Bill Text: FL S2386 | 2010 | Regular Session | Comm Sub

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

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Bill Title: State Financial Matters [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2010-05-28 - Approved by Governor; Chapter No. 2010-151; companion bill(s) passed, see CS/CS/SB 1412 (Ch. 2010-102) [S2386 Detail]

Download: Florida-2010-S2386-Comm_Sub.html

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Florida Senate - 2010                             CS for SB 2386 
 
By the Policy and Steering Committee on Ways and Means; and 
Senator Alexander 
576-03808-10                                          20102386c1 
1                        A bill to be entitled 
2         An act relating to state financial matters; amending 
3         s. 17.29, F.S.; authorizing the Chief Financial 
4         Officer to adopt rules requiring that payments made by 
5         the state for goods, services, or anything of value be 
6         made by electronic means; requiring that the rules 
7         include methods for accommodating persons who may not 
8         be able to receive payment by electronic means; 
9         authorizing the Chief Financial Officer to make 
10         payments by warrant if administratively necessary; 
11         amending s. 43.16, F.S.; conforming a cross-reference; 
12         amending s. 215.322, F.S.; conforming provisions to 
13         changes made by the act to authorize state agencies, 
14         local governments, and the judicial branch to accept 
15         payments by electronic funds transfers; providing for 
16         the adoption of rules to facilitate such payments and 
17         to accommodate persons who may not be able to make 
18         payments by electronic means; authorizing the Chief 
19         Financial Officer to adopt rules establishing uniform 
20         security safeguards for cardholder data; creating s. 
21         215.971, F.S.; requiring that the Chief Financial 
22         Officer adopt and disseminate uniform minimum 
23         procedures to state agencies for agreements that 
24         provide state or federal financial assistance to a 
25         recipient or subrecipient; amending s. 216.3475, F.S.; 
26         requiring an agency that is awarded funding on a 
27         noncompetitive basis for certain services as specified 
28         in the General Appropriations Act to maintain 
29         specified documentation supporting a cost analysis; 
30         amending s. 287.056, F.S.; specifying the provisions 
31         to be included in state agency purchasing agreements; 
32         amending s. 287.057, F.S.; removing certain types of 
33         services from an exception to the competitive bid 
34         requirements for the purchase of contractual services; 
35         providing that certain types of health care services 
36         are except from competitive bid requirements for the 
37         purchase of contractual services; requiring that an 
38         agency document compliance with s. 216.3475, F.S., if 
39         the purchase of contractual services exceeds a certain 
40         amount and the services are not competitively 
41         procured; requiring that an agency’s contract manager 
42         attend training regarding accountability in contracts 
43         and grant management; providing for uniform procedures 
44         that the Chief Financial Officer must establish and 
45         disseminate to state agencies; subjecting users of 
46         certain state term contracts to a transaction or user 
47         fee; amending s. 287.0571, F.S.; conforming a cross 
48         reference; amending s. 287.058, F.S.; revising 
49         provisions regarding contracts for services; 
50         specifying provisions to be included in such 
51         contracts; amending ss. 295.187, 394.47865, 402.40, 
52         402.7305, 408.045, 427.0135, and 570.07, F.S.; 
53         conforming cross-references; requiring state agencies 
54         to provide specified information to the Department of 
55         Financial Services relating to the purchase of 
56         commodities or services; requiring state agencies to 
57         review and renegotiate contract renewals and 
58         reprocurements in an effort to reduce contract 
59         payments; requiring the Executive Office of the 
60         Governor to place savings from the renegotiation of 
61         contract renewals or reprocurements in reserve; 
62         restricting funding for travel by state employees; 
63         requiring that certain travel be approved in writing 
64         by the agency head; providing exceptions; requiring 
65         each state agency to review its contracts to ensure 
66         that contractors comply with applicable preferred 
67         pricing clauses; requiring certain contracts 
68         containing a preferred-pricing clause to require that 
69         the contractor submit an affidavit attesting to the 
70         contractor’s compliance with the clause; defining the 
71         term “preferred-pricing clause”; providing an 
72         appropriation to the Department of Financial Services 
73         and authorizing additional full-time equivalent 
74         positions; providing an effective date. 
75 
76  Be It Enacted by the Legislature of the State of Florida: 
77 
78         Section 1. Section 17.29, Florida Statutes, is amended to 
79  read: 
80         17.29 Authority to prescribe rules.—The Chief Financial 
81  Officer may adopt rules pursuant to ss. 120.536(1) and 120.54 to 
82  implement this chapter and the duties assigned by statute or the 
83  State Constitution. Such rules may include, but are not limited 
84  to, the following: 
85         (1) Procedures or policies relating to the processing of 
86  payments from salaries, other personal services, or any other 
87  applicable appropriation. 
88         (2) Procedures for processing interagency and intraagency 
89  payments that which do not require the issuance of a state 
90  warrant. 
91         (3) Procedures or policies requiring that payments made by 
92  the state for goods, services, or anything of value be made by 
93  electronic means, including, but not limited to, debit cards, 
94  credit cards, or electronic funds transfers. 
95         (4) A method that reasonably accommodates persons who, 
96  because of technological, financial, or other hardship, may not 
97  be able to receive payments by electronic means. The Chief 
98  Financial Officer may make payments by state warrant if deemed 
99  administratively necessary. 
