Bill Text: FL S0444 | 2011 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Scrutinized Companies

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Engrossed - Dead) 2011-05-04 - Ordered enrolled -SJ 851 [S0444 Detail]

Download: Florida-2011-S0444-Comm_Sub.html

---

       Florida Senate - 2011                              CS for SB 444
       
       
       
       By the Committee on Community Affairs; and Senators Bogdanoff
       and Benacquisto
       
       
       
       578-02154-11                                           2011444c1
    1                        A bill to be entitled                      
    2         An act relating to scrutinized companies; creating s.
    3         287.135, F.S.; providing definitions; prohibiting a
    4         state agency or local governmental entity from
    5         contracting for goods and services of more than a
    6         certain amount with a company that is on the
    7         Scrutinized Companies with Activities in Sudan List or
    8         the Scrutinized Companies with Activities in the Iran
    9         Petroleum Energy Sector List; providing for a contract
   10         provision that allows for termination of the contract
   11         if the company is found to have been placed on such
   12         list; providing exceptions; providing for a civil
   13         action; providing penalties, including attorney’s fees
   14         and costs; providing a statute of repose; prohibiting
   15         a private right of action; requiring the Department of
   16         Management Services to notify the Attorney General
   17         after the act becomes law; providing that the act
   18         becomes inoperative if federal law ceases to authorize
   19         states to enact such contracting prohibitions;
   20         providing an effective date.
   21  
   22  Be It Enacted by the Legislature of the State of Florida:
   23  
   24         Section 1. Section 287.135, Florida Statutes, is created to
   25  read:
   26         287.135 Prohibition against contracting with scrutinized
   27  companies.—
   28         (1) In addition to the terms defined in ss. 287.012 and
   29  215.473, as used in this section, the term:
   30         (a) “Awarding body” means, for purposes of state contracts,
   31  an agency or the department, and for purposes of local
   32  contracts, the governing body of the local governmental entity.
   33         (b) “Local governmental entity” means a county,
   34  municipality, special district, or other political subdivision
   35  of the state.
   36         (2) A company that, at the time of bidding or submitting a
   37  proposal for a new contract or renewal of an existing contract,
   38  is on the Scrutinized Companies with Activities in Sudan List or
   39  the Scrutinized Companies with Activities in the Iran Petroleum
   40  Energy Sector List, created pursuant to s. 215.473, is
   41  ineligible for, and may not bid on, submit a proposal for, or
   42  enter into or renew a contract with an agency or local
   43  governmental entity for goods or services of $1 million or more.
   44         (3) Any contract with an agency or local governmental
   45  entity for goods or services of $1 million or more entered into
   46  or renewed on or after July 1, 2011, must contain a provision
   47  that allows for the termination of such contract at the option
   48  of the awarding body if the company is found to have submitted a
   49  false certification as provided under subsection (5) or been
   50  placed on the Scrutinized Companies with Activities in Sudan
   51  List or the Scrutinized Companies with Activities in the Iran
   52  Petroleum Energy Sector List.
   53         (4) Notwithstanding subsection (2) or subsection (3), an
   54  agency or local governmental entity, on a case-by-case basis,
   55  may permit a company on the Scrutinized Companies with
   56  Activities in Sudan List or the Scrutinized Companies with
   57  Activities in the Iran Petroleum Energy Sector List to be
   58  eligible for, bid on, submit a proposal for, or enter into or
   59  renew a contract for goods or services of $1 million or more
   60  under either of the following conditions:
   61         (a) All of the following occur:
   62         1. The scrutinized business operations were made before
   63  July 1, 2011.
   64         2. The scrutinized business operations have not been
   65  expanded or renewed after July 1, 2011.
   66         3. The agency or local governmental entity determines that
   67  it is in the best interest of the state or local community to
   68  contract with the company.
   69         4. The company has adopted, has publicized, and is
   70  implementing a formal plan to cease scrutinized business
   71  operations and to refrain from engaging in any new scrutinized
   72  business operations.
   73         (b) One of the following occurs:
   74         1. The local governmental entity makes a public finding
   75  that, absent such an exemption, the local governmental entity
   76  would be unable to obtain the goods or services for which the
   77  contract is offered.
   78         2. For a contract with an executive agency, the Governor
   79  makes a public finding that, absent such an exemption, the
   80  agency would be unable to obtain the goods or services for which
   81  the contract is offered.
   82         3. For a contract with an office of a state constitutional
   83  officer other than the Governor, the state constitutional
   84  officer makes a public finding that, absent such an exemption,
   85  the office would be unable to obtain the goods or services for
   86  which the contract is offered.
   87         (5) At the time a company submits a bid or proposal for a
   88  contract or before the company enters into or renews a contract
   89  with an agency or governmental entity for goods or services of
   90  $1 million or more, the company must certify that the company is
   91  not on the Scrutinized Companies with Activities in Sudan List
   92  or the Scrutinized Companies with Activities in the Iran
   93  Petroleum Energy Sector List.
   94         (a) If, after the agency or the local governmental entity
   95  determines, using credible information available to the public,
   96  that the company has submitted a false certification, the agency
   97  or local governmental entity shall provide the company with
   98  written notice of its determination. The company shall have 90
   99  days following receipt of the notice to respond in writing and
  100  to demonstrate that the determination of false certification was
  101  made in error. If the company does not make such demonstration
  102  within 90 days after receipt of the notice, the agency or the
  103  local governmental entity shall bring a civil action against the
  104  company. If a civil action is brought and the court determines
  105  that the company submitted a false certification, the company
  106  shall pay the penalty described in subparagraph 1. and all
  107  reasonable attorney’s fees and costs, including any costs for
  108  investigations that led to the finding of false certification.
  109         1. A civil penalty equal to the greater of $2 million or
  110  twice the amount of the contract for which the false
  111  certification was submitted shall be imposed.
  112         2. The company is ineligible to bid on any contract with an
  113  agency or local governmental entity for 3 years after the date
  114  the agency or local governmental entity determined that the
  115  company submitted a false certification.
  116         (b) A civil action to collect the penalties described in
  117  paragraph (a) must commence within 3 years after the date the
  118  false certification is submitted.
  119         (6) Only the agency or local governmental entity that is a
  120  party to the contract may cause a civil action to be brought
  121  under this section. This section does not create or authorize a
  122  private right of action or enforcement of the penalties provided
  123  in this section. An unsuccessful bidder, or any other person
  124  other than the agency or local governmental entity, may not
  125  protest the award of a contract or contract renewal on the basis
  126  of a false certification.
  127         (7) This section preempts any ordinance or rule of any
  128  agency or local governmental entity involving public contracts
  129  for goods or services of $1 million or more with a company
  130  engaged in scrutinized business operations.
  131         (8) The department shall submit to the Attorney General of
  132  the United States a written notice describing this section
  133  within 30 days after July 1, 2011. This section becomes
  134  inoperative on the date that federal law ceases to authorize the
  135  states to adopt and enforce the contracting prohibitions of the
  136  type provided for in this section.
  137         Section 2. This act shall take effect July 1, 2011.