Bill Text: FL S1314 | 2011 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State Financial Matters
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Enrolled - Dead) 2011-05-07 - Ordered engrossed, then enrolled -SJ 1848 [S1314 Detail]
Download: Florida-2011-S1314-Introduced.html
Bill Title: State Financial Matters
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Enrolled - Dead) 2011-05-07 - Ordered engrossed, then enrolled -SJ 1848 [S1314 Detail]
Download: Florida-2011-S1314-Introduced.html
Florida Senate - 2011 SB 1314 By Senator Alexander 17-01349-11 20111314__ 1 A bill to be entitled 2 An act relating to state financial matters; amending 3 s. 216.011, F.S.; defining the term “lease or lease 4 purchase of equipment”; amending s. 216.023, F.S.; 5 requiring that specified information relating to 6 certain contracts be included in an agency’s 7 legislative budget request; amending s. 216.311, F.S.; 8 defining the terms “contract” and “agreement”; 9 prohibiting an agency or branch of state government, 10 without legislative authority, from contracting to pay 11 liquidated damages or early termination fees resulting 12 from the breach or early termination of a contract or 13 agreement, from paying interest because of 14 insufficient budget authority to pay an obligation in 15 the current year, from obligating the state to make 16 future payments to cover unpaid payments, or from 17 granting a party the right to collect fees or other 18 revenues from nonparties; providing certain 19 exemptions; prohibiting an agency from entering into 20 certain leases without authorization by the 21 Legislature or the Legislative Budget Commission; 22 creating s. 216.312, F.S.; requiring the executive and 23 judicial branch to notify the Governor and Legislature 24 before entering into contracts containing certain 25 provisions relating to expenditures; transferring, 26 renumbering, and amending s. 287.0582, F.S.; requiring 27 a state contract to identify the appropriation that 28 funds a contract; expanding the statement that must be 29 included in state contracts to include grounds for 30 terminating the contract based on budget deficits; 31 requiring the judicial branch to include the statement 32 in its contracts; requiring the agency head, executive 33 director, or chief judge, as appropriate, or a 34 designated senior management employee, to sign 35 contracts that exceed a specified amount; requiring 36 the agency head, executive director, or chief judge to 37 review certain contracts and certify compliance with 38 ch. 216, F.S.; requiring contracts exceeding a 39 specified amount to require written acceptance or 40 rejection of contract deliverables; providing that 41 contracts in violation of these provisions are null 42 and void; providing penalties; amending s. 287.063, 43 F.S.; prohibiting certain lease or deferred-payment 44 purchases by state agencies unless expressly 45 authorized by the Legislature in the General 46 Appropriations Act or by the Legislative Budget 47 Commission; amending s. 287.064, F.S.; prohibiting 48 certain master equipment financing agreements unless 49 expressly authorized by the Legislature in the General 50 Appropriations Act or by the Legislative Budget 51 Commission; amending ss. 376.3075 and 403.1837, F.S.; 52 conforming cross-references; providing for 53 application; providing an effective date. 54 55 Be It Enacted by the Legislature of the State of Florida: 56 57 Section 1. Present paragraph (vv) of subsection (1) of 58 section 216.011, Florida Statutes, is redesignated as paragraph 59 (ww), and a new paragraph (vv) is added to that subsection, to 60 read: 61 216.011 Definitions.— 62 (1) For the purpose of fiscal affairs of the state, 63 appropriations acts, legislative budgets, and approved budgets, 64 each of the following terms has the meaning indicated: 65 (vv) “Lease or lease-purchase of equipment” means the 66 appropriations category used to fund the lease or lease-purchase 67 of equipment, fixtures, and other tangible personal property. 68 Section 2. Present subsections (6) through (9) of section 69 216.023, Florida Statutes, are renumbered as subsections (7) 70 through (10), respectively, and a new subsection (6) is added to 71 that section, to read: 72 216.023 Legislative budget requests to be furnished to 73 Legislature by agencies.— 74 (6) As part of the legislative budget request, each state 75 agency must include the following information for each contract 76 in which the state agency has granted a concession: 77 (a) The name of the vendor. 78 (b) A brief description of the services provided by the 79 vendor. 80 (c) The term of the contract and the years remaining on the 81 contract. 