Bill Text: FL S1150 | 2013 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Governmental Accountability
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1309 (Ch. 2013-154), HB 5401 (Ch. 2013-54) [S1150 Detail]
Download: Florida-2013-S1150-Comm_Sub.html
Bill Title: Governmental Accountability
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-04-29 - Laid on Table, companion bill(s) passed, see CS/CS/HB 1309 (Ch. 2013-154), HB 5401 (Ch. 2013-54) [S1150 Detail]
Download: Florida-2013-S1150-Comm_Sub.html
Florida Senate - 2013 CS for SB 1150 By the Committee on Governmental Oversight and Accountability; and Senators Benacquisto and Brandes 585-02417-13 20131150c1 1 A bill to be entitled 2 An act relating to state contracting; amending s. 3 215.971, F.S.; requiring agreements funded with state 4 or federal financial assistance to include additional 5 provisions; authorizing the Chief Financial Officer to 6 audit agreements before execution and providing 7 requirements for such audits; requiring state agencies 8 to designate a grants manager for each agreement and 9 providing requirements and procedures for managers; 10 requiring the Chief Financial Officer to perform 11 audits of executed agreements and to discuss such 12 audits with agency officials; requiring the agency 13 head to respond to the audit; reordering and amending 14 s. 215.985, F.S.; revising provisions relating to the 15 Chief Financial Officer’s intergovernmental contract 16 tracking system under the Transparency Florida Act; 17 requiring state agencies to post certain information 18 in the tracking system and to update that information; 19 requiring that exempt and confidential information be 20 redacted from contracts and procurement documents 21 posted on the system; authorizing the Chief Financial 22 Officer to make available to the public the 23 information posted on the system through a secure 24 website; authorizing the Department of Financial 25 Services to adopt rules; repealing s. 216.0111, F.S., 26 relating to a requirement that state agencies report 27 certain contract information to the Department of 28 Financial Services and transferring that requirement 29 to s. 215.985, F.S.; amending s. 287.057, F.S.; 30 requiring certain contract managers to be certified 31 and directing the Department of Management Services to 32 be responsible for establishing the requirements for 33 certification; amending s. 287.058, F.S.; authorizing 34 the Chief Financial Officer to audit contracts before 35 execution and providing requirements for such audits; 36 creating s. 287.136, F.S.; requiring the Chief 37 Financial Officer to perform audits of executed 38 contract documents and to discuss such audits with the 39 agency officials; requiring the agency head to respond 40 to the audit; providing an effective date. 41 42 Be It Enacted by the Legislature of the State of Florida: 43 44 Section 1. Section 215.971, Florida Statutes, is amended to 45 read: 46 215.971 Agreements funded with federal orandstate 47 assistance.— 48 (1)ForAn agency agreement that provides state financial 49 assistance to a recipient or subrecipient, as those terms are 50 defined in s. 215.97, or that provides federal financial 51 assistance to a subrecipient, as defined by applicable United 52 States Office of Management and Budget circulars, mustthe53agreement shallinclude all of the following: 54 (a)(1)A provision specifying a scope of work that clearly 55 establishes the tasks that the recipient or subrecipient is 56 required to perform.; and57 (b)(2)A provision dividing the agreement into quantifiable 58 units of deliverables that must be received and accepted in 59 writing by the agency before payment. Each deliverable must be 60 directly related to the scope of work andmustspecify the 61 required minimum level of service to be performed and the 62 criteria for evaluating the successful completion of each 63 deliverable. 64 (c) A provision specifying the financial consequences that 65 apply if the recipient or subrecipient fails to perform the 66 minimum level of service required by the agreement. The 67 provision can be excluded from the agreement only if financial 68 consequences are prohibited by the federal agency awarding the 69 grant. Funds refunded to a state agency from a recipient or 70 subrecipient for failure to perform as required under the 71 agreement may be expended only in direct support of the program 72 from which the agreement originated. 73 (d) A provision specifying that a recipient or subrecipient 74 of federal or state financial assistance may expend funds only 75 for allowable costs resulting from obligations incurred during 76 the specified agreement period. 77 (e) A provision specifying that any balance of unobligated 78 funds which has been advanced or paid must be refunded to the 79 state agency. 80 (f) A provision specifying that any funds paid in excess of 81 the amount to which the recipient or subrecipient is entitled 82 under the terms and conditions of the agreement must be refunded 83 to the state agency. 84 (g) Any additional information required pursuant to s. 85 215.97. 86 (2) The Chief Financial Officer may audit an agreement 87 funded with state or federal assistance before the execution of 88 such agreement in accordance with rules adopted by the 89 Department of Financial Services. The audit must ensure that 90 applicable laws have been met; that the agreement document 91 contains a clear statement of work, quantifiable and measurable 92 deliverables, performance measures, financial consequences for 93 nonperformance, and clear terms and conditions that protect the 94 interests of the state; and that the associated costs of the 95 agreement are not unreasonable or inappropriate. The audit must 96 ensure that all contracting laws have been met and that 97 documentation is available to support the agreement. An 98 agreement that does not comply with this section may be returned 99 to the submitting agency for revision. 