100         Section 2. Subsection (1) of section 43.16, Florida 
101  Statutes, is amended to read: 
102         43.16 Justice Administrative Commission; membership, powers 
103  and duties.— 
104         (1) There is hereby created a Justice Administrative 
105  Commission, with headquarters located in the state capital. The 
106  necessary office space for use of the commission shall be 
107  furnished by the proper state agency in charge of state 
108  buildings. For purposes of the fees imposed on agencies pursuant 
109  to s. 287.057(24) s. 287.057(23), the Justice Administrative 
110  Commission shall be exempt from such fees. 
111         Section 3. Section 215.322, Florida Statutes, is amended to 
112  read: 
113         215.322 Acceptance of credit cards, charge cards, or debit 
114  cards, or electronic funds transfers by state agencies, units of 
115  local government, and the judicial branch.— 
116         (1) It is the intent of the Legislature to encourage state 
117  agencies, the judicial branch, and units of local government to 
118  make their goods, services, and information more convenient to 
119  the public through the acceptance of payments by credit cards, 
120  charge cards, and debit cards, or other means of electronic 
121  funds transfers to the maximum extent practicable when the 
122  benefits to the participating agency and the public substantiate 
123  the cost of accepting these types of payments. 
124         (2) A state agency as defined in s. 216.011, or the 
125  judicial branch, may accept credit cards, charge cards, or debit 
126  cards, or electronic funds transfers in payment for goods and 
127  services with the prior approval of the Chief Financial Officer. 
128  If the Internet or other related electronic methods are to be 
129  used as the collection medium, the Agency for Enterprise 
130  Information Technology shall review and recommend to the Chief 
131  Financial Officer whether to approve the request with regard to 
132  the process or procedure to be used. 
133         (3) The Chief Financial Officer shall adopt rules governing 
134  the establishment and acceptance of credit cards, charge cards, 
135  or debit cards, or electronic funds transfers by state agencies 
136  or the judicial branch, including, but not limited to, the 
137  following: 
138         (a) Use Utilization of a standardized contract between the 
139  financial institution or other appropriate intermediaries and 
140  the agency or judicial branch which shall be developed by the 
141  Chief Financial Officer or approval by the Chief Financial 
142  Officer of a substitute agreement. 
143         (b) Procedures that which permit an agency or officer 
144  accepting payment by credit card, charge card, or debit card, or 
145  electronic funds transfer to impose a convenience fee upon the 
146  person making the payment. However, the total amount of such 
147  convenience fees may shall not exceed the total cost to the 
148  state agency. A convenience fee is not refundable to the payor. 
149  However Notwithstanding the foregoing, this section does shall 
150  not be construed to permit the imposition of surcharges on any 
151  other credit card purchase in violation of s. 501.0117. 
152         (c) All service fees payable pursuant to this section when 
153  practicable shall be invoiced and paid by state warrant or such 
154  other manner that is satisfactory to the Chief Financial Officer 
155  in accordance with the time periods specified in s. 215.422, if 
156  practicable. 
157         (d) Submission of information to the Chief Financial 
158  Officer concerning the acceptance of credit cards, charge cards, 
159  or debit cards, or electronic funds transfers by all state 
160  agencies or the judicial branch. 
161         (e) A methodology for agencies to use when completing the 
162  cost-benefit analysis referred to in subsection (1). The 
163  methodology must consider all quantifiable cost reductions, 
164  other benefits to the agency, and the potential impact on 
165  general revenue. The methodology must also consider 
166  nonquantifiable benefits such as the convenience to individuals 
167  and businesses that would benefit from the ability to pay for 
168  state goods and services through the use of credit cards, charge 
169  cards, and debit cards, or electronic funds transfers. 
170         (4) The Chief Financial Officer may establish contracts 
171  with one or more financial institutions, credit card companies, 
172  or other entities that which may lawfully provide such services, 
173  in a manner consistent with chapter 287, for processing credit 
174  card, charge card, or debit card, or electronic funds transfer 
175  collections for deposit into the State Treasury or another 
176  qualified public depository. Any state agency, or the judicial 
177  branch, which accepts payment by credit card, charge card, or 
178  debit card, or electronic funds transfer shall use at least one 
179  of the contractors established by the Chief Financial Officer, 
180  unless the state agency or judicial branch obtains authorization 
181  from the Chief Financial Officer to use another contractor that 
182  which is more advantageous to the such state agency or the 
183  judicial branch. The Such contracts may authorize a unit of 
184  local government to use the services upon the same terms and 
185  conditions for deposit of credit card, charge card, or debit 
186  card, or electronic funds transfer transactions into its 
187  qualified public depositories. 
