Bill Text: FL S1314 | 2011 | Regular Session | Comm Sub
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-Comm_Sub.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-Comm_Sub.html
Florida Senate - 2011 CS for SB 1314 By the Committee on Governmental Oversight and Accountability; and Senator Alexander 585-02640-11 20111314c1 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; providing an 26 exception for the Department of Transportation; 27 transferring, renumbering, and amending s. 287.0582, 28 F.S.; requiring a state contract to identify the 29 appropriation that funds a contract; expanding the 30 statement that must be included in state contracts to 31 include grounds for terminating the contract based on 32 budget deficits; requiring the judicial branch to 33 include the statement in its contracts; requiring the 34 agency head, executive director, or chief judge, as 35 appropriate, or a designated senior management 36 employee, to sign contracts that exceed a specified 37 amount; requiring the agency head, executive director, 38 or chief judge to review certain contracts and certify 39 compliance with ch. 216, F.S.; requiring contracts 40 exceeding a specified amount to require written 41 acceptance or rejection of contract deliverables; 42 providing that contracts in violation of these 43 provisions are null and void; providing penalties; 44 amending s. 287.063, F.S.; prohibiting certain lease 45 or deferred-payment purchases by state agencies unless 46 expressly authorized by the Legislature in the General 47 Appropriations Act or by the Legislative Budget 48 Commission; amending s. 287.064, F.S.; prohibiting 49 certain master equipment financing agreements unless 50 expressly authorized by the Legislature in the General 51 Appropriations Act or by the Legislative Budget 52 Commission; amending ss. 376.3075 and 403.1837, F.S.; 53 conforming cross-references; repealing s. 287.056(2), 54 F.S., relating to provisions providing agencies with 55 the option of purchasing services from state term 56 contracts; amending s. 45, chapter 2010-151, Laws of 57 Florida; providing that certain contracts are subject 58 to transaction fees; providing for application; 59 providing an effective date. 60 61 Be It Enacted by the Legislature of the State of Florida: 62 63 Section 1. Present paragraph (vv) of subsection (1) of 64 section 216.011, Florida Statutes, is redesignated as paragraph 65 (ww), and a new paragraph (vv) is added to that subsection, to 66 read: 67 216.011 Definitions.— 68 (1) For the purpose of fiscal affairs of the state, 69 appropriations acts, legislative budgets, and approved budgets, 70 each of the following terms has the meaning indicated: 71 (vv) “Lease or lease-purchase of equipment” means the 72 appropriations category used to fund the lease or lease-purchase 73 of equipment, fixtures, and other tangible personal property. 74 Section 2. Present subsections (6) through (9) of section 75 216.023, Florida Statutes, are renumbered as subsections (7) 76 through (10), respectively, and a new subsection (6) is added to 77 that section, to read: 78 216.023 Legislative budget requests to be furnished to 79 Legislature by agencies.— 80 (6) As part of the legislative budget request, each state 81 agency must include the following information for each contract 82 in which the state agency has granted a concession: 83 (a) The name of the vendor. 84 (b) A brief description of the services provided by the 85 vendor. 86 (c) The term of the contract and the years remaining on the 87 contract. 88 (d) The amount of revenue generated or expected to be 89 generated by the vendor under the contract for the prior fiscal 90 year, the current fiscal year, and the next fiscal year. 91 (e) The amount of revenue remitted or expected to be 92 remitted to the state agency by the vendor for the prior fiscal 93 year, the current fiscal year, and the next fiscal year. 94 (f) The value of capital improvements, if any, on state 95 property which have been funded by the vendor over the term of 96 the contract. 97 (g) The remaining amount of capital improvements, if any, 98 on state property which have not been fully amortized by June 30 99 of the prior fiscal year. 100 (h) The amount, if any, of state appropriations made to the 101 state agency to pay for services provided by the vendor. 102 Section 3. Section 216.311, Florida Statutes, is amended to 103 read: 104 216.311 Unauthorized contractsin excess of appropriations; 105 penalty.— 106 (1) As used in this section and ss. 216.312 and 216.313, 107 the terms “contract” and “agreement” include the initial 108 contract or agreement, any amendment to the contract or 109 agreement, and any extension or renewal of the contract or 110 agreement. 