82 (d) The amount of revenue generated or expected to be 83 generated by the vendor under the contract for the prior fiscal 84 year, the current fiscal year, and the next fiscal year. 85 (e) The amount of revenue remitted or expected to be 86 remitted to the state agency by the vendor for the prior fiscal 87 year, the current fiscal year, and the next fiscal year. 88 (f) The value of capital improvements, if any, on state 89 property which have been funded by the vendor over the term of 90 the contract. 91 (g) The remaining amount of capital improvements, if any, 92 on state property which have not been fully amortized by June 30 93 of the prior fiscal year. 94 (h) The amount, if any, of state appropriations made to the 95 state agency to pay for services provided by the vendor. 96 Section 3. Section 216.311, Florida Statutes, is amended to 97 read: 98 216.311 Unauthorized contractsin excess of appropriations; 99 penalty.— 100 (1) As used in this section and ss. 216.312 and 216.313, 101 the terms “contract” and “agreement” include the initial 102 contract or agreement, any amendment to the contract or 103 agreement, and any extension or renewal of the contract or 104 agreement. 105 (2)(1)Unless specifically authorized by law, anNoagency 106 or branch of state government may not enter into anyshall107 contractto spend,orenter into anyagreement: 108 (a) To spend,any moneys in excess of the amount 109 appropriated to such agency or branchunless specifically110authorized by law, and any contract oragreement in violation of111this chapter shall be null and void. 112 (b) That requires the state to pay liquidated damages or 113 early termination fees for a breach or early termination of a 114 contract or agreement by such agency or branch due to an act of 115 the Legislature which provides less than full funding for the 116 contract during the fiscal year. 117 (c) That requires the state to pay interest, other than 118 interest paid pursuant to s. 215.422, to another party because 119 the agency or branch has insufficient budget authority to pay 120 the underlying obligation of the contract or agreement in the 121 current year. 122 (d) That binds the state to make future-year payments to 123 offset payments not made in a prior year due to insufficient 124 budget authority. 125 (e) To grant to any party the right or privilege to collect 126 and retain fees or other revenues from persons who are not a 127 party to the contract which would otherwise be payable to the 128 state and deposited into the State Treasury. 129 (3) Notwithstanding subsection (2), the following agencies 130 may enter into the following contracts or agreements: 131 (a) In order to spend funds appropriated for the approved 132 5-year work program, the Department of Transportation may enter 133 into contracts and other agreements that require the state to 134 pay liquidated damages as a result of a breach of those 135 contracts or agreements. 136 (b) In order to administer the state group insurance 137 program as provided in s. 110.123, the Department of Management 138 Services may enter into contracts and other agreements that 139 permit health care providers, health maintenance organizations, 140 preferred provider organizations, and insurers to collect 141 premiums and copayments from participants in the group insurance 142 program. 143 (c) In order to administer the state Medicaid plan and the 144 Florida Healthy Kids program, the Agency for Health Care 145 Administration may enter into contracts and other agreements 146 that permit health care providers to collect premiums and 147 copayments from participants in the Medicaid plan and the 148 Healthy Kids program. 149 (d) In order to administer the state parks system, the 150 Department of Environmental Protection may enter into contracts 151 and other agreements that require the state to pay liquidated 152 damages or early termination fees as a result of a breach of 153 those contracts or agreements, but only if the vendor makes 154 significant capital improvements to state property and the costs 155 of such improvements is amortized over no more than 3 years. 156 Such contracts are subject to the notice requirements of s. 157 216.312. 158 (4) Notwithstanding any law authorizing an agency to enter 159 into a lease, an agency may not enter into a lease or lease 160 purchase agreement for tangible personal property which requires 161 the state to pay more than $500,000 over the term of the lease 162 or agreement if the term of the lease or agreement exceeds 1 163 fiscal year unless such lease or agreement is expressly 164 authorized by the Legislature or the Legislative Budget 165 Commission has approved a transfer of budget authority from a 166 traditional appropriation category to the appropriation category 167 established for the lease or lease-purchase of equipment. 