188         (5) A unit of local government, including which term means 
189  a municipality, special district, or board of county 
190  commissioners or other governing body of a county, however 
191  styled, including that of a consolidated or metropolitan 
192  government, and means any clerk of the circuit court, sheriff, 
193  property appraiser, tax collector, or supervisor of elections, 
194  is authorized to accept payment by use of credit cards, charge 
195  cards, and bank debit cards, and electronic funds transfers for 
196  financial obligations that are owing to such unit of local 
197  government and to surcharge the person who uses a credit card, 
198  charge card, or bank debit card, or electronic funds transfer in 
199  payment of taxes, license fees, tuition, fines, civil penalties, 
200  court-ordered payments, or court costs, or other statutorily 
201  prescribed revenues an amount sufficient to pay the service fee 
202  charges by the financial institution, vending service company, 
203  or credit card company for such services. A unit of local 
204  government shall verify both the validity of any credit card, 
205  charge card, or bank debit card, or electronic funds transfer 
206  used pursuant to this subsection and the existence of 
207  appropriate credit with respect to the person using the card or 
208  transfer. The unit of local government does not incur any 
209  liability as a result of such verification or any subsequent 
210  action taken. 
211         (6) Any action required to be performed by a state officer 
212  or agency pursuant to this section shall be performed within 10 
213  working days after receipt of the request for approval or be 
214  deemed approved if not acted upon within that time. 
215         (7) Nothing contained in This section does not shall be 
216  construed to prohibit a state agency or the judicial branch from 
217  continuing to accept charge cards, or debit cards, or electronic 
218  funds transfers pursuant to a contract that which was lawfully 
219  entered into before prior to the effective date of this act, 
220  unless specifically directed otherwise in the General 
221  Appropriations Act. However, such contract may shall not be 
222  extended or renewed after the effective date of this act unless 
223  such renewal and extension conforms to the requirements of this 
224  section. 
225         (8) When deemed administratively necessary, a state agency, 
226  as defined in s. 216.011, or the judicial branch may adopt rules 
227  requiring that payments for goods, services, or anything of 
228  value be made by electronic means, including, but not limited 
229  to, credit cards, charge cards, debit cards, or electronic funds 
230  transfers. The rules must provide a method to reasonably 
231  accommodate persons who, because of technological, financial, or 
232  other hardship, may not be able to make payment by electronic 
233  means. 
234         (9) For payment programs in which credit cards, charge 
235  cards, or debit cards are accepted by state agencies, the 
236  judicial branch, or units of local government, the Chief 
237  Financial Officer, in consultation with the Agency for 
238  Enterprise Information Technology, may adopt rules to establish 
239  uniform security safeguards for cardholder data and to ensure 
240  compliance with the Payment Card Industry Data Security 
241  Standards. 
242         Section 4. Section 215.971, Florida Statutes, is created to 
243  read: 
244         215.971 Agreements funded by federal or state financial 
245  assistance.—The Chief Financial Officer shall adopt and 
246  disseminate uniform minimum procedures to state agencies 
247  pursuant to s. 17.03 for agreements that provide state or 
248  federal financial assistance to a recipient or subrecipient. 
249         Section 5. Section 216.3475, Florida Statutes, is amended 
250  to read: 
251         216.3475 Maximum rate of payment for services funded under 
252  General Appropriations Act or awarded on a noncompetitive 
253  basis.—A person or entity that is designated by the General 
254  Appropriations Act, or that is awarded funding on a 
255  noncompetitive basis, to provide services for which funds are 
256  appropriated by that act may not receive a rate of payment in 
257  excess of the competitive prevailing rate for those services 
258  unless expressly authorized in the General Appropriations Act. 
259  Each agency shall maintain documentation to support a cost 
260  analysis, which includes a detailed budget submitted by the 
261  person or entity awarded funding and the agency’s documented 
262  review of individual cost elements from the submitted budget for 
263  allowability, reasonableness, and necessity. 
264         Section 6. Subsection (1) of section 287.056, Florida 
265  Statutes, is amended to read: 
266         287.056 Purchases from purchasing agreements and state term 
267  contracts.— 
268         (1) Agencies shall, and eligible users may, purchase 
269  commodities and contractual services from purchasing agreements 
270  established and state term contracts procured, pursuant to s. 
271  287.057, by the department. Each agency agreement made under 
272  this subsection shall include: 
273         (a) A provision specifying a scope of work that clearly 
274  establishes all tasks that the contractor is required to 
275  perform. 
276         (b) A provision dividing the contract into quantifiable, 
277  measurable, and verifiable units of deliverables that must be 
278  received and accepted in writing by the contract manager before 
279  payment. Each deliverable must be directly related to the scope 
280  of work and specify the required minimum level of service to be 
281  performed and the criteria for evaluating the successful 
282  completion of each deliverable. 
283         Section 7. Present subsections (6) through (24) of section 
284  287.057, Florida Statutes, are redesignated as subsections (7) 
285  through (25), respectively, a new subsection (6) is added to 
286  that section, and present subsections (5) and (15) of that 
287  section are amended, to read: 
288         287.057 Procurement of commodities or contractual 
289  services.— 
290         (5) When the purchase price of commodities or contractual 
291  services exceeds the threshold amount provided in s. 287.017 for 
292  CATEGORY TWO, no purchase of commodities or contractual services 
293  may be made without receiving competitive sealed bids, 
294  competitive sealed proposals, or competitive sealed replies 
295  unless: 