111 (2)(1)Unless specifically authorized by law, anNoagency 112 or branch of state government may not enter into anyshall113 contractto spend,orenter into anyagreement: 114 (a) To spend,any moneys in excess of the amount 115 appropriated to such agency or branchunless specifically116authorized by law, and any contract oragreement in violation of117this chapter shall be null and void. 118 (b) That requires the state to pay liquidated damages or 119 early termination fees for a breach or early termination of a 120 contract or agreement by such agency or branch due to an act of 121 the Legislature which provides less than full funding for the 122 contract during the fiscal year. 123 (c) That requires the state to pay interest, other than 124 interest paid pursuant to s. 215.422, to another party because 125 the agency or branch has insufficient budget authority to pay 126 the underlying obligation of the contract or agreement in the 127 current year. 128 (d) That binds the state to make future-year payments to 129 offset payments not made in a prior year due to insufficient 130 budget authority. 131 (e) To grant to any party the right or privilege to collect 132 and retain fees or other revenues from persons who are not a 133 party to the contract which would otherwise be payable to the 134 state and deposited into the State Treasury. 135 (3) Notwithstanding subsection (2), the following agencies 136 may enter into the following contracts or agreements: 137 (a) In order to implement the work program approved by the 138 Legislature, and in accordance with the comprehensive 139 legislative oversight of the department under chapter 339, the 140 Department of Transportation may enter into contracts and 141 agreements, subject to the requirements of s. 334.30 and chapter 142 339, in lieu of the limitations specified in paragraphs (2)(b) 143 (e). 144 (b) In order to administer the state group insurance 145 program as provided in s. 110.123, the Department of Management 146 Services may enter into contracts and other agreements that 147 permit health care providers, health maintenance organizations, 148 preferred provider organizations, and insurers to collect 149 premiums and copayments from participants in the group insurance 150 program. 151 (c) In order to administer the state Medicaid plan and the 152 Florida Healthy Kids program, the Agency for Health Care 153 Administration may enter into contracts and other agreements 154 that permit health care providers to collect premiums and 155 copayments from participants in the Medicaid plan and the 156 Healthy Kids program. 157 (d) In order to administer the state parks system, the 158 Department of Environmental Protection may enter into contracts 159 and other agreements that require the state to pay liquidated 160 damages or early termination fees as a result of a breach of 161 those contracts or agreements, but only if the vendor makes 162 significant capital improvements to state property and the costs 163 of such improvements is amortized over no more than 3 years. 164 Such contracts are subject to the notice requirements of s. 165 216.312. 166 (4) Notwithstanding any law authorizing an agency to enter 167 into a lease, an agency may not enter into a lease or lease 168 purchase agreement for tangible personal property which requires 169 the state to pay more than $500,000 over the term of the lease 170 or agreement if the term of the lease or agreement exceeds 1 171 fiscal year unless such lease or agreement is expressly 172 authorized by the Legislature or the Legislative Budget 173 Commission has approved a transfer of budget authority from a 174 traditional appropriation category to the appropriation category 175 established for the lease or lease-purchase of equipment. 176 (5) In order to administer the real estate and other 177 investment portfolios as provided in s. 215.47 and to carry out 178 such other duties of the State Board of Administration set out 179 in law, the board may enter into contracts and such other 180 agreements as necessary to carry out the duties of the board. 181 (6) Any contract or agreement in violation of this section 182 is null and void. 183 (7)(2)Any public officer or employeepersonwho willfully 184 enters into a contract or other agreement in violation of this 185 section commitscontracts to spend, or enters into an agreement186to spend, any money in excess of the amount appropriated to the187agency or branch for whom the contract or agreement is executed188is guilty ofa misdemeanor of the first degree, punishable as 189 provided in s. 775.082 or s. 775.083. 190 Section 4. Section 216.312, Florida Statutes, is created to 191 read: 192 216.312 Reporting contract expenditures.