation to bid.—The invitation to bid shall be used
  892  when the agency is capable of specifically defining the scope of
  893  work for which a contractual service is required or when the
  894  agency is capable of establishing precise specifications
  895  defining the actual commodity or group of commodities required.
  896         1. All invitations to bid must include:
  897         a. A detailed description of the commodities or contractual
  898  services sought; and
  899         b. If the agency contemplates renewal of the contract, a
  900  statement to that effect.
  901         2. Bids submitted in response to an invitation to bid in
  902  which the agency contemplates renewal of the contract must
  903  include the price for each year for which the contract may be
  904  renewed.
  905         3. Evaluation of bids shall include consideration of the
  906  total cost for each year of the contract, including renewal
  907  years, as submitted by the vendor.
  908         (b) Request for proposals.—An agency shall use a request
  909  for proposals when the purposes and uses for which the
  910  commodity, group of commodities, or contractual service being
  911  sought can be specifically defined and the agency is capable of
  912  identifying necessary deliverables. Various combinations or
  913  versions of commodities or contractual services may be proposed
  914  by a responsive vendor to meet the specifications of the
  915  solicitation document.
  916         1. Before issuing a request for proposals, the agency must
  917  determine and specify in writing the reasons that procurement by
  918  invitation to bid is not practicable.
  919         2. All requests for proposals must include:
  920         a. A statement describing the commodities or contractual
  921  services sought;
  922         b. The relative importance of price and other evaluation
  923  criteria; and
  924         c. If the agency contemplates renewal of the contract, a
  925  statement to that effect.
  926         3. Criteria that will be used for evaluation of proposals
  927  shall include, but are not limited to:
  928         a. Price, which must be specified in the proposal;
  929         b. If the agency contemplates renewal of the contract, the
  930  price for each year for which the contract may be renewed; and
  931         c. Consideration of the total cost for each year of the
  932  contract, including renewal years, as submitted by the vendor.
  933         4. The contract shall be awarded by written notice to the
  934  responsible and responsive vendor whose proposal is determined
  935  in writing to be the most advantageous to the state, taking into
  936  consideration the price and other criteria set forth in the
  937  request for proposals. The contract file shall contain
  938  documentation supporting the basis on which the award is made.
  939         (c) Invitation to negotiate.—The invitation to negotiate is
  940  a solicitation used by an agency which is intended to determine
  941  the best method for achieving a specific goal or solving a
  942  particular problem and identifies one or more responsive vendors
  943  with which the agency may negotiate in order to receive the best
  944  value.
  945         1. Before issuing an invitation to negotiate, the head of
  946  an agency must determine and specify in writing the reasons that
  947  procurement by an invitation to bid or a request for proposal is
  948  not practicable.
  949         2. The invitation to negotiate must describe the questions
  950  being explored, the facts being sought, and the specific goals
  951  or problems that are the subject of the solicitation.
  952         3. The criteria that will be used for determining the
  953  acceptability of the reply and guiding the selection of the
  954  vendors with which the agency will negotiate must be specified.
  955         4. The agency shall evaluate replies against all evaluation
  956  criteria set forth in the invitation to negotiate in order to
  957  establish a competitive range of replies reasonably susceptible
  958  of award. The agency may select one or more vendors within the
  959  competitive range with which to commence negotiations. After
  960  negotiations are conducted, the agency shall award the contract
  961  to the responsible and responsive vendor that the agency
  962  determines will provide the best value to the state, based on
  963  the selection criteria.
  964         5. The contract file for a vendor selected through an
  965  invitation to negotiate must contain a short plain statement
  966  that explains the basis for the selection of the vendor and that
  967  sets forth the vendor’s deliverables and price, pursuant to the
  968  contract, along with an explanation of how these deliverables
  969  and price provide the best value to the state.
  970         (1)(a) Unless otherwise authorized by law, all contracts
  971  for the purchase of commodities or contractual services in
  972  excess of the threshold amount provided in s. 287.017 for
  973  CATEGORY TWO shall be awarded by competitive sealed bidding. An
  974  invitation to bid shall be made available simultaneously to all
  975  vendors and must include a detailed description of the
  976  commodities or contractual services sought; the time and date
  977  for the receipt of bids and of the public opening; and all
  978  contractual terms and conditions applicable to the procurement,
  979  including the criteria to be used in determining acceptability
  980  of the bid. If the agency contemplates renewal of the contract,
  981  that fact must be stated in the invitation to bid. The bid shall
  982  include the price for each year for which the contract may be
  983  renewed. Evaluation of bids shall include consideration of the
  984  total cost for each year as submitted by the vendor. Criteria
  985  that were not set forth in the invitation to bid may not be used
  986  in determining acceptability of the bid.
  987         (b) The contract shall be awarded with reasonable
  988  promptness by written notice to the responsible and responsive
  989  vendor that submits the lowest responsive bid. This bid must be
  990  determined in writing to meet the requirements and criteria set
  991  forth in the invitation to bid.
  992         (2)(a) If an agency determines in writing that the use of
  993  an invitation to bid is not practicable, commodities or
  994  contractual services shall be procured by competitive sealed
  995  proposals. A request for proposals shall be made available
  996  simultaneously to all vendors, and must include a statement of
  997  the commodities or contractual services sought; the time and
  998  date for the receipt of proposals and of the public opening; and
  999  all contractual terms and conditions applicable to the
 1000  procurement, including the criteria, which shall include, but
 1001  need not be limited to, price, to be used in determining
 1002  acceptability of the proposal. The relative importance of price
 1003  and other evaluation criteria shall be indicated. If the agency
 1004  contemplates renewal of the commodities or contractual services
 1005  contract, that fact must be stated in the request for proposals.
 1006  The proposal shall include the price for each year for which the
 1007  contract may be renewed. Evaluation of proposals shall include
 1008  consideration of the total cost for each year as submitted by
 1009  the vendor.
 1010         (b) The contract shall be awarded to the responsible and
 1011  responsive vendor whose proposal is determined in writing to be
 1012  the most advantageous to the state, taking into consideration
 1013  the price and the other criteria set forth in the request for
 1014  proposals. The contract file shall contain documentation
 1015  supporting the basis on which the award is made.
 1016         (3)(a) If the agency determines in writing that the use of
 1017  an invitation to bid or a request for proposals will not result
 1018  in the best value to the state, the agency may procure
 1019  commodities and contractual services by competitive sealed
 1020  replies. The agency’s written determination must specify reasons
 1021  that explain why negotiation may be necessary in order for the
 1022  state to achieve the best value and must be approved in writing
 1023  by the agency head or his or her designee prior to the
 1024  advertisement of an invitation to negotiate. An invitation to
 1025  negotiate shall be made available to all vendors simultaneously
 1026  and must include a statement of the commodities or contractual
 1027  services sought; the time and date for the receipt of replies
 1028  and of the public opening; and all terms and conditions
 1029  applicable to the procurement, including the criteria to be used
 1030  in determining the acceptability of the reply. If the agency
 1031  contemplates renewal of the contract, that fact must be stated
 1032  in the invitation to negotiate. The reply shall include the
 1033  price for each year for which the contract may be renewed.
 1034         (b) The agency shall evaluate and rank responsive replies
 1035  against all evaluation criteria set forth in the invitation to
 1036  negotiate and shall select, based on the ranking, one or more
 1037  vendors with which to commence negotiations. After negotiations
 1038  are conducted, the agency shall award the contract to the
 1039  responsible and responsive vendor that the agency determines
 1040  will provide the best value to the state. The contract file must
 1041  contain a short plain statement that explains the basis for
 1042  vendor selection and that sets forth the vendor’s deliverables
 1043  and price, pursuant to the contract, with an explanation of how
 1044  these deliverables and price provide the best value to the
 1045  state.
 1046         (2)(4) Prior to the time for receipt of bids, proposals, or
 1047  replies, an agency may conduct a conference or written question
 1048  and answer period for purposes of assuring the vendor’s full
 1049  understanding of the solicitation requirements. The vendors
 1050  shall be accorded fair and equal treatment.
 1051         (3)(5) When the purchase price of commodities or
 1052  contractual services exceeds the threshold amount provided in s.
 1053  287.017 for CATEGORY TWO, no purchase of commodities or
 1054  contractual services may be made without receiving competitive
 1055  sealed bids, competitive sealed proposals, or competitive sealed
 1056  replies unless:
 1057         (a) The agency head determines in writing that an immediate
 1058  danger to the public health, safety, or welfare or other
 1059  substantial loss to the state requires emergency action. After
 1060  the agency head makes such a written determination, the agency
 1061  may proceed with the procurement of commodities or contractual
 1062  services necessitated by the immediate danger, without receiving
 1063  competitive sealed bids, competitive sealed proposals, or
 1064  competitive sealed replies. However, such emergency procurement
 1065  shall be made by obtaining pricing information from at least two
 1066  prospective vendors, which must be retained in the contract
 1067  file, unless the agency determines in writing that the time
 1068  required to obtain pricing information will increase the
 1069  immediate danger to the public health, safety, or welfare or
 1070  other substantial loss to the state. The agency shall furnish
 1071  copies of all written determinations certified under oath and
 1072  any other documents relating to the emergency action to the
 1073  department. A copy of the statement shall be furnished to the
 1074  Chief Financial Officer with the voucher authorizing payment.
 1075  The individual purchase of personal clothing, shelter, or
 1076  supplies which are needed on an emergency basis to avoid
 1077  institutionalization or placement in a more restrictive setting
 1078  is an emergency for the purposes of this paragraph, and the
 1079  filing with the department of such statement is not required in
 1080  such circumstances. In the case of the emergency purchase of
 1081  insurance, the period of coverage of such insurance shall not
 1082  exceed a period of 30 days, and all such emergency purchases
 1083  shall be reported to the department.
 1084         (b) The purchase is made by an agency from a state term
 1085  contract procured, pursuant to this section, by the department
 1086  or by an agency, after receiving approval from the department,
 1087  from a contract procured, pursuant to subsection (1), subsection
 1088  (2), or subsection (3), by another agency.
 1089         (c) Commodities or contractual services available only from
 1090  a single source may be excepted from the competitive
 1091  solicitation requirements. When an agency believes that
 1092  commodities or contractual services are available only from a
 1093  single source, the agency shall electronically post a
 1094  description of the commodities or contractual services sought
 1095  for a period of at least 7 business days. The description must
 1096  include a request that prospective vendors provide information
 1097  regarding their ability to supply the commodities or contractual
 1098  services described. If it is determined in writing by the
 1099  agency, after reviewing any information received from
 1100  prospective vendors, that the commodities or contractual
 1101  services are available only from a single source, the agency
 1102  shall:
 1103         1. Provide notice of its intended decision to enter a
 1104  single-source purchase contract in the manner specified in s.
 1105  120.57(3), if the amount of the contract does not exceed the
 1106  threshold amount provided in s. 287.017 for CATEGORY FOUR.