296         (a) The agency head determines in writing that an immediate 
297  danger to the public health, safety, or welfare or other 
298  substantial loss to the state requires emergency action. After 
299  the agency head makes such a written determination, the agency 
300  may proceed with the procurement of commodities or contractual 
301  services necessitated by the immediate danger, without receiving 
302  competitive sealed bids, competitive sealed proposals, or 
303  competitive sealed replies. However, such emergency procurement 
304  shall be made by obtaining pricing information from at least two 
305  prospective vendors, which must be retained in the contract 
306  file, unless the agency determines in writing that the time 
307  required to obtain pricing information will increase the 
308  immediate danger to the public health, safety, or welfare or 
309  other substantial loss to the state. The agency shall furnish 
310  copies of all written determinations certified under oath and 
311  any other documents relating to the emergency action to the 
312  department. A copy of the statement shall be furnished to the 
313  Chief Financial Officer with the voucher authorizing payment. 
314  The individual purchase of personal clothing, shelter, or 
315  supplies which are needed on an emergency basis to avoid 
316  institutionalization or placement in a more restrictive setting 
317  is an emergency for the purposes of this paragraph, and the 
318  filing with the department of such statement is not required in 
319  such circumstances. In the case of the emergency purchase of 
320  insurance, the period of coverage of such insurance shall not 
321  exceed a period of 30 days, and all such emergency purchases 
322  shall be reported to the department. 
323         (b) The purchase is made by an agency from a state term 
324  contract procured, pursuant to this section, by the department 
325  or by an agency, after receiving approval from the department, 
326  from a contract procured, pursuant to subsection (1), subsection 
327  (2), or subsection (3), by another agency. 
328         (c) Commodities or contractual services available only from 
329  a single source may be excepted from the competitive 
330  solicitation requirements. When an agency believes that 
331  commodities or contractual services are available only from a 
332  single source, the agency shall electronically post a 
333  description of the commodities or contractual services sought 
334  for a period of at least 7 business days. The description must 
335  include a request that prospective vendors provide information 
336  regarding their ability to supply the commodities or contractual 
337  services described. If it is determined in writing by the 
338  agency, after reviewing any information received from 
339  prospective vendors, that the commodities or contractual 
340  services are available only from a single source, the agency 
341  shall: 
342         1. Provide notice of its intended decision to enter a 
343  single-source purchase contract in the manner specified in s. 
344  120.57(3), if the amount of the contract does not exceed the 
345  threshold amount provided in s. 287.017 for CATEGORY FOUR. 
346         2. Request approval from the department for the single 
347  source purchase, if the amount of the contract exceeds the 
348  threshold amount provided in s. 287.017 for CATEGORY FOUR. The 
349  agency shall initiate its request for approval in a form 
350  prescribed by the department, which request may be 
351  electronically transmitted. The failure of the department to 
352  approve or disapprove the agency’s request for approval within 
353  21 days after receiving such request shall constitute prior 
354  approval of the department. If the department approves the 
355  agency’s request, the agency shall provide notice of its 
356  intended decision to enter a single-source contract in the 
357  manner specified in s. 120.57(3). 
358         (d) When it is in the best interest of the state, the 
359  secretary of the department or his or her designee may authorize 
360  the Support Program to purchase insurance by negotiation, but 
361  such purchase shall be made only under conditions most favorable 
362  to the public interest. 
363         (e) Prescriptive assistive devices for the purpose of 
364  medical, developmental, or vocational rehabilitation of clients 
365  are excepted from competitive-solicitation requirements and 
366  shall be procured pursuant to an established fee schedule or by 
367  any other method which ensures the best price for the state, 
368  taking into consideration the needs of the client. Prescriptive 
369  assistive devices include, but are not limited to, prosthetics, 
370  orthotics, and wheelchairs. For purchases made pursuant to this 
371  paragraph, state agencies shall annually file with the 
372  department a description of the purchases and methods of 
373  procurement. 
374         (f) The following contractual services and commodities are 
375  not subject to the competitive-solicitation requirements of this 
376  section: 
377         1. Artistic services. For the purposes of this subsection, 
378  the term “artistic services” does not include advertising. As 
379  used in this subparagraph, the term “advertising” means the 
380  making of a representation in any form in connection with a 
381  trade, business, craft, or profession in order to promote the 
382  supply of commodities or services by the person promoting the 
383  commodities or contractual services. 
384         2. Academic program reviews if the fee for such services 
385  does not exceed $50,000. 
386         3. Lectures by individuals. 
387         4. Auditing services. 
388         4.5. Legal services, including attorney, paralegal, expert 
389  witness, appraisal, or mediator services. 
390         6. Health services involving examination, diagnosis, 
391  treatment, prevention, medical consultation, or administration. 
392         5.7. Services provided to persons with mental or physical 
393  disabilities by not-for-profit corporations which have obtained 
394  exemptions under the provisions of s. 501(c)(3) of the United 
395  States Internal Revenue Code or when such services are governed 
396  by the provisions of Office of Management and Budget Circular A 
397  122. However, in acquiring such services, the agency shall 
398  consider the ability of the vendor, past performance, 
399  willingness to meet time requirements, and price. 
400         8. Medicaid services delivered to an eligible Medicaid 
401  recipient by a health care provider who has not previously 
402  applied for and received a Medicaid provider number from the 
403  Agency for Health Care Administration. However, this exception 
404  shall be valid for a period not to exceed 90 days after the date 
405  of delivery to the Medicaid recipient and shall not be renewed 
406  by the agency. 