100 (a) The Chief Financial Officer may establish dollar 101 thresholds and other criteria for determining which agreements 102 will be audited before execution. The Chief Financial Officer 103 may revise such thresholds and other criteria for an agency or 104 unit of an agency as he or she deems appropriate. 105 (b) The Chief Financial Officer shall have up to 10 106 business days after receipt of the proposed grant agreement to 107 make a final determination of any deficiencies in the agreement 108 and shall provide the agency with information regarding any 109 deficiencies at the conclusion of the review. The Chief 110 Financial Officer and the agency entering into the agreement may 111 agree to a longer review period. The agency is responsible for 112 addressing the deficiencies and shall have the option to 113 resubmit the agreement for subsequent review before execution. 114 The Chief Financial Officer shall perform a subsequent review to 115 verify that all deficiencies have been addressed upon processing 116 the first payment. 117 (3) For each agreement funded with federal or state 118 financial assistance, the state agency shall designate an 119 employee to function as a grant manager who shall be responsible 120 for enforcing performance of the agreement’s terms and 121 conditions and who shall serve as a liaison with the recipient 122 or subrecipient. 123 (a) Each grant manager who is responsible for agreements in 124 excess of the threshold amount for CATEGORY TWO under s. 287.017 125 must complete the training and become a certified contract 126 manager as provided under s. 287.057(14). 127 (b) The Chief Financial Officer shall establish and 128 disseminate uniform procedures for grant management pursuant to 129 s. 17.03(3) to ensure that services have been rendered in 130 accordance with agreement terms before the agency processes an 131 invoice for payment. The procedures must include, but need not 132 be limited to, procedures for monitoring and documenting 133 recipient or subrecipient performance, reviewing and documenting 134 all deliverables for which payment is requested by the recipient 135 or subrecipient, and providing written certification by the 136 grant manager of the agency’s receipt of goods and services. 137 (c) The grant manager shall reconcile and verify all funds 138 received against all funds expended during the grant agreement 139 period and produce a final reconciliation report. The final 140 report must identify any funds paid in excess of the 141 expenditures incurred by the recipient or subrecipient. 142 (4) The Chief Financial Officer shall perform audits of the 143 executed state and federal grant agreement documents and grant 144 manager’s records in order to ensure that adequate internal 145 controls are in place for complying with the terms and 146 conditions of such agreements and for validation and receipt of 147 goods and services. 148 (a) At the conclusion of the audit, the Chief Financial 149 Officer’s designee shall discuss the audit and potential 150 findings with the official whose office is subject to audit. The 151 final audit report shall be submitted to the agency head. 152 (b) Within 30 days after the receipt of the final audit 153 report, the agency head shall submit to the Chief Financial 154 Officer or designee, his or her written statement of explanation 155 or rebuttal concerning findings requiring corrective action, 156 including corrective action to be taken to preclude a 157 recurrence. 158 Section 2. Subsection (2) of section 215.985, Florida 159 Statutes, is reordered and amended and subsection (16) of that 160 section is amended, to read: 161 215.985 Transparency in government spending.— 162 (2) As used in this section, the term: 163 (c)(a)“Governmental entity” means any state, regional, 164 county, municipal, special district, or other political 165 subdivision whether executive, judicial, or legislative, 166 including, but not limited to, any department, division, bureau, 167 commission, authority, district, or agency thereof, or any 168 public school, Florida College System institution, state 169 university, or associated board. 170 (d)(b)“Website” means a site on the Internet which is 171 easily accessible to the public at no cost and does not require 172 the user to provide any information. 173 (a)(c)“Committee” means the Legislative Auditing Committee 174 created in s. 11.40. 175 (b) “Contract” means any written agreement or purchase 176 order issued for the purchase of goods or services and any 177 written agreements for the receipt of federal or state financial 178 assistance. 179 (16) The Chief Financial Officer shall establish and 180 maintain a secure, shared state contract trackingprovide public181access to a state contract managementsystem. 182 (a) Within 30 calendar days after executing a contract, 183 each state agency as defined in s. 216.011(1) shall post all of 184 the followingthat providesinformation and documentation 185 relating to that contract on the contract tracking system, as 186 required by rule:contracts procured by governmental entities.187 1. The names of the contracting entities. 188 2. The procurement method. 189 3. The contract beginning and end dates. 190 4. The nature or type of the commodities or services 191 purchased. 192 5. Applicable contract unit prices and deliverables. 193 6. Total compensation to be paid or received under the 194 contract. 195 7. All payments made to the contractor to date. 196 8. Applicable contract performance measures. 