Bill Text: FL H0441 | 2011 | Regular Session | Comm Sub


Bill Title: Scrutinized Companies

Spectrum: Slight Partisan Bill (Democrat 6-1-1)

Status: (Introduced - Dead) 2011-05-03 - Laid on Table, companion bill(s) passed, see CS/SB 444 (Ch. [H0441 Detail]

Download: Florida-2011-H0441-Comm_Sub.html
CS/HB 441

1
A bill to be entitled
2An act relating to scrutinized companies; creating s.
3287.135, F.S.; providing definitions; prohibiting a state
4agency or local governmental entity from contracting for
5goods and services of more than a certain amount with a
6company that is on the Scrutinized Companies with
7Activities in Sudan List or the Scrutinized Companies with
8Activities in the Iran Petroleum Energy Sector List;
9providing for a contract provision that allows for
10termination of the contract if the company is found to
11have been placed on such list; providing exceptions;
12providing for civil action; providing penalties; providing
13a statute of repose; prohibiting a private right of
14action; requiring the Department of Management Services to
15notify the Attorney General after the act becomes law;
16providing that the act becomes inoperative if federal law
17ceases to authorize states to enact such contracting
18prohibitions; providing an effective date.
19
20Be It Enacted by the Legislature of the State of Florida:
21
22     Section 1.  Section 287.135, Florida Statutes, is created
23to read:
24     287.135  Prohibition against contracting with scrutinized
25companies.-
26     (1)  In addition to the terms defined in ss. 287.012 and
27215.473, as used in this section, the term:
28     (a)  "Awarding body" means, for purposes of state
29contracts, an agency or the department, and for purposes of
30local contracts, the governing body of the local governmental
31entity.
32     (b)  "Local governmental entity" means a county,
33municipality, special district, or other political subdivision
34of the state.
35     (2)  A company that, at the time of bidding or submitting a
36proposal for a new contract or renewal of an existing contract,
37is on the Scrutinized Companies with Activities in Sudan List or
38the Scrutinized Companies with Activities in the Iran Petroleum
39Energy Sector List, created pursuant to s. 215.473, is
40ineligible for, and may not bid on, submit a proposal for, or
41enter into or renew a contract with an agency or local
42governmental entity for goods or services of $1 million or more.
43     (3)  Any contract with an agency or local governmental
44entity for goods or services of $1 million or more entered into
45or renewed on or after July 1, 2011, must contain a provision
46that allows for the termination of such contract at the option
47of the awarding body if the company is found to have submitted a
48false certification as provided under subsection (5) or been
49placed on the Scrutinized Companies with Activities in Sudan
50List or the Scrutinized Companies with Activities in the Iran
51Petroleum Energy Sector List.
52     (4)  Notwithstanding subsection (2) or subsection (3), an
53agency or local governmental entity, on a case-by-case basis,
54may permit a company on the Scrutinized Companies with
55Activities in Sudan List or the Scrutinized Companies with
56Activities in the Iran Petroleum Energy Sector List to be
57eligible for, bid on, submit a proposal for, or enter into or
58renew a contract for goods or services of $1 million or more
59under either of the following conditions:
60     (a)  All of the following occur:
61     1.  The scrutinized business operations were made before
62July 1, 2011.
63     2.  The scrutinized business operations have not been
64expanded or renewed after July 1, 2011.
65     3.  The agency or local governmental entity determines that
66it is in the best interest of the state or local community to
67contract with the company.
68     4.  The company has adopted, has publicized, and is
69implementing a formal plan to cease scrutinized business
70operations and to refrain from engaging in any new scrutinized
71business operations.
72     (b)  One of the following occurs:
73     1.  The local governmental entity makes a public finding
74that, absent such an exemption, the local governmental entity
75would be unable to obtain the goods or services for which the
76contract is offered.
77     2.  For a contract with an executive agency, the Governor
78makes a public finding that, absent such an exemption, the
79agency would be unable to obtain the goods or services for which
80the contract is offered.
81     3.  For a contract with an office of a state constitutional
82officer other than the Governor, the state constitutional
83officer makes a public finding that, absent such an exemption,
84the office would be unable to obtain the goods or services for
85which the contract is offered.
86     (5)  At the time a company submits a bid or proposal for a
87contract or before the company enters into or renews a contract
88with an agency or governmental entity for goods or services of
89$1 million or more, the company must certify that the company is
90not on the Scrutinized Companies with Activities in Sudan List
91or the Scrutinized Companies with Activities in the Iran
92Petroleum Energy Sector List.
93     (a)  If, after the agency or the local governmental entity
94determines, using credible information available to the public,
95that the company has submitted a false certification, the agency
96or local governmental entity shall provide the company with
97written notice of its determination. The company shall have 90
98days following receipt of the notice to respond in writing and
99to demonstrate that the determination of false certification was
100made in error. If the company does not make such demonstration
101within 90 days after receipt of the notice, the agency or the
102local governmental entity shall bring a civil action against the
103company. If a civil action is brought and the court determines
104that the company submitted a false certification, the company
105shall pay the penalty described in subparagraph 1. and all
106reasonable attorneys' fees and costs, including any costs for
107investigations that led to the finding of false certification.
108     1.  A civil penalty equal to the greater of $2 million or
109twice the amount of the contract for which the false
110certification was submitted shall be imposed.
111     2.  The company is ineligible to bid on any contract with
112an agency or local governmental entity for 3 years after the
113date the agency or local governmental entity determined that the
114company submitted a false certification.
115     (b)  A civil action to collect the penalties described in
116paragraph (a) must commence within 3 years after the date the
117false certification is submitted.
118     (6)  Only the agency or local governmental entity that is a
119party to the contract may cause a civil action to be brought
120under this section. This section does not create or authorize a
121private right of action or enforcement of the penalties provided
122in this section. An unsuccessful bidder, or any other person
123other than the agency or local governmental entity, may not
124protest the award of a contract or contract renewal on the basis
125of a false certification.
126     (7)  This section preempts any ordinance or rule of any
127agency or local governmental entity involving public contracts
128for goods or services of $1 million or more with a company
129engaged in scrutinized business operations.
130     (8)  The department shall submit to the Attorney General of
131the United States a written notice describing this section
132within 30 days after July 1, 2011. This section becomes
133inoperative on the date that federal law ceases to authorize the
134states to adopt and enforce the contracting prohibitions of the
135type provided for in this section.
136     Section 2.  This act shall take effect July 1, 2011.


CODING: Words stricken are deletions; words underlined are additions.
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