407         6.9. Family placement services. 
408         7.10. Prevention services related to mental health, 
409  including drug abuse prevention programs, child abuse prevention 
410  programs, and shelters for runaways, operated by not-for-profit 
411  corporations. However, in acquiring such services, the agency 
412  shall consider the ability of the vendor, past performance, 
413  willingness to meet time requirements, and price. 
414         8.11. Training and education services provided to injured 
415  employees pursuant to s. 440.491(6). 
416         9.12. Contracts entered into pursuant to s. 337.11. 
417         10.13. Services or commodities provided by governmental 
418  agencies. 
419         11. Health care services involving examinations, diagnosis, 
420  or treatment provided by licensed Florida health care providers 
421  or facilities that meet national and state standards or 
422  accreditation requirements and that are willing to be reimbursed 
423  at the Medicaid reimbursement rate. 
424         (g) Continuing education events or programs that are 
425  offered to the general public and for which fees have been 
426  collected that pay all expenses associated with the event or 
427  program are exempt from requirements for competitive 
428  solicitation. 
429         (6) An agency must document its compliance with s. 216.3475 
430  if the purchase of contractual services exceeds the threshold 
431  amount provided in s. 287.017 for CATEGORY TWO and such services 
432  are not competitively procured. 
433         (16)(15) For each contractual services contract, the agency 
434  shall designate an employee to function as contract manager who 
435  shall be responsible for enforcing performance of the contract 
436  terms and conditions and serve as a liaison with the contractor. 
437  Each contract manager who is responsible for contracts in excess 
438  of the threshold amount for CATEGORY TWO must attend training 
439  conducted by the Chief Financial Officer for accountability in 
440  contracts and grant management. The Chief Financial Officer 
441  agency shall establish and disseminate uniform procedures 
442  pursuant to s. 17.03(3) to ensure that contractual services have 
443  been rendered in accordance with the contract terms before the 
444  agency processes prior to processing the invoice for payment. 
445  The procedures shall include, but need not be limited to, 
446  procedures for monitoring and documenting contractor 
447  performance, reviewing and documenting all deliverables for 
448  which payment is requested by vendors, and providing written 
449  certification by contract managers of the agency’s receipt of 
450  goods and services. 
451         Section 8. Contracts for academic program reviews, auditing 
452  services, health services, and Medicaid services are subject the 
453  transaction or user fees imposed under ss. 287.057(23) and 
454  287.1345, Florida Statutes, only to the extent that such 
455  contracts were subjected to such transaction or user fees before 
456  July 1, 2010. 
457         Section 9. Paragraph (a) of subsection (4) of section 
458  287.0571, Florida Statutes, is amended to read: 
459         287.0571 Applicability of ss. 287.0571-287.0574.— 
460         (4) Sections 287.0571-287.0574 do not apply to: 
461         (a) A procurement of commodities and contractual services 
462  listed in s. 287.057(5)(e), (f), and (g) and (23)(22). 
463         Section 10. Subsection (1) of section 287.058, Florida 
464  Statutes, is amended to read: 
465         287.058 Contract document.— 
466         (1) Every procurement of contractual services in excess of 
467  the threshold amount provided in s. 287.017 for CATEGORY TWO, 
468  except for the providing of health and mental health services or 
469  drugs in the examination, diagnosis, or treatment of sick or 
470  injured state employees or the providing of other benefits as 
471  required by the provisions of chapter 440, shall be evidenced by 
472  a written agreement embodying all provisions and conditions of 
473  the procurement of such services, which provisions and 
474  conditions shall, where applicable, include, but shall not be 
475  limited to, a provision: 
476         (a) A provision That bills for fees or other compensation 
477  for services or expenses be submitted in detail sufficient for a 
478  proper preaudit and postaudit thereof. 
479         (b) A provision That bills for any travel expenses be 
480  submitted in accordance with s. 112.061. A state agency may 
481  establish rates lower than the maximum provided in s. 112.061. 
482         (c) A provision Allowing unilateral cancellation by the 
483  agency for refusal by the contractor to allow public access to 
484  all documents, papers, letters, or other material made or 
485  received by the contractor in conjunction with the contract, 
486  unless the records are exempt from s. 24(a) of Art. I of the 
487  State Constitution and s. 119.07(1). 
488         (d) Specifying a scope of work that clearly establishes all 
489  tasks the contractor is required to perform. 
490         (e)(d) A provision Dividing the contract into quantifiable, 
491  measurable, and verifiable units of deliverables, which shall 
492  include, but not be limited to, reports, findings, and drafts, 
493  that must be received and accepted in writing by the contract 
494  manager before prior to payment. Each deliverable must be 
495  directly related to the scope of work and specify the required 
496  minimum level of service to be performed and criteria for 
497  evaluating the successful completion of each deliverable. 
498         (f)(e) A provision Specifying the criteria and the final 
499  date by which such criteria must be met for completion of the 
500  contract. 