168 However, in order to administer the real estate and other 169 investment portfolios as provided in s. 215.47, the State Board 170 of Administration may enter into contracts and such other 171 agreements as necessary to carry out the investment duties of 172 the board. 173 (5) Any contract or agreement in violation of this section 174 is null and void. 175 (6)(2)Any public officer or employeepersonwho willfully 176 enters into a contract or other agreement in violation of this 177 section commitscontracts to spend, or enters into an agreement178to spend, any money in excess of the amount appropriated to the179agency or branch for whom the contract or agreement is executed180is guilty ofa misdemeanor of the first degree, punishable as 181 provided in s. 775.082 or s. 775.083. 182 Section 4. Section 216.312, Florida Statutes, is created to 183 read: 184 216.312 Reporting contract expenditures.— 185 (1) A state agency must provide written notification of the 186 terms and conditions of the contract to the Governor, the 187 President of the Senate, and the Speaker of the House of 188 Representatives at least 30 days before executing a contract, or 189 a series of contracts between the same parties, for the purchase 190 of services or tangible personal property that: 191 (a) Requires payments by the state in excess of $10 million 192 in any fiscal year; 193 (b) Requires minimal or no payments by the state during the 194 fiscal year; 195 (c) Authorizes the other party to make expenditures in 196 anticipation of collecting revenues from a third party, 197 including other state agencies, rather than receiving payments 198 from the state agency executing the contract; or 199 (d) Requires initial expenditures by the other party and 200 for which the other party will not receive payment from the 201 state within 180 days after the expenditure. 202 (2) The execution of any contract or agreement described in 203 subsection (1) is an action or proposed action subject to s. 204 216.177(2)(b). 205 Section 5. Section 287.0582, Florida Statutes, is 206 transferred, renumbered as section 216.313, Florida Statutes, 207 and amended to read: 208 216.313287.0582Contract appropriationContracts which209require annual appropriation; contingency statement; 210 requirements; penalty.— 211 (1) An executive or judicial branch public officer or 212 employee may not enter into any contract or agreement on behalf 213 of the state or judicial branch which binds the state or its 214 executive agencies or the judicial branch for the purchase of 215 services or tangible personal property unless the contract 216 identifies the specific appropriation of state funds from which 217 the state will make payment under the contract in the first year 218 of the contract, or unless the Legislature expressly authorizes 219 the agency or the judicial branch to enter into such contract 220 absent a specific appropriation of funds. 221 (2) AnNoexecutive or judicial branch public officer or 222 employee may notshallenter into any contract or agreement on 223 behalf of the state,whichcontractbinds the stateor its224executive agenciesfor the purchase of services or tangible 225 personal propertyfor a period in excess of 1 fiscal year,226 unless the following statements arestatement isincluded in the 227 contract: 228 (a) “The State of Florida’s performance and obligation to 229 pay under this contract is contingent upon an annual 230 appropriation by the Legislature.” 231 (b) “This contract may be terminated by the state upon 10 232 days’ written notice if funding for this contract is 233 specifically eliminated pursuant to a deficit reduction plan 234 implemented by: 235 1. The Governor or the Chief Justice or by an act of the 236 Legislature after certification pursuant to section 216.221, 237 Florida Statutes, that a deficit will occur in the General 238 Revenue Fund; or 239 2. The Governor or Chief Justice pursuant to section 240 216.221(10), Florida Statutes, or by an act of the Legislature, 241 after a determination by the Chief Financial Officer that a 242 deficit will occur with respect to appropriations from a 243 specific trust fund in the current fiscal year.” 244 (3) A contract or other agreement that exceeds: 245 (a) The CATEGORY TWO threshold amount provided in s. 246 287.017 must be signed by the agency head, executive director, 247 or chief judge, as appropriate, or a designated senior 248 management employee. 