 1107         2. Request approval from the department for the single
 1108  source purchase, if the amount of the contract exceeds the
 1109  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
 1110  agency shall initiate its request for approval in a form
 1111  prescribed by the department, which request may be
 1112  electronically transmitted. The failure of the department to
 1113  approve or disapprove the agency’s request for approval within
 1114  21 days after receiving such request shall constitute prior
 1115  approval of the department. If the department approves the
 1116  agency’s request, the agency shall provide notice of its
 1117  intended decision to enter a single-source contract in the
 1118  manner specified in s. 120.57(3).
 1119         (d) When it is in the best interest of the state, the
 1120  secretary of the department or his or her designee may authorize
 1121  the Support Program to purchase insurance by negotiation, but
 1122  such purchase shall be made only under conditions most favorable
 1123  to the public interest.
 1124         (e) Prescriptive assistive devices for the purpose of
 1125  medical, developmental, or vocational rehabilitation of clients
 1126  are excepted from competitive-solicitation requirements and
 1127  shall be procured pursuant to an established fee schedule or by
 1128  any other method which ensures the best price for the state,
 1129  taking into consideration the needs of the client. Prescriptive
 1130  assistive devices include, but are not limited to, prosthetics,
 1131  orthotics, and wheelchairs. For purchases made pursuant to this
 1132  paragraph, state agencies shall annually file with the
 1133  department a description of the purchases and methods of
 1134  procurement.
 1135         (f) The following contractual services and commodities are
 1136  not subject to the competitive-solicitation requirements of this
 1137  section:
 1138         1. Artistic services. For the purposes of this subsection,
 1139  the term “artistic services” does not include advertising or
 1140  typesetting. As used in this subparagraph, the term
 1141  “advertising” means the making of a representation in any form
 1142  in connection with a trade, business, craft, or profession in
 1143  order to promote the supply of commodities or services by the
 1144  person promoting the commodities or contractual services.
 1145         2. Academic program reviews if the fee for such services
 1146  does not exceed $50,000.
 1147         3. Lectures by individuals.
 1148         4. Auditing services.
 1149         4.5. Legal services, including attorney, paralegal, expert
 1150  witness, appraisal, or mediator services.
 1151         5.a.6. Health services involving examination, diagnosis,
 1152  treatment, prevention, medical consultation, or administration.
 1153         b. Beginning January 1, 2011, health services, including,
 1154  but not limited to, substance abuse and mental health services,
 1155  involving examination, diagnosis, treatment, prevention, or
 1156  medical consultation, when such services are offered to eligible
 1157  individuals participating in a specific program that qualifies
 1158  multiple providers and uses a standard payment methodology.
 1159  Reimbursement of administrative costs for providers of services
 1160  purchased in this manner shall also be exempt. For purposes of
 1161  this sub-subparagraph, “providers” means health professionals,
 1162  health facilities, or organizations that deliver or arrange for
 1163  the delivery of health services.
 1164         6.7. Services provided to persons with mental or physical
 1165  disabilities by not-for-profit corporations which have obtained
 1166  exemptions under the provisions of s. 501(c)(3) of the United
 1167  States Internal Revenue Code or when such services are governed
 1168  by the provisions of Office of Management and Budget Circular A
 1169  122. However, in acquiring such services, the agency shall
 1170  consider the ability of the vendor, past performance,
 1171  willingness to meet time requirements, and price.
 1172         7.8. Medicaid services delivered to an eligible Medicaid
 1173  recipient unless the agency is directed otherwise in law by a
 1174  health care provider who has not previously applied for and
 1175  received a Medicaid provider number from the Agency for Health
 1176  Care Administration. However, this exception shall be valid for
 1177  a period not to exceed 90 days after the date of delivery to the
 1178  Medicaid recipient and shall not be renewed by the agency.
 1179         8.9. Family placement services.
 1180         9.10. Prevention services related to mental health,
 1181  including drug abuse prevention programs, child abuse prevention
 1182  programs, and shelters for runaways, operated by not-for-profit
 1183  corporations. However, in acquiring such services, the agency
 1184  shall consider the ability of the vendor, past performance,
 1185  willingness to meet time requirements, and price.
 1186         10.11. Training and education services provided to injured
 1187  employees pursuant to s. 440.491(6).
 1188         11.12. Contracts entered into pursuant to s. 337.11.
 1189         12.13. Services or commodities provided by governmental
 1190  agencies.
 1191         (g) Continuing education events or programs that are
 1192  offered to the general public and for which fees have been
 1193  collected that pay all expenses associated with the event or
 1194  program are exempt from requirements for competitive
 1195  solicitation.
 1196         (4) An agency must document its compliance with s. 216.3475
 1197  if the purchase of contractual services exceeds the threshold
 1198  amount provided in s. 287.017 for CATEGORY TWO and such services
 1199  are not competitively procured.
 1200         (5)(6) If less than two responsive bids, proposals, or
 1201  replies for commodity or contractual services purchases are
 1202  received, the department or other agency may negotiate on the
 1203  best terms and conditions. The department or other agency shall
 1204  document the reasons that such action is in the best interest of
 1205  the state in lieu of resoliciting competitive sealed bids,
 1206  proposals, or replies. Each agency shall report all such actions
 1207  to the department on a quarterly basis, in a manner and form
 1208  prescribed by the department.
 1209         (6)(7) Upon issuance of any solicitation, an agency shall,
 1210  upon request by the department, forward to the department one
 1211  copy of each solicitation for all commodity and contractual
 1212  services purchases in excess of the threshold amount provided in
 1213  s. 287.017 for CATEGORY TWO. An agency shall also, upon request,
 1214  furnish a copy of all competitive-solicitation tabulations. The
 1215  Office of Supplier Diversity may also request from the agencies
 1216  any information submitted to the department pursuant to this
 1217  subsection.
 1218         (7)(8)(a) In order to strive to meet the minority business
 1219  enterprise procurement goals set forth in s. 287.09451, an
 1220  agency may reserve any contract for competitive solicitation
 1221  only among certified minority business enterprises. Agencies
 1222  shall review all their contracts each fiscal year and shall
 1223  determine which contracts may be reserved for solicitation only
 1224  among certified minority business enterprises. This reservation
 1225  may only be used when it is determined, by reasonable and
 1226  objective means, before the solicitation that there are capable,
 1227  qualified certified minority business enterprises available to
 1228  submit a bid, proposal, or reply on a contract to provide for
 1229  effective competition. The Office of Supplier Diversity shall
 1230  consult with any agency in reaching such determination when
 1231  deemed appropriate.
 1232         (b) Before a contract may be reserved for solicitation only
 1233  among certified minority business enterprises, the agency head
 1234  must find that such a reservation is in the best interests of
 1235  the state. All determinations shall be subject to s.
 1236  287.09451(5). Once a decision has been made to reserve a
 1237  contract, but before sealed bids, proposals, or replies are
 1238  requested, the agency shall estimate what it expects the amount
 1239  of the contract to be, based on the nature of the services or
 1240  commodities involved and their value under prevailing market
 1241  conditions. If all the sealed bids, proposals, or replies
 1242  received are over this estimate, the agency may reject the bids,
 1243  proposals, or replies and request new ones from certified
 1244  minority business enterprises, or the agency may reject the
 1245  bids, proposals, or replies and reopen the bidding to all
 1246  eligible vendors.
 1247         (c) All agencies shall consider the use of price
 1248  preferences of up to 10 percent, weighted preference formulas,
 1249  or other preferences for vendors as determined appropriate
 1250  pursuant to guidelines established in accordance with s.
 1251  287.09451(4) to increase the participation of minority business
 1252  enterprises.
 1253         (d) All agencies shall avoid any undue concentration of
 1254  contracts or purchases in categories of commodities or
 1255  contractual services in order to meet the minority business
 1256  enterprise purchasing goals in s. 287.09451.
 1257         (8)(9) An agency may reserve any contract for competitive
 1258  solicitation only among vendors who agree to use certified
 1259  minority business enterprises as subcontractors or subvendors.
 1260  The percentage of funds, in terms of gross contract amount and
 1261  revenues, which must be expended with the certified minority
 1262  business enterprise subcontractors and subvendors shall be
 1263  determined by the agency before such contracts may be reserved.
 1264  In order to bid on a contract so reserved, the vendor shall
 1265  identify those certified minority business enterprises which
 1266  will be utilized as subcontractors or subvendors by sworn
 1267  statement. At the time of performance or project completion, the
 1268  contractor shall report by sworn statement the payments and
 1269  completion of work for all certified minority business
 1270  enterprises used in the contract.
 1271         (9)(10) An agency shall not divide the solicitation
 1272  procurement of commodities or contractual services so as to
 1273  avoid the requirements of subsections (1)-(3) (1) through (5).
 1274         (10)(11) A contract for commodities or contractual services
 1275  may be awarded without competition if state or federal law
 1276  prescribes with whom the agency must contract or if the rate of
 1277  payment is established during the appropriations process.
 1278         (11)(12) If two equal responses to a solicitation or a
 1279  request for quote are received and one response is from a
 1280  certified minority business enterprise, the agency shall enter
 1281  into a contract with the certified minority business enterprise.
 1282         (12)(13) Extension of a contract for contractual services
 1283  shall be in writing for a period not to exceed 6 months and
 1284  shall be subject to the same terms and conditions set forth in
 1285  the initial contract. There shall be only one extension of a
 1286  contract unless the failure to meet the criteria set forth in
 1287  the contract for completion of the contract is due to events
 1288  beyond the control of the contractor.
 1289         (13)(14)(a) Contracts for commodities or contractual
 1290  services may be renewed for a period that may not exceed 3 years
 1291  or the term of the original contract, whichever period is
 1292  longer. Renewal of a contract for commodities or contractual
 1293  services shall be in writing and shall be subject to the same
 1294  terms and conditions set forth in the initial contract. If the
 1295  commodity or contractual service is purchased as a result of the
 1296  solicitation of bids, proposals, or replies, the price of the
 1297  commodity or contractual service to be renewed shall be
 1298  specified in the bid, proposal, or reply. A renewal contract may
 1299  not include any compensation for costs associated with the
 1300  renewal. Renewals shall be contingent upon satisfactory
 1301  performance evaluations by the agency and subject to the
 1302  availability of funds. Exceptional purchase contracts pursuant
 1303  to paragraphs (3)(5)(a) and (c) may not be renewed. With the
 1304  exception of subsection (12) (13), if a contract amendment
 1305  results in a longer contract term or increased payments, a state
 1306  agency may not renew or amend a contract for the outsourcing of
 1307  a service or activity that has an original term value exceeding
 1308  the sum of $10 million before submitting a written report
 1309  concerning contract performance to the Governor, the President
 1310  of the Senate, and the Speaker of the House of Representatives
 1311  at least 90 days before execution of the renewal or amendment.
 1312         (b) The Department of Health shall enter into an agreement,
 1313  not to exceed 20 years, with a private contractor to finance,
 1314  design, and construct a hospital, of no more than 50 beds, for
 1315  the treatment of patients with active tuberculosis and to
 1316  operate all aspects of daily operations within the facility. The
 1317  contractor may sponsor the issuance of tax-exempt certificates
 1318  of participation or other securities to finance the project, and
 1319  the state may enter into a lease-purchase agreement for the
 1320  facility. The department shall begin the implementation of this
 1321  initiative by July 1, 2008. This paragraph expires July 1, 2009.