501         (g)(f) A provision Specifying that the contract may be 
502  renewed for a period that may not exceed 3 years or the term of 
503  the original contract, whichever period is longer, specifying 
504  the renewal price for the contractual service as set forth in 
505  the bid, proposal, or reply, specifying that costs for the 
506  renewal may not be charged, and specifying that renewals shall 
507  be contingent upon satisfactory performance evaluations by the 
508  agency and subject to the availability of funds. Exceptional 
509  purchase contracts pursuant to s. 287.057(5)(a) and (c) may not 
510  be renewed. 
511         (h) Specifying the financial consequences that the agency 
512  must apply if the contractor fails to perform in accordance with 
513  the contract. 
514         (i) Addressing the property rights of any intellectual 
515  property related to the contract and the specific rights of the 
516  state regarding the intellectual property if the contractor 
517  fails to provide the services or is no longer providing 
518  services. 
519 
520  In lieu of a written agreement, the department may authorize the 
521  use of a purchase order for classes of contractual services, if 
522  the provisions of paragraphs (a)-(i) (a)-(f) are included in the 
523  purchase order or solicitation. The purchase order must include, 
524  but need not be limited to, an adequate description of the 
525  services, the contract period, and the method of payment. In 
526  lieu of printing the provisions of paragraphs (a)-(i) (a)-(f) in 
527  the contract document or purchase order, agencies may 
528  incorporate the requirements of paragraphs (a)-(i) (a)-(f) by 
529  reference. 
530         Section 11. Paragraph (b) of subsection (4) of section 
531  295.187, Florida Statutes, is amended to read: 
532         295.187 Florida Service-Disabled Veteran Business 
533  Enterprise Opportunity Act.— 
534         (4) VENDOR PREFERENCE.— 
535         (b) Notwithstanding s. 287.057(13) s. 287.057(12), if a 
536  service-disabled veteran business enterprise entitled to the 
537  vendor preference under this section and one or more businesses 
538  entitled to this preference or another vendor preference 
539  provided by law submit bids, proposals, or replies for 
540  procurement of commodities or contractual services that are 
541  equal with respect to all relevant considerations, including 
542  price, quality, and service, then the state agency shall award 
543  the procurement or contract to the business having the smallest 
544  net worth. 
545         Section 12. Paragraph (a) of subsection (1) of section 
546  394.47865, Florida Statutes, is amended to read: 
547         394.47865 South Florida State Hospital; privatization.— 
548         (1) The Department of Children and Family Services shall, 
549  through a request for proposals, privatize South Florida State 
550  Hospital. The department shall plan to begin implementation of 
551  this privatization initiative by July 1, 1998. 
552         (a) Notwithstanding s. 287.057(15) s. 287.057(14), the 
553  department may enter into agreements, not to exceed 20 years, 
554  with a private provider, a coalition of providers, or another 
555  agency to finance, design, and construct a treatment facility 
556  having up to 350 beds and to operate all aspects of daily 
557  operations within the facility. The department may subcontract 
558  any or all components of this procurement to a statutorily 
559  established state governmental entity that has successfully 
560  contracted with private companies for designing, financing, 
561  acquiring, leasing, constructing, and operating major privatized 
562  state facilities. 
563         Section 13. Paragraph (c) of subsection (5) and subsection 
564  (8) of section 402.40, Florida Statutes, are amended to read: 
565         402.40 Child welfare training.— 
566         (5) CORE COMPETENCIES.— 
567         (c) Notwithstanding s. 287.057(5) and (23)(22), the 
568  department shall competitively solicit and contract for the 
569  development, validation, and periodic evaluation of the training 
570  curricula for the established single integrated curriculum. No 
571  more than one training curriculum may be developed for each 
572  specific subset of the core competencies. 
573         (8) ESTABLISHMENT OF TRAINING ACADEMIES.—The department 
574  shall establish child welfare training academies as part of a 
575  comprehensive system of child welfare training. In establishing 
576  a program of training, the department may contract for the 
577  operation of one or more training academies to perform one or 
578  more of the following: to offer one or more of the training 
579  curricula developed under subsection (5); to administer the 
580  certification process; to develop, validate, and periodically 
581  evaluate additional training curricula determined to be 
582  necessary, including advanced training that is specific to a 
583  region or contractor, or that meets a particular training need; 
584  or to offer the additional training curricula. The number, 
585  location, and timeframe for establishment of training academies 
586  shall be approved by the Secretary of Children and Family 
587  Services who shall ensure that the goals for the core 
588  competencies and the single integrated curriculum, the 
589  certification process, the trainer qualifications, and the 
590  additional training needs are addressed. Notwithstanding s. 
591  287.057(5) and (23)(22), the department shall competitively 
592  solicit all training academy contracts. 
593         Section 14. Subsections (2) and (3) of section 402.7305, 
594  Florida Statutes, are amended to read: 
595         402.7305 Department of Children and Family Services; 
596  procurement of contractual services; contract management.— 
597         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.— 
598         (a) Notwithstanding s. 287.057(5)(f)10. s. 
599  287.057(5)(f)13., whenever the department intends to contract 
600  with a public postsecondary institution to provide a service, 
601  the department must allow all public postsecondary institutions 
602  in this state which that are accredited by the Southern 
603  Association of Colleges and Schools to bid on the contract. 
604  Thereafter, notwithstanding any other provision to the contrary, 
605  if a public postsecondary institution intends to subcontract for 
606  any service awarded in the contract, the subcontracted service 
607  must be procured by competitive procedures. 