249 (b) A term of 12 months may not be executed by any 250 executive or judicial branch agency unless the agency head, 251 executive director, or chief judge, as appropriate, or a 252 designated senior management employee, determines that the 253 contract is in compliance with the requirements of this chapter 254 and certifies such compliance in writing within the contract or 255 agreement. 256 (c) The CATEGORY FIVE threshold amount provided in s. 257 287.017 must require the written acceptance or rejection of 258 contract deliverables. 259 (4) Any contract or other agreement in violation of this 260 section is null and void. 261 (5) Any public officer or employee who willfully enters 262 into a contract or other agreement in violation of this section 263 commits a misdemeanor of the first degree, punishable as 264 provided in s. 775.082 or s. 775.083. 265 Section 6. Subsection (4) of section 287.063, Florida 266 Statutes, is amended to read: 267 287.063 Deferred-payment commodity contracts; preaudit 268 review.— 269 (4) Beginning July 1, 2011, an agency may not enter into a 270 lease or deferred-payment purchase arrangement for the 271 acquisition of equipment which has a total cost greater than 272 $500,000 unless the Legislature has expressly authorized such 273 lease or deferred-payment purchase arrangement in the General 274 Appropriations Act or the Legislative Budget Commission has 275 approved a transfer of budget authority from a traditional 276 appropriation category to the special appropriation category for 277 deferred-payment commodity contracts.For purposes of this278section, deferred-payment commodity contracts for replacing the279state accounting and cash management systems may include280equipment, accounting software, and implementation and project281management services.282 Section 7. Subsection (9) of section 287.064, Florida 283 Statutes, is amended to read: 284 287.064 Consolidated financing of deferred-payment 285 purchases.— 286 (9) Beginning July 1, 2011, an agency may not enter into a 287 master equipment financing agreement that has a total cost 288 greater than $500,000 unless the Legislature has expressly 289 authorized such agreement in the General Appropriations Act or 290 the Legislative Budget Commission has approved a transfer of 291 budget authority from a traditional appropriation category to 292 the special appropriation category for deferred-payment 293 commodity contracts.For purposes of this section, deferred294payment commodity contracts for replacing the state accounting295and cash management systems may include equipment, accounting296software, and implementation and project management services.297 Section 8. Subsections (4) and (9) of section 376.3075, 298 Florida Statutes, are amended to read: 299 376.3075 Inland Protection Financing Corporation.— 300 (4) The corporation may enter into one or more service 301 contracts with the department to provide services to the 302 department in connection with financing the functions and 303 activities provided in ss. 376.30-376.317. The department may 304enter into one or more such service contracts with the305corporation andprovide paymentfor paymentsunder such 306 contracts pursuant to s. 376.3071(4)(o), subject to annual 307 appropriation by the Legislature. The proceeds from such service 308 contracts may be used for the corporation’s administrative costs 309 and expenses after payments as set forth in subsection (5). Each 310 service contract may have a term of up to 20 years. Amounts 311 annually appropriated and applied to make payments under such 312 service contracts may not include any funds derived from 313 penalties or other payments received from any property owner or 314 private party, including payments received under s. 315 376.3071(6)(b). In compliance with s. 216.313287.0641and other 316 applicable provisions of law, the obligations of the department 317 under such service contracts do not constitute a general 318 obligation of the state or a pledge of the faith and credit or 319 taxing power of the state nor may such obligations be construed 320 in any manner as an obligation of the State Board of 321 Administration or entities for which it invests funds, other 322 than the department as provided in this section, but are payable 323 solely from amounts available in the Inland Protection Trust 324 Fund, subject to annual appropriation.In compliance with this325subsection and s.287.0582,The service contract must expressly 326 include the statements required under s. 216.313.following327statement: “The State of Florida’s performance and obligation to328pay under this contract is contingent upon an annual329appropriation by the Legislature.”330 (9) The corporation is not a special district for the 331 purposes of chapter 189 or a unit of local government for the 332 purposes of part III of chapter 218. The provisions of chapters 333 120 and 215, except the limitation on interest rates provided by 334 s. 215.84 which applies to obligations of the corporation issued 335 pursuant to this section, and part I of chapter 287, except s. 336ss.287.0582and287.0641, doesdonot apply to this section, 337 the corporation, the service contracts entered into pursuant to 338 this section, or debt obligations issued by the corporation as 339 contemplated in this section. 