 1322         (14)(15) For each contractual services contract, the agency
 1323  shall designate an employee to function as contract manager who
 1324  shall be responsible for enforcing performance of the contract
 1325  terms and conditions and serve as a liaison with the contractor.
 1326  Each contract manager who is responsible for contracts in excess
 1327  of the threshold amount for CATEGORY TWO must attend training
 1328  conducted by the Chief Financial Officer for accountability in
 1329  contracts and grant management. The Chief Financial Officer
 1330  agency shall establish and disseminate uniform procedures
 1331  pursuant to s. 17.03(3) to ensure that contractual services have
 1332  been rendered in accordance with the contract terms before the
 1333  agency processes prior to processing the invoice for payment.
 1334  The procedures shall include, but need not be limited to,
 1335  procedures for monitoring and documenting contractor
 1336  performance, reviewing and documenting all deliverables for
 1337  which payment is requested by vendors, and providing written
 1338  certification by contract managers of the agency’s receipt of
 1339  goods and services.
 1340         (15)(16) Each agency shall designate at least one employee
 1341  who shall serve as a contract administrator responsible for
 1342  maintaining a contract file and financial information on all
 1343  contractual services contracts and who shall serve as a liaison
 1344  with the contract managers and the department.
 1345         (16)(17) For a contract in excess of the threshold amount
 1346  provided in s. 287.017 for CATEGORY FOUR, the agency head shall
 1347  appoint:
 1348         (a) At least three persons to evaluate proposals and
 1349  replies who collectively have experience and knowledge in the
 1350  program areas and service requirements for which commodities or
 1351  contractual services are sought.
 1352         (b) At least three persons to conduct negotiations during a
 1353  competitive sealed reply procurement who collectively have
 1354  experience and knowledge in negotiating contracts, contract
 1355  procurement, and the program areas and service requirements for
 1356  which commodities or contractual services are sought. When the
 1357  value of a contract is in excess of $1 million in any fiscal
 1358  year, at least one of the persons conducting negotiations must
 1359  be certified as a contract negotiator based upon rules adopted
 1360  by the Department of Management Services in order to ensure that
 1361  certified contract negotiators are knowledgeable about effective
 1362  negotiation strategies, capable of successfully implementing
 1363  those strategies, and involved appropriately in the procurement
 1364  process. At a minimum, the rules must address the qualifications
 1365  required for certification, the method of certification, and the
 1366  procedure for involving the certified negotiator. If the value
 1367  of a contract is in excess of $10 million in any fiscal year, at
 1368  least one of the persons conducting negotiations must be a
 1369  Project Management Professional, as certified by the Project
 1370  Management Institute.
 1371         (17)(a)1. Each agency must avoid, neutralize, or mitigate
 1372  significant potential organizational conflicts of interest
 1373  before a contract is awarded. If the agency elects to mitigate
 1374  the significant potential organizational conflict or conflicts
 1375  of interest, an adequate mitigation plan, including
 1376  organizational, physical, and electronic barriers, shall be
 1377  developed.
 1378         2. If a conflict cannot be avoided or mitigated, an agency
 1379  may proceed with the contract award if the agency head certifies
 1380  that the award is in the best interests of the state. The agency
 1381  head must specify in writing the basis for the certification.
 1382         (b)1. An agency head may not proceed with a contract award
 1383  under subparagraph (a)2. if a conflict of interest is based upon
 1384  the vendor gaining an unfair competitive advantage.
 1385         2. An unfair competitive advantage exists when the vendor
 1386  competing for the award of a contract obtained:
 1387         a. Access to information that is not available to the
 1388  public and would assist the vendor in obtaining the contract; or
 1389         b. Source selection information that is relevant to the
 1390  contract but is not available to all competitors and that would
 1391  assist the vendor in obtaining the contract.
 1392         (c)(18) A person who receives a contract that has not been
 1393  procured pursuant to subsections (1)-(3) (1) through (5) to
 1394  perform a feasibility study of the potential implementation of a
 1395  subsequent contract, who participates in the drafting of a
 1396  solicitation or who develops a program for future
 1397  implementation, is not eligible to contract with the agency for
 1398  any other contracts dealing with that specific subject matter,
 1399  and any firm in which such person has any interest is not
 1400  eligible to receive such contract. However, this prohibition
 1401  does not prevent a vendor who responds to a request for
 1402  information from being eligible to contract with an agency.
 1403         (18)(19) Each agency shall establish a review and approval
 1404  process for all contractual services contracts costing more than
 1405  the threshold amount provided for in s. 287.017 for CATEGORY
 1406  THREE which shall include, but not be limited to, program,
 1407  financial, and legal review and approval. Such reviews and
 1408  approvals shall be obtained before the contract is executed.
 1409         (19)(20) In any procurement that costs more than the
 1410  threshold amount provided for in s. 287.017 for CATEGORY TWO and
 1411  is accomplished without competition, the individuals taking part
 1412  in the development or selection of criteria for evaluation, the
 1413  evaluation process, and the award process shall attest in
 1414  writing that they are independent of, and have no conflict of
 1415  interest in, the entities evaluated and selected.
 1416         (20)(21) Nothing in this section shall affect the validity
 1417  or effect of any contract in existence on October 1, 1990.
 1418         (21)(22) An agency may contract for services with any
 1419  independent, nonprofit college or university which is located
 1420  within the state and is accredited by the Southern Association
 1421  of Colleges and Schools, on the same basis as it may contract
 1422  with any state university and college.
 1423         (22)(23) The department, in consultation with the Agency
 1424  for Enterprise Information Technology and the Comptroller, shall
 1425  develop a program for online procurement of commodities and
 1426  contractual services. To enable the state to promote open
 1427  competition and to leverage its buying power, agencies shall
 1428  participate in the online procurement program, and eligible
 1429  users may participate in the program. Only vendors prequalified
 1430  as meeting mandatory requirements and qualifications criteria
 1431  may participate in online procurement.
 1432         (a) The department, in consultation with the agency, may
 1433  contract for equipment and services necessary to develop and
 1434  implement online procurement.
 1435         (b) The department, in consultation with the agency, shall
 1436  adopt rules, pursuant to ss. 120.536(1) and 120.54, to
 1437  administer the program for online procurement. The rules shall
 1438  include, but not be limited to:
 1439         1. Determining the requirements and qualification criteria
 1440  for prequalifying vendors.
 1441         2. Establishing the procedures for conducting online
 1442  procurement.
 1443         3. Establishing the criteria for eligible commodities and
 1444  contractual services.
 1445         4. Establishing the procedures for providing access to
 1446  online procurement.
 1447         5. Determining the criteria warranting any exceptions to
 1448  participation in the online procurement program.
 1449         (c) The department may impose and shall collect all fees
 1450  for the use of the online procurement systems.
 1451         1. The fees may be imposed on an individual transaction
 1452  basis or as a fixed percentage of the cost savings generated. At
 1453  a minimum, the fees must be set in an amount sufficient to cover
 1454  the projected costs of the services, including administrative
 1455  and project service costs in accordance with the policies of the
 1456  department.
 1457         2. If the department contracts with a provider for online
 1458  procurement, the department, pursuant to appropriation, shall
 1459  compensate the provider from the fees after the department has
 1460  satisfied all ongoing costs. The provider shall report
 1461  transaction data to the department each month so that the
 1462  department may determine the amount due and payable to the
 1463  department from each vendor.
 1464         3. All fees that are due and payable to the state on a
 1465  transactional basis or as a fixed percentage of the cost savings
 1466  generated are subject to s. 215.31 and must be remitted within
 1467  40 days after receipt of payment for which the fees are due. For
 1468  fees that are not remitted within 40 days, the vendor shall pay
 1469  interest at the rate established under s. 55.03(1) on the unpaid
 1470  balance from the expiration of the 40-day period until the fees
 1471  are remitted.
 1472         4. All fees and surcharges collected under this paragraph
 1473  shall be deposited in the Operating Trust Fund as provided by
 1474  law.
 1475         (23)(24) Each solicitation for the procurement of
 1476  commodities or contractual services shall include the following
 1477  provision: “Respondents to this solicitation or persons acting
 1478  on their behalf may not contact, between the release of the
 1479  solicitation and the end of the 72-hour period following the
 1480  agency posting the notice of intended award, excluding
 1481  Saturdays, Sundays, and state holidays, any employee or officer
 1482  of the executive or legislative branch concerning any aspect of
 1483  this solicitation, except in writing to the procurement officer
 1484  or as provided in the solicitation documents. Violation of this
 1485  provision may be grounds for rejecting a response.”
 1486         Section 20. Section 287.0571, Florida Statutes, is amended
 1487  to read:
 1488         287.0571 Business case to outsource; applicability of ss.
 1489  287.0571-287.0574.—
 1490         (1) Sections 287.0571-287.0574 may be cited as the “Florida
 1491  Efficient Government Act.”
 1492         (1)(2) It is the intent of the Legislature that each state
 1493  agency focus on its core mission and deliver services
 1494  effectively and efficiently by leveraging resources and
 1495  contracting with private sector vendors whenever vendors can
 1496  more effectively and efficiently provide services and reduce the
 1497  cost of government.
 1498         (2)(3) It is further the intent of the Legislature that
 1499  business cases to outsource be evaluated for feasibility, cost
 1500  effectiveness, and efficiency before a state agency proceeds
 1501  with any outsourcing of services.
 1502         (3)(4)This section does Sections 287.0571-287.0574 do not
 1503  apply to:
 1504         (a) A procurement of commodities and contractual services
 1505  listed in s. 287.057(3)(5)(e), (f), and (g) and (21)(22).
 1506         (b) A procurement of contractual services subject to s.
 1507  287.055.
 1508         (c) A contract in support of the planning, development,
 1509  implementation, operation, or maintenance of the road, bridge,
 1510  and public transportation construction program of the Department
 1511  of Transportation.
 1512         (d) A procurement of commodities or contractual services
 1513  which does not constitute an outsourcing of services or
 1514  activities.
 1515         (4) An agency shall complete a business case for any
 1516  outsourcing project that has an expected cost in excess of $10
 1517  million within a single fiscal year. The business case shall be
 1518  submitted pursuant to s. 216.023. The business case shall be
 1519  available as part of the solicitation but is not subject to
 1520  challenge and shall include the following:
 1521         (a) A detailed description of the service or activity for
 1522  which the outsourcing is proposed.
 1523         (b) A description and analysis of the state agency’s
 1524  current performance, based on existing performance metrics if
 1525  the state agency is currently performing the service or
 1526  activity.
 1527         (c) The goals desired to be achieved through the proposed
 1528  outsourcing and the rationale for such goals.
 1529         (d) A citation to the existing or proposed legal authority
 1530  for outsourcing the service or activity.
 1531         (e) A description of available options for achieving the
 1532  goals. If state employees are currently performing the service
 1533  or activity, at least one option involving maintaining state
 1534  provision of the service or activity shall be included.