608         (b) When it is in the best interest of a defined segment of 
609  its consumer population, the department may competitively 
610  procure and contract for systems of treatment or service that 
611  involve multiple providers, rather than procuring and 
612  contracting for treatment or services separately from each 
613  participating provider. The department must ensure that all 
614  providers that participate in the treatment or service system 
615  meet all applicable statutory, regulatory, service quality, and 
616  cost control requirements. If other governmental entities or 
617  units of special purpose government contribute matching funds to 
618  the support of a given system of treatment or service, the 
619  department shall formally request information from those funding 
620  entities in the procurement process and may take the information 
621  received into account in the selection process. If a local 
622  government contributes matching funds to support the system of 
623  treatment or contracted service and if the match constitutes at 
624  least 25 percent of the value of the contract, the department 
625  shall afford the governmental match contributor an opportunity 
626  to name an employee as one of the persons required by s. 
627  287.057(18) s. 287.057(17) to evaluate or negotiate certain 
628  contracts, unless the department sets forth in writing the 
629  reason why the inclusion would be contrary to the best interest 
630  of the state. Any employee so named by the governmental match 
631  contributor shall qualify as one of the persons required by s. 
632  287.057(18) s. 287.057(17). A governmental entity or unit of 
633  special purpose government may not name an employee as one of 
634  the persons required by s. 287.057(18) s. 287.057(17) if it, or 
635  any of its political subdivisions, executive agencies, or 
636  special districts, intends to compete for the contract to be 
637  awarded. The governmental funding entity or contributor of 
638  matching funds must comply with all procurement procedures set 
639  forth in s. 287.057 when appropriate and required. 
640         (c) The department may procure and contract for or provide 
641  assessment and case management services independently from 
642  treatment services. 
643         (3) CONTRACT MANAGEMENT REQUIREMENTS AND PROCESS.—The 
644  Department of Children and Family Services shall review the time 
645  period for which the department executes contracts and shall 
646  execute multiyear contracts to make the most efficient use of 
647  the resources devoted to contract processing and execution. 
648  Whenever the department chooses not to use a multiyear contract, 
649  a justification for that decision must be contained in the 
650  contract. Notwithstanding s. 287.057(16) s. 287.057(15), the 
651  department is responsible for establishing a contract management 
652  process that requires a member of the department’s Senior 
653  Management or Selected Exempt Service to assign in writing the 
654  responsibility of a contract to a contract manager. The 
655  department shall maintain a set of procedures describing its 
656  contract management process which must minimally include the 
657  following requirements: 
658         (a) The contract manager shall maintain the official 
659  contract file throughout the duration of the contract and for a 
660  period not less than 6 years after the termination of the 
661  contract. 
662         (b) The contract manager shall review all invoices for 
663  compliance with the criteria and payment schedule provided for 
664  in the contract and shall approve payment of all invoices before 
665  their transmission to the Department of Financial Services for 
666  payment. 
667         (c) The contract manager shall maintain a schedule of 
668  payments and total amounts disbursed and shall periodically 
669  reconcile the records with the state’s official accounting 
670  records. 
671         (d) For contracts involving the provision of direct client 
672  services, the contract manager shall periodically visit the 
673  physical location where the services are delivered and speak 
674  directly to clients receiving the services and the staff 
675  responsible for delivering the services. 
676         (e) The contract manager shall meet at least once a month 
677  directly with the contractor’s representative and maintain 
678  records of such meetings. 
679         (f) The contract manager shall periodically document any 
680  differences between the required performance measures and the 
681  actual performance measures. If a contractor fails to meet and 
682  comply with the performance measures established in the 
683  contract, the department may allow a reasonable period for the 
684  contractor to correct performance deficiencies. If performance 
685  deficiencies are not resolved to the satisfaction of the 
686  department within the prescribed time, and if no extenuating 
687  circumstances can be documented by the contractor to the 
688  department’s satisfaction, the department must terminate the 
689  contract. The department may not enter into a new contract with 
690  that same contractor for the services for which the contract was 
691  previously terminated for a period of at least 24 months after 
692  the date of termination. The contract manager shall obtain and 
693  enforce corrective action plans, if appropriate, and maintain 
694  records regarding the completion or failure to complete 
695  corrective action items. 
696         (g) The contract manager shall document any contract 
697  modifications, which shall include recording any contract 
698  amendments as provided for in this section. 
699         (h) The contract manager shall be properly trained before 
700  being assigned responsibility for any contract. 
701         Section 15. Subsection (2) of section 408.045, Florida 
702  Statutes, is amended to read: 
703         408.045 Certificate of need; competitive sealed proposals.— 
704         (2) The agency shall make a decision regarding the issuance 
705  of the certificate of need in accordance with the provisions of 
706  s. 287.057(18) s. 287.057(17), rules adopted by the agency 
707  relating to intermediate care facilities for the developmentally 
708  disabled, and the criteria in s. 408.035, as further defined by 
709  rule. 
710         Section 16. Subsection (3) of section 427.0135, Florida 
711  Statutes, is amended to read: 
712         427.0135 Purchasing agencies; duties and responsibilities. 