197 9. The justification for not using competitive solicitation 198 to procure the contract, including citation to any statutory 199 exemption or exception from competitive solicitation, if 200 applicable. 201 10. Electronic copies of the contract and procurement 202 documents that have been redacted to conceal exempt or 203 confidential information. 204 11. Any other information required by the Chief Financial 205 Officer. 206(a) The data collected in the system must include, but need207not be limited to, the contracting agency; the procurement208method; the contract beginning and ending dates; the type of209commodity or service; the purpose of the commodity or service;210the compensation to be paid; compliance information, such as211performance metrics for the service or commodity; contract212violations; the number of extensions or renewals; and the213statutory authority for providing the service.214 (b) The affected state governmental agency shall update the 215 information described in paragraph (a) in the contract tracking 216 system within 30 calendar days after a major modification or 217 amendmentchangeto an existing contractor the execution of a218new contract, agency procurement staff ofthe affected state219governmental entityshallupdate thenecessaryinformationin220thestatecontractmanagementsystem. A major modification or 221 amendmentchange to a contractincludes, but is not limited to, 222 a renewal, termination, or extension of the contract, or an 223 amendment to the contract as determined by the Chief Financial 224 Officer. 225 (c) Each state agency identified in paragraph (a) shall 226 redact, as defined in s. 119.011, exempt or confidential 227 information from the contract or procurement documents before 228 posting an electronic copy on the contract tracking system. 229 1. If a state agency becomes aware that an electronic copy 230 of a contract or procurement document that it posted has not 231 been properly redacted, the state agency must immediately notify 232 the Chief Financial Officer so that the contract or procurement 233 document may be removed. Within 7 business days, the state 234 agency shall provide the Chief Financial Officer with a properly 235 redacted copy for posting. 236 2. If a party to a contract, or authorized representative, 237 discovers that an electronic copy of a contract or procurement 238 document on the system has not been properly redacted, the party 239 or representative may request the state agency that posted the 240 document to redact the exempt or confidential information. Upon 241 receipt of a request in compliance with this subparagraph, the 242 state agency that posted the document shall redact the exempt or 243 confidential information. 244 a. Such request must be in writing and delivered by mail, 245 facsimile, or electronic transmission or in person to the state 246 agency that posted the information. The request must identify 247 the specific document, the page numbers that include the exempt 248 or confidential information, the information that is exempt or 249 confidential, and the relevant statutory exemption. A fee may 250 not be charged for a redaction made pursuant to such request. 251 b. If necessary, a party to the contract may petition the 252 circuit court for an order directing compliance with this 253 paragraph. 254 3. The Chief Financial Officer, the Department of Financial 255 Services, or any officer, employee, or contractor thereof, is 256 not responsible for redacting exempt or confidential information 257 from an electronic copy of a contract or procurement document 258 posted by another state agency on the system and is not liable 259 for the failure of the state agency to redact the exempt or 260 confidential information. The Chief Financial Officer may notify 261 the posting state agency if a document posted on the tracking 262 system contains exempt or confidential information. 263 (d) Pursuant to ss. 119.01 and 119.07, the Chief Financial 264 Officer may make information posted on the contract tracking 265 system available for viewing and download by the public through 266 a secure website. Unless otherwise provided by law, information 267 retrieved electronically pursuant to this paragraph is not 268 admissible in court as an authenticated document. 269 1. The Chief Financial Officer may regulate and prohibit 270 the posting of records that could facilitate identity theft or 271 fraud, such as signatures; compromise or reveal an agency 272 investigation; reveal the identity of undercover personnel; 273 reveal proprietary confidential business information or trade 274 secrets; reveal an individual’s medical information; or reveal 275 any other record or information that the Chief Financial Officer 276 believes may jeopardize the health, safety, or welfare of the 277 public. However, such prohibition does not supersede the duty of 278 a state agency to provide a copy of a public record upon 279 request. The Chief Financial Officer shall use appropriate 280 Internet security measures to ensure that no person has the 281 ability to alter or modify records available on the website. 282 2. Records made available on the website, including 283 electronic copies of contracts or procurement documents, may not 284 reveal information made exempt or confidential by law. Notice of 285 the right of an affected party to request redaction of exempt or 286 confidential information pursuant to paragraph (c) must be 287 displayed on the website. 288 (e) The posting of information on the contract tracking 289 system or the provision of contract information on a website for 290 public viewing and downloading does not supersede the duty of a 291 state agency to respond to a public record request for such 292 information or to a subpoena for such information. 