 1535         (f) An analysis of the advantages and disadvantages of each
 1536  option, including, at a minimum, potential performance
 1537  improvements and risks.
 1538         (g) A description of the current market for the contractual
 1539  services that are under consideration for outsourcing.
 1540         (h) A cost-benefit analysis documenting the direct and
 1541  indirect specific baseline costs, savings, and qualitative and
 1542  quantitative benefits involved in or resulting from the
 1543  implementation of the recommended option or options. Such
 1544  analysis must specify the schedule that, at a minimum, must be
 1545  adhered to in order to achieve the estimated savings. All
 1546  elements of cost must be clearly identified in the cost-benefit
 1547  analysis, described in the business case, and supported by
 1548  applicable records and reports. The state agency head shall
 1549  attest that, based on the data and information underlying the
 1550  business case, to the best of his or her knowledge, all
 1551  projected costs, savings, and benefits are valid and achievable.
 1552  As used in this section, the term “cost” means the reasonable,
 1553  relevant, and verifiable cost, which may include, but is not
 1554  limited to, elements such as personnel, materials and supplies,
 1555  services, equipment, capital depreciation, rent, maintenance and
 1556  repairs, utilities, insurance, personnel travel, overhead, and
 1557  interim and final payments. The appropriate elements shall
 1558  depend on the nature of the specific initiative. As used in this
 1559  paragraph, the term “savings” means the difference between the
 1560  direct and indirect actual annual baseline costs compared to the
 1561  projected annual cost for the contracted functions or
 1562  responsibilities in any succeeding state fiscal year during the
 1563  term of the contract.
 1564         (i) A description of differences among current state agency
 1565  policies and processes and, as appropriate, a discussion of
 1566  options for or a plan to standardize, consolidate, or revise
 1567  current policies and processes, if any, to reduce the
 1568  customization of any proposed solution that would otherwise be
 1569  required.
 1570         (j) A description of the specific performance standards
 1571  that must, at a minimum, be met to ensure adequate performance.
 1572         (k) The projected timeframe for key events from the
 1573  beginning of the procurement process through the expiration of a
 1574  contract.
 1575         (l) A plan to ensure compliance with the public-records
 1576  law.
 1577         (m) A specific and feasible contingency plan addressing
 1578  contractor nonperformance and a description of the tasks
 1579  involved in and costs required for its implementation.
 1580         (n) A state agency’s transition plan for addressing changes
 1581  in the number of agency personnel, affected business processes,
 1582  employee transition issues, and communication with affected
 1583  stakeholders, such as agency clients and the public. The
 1584  transition plan must contain a reemployment and retraining
 1585  assistance plan for employees who are not retained by the state
 1586  agency or employed by the contractor.
 1587         (o) A plan for ensuring access by persons with disabilities
 1588  in compliance with applicable state and federal law.
 1589         (5) In addition to the contract requirements provided in s.
 1590  287.058, each contract for a proposed outsourcing, pursuant to
 1591  this section, must include, but need not be limited to, the
 1592  following contractual provisions:
 1593         (a) A scope-of-work provision that clearly specifies each
 1594  service or deliverable to be provided, including a description
 1595  of each deliverable or activity that is quantifiable,
 1596  measurable, and verifiable. This provision must include a clause
 1597  that states if a particular service or deliverable is
 1598  inadvertently omitted or not clearly specified but determined to
 1599  be operationally necessary and verified to have been performed
 1600  by the agency within the 12 months before the execution of the
 1601  contract, such service or deliverable will be provided by the
 1602  contractor through the identified contract-amendment process.
 1603         (b) A service-level-agreement provision describing all
 1604  services to be provided under the terms of the agreement, the
 1605  state agency’s service requirements and performance objectives,
 1606  specific responsibilities of the state agency and the
 1607  contractor, and the process for amending any portion of the
 1608  service-level agreement. Each service-level agreement must
 1609  contain an exclusivity clause that allows the state agency to
 1610  retain the right to perform the service or activity, directly or
 1611  with another contractor, if service levels are not being
 1612  achieved.
 1613         (c) A provision that identifies all associated costs,
 1614  specific payment terms, and payment schedules, including
 1615  provisions governing incentives and financial disincentives and
 1616  criteria governing payment.
 1617         (d) A provision that identifies a clear and specific
 1618  transition plan that will be implemented in order to complete
 1619  all required activities needed to transfer the service or
 1620  activity from the state agency to the contractor and operate the
 1621  service or activity successfully.
 1622         (e) A performance-standards provision that identifies all
 1623  required performance standards, which must include, at a
 1624  minimum:
 1625         1. Detailed and measurable acceptance criteria for each
 1626  deliverable and service to be provided to the state agency under
 1627  the terms of the contract which document the required
 1628  performance level.
 1629         2. A method for monitoring and reporting progress in
 1630  achieving specified performance standards and levels.
 1631         3. The sanctions or disincentives that shall be imposed for
 1632  nonperformance by the contractor or state agency.
 1633         (f) A provision that requires the contractor and its
 1634  subcontractors to maintain adequate accounting records that
 1635  comply with all applicable federal and state laws and generally
 1636  accepted accounting principles.
 1637         (g) A provision that authorizes the state agency to have
 1638  access to and to audit all records related to the contract and
 1639  subcontracts, or any responsibilities or functions under the
 1640  contract and subcontracts, for purposes of legislative
 1641  oversight, and a requirement for audits by a service
 1642  organization in accordance with professional auditing standards,
 1643  if appropriate.
 1644         (h) A provision that requires the contractor to interview
 1645  and consider for employment with the contractor each displaced
 1646  state employee who is interested in such employment.
 1647         (i) A contingency-plan provision that describes the
 1648  mechanism for continuing the operation of the service or
 1649  activity, including transferring the service or activity back to
 1650  the state agency or successor contractor if the contractor fails
 1651  to perform and comply with the performance standards and levels
 1652  of the contract and the contract is terminated.
 1653         (j) A provision that requires the contractor and its
 1654  subcontractors to comply with public-records laws, specifically
 1655  to:
 1656         1. Keep and maintain the public records that ordinarily and
 1657  necessarily would be required by the state agency in order to
 1658  perform the service or activity.
 1659         2. Provide the public with access to such public records on
 1660  the same terms and conditions that the state agency would
 1661  provide the records and at a cost that does not exceed that
 1662  provided in chapter 119 or as otherwise provided by law.
 1663         3. Ensure that records that are exempt or records that are
 1664  confidential and exempt are not disclosed except as authorized
 1665  by law.
 1666         4. Meet all requirements for retaining records and transfer
 1667  to the state agency, at no cost, all public records in
 1668  possession of the contractor upon termination of the contract
 1669  and destroy any duplicate public records that are exempt or
 1670  confidential and exempt. All records stored electronically must
 1671  be provided to the state agency in a format that is compatible
 1672  with the information technology systems of the state agency.
 1673         (k)1. A provision that provides that any copyrightable or
 1674  patentable intellectual property produced as a result of work or
 1675  services performed under the contract, or in any way connected
 1676  with the contract, shall be the property of the state, with only
 1677  such exceptions as are clearly expressed and reasonably valued
 1678  in the contract.
 1679         2. A provision that provides that, if the primary purpose
 1680  of the contract is the creation of intellectual property, the
 1681  state shall retain an unencumbered right to use such property.
 1682         (l) If applicable, a provision that allows the agency to
 1683  purchase from the contractor, at its depreciated value, assets
 1684  used by the contractor in the performance of the contract. If
 1685  assets have not depreciated, the agency shall retain the right
 1686  to negotiate to purchase at an agreed-upon cost.
 1687         Section 21. Section 287.05721, Florida Statutes, is
 1688  repealed.
 1689         Section 22. Section 287.0573, Florida Statutes, is
 1690  repealed.
 1691         Section 23. Section 287.0574, Florida Statutes, is
 1692  repealed.
 1693         Section 24. Section 287.0575, Florida Statutes, is created
 1694  to read:
 1695         287.0575 Coordination of contracted services.—The following
 1696  duties and responsibilities of the Department of Children and
 1697  Family Services, the Agency for Persons with Disabilities, the
 1698  Department of Health, the Department of Elderly Affairs, and the
 1699  Department of Veterans Affairs, and service providers under
 1700  contract to those agencies, are established:
 1701         (1) No later than August 1, 2010, or upon entering into any
 1702  new contract for health and human services, state agencies
 1703  contracting for health and human services must notify their
 1704  contract service providers of the requirements of this section.
 1705         (2) No later than October 1, 2010, contract service
 1706  providers that have more than one contract with one or more
 1707  state agencies to provide health and human services must provide
 1708  to each of their contract managers a comprehensive list of their
 1709  health and human services contracts. The list must include the
 1710  following information:
 1711         (a) The name of each contracting state agency and the
 1712  applicable office or program issuing the contract.
 1713         (b) The identifying name and number of each contract.
 1714         (c) The starting and ending date of each contract.
 1715         (d) The amount of each contract.
 1716         (e) A brief description of the purpose of the contract and
 1717  the types of services provided under each contract.
 1718         (f) The name and contact information of the contract
 1719  manager.
 1720         (3) With respect to contracts entered into on or after
 1721  August 1, 2010, effective November 1, 2010, or 30 days after
 1722  receiving the list provided under subsection (2), a single lead
 1723  administrative coordinator for each contract service provider
 1724  shall be designated as provided in this subsection from among
 1725  the agencies having multiple contracts as provided in subsection
 1726  (2). On or before the date such responsibilities are assumed,
 1727  the designated lead administrative coordinator shall provide
 1728  notice of his or her designation to the contract service
 1729  provider and to the agency contract managers for each affected
 1730  contract. Unless another lead administrative coordinator is
 1731  selected by agreement of all affected contract managers, the
 1732  designated lead administrative coordinator shall be the agency
 1733  contract manager of the contract with the highest dollar value
 1734  over the term of the contract, provided the term of the contract
 1735  remaining at the time of designation exceeds 24 months. If the
 1736  remaining terms of all contracts are 24 months or less, the
 1737  designated lead administrative coordinator shall be the contract
 1738  manager of the contract with the latest end date. A designated
 1739  lead administrative coordinator, or his or her successor as
 1740  contract manager, shall continue as lead administrative
 1741  coordinator until another lead administrative coordinator is
 1742  selected by agreement of all affected contract managers or until
 1743  the end date of the contract for which the designated lead
 1744  administrative coordinator serves as contract manager, at which
 1745  time a new lead administrative coordinator shall be designated
 1746  pursuant to this subsection, if applicable.
 1747         (4) The designated lead administrative coordinator shall be
 1748  responsible for:
 1749         (a) Establishing a coordinated schedule for administrative
 1750  and fiscal monitoring;
 1751         (b) Consulting with other case managers to establish a
 1752  single unified set of required administrative and fiscal
 1753  documentation;
 1754         (c) Consulting with other case managers to establish a
 1755  single unified schedule for periodic updates of administrative
 1756  and fiscal information; and
 1757         (d) Maintaining an accessible electronic file of up-to-date
 1758  administrative and fiscal documents, including, but not limited
 1759  to, corporate documents, membership records, audits, and
 1760  monitoring reports.