— 193 (1) A state agency must provide written notification of the 194 terms and conditions of the contract to the Governor, the 195 President of the Senate, and the Speaker of the House of 196 Representatives at least 30 days before executing a contract, or 197 a series of contracts between the same parties, for the purchase 198 of services or tangible personal property that: 199 (a) Requires payments by the state in excess of $10 million 200 in any fiscal year; 201 (b) Requires minimal or no payments by the state during the 202 fiscal year; 203 (c) Authorizes the other party to make expenditures in 204 anticipation of collecting revenues from a third party, 205 including other state agencies, rather than receiving payments 206 from the state agency executing the contract; or 207 (d) Requires initial expenditures by the other party and 208 for which the other party will not receive payment from the 209 state within 180 days after the expenditure. 210 (2) The execution of any contract or agreement described in 211 subsection (1) is an action or proposed action subject to s. 212 216.177(2)(b). 213 (3) In lieu of the requirements of this section, and in 214 accordance with the comprehensive legislative oversight of the 215 department under chapter 339, the Department of Transportation 216 shall implement the work program approved by the Legislature by 217 entering into contracts and agreements, subject to the 218 requirements of s. 334.30 and chapter 339. If the department 219 intends to procure a contract pursuant to s. 334.30, it must 220 provide written notification to the Governor, the President of 221 the Senate, the Speaker of the House of Representatives, and the 222 chairs of the legislative appropriations committees at least 30 223 days before advertising for proposals. 224 Section 5. Section 287.0582, Florida Statutes, is 225 transferred, renumbered as section 216.313, Florida Statutes, 226 and amended to read: 227 216.313287.0582Contract appropriationContracts which228require annual appropriation; contingency statement; 229 requirements; penalty.— 230 (1) An executive or judicial branch public officer or 231 employee may not enter into any contract or agreement on behalf 232 of the state or judicial branch which binds the state or its 233 executive agencies or the judicial branch for the purchase of 234 services or tangible personal property unless the contract 235 identifies the specific appropriation of state funds from which 236 the state will make payment under the contract in the first year 237 of the contract, or unless the Legislature expressly authorizes 238 the agency or the judicial branch to enter into such contract 239 absent a specific appropriation of funds. 240 (2) AnNoexecutive or judicial branch public officer or 241 employee may notshallenter into any contract or agreement on 242 behalf of the state,whichcontractbinds the stateor its243executive agenciesfor the purchase of services or tangible 244 personal propertyfor a period in excess of 1 fiscal year,245 unless the following statements arestatement isincluded in the 246 contract: 247 (a) “The State of Florida’s performance and obligation to 248 pay under this contract is contingent upon an annual 249 appropriation by the Legislature.” 250 (b) “This contract may be terminated by the state upon 10 251 days’ written notice if funding for this contract is 252 specifically eliminated pursuant to a deficit reduction plan 253 implemented by: 254 1. The Governor or the Chief Justice or by an act of the 255 Legislature after certification pursuant to section 216.221, 256 Florida Statutes, that a deficit will occur in the General 257 Revenue Fund; or 258 2. The Governor or Chief Justice pursuant to section 259 216.221(10), Florida Statutes, or by an act of the Legislature, 260 after a determination by the Chief Financial Officer that a 261 deficit will occur with respect to appropriations from a 262 specific trust fund in the current fiscal year.” 263 264 This paragraph does not apply to a contract or agreement entered 265 into pursuant to s. 334.30. 266 (3) A contract or other agreement that exceeds: 267 (a) The CATEGORY TWO threshold amount provided in s. 268 287.017 must be signed by the agency head, executive director, 269 or chief judge, as appropriate, or a designated senior 270 management employee. 271 (b) A term of 12 months may not be executed by any 272 executive or judicial branch agency unless the agency head, 273 executive director, or chief judge, as appropriate, or a 274 designated senior management employee, determines that the 275 contract is in compliance with the requirements of this chapter 276 and certifies such compliance in writing within the contract or 277 agreement. 278 (c) The CATEGORY FIVE threshold amount provided in s. 279 287.017 must require the written acceptance or rejection of 280 contract deliverables. 