293 1. A request for a copy of a contract or procurement 294 document or a certified copy of a contract or procurement 295 document must be made to the state agency that is party to the 296 contract. Such request may not be made to the Chief Financial 297 Officer or the Department of Financial Services or any officer, 298 employee, or contractor thereof unless the Chief Financial 299 Officer or department is a party to the contract. 300 2. A subpoena for a copy of a contract or procurement 301 document or certified copy of a contract or procurement document 302 must be served on the state agency that is a party to the 303 contract and that maintains the original documents. The Chief 304 Financial Officer or the Department of Financial Services or any 305 officer, employee, or contractor thereof may not be served a 306 subpoena for those records unless the Chief Financial Officer or 307 the department is a party to the contract. 308 (f) The Chief Financial Officer may adopt rules to 309 administer this subsection. 310 Section 3. Section 216.0111, Florida Statutes, is repealed. 311 Section 4. Subsection (14) of section 287.057, Florida 312 Statutes, is amended to read: 313 287.057 Procurement of commodities or contractual 314 services.— 315 (14) For each contractual services contract, the agency 316 shall designate an employee to function as contract manager who 317 isshall beresponsible for enforcing performance of the 318 contract terms and conditions and serve as a liaison with the 319 contractor. Each contract manager who is responsible for 320 contracts in excess of the threshold amount for CATEGORY TWO 321 established under s. 287.017 must be a certified contract 322 manager. The Department of Management Services is responsible 323 for establishing and disseminating the requirements for 324 certification, which include completing theattendtraining 325 conducted by the Chief Financial Officer for accountability in 326 contracts and grant management. The Chief Financial Officer 327 shall establish and disseminate uniform procedures pursuant to 328 s. 17.03(3) to ensure that contractual services have been 329 rendered in accordance with the contract terms before the agency 330 processes the invoice for payment. The procedures mustshall331 include, but need not be limited to, procedures for monitoring 332 and documenting contractor performance, reviewing and 333 documenting all deliverables for which payment is requested by 334 vendors, and providing written certification by contract 335 managers of the agency’s receipt of goods and services. 336 Section 5. Subsection (7) is added to section 287.058, 337 Florida Statutes, to read: 338 287.058 Contract document.— 339 (7) The Chief Financial Officer may audit a contract 340 subject to this chapter before the execution of such contract in 341 accordance with rules adopted by the Department of Financial 342 Services. The audit must ensure that applicable laws have been 343 met; that the contract document contains a clear statement of 344 work, quantifiable and measurable deliverables, performance 345 measures, financial consequences for nonperformance, and clear 346 terms and conditions that protect the interests of the state; 347 and that the associated costs of the contract are not 348 unreasonable or inappropriate. The audit must ensure that all 349 contracting laws have been met and that documentation is 350 available to support the contract. A contract that does not 351 comply with this section may be returned to the submitting 352 agency for revision. 353 (a) The Chief Financial Officer may establish dollar 354 thresholds and other criteria for sampling the contracts that 355 are to be audited before execution. The Chief Financial Officer 356 may revise such thresholds and other criteria for an agency or 357 unit of an agency as deemed appropriate. 358 (b) The Chief Financial Officer has up to 10 business days 359 after receipt of the proposed contract to make a final 360 determination of any deficiencies in the contract and shall 361 include information regarding the deficiencies in the audit 362 report provided to the agency entering into the contract. The 363 Chief Financial Officer and the agency entering into the 364 contract may agree to a longer review period. The agency is 365 responsible for addressing the deficiencies and shall have the 366 option to resubmit the contract for subsequent review before 367 execution. The Chief Financial Officer shall perform a 368 subsequent review to verify that all deficiencies have been 369 addressed upon processing the first payment. 370 Section 6. Section 287.136, Florida Statutes, is created to 371 read: 372 287.136 Audit of executed contract documents.—The Chief 373 Financial Officer shall perform audits of the executed contract 374 documents and contract manager’s records to ensure that adequate 375 internal controls are in place for complying with the terms and 376 conditions of the contract and for the validation and receipt of 377 goods and services. 378 (1) At the conclusion of the audit, the Chief Financial 379 Officer’s designee shall discuss the audit and potential 380 findings with the official whose office is subject to audit. The 381 final audit report shall be submitted to the agency head. 382 (2) Within 30 days after the receipt of the final audit 383 report, the agency head shall submit to the Chief Financial 384 Officer or designee, his or her written statement of explanation 385 or rebuttal concerning findings requiring corrective action, 386 including corrective action to be taken to preclude a 387 recurrence. 388 Section 7. This act shall take effect July 1, 2013.