 1761         (5) Contract managers for agency contracts other than the
 1762  designated lead administrative coordinator must conduct
 1763  administrative and fiscal monitoring activities in accordance
 1764  with the coordinated schedule and must obtain any necessary
 1765  administrative and fiscal documents from the designated lead
 1766  administrative coordinator’s electronic file.
 1767         (6) This section does not apply to routine program
 1768  performance monitoring or prohibit a contracting agency from
 1769  directly and immediately contacting the service provider when
 1770  the health or safety of clients is at risk.
 1771         (7) Each agency contracting for health and human services
 1772  shall annually evaluate the performance of its designated lead
 1773  administrative coordinator in establishing coordinated systems,
 1774  improving efficiency, and reducing redundant monitoring
 1775  activities for state agencies and their service providers. The
 1776  annual report shall be submitted to the Governor, the President
 1777  of the Senate, and the Speaker of the House of Representatives.
 1778         Section 25. Subsections (1) and (5) of section 287.058,
 1779  Florida Statutes, are amended to read:
 1780         287.058 Contract document.—
 1781         (1) Every procurement of contractual services in excess of
 1782  the threshold amount provided in s. 287.017 for CATEGORY TWO,
 1783  except for the providing of health and mental health services or
 1784  drugs in the examination, diagnosis, or treatment of sick or
 1785  injured state employees or the providing of other benefits as
 1786  required by the provisions of chapter 440, shall be evidenced by
 1787  a written agreement embodying all provisions and conditions of
 1788  the procurement of such services, which provisions and
 1789  conditions shall, where applicable, include, but shall not be
 1790  limited to, a provision:
 1791         (a) A provision That bills for fees or other compensation
 1792  for services or expenses be submitted in detail sufficient for a
 1793  proper preaudit and postaudit thereof.
 1794         (b) A provision That bills for any travel expenses be
 1795  submitted in accordance with s. 112.061. A state agency may
 1796  establish rates lower than the maximum provided in s. 112.061.
 1797         (c) A provision Allowing unilateral cancellation by the
 1798  agency for refusal by the contractor to allow public access to
 1799  all documents, papers, letters, or other material made or
 1800  received by the contractor in conjunction with the contract,
 1801  unless the records are exempt from s. 24(a) of Art. I of the
 1802  State Constitution and s. 119.07(1).
 1803         (d) Specifying a scope of work that clearly establishes all
 1804  tasks the contractor is required to perform.
 1805         (e)(d)A provision Dividing the contract into quantifiable,
 1806  measurable, and verifiable units of deliverables, which shall
 1807  include, but not be limited to, reports, findings, and drafts,
 1808  that must be received and accepted in writing by the contract
 1809  manager before prior to payment. Each deliverable must be
 1810  directly related to the scope of work and specify the required
 1811  minimum level of service to be performed and criteria for
 1812  evaluating the successful completion of each deliverable.
 1813         (f)(e)A provision Specifying the criteria and the final
 1814  date by which such criteria must be met for completion of the
 1815  contract.
 1816         (g)(f)A provision Specifying that the contract may be
 1817  renewed for a period that may not exceed 3 years or the term of
 1818  the original contract, whichever period is longer, specifying
 1819  the renewal price for the contractual service as set forth in
 1820  the bid, proposal, or reply, specifying that costs for the
 1821  renewal may not be charged, and specifying that renewals shall
 1822  be contingent upon satisfactory performance evaluations by the
 1823  agency and subject to the availability of funds. Exceptional
 1824  purchase contracts pursuant to s. 287.057(3)(5)(a) and (c) may
 1825  not be renewed.
 1826         (h) Specifying the financial consequences that the agency
 1827  must apply if the contractor fails to perform in accordance with
 1828  the contract.
 1829         (i) Addressing the property rights of any intellectual
 1830  property related to the contract and the specific rights of the
 1831  state regarding the intellectual property if the contractor
 1832  fails to provide the services or is no longer providing
 1833  services.
 1834  
 1835  In lieu of a written agreement, the department may authorize the
 1836  use of a purchase order for classes of contractual services, if
 1837  the provisions of paragraphs (a)-(i) (a)-(f) are included in the
 1838  purchase order or solicitation. The purchase order must include,
 1839  but need not be limited to, an adequate description of the
 1840  services, the contract period, and the method of payment. In
 1841  lieu of printing the provisions of paragraphs (a)-(i) (a)-(f) in
 1842  the contract document or purchase order, agencies may
 1843  incorporate the requirements of paragraphs (a)-(i) (a)-(f) by
 1844  reference.
 1845         (5) Unless otherwise provided in the General Appropriations
 1846  Act or the substantive bill implementing the General
 1847  Appropriations Act, the Chief Financial Officer may waive the
 1848  requirements of this section for services which are included in
 1849  s. 287.057(3)(5)(f).
 1850         Section 26. Subsection (14) of section 287.059, Florida
 1851  Statutes, is amended to read:
 1852         287.059 Private attorney services.—
 1853         (14) The office of the Attorney General is authorized to
 1854  competitively bid and contract with one or more court reporting
 1855  services, on a circuitwide basis, on behalf of all state
 1856  agencies in accordance with s. 287.057(2). The office of the
 1857  Attorney General shall develop requests for proposal for court
 1858  reporter services in consultation with the Florida Court
 1859  Reporters Association. All agencies shall utilize the contracts
 1860  for court reporting services entered into by the office of the
 1861  Attorney General where in force, unless otherwise ordered by a
 1862  court or unless an agency has a contract for court reporting
 1863  services executed prior to May 5, 1993.
 1864         Section 27. Section 287.1345, Florida Statutes, is
 1865  repealed.
 1866         Section 28. Paragraph (b) of subsection (4) of section
 1867  295.187, Florida Statutes, is amended to read:
 1868         295.187 Florida Service-Disabled Veteran Business
 1869  Enterprise Opportunity Act.—
 1870         (4) VENDOR PREFERENCE.—
 1871         (b) Notwithstanding s. 287.057(11)(12), if a service
 1872  disabled veteran business enterprise entitled to the vendor
 1873  preference under this section and one or more businesses
 1874  entitled to this preference or another vendor preference
 1875  provided by law submit bids, proposals, or replies for
 1876  procurement of commodities or contractual services that are
 1877  equal with respect to all relevant considerations, including
 1878  price, quality, and service, then the state agency shall award
 1879  the procurement or contract to the business having the smallest
 1880  net worth.
 1881         Section 29. Subsection (3) of section 394.457, Florida
 1882  Statutes, is amended to read:
 1883         394.457 Operation and administration.—
 1884         (3) POWER TO CONTRACT.—The department may contract to
 1885  provide, and be provided with, services and facilities in order
 1886  to carry out its responsibilities under this part with the
 1887  following agencies: public and private hospitals; receiving and
 1888  treatment facilities; clinics; laboratories; departments,
 1889  divisions, and other units of state government; the state
 1890  colleges and universities; the community colleges; private
 1891  colleges and universities; counties, municipalities, and any
 1892  other governmental unit, including facilities of the United
 1893  States Government; and any other public or private entity which
 1894  provides or needs facilities or services. Baker Act funds for
 1895  community inpatient, crisis stabilization, short-term
 1896  residential treatment, and screening services must be allocated
 1897  to each county pursuant to the department’s funding allocation
 1898  methodology. Notwithstanding the provisions of s.
 1899  287.057(3)(5)(f), contracts for community-based Baker Act
 1900  services for inpatient, crisis stabilization, short-term
 1901  residential treatment, and screening provided under this part,
 1902  other than those with other units of government, to be provided
 1903  for the department must be awarded using competitive sealed bids
 1904  when the county commission of the county receiving the services
 1905  makes a request to the department’s district office by January
 1906  15 of the contracting year. The district shall not enter into a
 1907  competitively bid contract under this provision if such action
 1908  will result in increases of state or local expenditures for
 1909  Baker Act services within the district. Contracts for these
 1910  Baker Act services using competitive sealed bids will be
 1911  effective for 3 years. The department shall adopt rules
 1912  establishing minimum standards for such contracted services and
 1913  facilities and shall make periodic audits and inspections to
 1914  assure that the contracted services are provided and meet the
 1915  standards of the department.
 1916         Section 30. Paragraph (a) of subsection (1) of section
 1917  394.47865, Florida Statutes, is amended to read:
 1918         394.47865 South Florida State Hospital; privatization.—
 1919         (1) The Department of Children and Family Services shall,
 1920  through a request for proposals, privatize South Florida State
 1921  Hospital. The department shall plan to begin implementation of
 1922  this privatization initiative by July 1, 1998.
 1923         (a) Notwithstanding s. 287.057(13)(14), the department may
 1924  enter into agreements, not to exceed 20 years, with a private
 1925  provider, a coalition of providers, or another agency to
 1926  finance, design, and construct a treatment facility having up to
 1927  350 beds and to operate all aspects of daily operations within
 1928  the facility. The department may subcontract any or all
 1929  components of this procurement to a statutorily established
 1930  state governmental entity that has successfully contracted with
 1931  private companies for designing, financing, acquiring, leasing,
 1932  constructing, and operating major privatized state facilities.
 1933         Section 31. Paragraph (c) of subsection (5) and subsection
 1934  (8) of section 402.40, Florida Statutes, are amended to read:
 1935         402.40 Child welfare training.—
 1936         (5) CORE COMPETENCIES.—
 1937         (c) Notwithstanding s. 287.057(3)(5) and (21)(22), the
 1938  department shall competitively solicit and contract for the
 1939  development, validation, and periodic evaluation of the training
 1940  curricula for the established single integrated curriculum. No
 1941  more than one training curriculum may be developed for each
 1942  specific subset of the core competencies.
 1943         (8) ESTABLISHMENT OF TRAINING ACADEMIES.—The department
 1944  shall establish child welfare training academies as part of a
 1945  comprehensive system of child welfare training. In establishing
 1946  a program of training, the department may contract for the
 1947  operation of one or more training academies to perform one or
 1948  more of the following: to offer one or more of the training
 1949  curricula developed under subsection (5); to administer the
 1950  certification process; to develop, validate, and periodically
 1951  evaluate additional training curricula determined to be
 1952  necessary, including advanced training that is specific to a
 1953  region or contractor, or that meets a particular training need;
 1954  or to offer the additional training curricula. The number,
 1955  location, and timeframe for establishment of training academies
 1956  shall be approved by the Secretary of Children and Family
 1957  Services who shall ensure that the goals for the core
 1958  competencies and the single integrated curriculum, the
 1959  certification process, the trainer qualifications, and the
 1960  additional training needs are addressed. Notwithstanding s.
 1961  287.057(3)(5) and (21)(22), the department shall competitively
 1962  solicit all training academy contracts.
 1963         Section 32. Paragraphs (a) and (b) of subsection (2) and
 1964  subsection (3) of section 402.7305, Florida Statutes, are
 1965  amended to read:
 1966         402.7305 Department of Children and Family Services;
 1967  procurement of contractual services; contract management.—
 1968         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
 1969         (a) Notwithstanding s. 287.057(3)(f)12. s.