281 (4) Any contract or other agreement in violation of this 282 section is null and void. 283 (5) Any public officer or employee who willfully enters 284 into a contract or other agreement in violation of this section 285 commits a misdemeanor of the first degree, punishable as 286 provided in s. 775.082 or s. 775.083. 287 Section 6. Subsection (4) of section 287.063, Florida 288 Statutes, is amended to read: 289 287.063 Deferred-payment commodity contracts; preaudit 290 review.— 291 (4) Beginning July 1, 2011, an agency may not enter into a 292 lease or deferred-payment purchase arrangement for the 293 acquisition of equipment which has a total cost greater than 294 $500,000 unless the Legislature has expressly authorized such 295 lease or deferred-payment purchase arrangement in the General 296 Appropriations Act or the Legislative Budget Commission has 297 approved a transfer of budget authority from a traditional 298 appropriation category to the special appropriation category for 299 deferred-payment commodity contracts.For purposes of this300section, deferred-payment commodity contracts for replacing the301state accounting and cash management systems may include302equipment, accounting software, and implementation and project303management services.304 Section 7. Subsection (9) of section 287.064, Florida 305 Statutes, is amended to read: 306 287.064 Consolidated financing of deferred-payment 307 purchases.— 308 (9) Beginning July 1, 2011, an agency may not enter into a 309 master equipment financing agreement that has a total cost 310 greater than $500,000 unless the Legislature has expressly 311 authorized such agreement in the General Appropriations Act or 312 the Legislative Budget Commission has approved a transfer of 313 budget authority from a traditional appropriation category to 314 the special appropriation category for deferred-payment 315 commodity contracts.For purposes of this section, deferred316payment commodity contracts for replacing the state accounting317and cash management systems may include equipment, accounting318software, and implementation and project management services.319 Section 8. Subsections (4) and (9) of section 376.3075, 320 Florida Statutes, are amended to read: 321 376.3075 Inland Protection Financing Corporation.— 322 (4) The corporation may enter into one or more service 323 contracts with the department to provide services to the 324 department in connection with financing the functions and 325 activities provided in ss. 376.30-376.317. The department may 326enter into one or more such service contracts with the327corporation andprovide paymentfor paymentsunder such 328 contracts pursuant to s. 376.3071(4)(o), subject to annual 329 appropriation by the Legislature. The proceeds from such service 330 contracts may be used for the corporation’s administrative costs 331 and expenses after payments as set forth in subsection (5). Each 332 service contract may have a term of up to 20 years. Amounts 333 annually appropriated and applied to make payments under such 334 service contracts may not include any funds derived from 335 penalties or other payments received from any property owner or 336 private party, including payments received under s. 337 376.3071(6)(b). In compliance with s. 216.313287.0641and other 338 applicable provisions of law, the obligations of the department 339 under such service contracts do not constitute a general 340 obligation of the state or a pledge of the faith and credit or 341 taxing power of the state nor may such obligations be construed 342 in any manner as an obligation of the State Board of 343 Administration or entities for which it invests funds, other 344 than the department as provided in this section, but are payable 345 solely from amounts available in the Inland Protection Trust 346 Fund, subject to annual appropriation.In compliance with this347subsection and s.287.0582,The service contract must expressly 348 include the statements required under s. 216.313.following349statement: “The State of Florida’s performance and obligation to350pay under this contract is contingent upon an annual351appropriation by the Legislature.”352 (9) The corporation is not a special district for the 353 purposes of chapter 189 or a unit of local government for the 354 purposes of part III of chapter 218. The provisions of chapters 355 120 and 215, except the limitation on interest rates provided by 356 s. 215.84 which applies to obligations of the corporation issued 357 pursuant to this section, and part I of chapter 287, except s. 358ss.287.0582and287.0641, doesdonot apply to this section, 359 the corporation, the service contracts entered into pursuant to 360 this section, or debt obligations issued by the corporation as 361 contemplated in this section. 