340 Section 9. Subsections (5) and (10) of section 403.1837, 341 Florida Statutes, are amended to read: 342 403.1837 Florida Water Pollution Control Financing 343 Corporation.— 344 (5) The corporation may enter into one or more service 345 contracts with the department under which the corporation shall 346 provide services to the department in connection with financing 347 the functions, projects, and activities provided in ss. 403.1835 348 and 403.8532. The department mayenter into one or more service349contracts with the corporation andprovide paymentfor payments350 under those contracts pursuant to s. 403.1835(9) or s. 403.8533, 351 subject to annual appropriation by the Legislature. 352 (a) The service contracts may provide for the transfer of 353 all or a portion of the funds in the Wastewater Treatment and 354 Stormwater Management Revolving Loan Trust Fund and the Drinking 355 Water Revolving Loan Trust Fund to the corporation foruse by356the corporation forcosts incurred by the corporation in its 357 operations, including, but not limited to, payment of debt 358 service, reserves, or other costs in relation to bonds issued by 359 the corporation, for use by the corporation at the request of 360 the department to directly provide the types of local financial 361 assistance provided in ss. 403.1835(3) and 403.8532(3), or for 362 payment of the administrative costs of the corporation. 363 (b) The department may not transfer funds under any service 364 contract with the corporation without a specific appropriation 365 for such purpose in the General Appropriations Act, except for 366 administrative expenses incurred by the State Board of 367 Administration or other expenses necessary under documents 368 authorizing or securing previously issued bonds of the 369 corporation. The service contracts may also provide for the 370 assignment or transfer to the corporation of any loans made by 371 the department. 372 (c) The service contracts may establish the operating 373 relationship between the department and the corporation and must 374 require the department to request the corporation to issue bonds 375 before any issuance of bonds by the corporation, to take any 376 actions necessary to enforce the agreements entered into between 377 the corporation and other parties, and to take all other actions 378 necessary to assist the corporation in its operations. 379 (d) In compliance with s. 287.0641 and other applicable 380 provisions of law, the obligations of the department under the 381 service contracts do not constitute a general obligation of the 382 state or a pledge of the faith and credit or taxing power of the 383 state, nor may the obligations be construed as an obligation of 384 the State Board of Administration or entities for which it 385 invests funds, or of the department except as provided in this 386 section as payable solely from amounts available under any 387 service contract between the corporation and the department, 388 subject to appropriation. 389 (e) TheIn compliance with this subsection and s.287.0582,390 service contracts must expressly include the statements required 391 under s. 216.313.following statement: “The State of Florida’s392performance and obligation to pay under this contract is393contingent upon an annual appropriation by the Legislature.”394 (10) The corporation is not a special district for purposes 395 of chapter 189 or a unit of local government for purposes of 396 part III of chapter 218. The provisions of chapters 120 and 215, 397 except the limitation on interest rates provided by s. 215.84, 398 which applies to obligations of the corporation issued under 399 this section, and part I of chapter 287, except s.ss.287.0582400and287.0641, do not apply to this section, the corporation, the 401 service contracts entered into under this section, or debt 402 obligations issued by the corporation as provided in this 403 section. 404 Section 10. This act shall take effect July 1, 2011, and 405 applies to initial contracts and agreements, amendments to a 406 contract or agreement, and extensions or renewals of a contract 407 or agreement which are executed on or after that date.