 1970  287.057(5)(f)13., whenever the department intends to contract
 1971  with a public postsecondary institution to provide a service,
 1972  the department must allow all public postsecondary institutions
 1973  in this state that are accredited by the Southern Association of
 1974  Colleges and Schools to bid on the contract. Thereafter,
 1975  notwithstanding any other provision to the contrary, if a public
 1976  postsecondary institution intends to subcontract for any service
 1977  awarded in the contract, the subcontracted service must be
 1978  procured by competitive procedures.
 1979         (b) When it is in the best interest of a defined segment of
 1980  its consumer population, the department may competitively
 1981  procure and contract for systems of treatment or service that
 1982  involve multiple providers, rather than procuring and
 1983  contracting for treatment or services separately from each
 1984  participating provider. The department must ensure that all
 1985  providers that participate in the treatment or service system
 1986  meet all applicable statutory, regulatory, service quality, and
 1987  cost control requirements. If other governmental entities or
 1988  units of special purpose government contribute matching funds to
 1989  the support of a given system of treatment or service, the
 1990  department shall formally request information from those funding
 1991  entities in the procurement process and may take the information
 1992  received into account in the selection process. If a local
 1993  government contributes matching funds to support the system of
 1994  treatment or contracted service and if the match constitutes at
 1995  least 25 percent of the value of the contract, the department
 1996  shall afford the governmental match contributor an opportunity
 1997  to name an employee as one of the persons required by s.
 1998  287.057(16)(17) to evaluate or negotiate certain contracts,
 1999  unless the department sets forth in writing the reason why the
 2000  inclusion would be contrary to the best interest of the state.
 2001  Any employee so named by the governmental match contributor
 2002  shall qualify as one of the persons required by s.
 2003  287.057(16)(17). A governmental entity or unit of special
 2004  purpose government may not name an employee as one of the
 2005  persons required by s. 287.057(16)(17) if it, or any of its
 2006  political subdivisions, executive agencies, or special
 2007  districts, intends to compete for the contract to be awarded.
 2008  The governmental funding entity or contributor of matching funds
 2009  must comply with all procurement procedures set forth in s.
 2010  287.057 when appropriate and required.
 2011         (3) CONTRACT MANAGEMENT REQUIREMENTS AND PROCESS.—The
 2012  Department of Children and Family Services shall review the time
 2013  period for which the department executes contracts and shall
 2014  execute multiyear contracts to make the most efficient use of
 2015  the resources devoted to contract processing and execution.
 2016  Whenever the department chooses not to use a multiyear contract,
 2017  a justification for that decision must be contained in the
 2018  contract. Notwithstanding s. 287.057(14)(15), the department is
 2019  responsible for establishing a contract management process that
 2020  requires a member of the department’s Senior Management or
 2021  Selected Exempt Service to assign in writing the responsibility
 2022  of a contract to a contract manager. The department shall
 2023  maintain a set of procedures describing its contract management
 2024  process which must minimally include the following requirements:
 2025         (a) The contract manager shall maintain the official
 2026  contract file throughout the duration of the contract and for a
 2027  period not less than 6 years after the termination of the
 2028  contract.
 2029         (b) The contract manager shall review all invoices for
 2030  compliance with the criteria and payment schedule provided for
 2031  in the contract and shall approve payment of all invoices before
 2032  their transmission to the Department of Financial Services for
 2033  payment.
 2034         (c) The contract manager shall maintain a schedule of
 2035  payments and total amounts disbursed and shall periodically
 2036  reconcile the records with the state’s official accounting
 2037  records.
 2038         (d) For contracts involving the provision of direct client
 2039  services, the contract manager shall periodically visit the
 2040  physical location where the services are delivered and speak
 2041  directly to clients receiving the services and the staff
 2042  responsible for delivering the services.
 2043         (e) The contract manager shall meet at least once a month
 2044  directly with the contractor’s representative and maintain
 2045  records of such meetings.
 2046         (f) The contract manager shall periodically document any
 2047  differences between the required performance measures and the
 2048  actual performance measures. If a contractor fails to meet and
 2049  comply with the performance measures established in the
 2050  contract, the department may allow a reasonable period for the
 2051  contractor to correct performance deficiencies. If performance
 2052  deficiencies are not resolved to the satisfaction of the
 2053  department within the prescribed time, and if no extenuating
 2054  circumstances can be documented by the contractor to the
 2055  department’s satisfaction, the department must terminate the
 2056  contract. The department may not enter into a new contract with
 2057  that same contractor for the services for which the contract was
 2058  previously terminated for a period of at least 24 months after
 2059  the date of termination. The contract manager shall obtain and
 2060  enforce corrective action plans, if appropriate, and maintain
 2061  records regarding the completion or failure to complete
 2062  corrective action items.
 2063         (g) The contract manager shall document any contract
 2064  modifications, which shall include recording any contract
 2065  amendments as provided for in this section.
 2066         (h) The contract manager shall be properly trained before
 2067  being assigned responsibility for any contract.
 2068         Section 33. Subsection (2) of section 408.045, Florida
 2069  Statutes, is amended to read:
 2070         408.045 Certificate of need; competitive sealed proposals.—
 2071         (2) The agency shall make a decision regarding the issuance
 2072  of the certificate of need in accordance with the provisions of
 2073  s. 287.057(16)(17), rules adopted by the agency relating to
 2074  intermediate care facilities for the developmentally disabled,
 2075  and the criteria in s. 408.035, as further defined by rule.
 2076         Section 34. Subsection (3) of section 427.0135, Florida
 2077  Statutes, is amended to read:
 2078         427.0135 Purchasing agencies; duties and responsibilities.
 2079  Each purchasing agency, in carrying out the policies and
 2080  procedures of the commission, shall:
 2081         (3) Not procure transportation disadvantaged services
 2082  without initially negotiating with the commission, as provided
 2083  in s. 287.057(3)(f)12. s. 287.057(5)(f)13., or unless otherwise
 2084  authorized by statute. If the purchasing agency, after
 2085  consultation with the commission, determines that it cannot
 2086  reach mutually acceptable contract terms with the commission,
 2087  the purchasing agency may contract for the same transportation
 2088  services provided in a more cost-effective manner and of
 2089  comparable or higher quality and standards. The Medicaid agency
 2090  shall implement this subsection in a manner consistent with s.
 2091  409.908(18) and as otherwise limited or directed by the General
 2092  Appropriations Act.
 2093         Section 35. Paragraph (c) of subsection (5) of section
 2094  445.024, Florida Statutes, is amended to read:
 2095         445.024 Work requirements.—
 2096         (5) USE OF CONTRACTS.—Regional workforce boards shall
 2097  provide work activities, training, and other services, as
 2098  appropriate, through contracts. In contracting for work
 2099  activities, training, or services, the following applies:
 2100         (c) Notwithstanding the exemption from the competitive
 2101  sealed bid requirements provided in s. 287.057(3)(5)(f) for
 2102  certain contractual services, each contract awarded under this
 2103  chapter must be awarded on the basis of a competitive sealed
 2104  bid, except for a contract with a governmental entity as
 2105  determined by the regional workforce board.
 2106         Section 36. Paragraph (b) of subsection (3) of section
 2107  481.205, Florida Statutes, is amended to read:
 2108         481.205 Board of Architecture and Interior Design.—
 2109         (3)
 2110         (b) The board shall contract with a corporation or other
 2111  business entity pursuant to s. 287.057(3) to provide
 2112  investigative, legal, prosecutorial, and other services
 2113  necessary to perform its duties.
 2114         Section 37. Subsection (41) of section 570.07, Florida
 2115  Statutes, is amended to read:
 2116         570.07 Department of Agriculture and Consumer Services;
 2117  functions, powers, and duties.—The department shall have and
 2118  exercise the following functions, powers, and duties:
 2119         (41) Notwithstanding the provisions of s. 287.057(22)(23)
 2120  that require all agencies to use the online procurement system
 2121  developed by the Department of Management Services, the
 2122  department may continue to use its own online system. However,
 2123  vendors utilizing such system shall be prequalified as meeting
 2124  mandatory requirements and qualifications and shall remit fees
 2125  pursuant to s. 287.057(22)(23), and any rules implementing s.
 2126  287.057.
 2127         Section 38. Paragraph (c) of subsection (5) of section
 2128  627.311, Florida Statutes, is amended to read:
 2129         627.311 Joint underwriters and joint reinsurers; public
 2130  records and public meetings exemptions.—
 2131         (5)
 2132         (c) The operation of the plan shall be governed by a plan
 2133  of operation that is prepared at the direction of the board of
 2134  governors and approved by order of the office. The plan is
 2135  subject to continuous review by the office. The office may, by
 2136  order, withdraw approval of all or part of a plan if the office
 2137  determines that conditions have changed since approval was
 2138  granted and that the purposes of the plan require changes in the
 2139  plan. The plan of operation shall:
 2140         1. Authorize the board to engage in the activities
 2141  necessary to implement this subsection, including, but not
 2142  limited to, borrowing money.
 2143         2. Develop criteria for eligibility for coverage by the
 2144  plan, including, but not limited to, documented rejection by at
 2145  least two insurers which reasonably assures that insureds
 2146  covered under the plan are unable to acquire coverage in the
 2147  voluntary market.
 2148         3. Require notice from the agent to the insured at the time
 2149  of the application for coverage that the application is for
 2150  coverage with the plan and that coverage may be available
 2151  through an insurer, group self-insurers’ fund, commercial self
 2152  insurance fund, or assessable mutual insurer through another
 2153  agent at a lower cost.
 2154         4. Establish programs to encourage insurers to provide
 2155  coverage to applicants of the plan in the voluntary market and
 2156  to insureds of the plan, including, but not limited to:
 2157         a. Establishing procedures for an insurer to use in
 2158  notifying the plan of the insurer’s desire to provide coverage
 2159  to applicants to the plan or existing insureds of the plan and
 2160  in describing the types of risks in which the insurer is
 2161  interested. The description of the desired risks must be on a
 2162  form developed by the plan.
 2163         b. Developing forms and procedures that provide an insurer
 2164  with the information necessary to determine whether the insurer
 2165  wants to write particular applicants to the plan or insureds of
 2166  the plan.
 2167         c. Developing procedures for notice to the plan and the
 2168  applicant to the plan or insured of the plan that an insurer
 2169  will insure the applicant or the insured of the plan, and notice
 2170  of the cost of the coverage offered; and developing procedures
 2171  for the selection of an insuring entity by the applicant or
 2172  insured of the plan.
 2173         d. Provide for a market-assistance plan to assist in the
 2174  placement of employers. All applications for coverage in the
 2175  plan received 45 days before the effective date for coverage
 2176  shall be processed through the market-assistance plan. A market
 2177  assistance plan specifically designed to serve the needs of
 2178  small, good policyholders as defined by the board must be
 2179  reviewed and updated periodically.
 2180         5. Provide for policy and claims services to the insureds
 2181  of the plan of the nature and quality provided for insureds in
 2182  the voluntary market.