362 Section 9. Subsections (5) and (10) of section 403.1837, 363 Florida Statutes, are amended to read: 364 403.1837 Florida Water Pollution Control Financing 365 Corporation.— 366 (5) The corporation may enter into one or more service 367 contracts with the department under which the corporation shall 368 provide services to the department in connection with financing 369 the functions, projects, and activities provided in ss. 403.1835 370 and 403.8532. The department mayenter into one or more service371contracts with the corporation andprovide paymentfor payments372 under those contracts pursuant to s. 403.1835(9) or s. 403.8533, 373 subject to annual appropriation by the Legislature. 374 (a) The service contracts may provide for the transfer of 375 all or a portion of the funds in the Wastewater Treatment and 376 Stormwater Management Revolving Loan Trust Fund and the Drinking 377 Water Revolving Loan Trust Fund to the corporation foruse by378the corporation forcosts incurred by the corporation in its 379 operations, including, but not limited to, payment of debt 380 service, reserves, or other costs in relation to bonds issued by 381 the corporation, for use by the corporation at the request of 382 the department to directly provide the types of local financial 383 assistance provided in ss. 403.1835(3) and 403.8532(3), or for 384 payment of the administrative costs of the corporation. 385 (b) The department may not transfer funds under any service 386 contract with the corporation without a specific appropriation 387 for such purpose in the General Appropriations Act, except for 388 administrative expenses incurred by the State Board of 389 Administration or other expenses necessary under documents 390 authorizing or securing previously issued bonds of the 391 corporation. The service contracts may also provide for the 392 assignment or transfer to the corporation of any loans made by 393 the department. 394 (c) The service contracts may establish the operating 395 relationship between the department and the corporation and must 396 require the department to request the corporation to issue bonds 397 before any issuance of bonds by the corporation, to take any 398 actions necessary to enforce the agreements entered into between 399 the corporation and other parties, and to take all other actions 400 necessary to assist the corporation in its operations. 401 (d) In compliance with s. 287.0641 and other applicable 402 provisions of law, the obligations of the department under the 403 service contracts do not constitute a general obligation of the 404 state or a pledge of the faith and credit or taxing power of the 405 state, nor may the obligations be construed as an obligation of 406 the State Board of Administration or entities for which it 407 invests funds, or of the department except as provided in this 408 section as payable solely from amounts available under any 409 service contract between the corporation and the department, 410 subject to appropriation. 411 (e) TheIn compliance with this subsection and s.287.0582,412 service contracts must expressly include the statements required 413 under s. 216.313.following statement: “The State of Florida’s414performance and obligation to pay under this contract is415contingent upon an annual appropriation by the Legislature.”416 (10) The corporation is not a special district for purposes 417 of chapter 189 or a unit of local government for purposes of 418 part III of chapter 218. The provisions of chapters 120 and 215, 419 except the limitation on interest rates provided by s. 215.84, 420 which applies to obligations of the corporation issued under 421 this section, and part I of chapter 287, except s.ss.287.0582422and287.0641, do not apply to this section, the corporation, the 423 service contracts entered into under this section, or debt 424 obligations issued by the corporation as provided in this 425 section. 426 Section 10. Subsection (2) of section 287.056, Florida 427 Statutes, is repealed. 428 Section 11. Section 45 of chapter 2010-151, Laws of 429 Florida, is amended to read: 430 Section 45. Contracts for academic program reviews, 431 auditing services, health services, or Medicaid services are 432 subject to the transaction or user fees imposed under ss. 433 287.042(1)(h) and 287.057(22), Florida Statutes, only to the 434 extent that such contracts werenotsubject to such transaction 435 or user fees before July 1, 2010. 436 Section 12. This act shall take effect July 1, 2011, and 437 applies to initial contracts and agreements, amendments to a 438 contract or agreement, and extensions or renewals of a contract 439 or agreement which are executed on or after that date.