713  Each purchasing agency, in carrying out the policies and 
714  procedures of the commission, shall: 
715         (3) Not procure transportation disadvantaged services 
716  without initially negotiating with the commission, as provided 
717  in s. 287.057(5)(f)10. s. 287.057(5)(f)13., or unless otherwise 
718  authorized by statute. If the purchasing agency, after 
719  consultation with the commission, determines that it cannot 
720  reach mutually acceptable contract terms with the commission, 
721  the purchasing agency may contract for the same transportation 
722  services provided in a more cost-effective manner and of 
723  comparable or higher quality and standards. The Medicaid agency 
724  shall implement this subsection in a manner consistent with s. 
725  409.908(18) and as otherwise limited or directed by the General 
726  Appropriations Act. 
727         Section 17. Subsection (41) of section 570.07, Florida 
728  Statutes, is amended to read: 
729         570.07 Department of Agriculture and Consumer Services; 
730  functions, powers, and duties.—The department shall have and 
731  exercise the following functions, powers, and duties: 
732         (41) Notwithstanding the provisions of s. 287.057(24) which 
733  s. 287.057(23) that require all agencies to use the online 
734  procurement system developed by the Department of Management 
735  Services, the department may continue to use its own online 
736  system. However, vendors using utilizing such system must shall 
737  be prequalified as meeting mandatory requirements and 
738  qualifications and shall remit fees pursuant to s. 287.057(24) 
739  s. 287.057(23), and any rules implementing s. 287.057. 
740         Section 18. (1) Each state agency, as defined in s. 
741  216.011, Florida Statutes, shall provide the following 
742  information to the Department of Financial Services regarding 
743  the agency’s contracted activities: 
744         (a) The nature of the commodities or services purchased. 
745         (b) The term of the contract. 
746         (c) The final obligation made by the agency. 
747         (d) A summary of any time constraints that apply to the 
748  procurement. 
749         (e) The justification for not using the competitive sealed 
750  bid process, including any statutory exemption or exception. 
751         (f) Other information regarding the contract or the 
752  procurement which may be required by the Department of Financial 
753  Services. 
754         (2) This section applies to any contract executed on or 
755  after July 1, 2010, for the purchase of commodities or 
756  contractual services in excess of the CATEGORY TWO threshold 
757  amount provided in s. 287.017, Florida Statutes, which is not: 
758         (a) Awarded by competitive sealed bid pursuant to s. 
759  287.057(1), (2), or (3), Florida Statutes; or 
760         (b) Purchased from a purchasing agreement or state term 
761  contract pursuant to s. 287.056, Florida Statutes. 
762         (3) An agency must submit the required information to the 
763  Department of Financial Services within 3 calendar days after 
764  executing the contract. 
765         Section 19. Each state agency, as defined in s. 216.011, 
766  Florida Statutes, shall review existing contract renewals and 
767  reprocurements with private providers and public-private 
768  providers in an effort to reduce contract payments by 3 percent. 
769  It is the statewide goal to achieve substantial savings; 
770  however, it is the intent of the Legislature that the level and 
771  quality of services not be affected. Each agency shall 
772  renegotiate and reprocure contracts consistent with this 
773  section. Any savings that accrue through renegotiating the 
774  renewal or reprocurement of an existing contract shall be placed 
775  in reserve by the Executive Office of the Governor. 
776         Section 20. It is the policy of the state that funds 
777  appropriated to each state agency, as defined in s. 216.011, 
778  Florida Statutes, which may be used for travel by state 
779  employees be limited to travel for activities that are critical 
780  to the state agency’s mission. Funds may not be used to pay for 
781  travel by state employees to foreign countries, other states, 
782  conferences, staff-training activities, or other administrative 
783  functions unless the agency head approves in writing that such 
784  activities are critical to the agency’s mission. The agency head 
785  must consider the use of teleconferencing and other forms of 
786  electronic communication to meet the needs of the proposed 
787  activity before approving mission-critical travel. This section 
788  does not apply to travel for law enforcement purposes, military 
789  purposes, emergency management activities, and public health 
790  activities. 
791         Section 21. (1) Each state agency, as defined in s. 
792  216.011, Florida Statutes, shall review its contracts to ensure 
793  that each contractor complies with any applicable preferred 
794  pricing clause. 
795         (2) Each contract executed, renewed, extended, or modified 
796  on or after July 1 , 2010, which includes a preferred-pricing 
797  clause, must require an affidavit from an authorized 
798  representative of the contractor attesting under penalty of 
799  perjury that the contract is in compliance with the preferred 
800  pricing clause. Such affidavit must be submitted at least 
801  annually. A contractor’s failure to comply with a preferred 
802  pricing clause is grounds for terminating the contract at the 
803  state agency’s sole discretion. 
804         (3) As used in this section, the term “preferred-pricing 
805  clause” means a contractual provision under which the state is 
806  offered the most favorable price that the contractor offers any 
807  client. 
808         Section 22. The sum of $311,915 from the General Revenue 
809  Fund is appropriated and five full-time equivalent positions and 
810  associated salary rate are authorized to the Department of 
811  Financial Services to implement the provisions of this act. 
812         Section 23. This act shall take effect July 1, 2010.