 2183         6. Provide for the review of applications for coverage with
 2184  the plan for reasonableness and accuracy, using any available
 2185  historic information regarding the insured.
 2186         7. Provide for procedures for auditing insureds of the plan
 2187  which are based on reasonable business judgment and are designed
 2188  to maximize the likelihood that the plan will collect the
 2189  appropriate premiums.
 2190         8. Authorize the plan to terminate the coverage of and
 2191  refuse future coverage for any insured that submits a fraudulent
 2192  application to the plan or provides fraudulent or grossly
 2193  erroneous records to the plan or to any service provider of the
 2194  plan in conjunction with the activities of the plan.
 2195         9. Establish service standards for agents who submit
 2196  business to the plan.
 2197         10. Establish criteria and procedures to prohibit any agent
 2198  who does not adhere to the established service standards from
 2199  placing business with the plan or receiving, directly or
 2200  indirectly, any commissions for business placed with the plan.
 2201         11. Provide for the establishment of reasonable safety
 2202  programs for all insureds in the plan. All insureds of the plan
 2203  must participate in the safety program.
 2204         12. Authorize the plan to terminate the coverage of and
 2205  refuse future coverage to any insured who fails to pay premiums
 2206  or surcharges when due; who, at the time of application, is
 2207  delinquent in payments of workers’ compensation or employer’s
 2208  liability insurance premiums or surcharges owed to an insurer,
 2209  group self-insurers’ fund, commercial self-insurance fund, or
 2210  assessable mutual insurer licensed to write such coverage in
 2211  this state; or who refuses to substantially comply with any
 2212  safety programs recommended by the plan.
 2213         13. Authorize the board of governors to provide the goods
 2214  and services required by the plan through staff employed by the
 2215  plan, through reasonably compensated service providers who
 2216  contract with the plan to provide services as specified by the
 2217  board of governors, or through a combination of employees and
 2218  service providers.
 2219         a. Purchases that equal or exceed $2,500 but are less than
 2220  or equal to $25,000, shall be made by receipt of written quotes,
 2221  telephone quotes, or informal bids, whenever practical. The
 2222  procurement of goods or services valued over $25,000 is subject
 2223  to competitive solicitation, except in situations in which the
 2224  goods or services are provided by a sole source or are deemed an
 2225  emergency purchase, or the services are exempted from
 2226  competitive-solicitation requirements under s. 287.057(3)(5)(f).
 2227  Justification for the sole-sourcing or emergency procurement
 2228  must be documented. Contracts for goods or services valued at or
 2229  over $100,000 are subject to board approval.
 2230         b. The board shall determine whether it is more cost
 2231  effective and in the best interests of the plan to use legal
 2232  services provided by in-house attorneys employed by the plan
 2233  rather than contracting with outside counsel. In making such
 2234  determination, the board shall document its findings and shall
 2235  consider the expertise needed; whether time commitments exceed
 2236  in-house staff resources; whether local representation is
 2237  needed; the travel, lodging, and other costs associated with in
 2238  house representation; and such other factors that the board
 2239  determines are relevant.
 2240         14. Provide for service standards for service providers,
 2241  methods of determining adherence to those service standards,
 2242  incentives and disincentives for service, and procedures for
 2243  terminating contracts for service providers that fail to adhere
 2244  to service standards.
 2245         15. Provide procedures for selecting service providers and
 2246  standards for qualification as a service provider that
 2247  reasonably assure that any service provider selected will
 2248  continue to operate as an ongoing concern and is capable of
 2249  providing the specified services in the manner required.
 2250         16. Provide for reasonable accounting and data-reporting
 2251  practices.
 2252         17. Provide for annual review of costs associated with the
 2253  administration and servicing of the policies issued by the plan
 2254  to determine alternatives by which costs can be reduced.
 2255         18. Authorize the acquisition of such excess insurance or
 2256  reinsurance as is consistent with the purposes of the plan.
 2257         19. Provide for an annual report to the office on a date
 2258  specified by the office and containing such information as the
 2259  office reasonably requires.
 2260         20. Establish multiple rating plans for various
 2261  classifications of risk which reflect risk of loss, hazard
 2262  grade, actual losses, size of premium, and compliance with loss
 2263  control. At least one of such plans must be a preferred-rating
 2264  plan to accommodate small-premium policyholders with good
 2265  experience as defined in sub-subparagraph 22.a.
 2266         21. Establish agent commission schedules.
 2267         22. For employers otherwise eligible for coverage under the
 2268  plan, establish three tiers of employers meeting the criteria
 2269  and subject to the rate limitations specified in this
 2270  subparagraph.
 2271         a. Tier One.—
 2272         (I) Criteria; rated employers.—An employer that has an
 2273  experience modification rating shall be included in Tier One if
 2274  the employer meets all of the following:
 2275         (A) The experience modification is below 1.00.
 2276         (B) The employer had no lost-time claims subsequent to the
 2277  applicable experience modification rating period.
 2278         (C) The total of the employer’s medical-only claims
 2279  subsequent to the applicable experience modification rating
 2280  period did not exceed 20 percent of premium.
 2281         (II) Criteria; non-rated employers.—An employer that does
 2282  not have an experience modification rating shall be included in
 2283  Tier One if the employer meets all of the following:
 2284         (A) The employer had no lost-time claims for the 3-year
 2285  period immediately preceding the inception date or renewal date
 2286  of the employer’s coverage under the plan.
 2287         (B) The total of the employer’s medical-only claims for the
 2288  3-year period immediately preceding the inception date or
 2289  renewal date of the employer’s coverage under the plan did not
 2290  exceed 20 percent of premium.
 2291         (C) The employer has secured workers’ compensation coverage
 2292  for the entire 3-year period immediately preceding the inception
 2293  date or renewal date of the employer’s coverage under the plan.
 2294         (D) The employer is able to provide the plan with a loss
 2295  history generated by the employer’s prior workers’ compensation
 2296  insurer, except if the employer is not able to produce a loss
 2297  history due to the insolvency of an insurer, the receiver shall
 2298  provide to the plan, upon the request of the employer or the
 2299  employer’s agent, a copy of the employer’s loss history from the
 2300  records of the insolvent insurer if the loss history is
 2301  contained in records of the insurer which are in the possession
 2302  of the receiver. If the receiver is unable to produce the loss
 2303  history, the employer may, in lieu of the loss history, submit
 2304  an affidavit from the employer and the employer’s insurance
 2305  agent setting forth the loss history.
 2306         (E) The employer is not a new business.
 2307         (III) Premiums.—The premiums for Tier One insureds shall be
 2308  set at a premium level 25 percent above the comparable voluntary
 2309  market premiums until the plan has sufficient experience as
 2310  determined by the board to establish an actuarially sound rate
 2311  for Tier One, at which point the board shall, subject to
 2312  paragraph (e), adjust the rates, if necessary, to produce
 2313  actuarially sound rates, provided such rate adjustment shall not
 2314  take effect prior to January 1, 2007.
 2315         b. Tier Two.—
 2316         (I) Criteria; rated employers.—An employer that has an
 2317  experience modification rating shall be included in Tier Two if
 2318  the employer meets all of the following:
 2319         (A) The experience modification is equal to or greater than
 2320  1.00 but not greater than 1.10.
 2321         (B) The employer had no lost-time claims subsequent to the
 2322  applicable experience modification rating period.
 2323         (C) The total of the employer’s medical-only claims
 2324  subsequent to the applicable experience modification rating
 2325  period did not exceed 20 percent of premium.
 2326         (II) Criteria; non-rated employers.—An employer that does
 2327  not have any experience modification rating shall be included in
 2328  Tier Two if the employer is a new business. An employer shall be
 2329  included in Tier Two if the employer has less than 3 years of
 2330  loss experience in the 3-year period immediately preceding the
 2331  inception date or renewal date of the employer’s coverage under
 2332  the plan and the employer meets all of the following:
 2333         (A) The employer had no lost-time claims for the 3-year
 2334  period immediately preceding the inception date or renewal date
 2335  of the employer’s coverage under the plan.
 2336         (B) The total of the employer’s medical-only claims for the
 2337  3-year period immediately preceding the inception date or
 2338  renewal date of the employer’s coverage under the plan did not
 2339  exceed 20 percent of premium.
 2340         (C) The employer is able to provide the plan with a loss
 2341  history generated by the workers’ compensation insurer that
 2342  provided coverage for the portion or portions of such period
 2343  during which the employer had secured workers’ compensation
 2344  coverage, except if the employer is not able to produce a loss
 2345  history due to the insolvency of an insurer, the receiver shall
 2346  provide to the plan, upon the request of the employer or the
 2347  employer’s agent, a copy of the employer’s loss history from the
 2348  records of the insolvent insurer if the loss history is
 2349  contained in records of the insurer which are in the possession
 2350  of the receiver. If the receiver is unable to produce the loss
 2351  history, the employer may, in lieu of the loss history, submit
 2352  an affidavit from the employer and the employer’s insurance
 2353  agent setting forth the loss history.
 2354         (III) Premiums.—The premiums for Tier Two insureds shall be
 2355  set at a rate level 50 percent above the comparable voluntary
 2356  market premiums until the plan has sufficient experience as
 2357  determined by the board to establish an actuarially sound rate
 2358  for Tier Two, at which point the board shall, subject to
 2359  paragraph (e), adjust the rates, if necessary, to produce
 2360  actuarially sound rates, provided such rate adjustment shall not
 2361  take effect prior to January 1, 2007.
 2362         c. Tier Three.—
 2363         (I) Eligibility.—An employer shall be included in Tier
 2364  Three if the employer does not meet the criteria for Tier One or
 2365  Tier Two.
 2366         (II) Rates.—The board shall establish, subject to paragraph
 2367  (e), and the plan shall charge, actuarially sound rates for Tier
 2368  Three insureds.
 2369         23. For Tier One or Tier Two employers which employ no
 2370  nonexempt employees or which report payroll which is less than
 2371  the minimum wage hourly rate for one full-time employee for 1
 2372  year at 40 hours per week, the plan shall establish actuarially
 2373  sound premiums, provided, however, that the premiums may not
 2374  exceed $2,500. These premiums shall be in addition to the fee
 2375  specified in subparagraph 26. When the plan establishes
 2376  actuarially sound rates for all employers in Tier One and Tier
 2377  Two, the premiums for employers referred to in this paragraph
 2378  are no longer subject to the $2,500 cap.
 2379         24. Provide for a depopulation program to reduce the number
 2380  of insureds in the plan. If an employer insured through the plan
 2381  is offered coverage from a voluntary market carrier:
 2382         a. During the first 30 days of coverage under the plan;
 2383         b. Before a policy is issued under the plan;
 2384         c. By issuance of a policy upon expiration or cancellation
 2385  of the policy under the plan; or
 2386         d. By assumption of the plan’s obligation with respect to
 2387  an in-force policy,
 2388  
 2389  that employer is no longer eligible for coverage through the
 2390  plan. The premium for risks assumed by the voluntary market
 2391  carrier must be no greater than the premium the insured would
 2392  have paid under the plan, and shall be adjusted upon renewal to
 2393  reflect changes in the plan rates and the tier for which the
 2394  insured would qualify as of the time of renewal. The insured may
 2395  be charged such premiums only for the first 3 years of coverage
 2396  in the voluntary market. A premium under this subparagraph is
 2397  deemed approved and is not an excess premium for purposes of s.
 2398  627.171.
 2399         25. Require that policies issued and applications must
 2400  include a notice that the policy could be replaced by a policy
 2401  issued from a voluntary market carrier and that, if an offer of
 2402  coverage is obtained from a voluntary market carrier, the
 2403  policyholder is no longer eligible for coverage through the
 2404  plan. The notice must also specify that acceptance of coverage
 2405  under the plan creates a conclusive presumption that the
 2406  applicant or policyholder is aware of this potential.
 2407         26. Require that each application for coverage and each
 2408  renewal premium be accompanied by a nonrefundable fee of $475 to
 2409  cover costs of administration and fraud prevention. The board
 2410  may, with the prior approval of the office, increase the amount
 2411  of the fee pursuant to a rate filing to reflect increased costs
 2412  of administration and fraud prevention. The fee is not subject
 2413  to commission and is fully earned upon commencement of coverage.
 2414         Section 39. Paragraph (e) of subsection (6) of section
 2415  627.351, Florida Statutes, is amended to read:
 2416         627.351 Insurance risk apportionment plans.—
 2417         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 2418         (e) Purchases that equal or exceed $2,500, but are less
 2419  than $25,000, shall be made by receipt of written quotes,
 2420  written record of telephone quotes, or informal bids, whenever
 2421  practical. The procurement of goods or services valued at or
 2422  over $25,000 shall be subject to competitive solicitation,
 2423  except in situations where the goods or services are provided by
 2424  a sole source or are deemed an emergency purchase; the services
 2425  are exempted from competitive solicitation requirements under s.
 2426  287.057(3)(5)(f); or the procurement of services is subject to
 2427  s. 627.3513. Justification for the sole-sourcing or emergency
 2428  procurement must be documented. Contracts for goods or services
 2429  valued at or over $100,000 are subject to approval by the board.
 2430         Section 40. Subsection (2) of section 765.5155, Florida
 2431  Statutes, is amended to read:
 2432         765.5155 Donor registry; education program.—
 2433         (2) The agency and the department shall jointly contract
 2434  for the operation of a donor registry and education program. The
 2435  contractor shall be procured by competitive solicitation
 2436  pursuant to chapter 287, notwithstanding any exemption in s.
 2437  287.057(3)(5)(f). When awarding the contract, priority shall be
 2438  given to existing nonprofit groups that are based within the
 2439  state, have expertise working with procurement organizations,
 2440  have expertise in conducting statewide organ and tissue donor
 2441  public education campaigns, and represent the needs of the organ
 2442  and tissue donation community in the state.
 2443         Section 41. Subsection (10) of section 893.055, Florida
 2444  Statutes, is amended to read:
 2445         893.055 Prescription drug monitoring program.—
 2446         (10) All costs incurred by the department in administering
 2447  the prescription drug monitoring program shall be funded through
 2448  federal grants or private funding applied for or received by the
 2449  state. The department may not commit funds for the monitoring
 2450  program without ensuring funding is available. The prescription
 2451  drug monitoring program and the implementation thereof are
 2452  contingent upon receipt of the nonstate funding. The department
 2453  and state government shall cooperate with the direct-support
 2454  organization established pursuant to subsection (11) in seeking
 2455  federal grant funds, other nonstate grant funds, gifts,
 2456  donations, or other private moneys for the department so long as
 2457  the costs of doing so are not considered material. Nonmaterial
 2458  costs for this purpose include, but are not limited to, the
 2459  costs of mailing and personnel assigned to research or apply for
 2460  a grant. Notwithstanding the exemptions to competitive
 2461  solicitation requirements under s. 287.057(3)(5)(f), the
 2462  department shall comply with the competitive-solicitation
 2463  requirements under s. 287.057 for the procurement of any goods
 2464  or services required by this section.
 2465         Section 42. Subsection (3) of section 1013.38, Florida
 2466  Statutes, is amended to read:
 2467         1013.38 Boards to ensure that facilities comply with
 2468  building codes and life safety codes.—
 2469         (3) The Department of Management Services may, upon
 2470  request, provide facilities services for the Florida School for
 2471  the Deaf and the Blind, the Division of Blind Services, and
 2472  public broadcasting. As used in this section, the term
 2473  “facilities services” means project management, code and design
 2474  plan review, and code compliance inspection for projects as
 2475  defined in s. 287.017(5)(1)(e).
 2476         Section 43. Section 21 of chapter 2009-55, Laws of Florida,
 2477  is amended to read:
 2478         Section 21. The Agency for Health Care Administration shall
 2479  develop and implement a home health agency monitoring pilot
 2480  project in Miami-Dade County by January 1, 2010. The agency
 2481  shall contract with a vendor to verify the utilization and the
 2482  delivery of home health services and provide an electronic
 2483  billing interface for such services. The contract must require
 2484  the creation of a program to submit claims for the home health
 2485  services electronically. The program must verify visits for the
 2486  delivery of home health services telephonically using voice
 2487  biometrics. The agency may seek amendments to the Medicaid state
 2488  plan and waivers of federal law, as necessary, to implement the
 2489  pilot project. Notwithstanding s. 287.057(3)(5)(f), Florida
 2490  Statutes, the agency must award the contract through the
 2491  competitive solicitation process. The agency shall submit a
 2492  report to the Governor, the President of the Senate, and the
 2493  Speaker of the House of Representatives evaluating the pilot
 2494  project by February 1, 2011.
 2495         Section 44. Section 31 of chapter 2009-223, Laws of
 2496  Florida, is amended to read:
 2497         Section 31. Pilot project to monitor home health services.
 2498  The Agency for Health Care Administration shall develop and
 2499  implement a home health agency monitoring pilot project in
 2500  Miami-Dade County by January 1, 2010. The agency shall contract
 2501  with a vendor to verify the utilization and delivery of home
 2502  health services and provide an electronic billing interface for
 2503  home health services. The contract must require the creation of
 2504  a program to submit claims electronically for the delivery of
 2505  home health services. The program must verify telephonically
 2506  visits for the delivery of home health services using voice
 2507  biometrics. The agency may seek amendments to the Medicaid state
 2508  plan and waivers of federal laws, as necessary, to implement the
 2509  pilot project. Notwithstanding s. 287.057(3)(5)(f), Florida
 2510  Statutes, the agency must award the contract through the
 2511  competitive solicitation process. The agency shall submit a
 2512  report to the Governor, the President of the Senate, and the
 2513  Speaker of the House of Representatives evaluating the pilot
 2514  project by February 1, 2011.
 2515         Section 45. Contracts for academic program reviews,
 2516  auditing services, health services, or Medicaid services are
 2517  subject to the transaction or user fees imposed under ss.
 2518  287.042(1)(h) and 287.057(22), Florida Statutes, only to the
 2519  extent that such contracts were not subject to such transaction
 2520  or user fees before July 1, 2010.
 2521         Section 46. (1) Each state agency, as defined in s.
 2522  216.011, Florida Statutes, shall provide the following
 2523  information to the Department of Financial Services regarding
 2524  the agency’s contracted activities:
 2525         (a) The nature of the commodities or services purchased.
 2526         (b) The term of the contract.
 2527         (c) The final obligation made by the agency.
 2528         (d) A summary of any time constraints that apply to the
 2529  procurement.
 2530         (e) The justification for not using the competitive
 2531  solicitation, including any statutory exemption or exception.
 2532         (f) Other information regarding the contract or the
 2533  procurement which may be required by the Department of Financial
 2534  Services.
 2535         (2) This section applies to any contract executed on or
 2536  after July 1, 2010, for the purchase of commodities or
 2537  contractual services in excess of the CATEGORY TWO threshold
 2538  amount provided in s. 287.017, Florida Statutes, which is not:
 2539         (a) Awarded by competitive solicitation pursuant to s.
 2540  287.057(1), Florida Statutes; or
 2541         (b) Purchased from a purchasing agreement or state term
 2542  contract pursuant to s. 287.056, Florida Statutes.
 2543         (3) An agency must submit the required information to the
 2544  Department of Financial Services within 3 working days after
 2545  executing the contract.
 2546         Section 47. Each state agency, as defined in s. 216.011,
 2547  Florida Statutes, shall review existing contract renewals and
 2548  reprocurements with private providers and public-private
 2549  providers in an effort to reduce contract payments by at least 3
 2550  percent. It is the statewide goal to achieve substantial
 2551  savings; however, it is the intent of the Legislature that the
 2552  level and quality of services not be affected. Each agency shall
 2553  renegotiate and reprocure contracts consistent with this
 2554  section. Any savings that accrue through renegotiating the
 2555  renewal or reprocurement of an existing contract shall be placed
 2556  in reserve by the Executive Office of the Governor.
 2557         Section 48. (1) Each state agency, as defined in s.
 2558  216.011, Florida Statutes, shall review its contracts and, for
 2559  any contract with a preferred-pricing clause, the agency shall
 2560  ensure that the contractor complies with such clause.
 2561         (2) Each contract executed, renewed, extended, or modified
 2562  on or after July 1, 2010, which includes a preferred-pricing
 2563  clause, must require an affidavit from an authorized
 2564  representative of the contractor attesting that the contract is
 2565  in compliance with the preferred-pricing clause. Such affidavit
 2566  must be submitted at least annually. A contractor’s failure to
 2567  comply with a preferred-pricing clause is grounds for
 2568  terminating the contract at the state agency’s sole discretion.
 2569         (3) As used in this section, the term “preferred-pricing
 2570  clause” means a contractual provision under which the state is
 2571  offered the most favorable price that the contractor offers to
 2572  any client.
 2573         Section 49. (1)Consistent with the principles of promoting
 2574  employment of state residents, ensuring that the expenditure of
 2575  state funds benefits state residents, and encouraging economic
 2576  development within the state, each entity expending funds
 2577  provided in the General Appropriations Act for the 2010-2011
 2578  fiscal year for any purchase of goods and services in excess of
 2579  $5 million shall give preference, to the maximum extent possible
 2580  under or consistent with applicable state and federal laws, to
 2581  vendors or businesses that have a principal place of business in
 2582  the State of Florida and that commit contractually to maximize
 2583  the use of state residents, state products, and other Florida
 2584  based businesses in fulfilling their contractual duties.
 2585         (2)This section does not apply to any contract that was
 2586  funded prior to June 1, 2010.
 2587         (3)Each state agency shall identify contracts that are
 2588  subject to this section and shall report by March 1, 2011, to
 2589  the Agency for Workforce Innovation each contractor’s compliance
 2590  with this section.
 2591         Section 50. The sum of $311,915 from the General Revenue
 2592  Fund is appropriated and five full-time equivalent positions and
 2593  associated salary rate are authorized to the Department of
 2594  Financial Services to implement the provisions of this act.
 2595         Section 51. This act shall take effect July 1, 2010.

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