Bill Text: FL S1706 | 2010 | Regular Session | Comm Sub

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Bill Title: State Financial Matters [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Messages [S1706 Detail]

Download: Florida-2010-S1706-Comm_Sub.html

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Florida Senate - 2010                             CS for SB 1706 
 
By the Policy and Steering Committee on Ways and Means; and 
Senator Alexander 
576-04455-10                                          20101706c1 
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 contracts in 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, an No agency 
106  or branch of state government may not enter into any shall 
107  contract to spend, or enter into any agreement: 
108         (a) To spend, any moneys in excess of the amount 
109  appropriated to such agency or branch unless specifically 
110  authorized by law, and any contract or agreement in violation of 
111  this 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 employee person who willfully 
176  enters into a contract or other agreement in violation of this 
177  section commits contracts to spend, or enters into an agreement 
178  to spend, any money in excess of the amount appropriated to the 
179  agency or branch for whom the contract or agreement is executed 
180  is guilty of a 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         216.313 287.0582 Contract appropriation Contracts which 
209  require 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) An No executive or judicial branch public officer or 
222  employee may not shall enter into any contract or agreement on 
223  behalf of the state, which contract binds the state or its 
224  executive agencies for the purchase of services or tangible 
225  personal property for a period in excess of 1 fiscal year, 
226  unless the following statements are statement is included 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, 2010, 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 this 
278  section, deferred-payment commodity contracts for replacing the 
279  state accounting and cash management systems may include 
280  equipment, accounting software, and implementation and project 
281  management 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, 2010, 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, deferred 
294  payment commodity contracts for replacing the state accounting 
295  and cash management systems may include equipment, accounting 
296  software, 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 
304  enter into one or more such service contracts with the 
305  corporation and provide payment for payments under 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. 216.313 287.0641 and 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 this 
325  subsection and s. 287.0582, The service contract must expressly 
326  include the statements required under s. 216.313. following 
327  statement: “The State of Florida’s performance and obligation to 
328  pay under this contract is contingent upon an annual 
329  appropriation 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. 
336  ss. 287.0582 and 287.0641, does do not 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 for in s. 
348  403.1835. The department may enter into one or more service 
349  contracts with the corporation and provide payment for payments 
350  under those contracts pursuant to s. 403.1835(9), subject to 
351  annual appropriation by the Legislature. The service contracts 
352  may provide for the transfer of all or a portion of the funds in 
353  the Wastewater Treatment and Stormwater Management Revolving 
354  Loan Trust Fund to the corporation for use by the corporation 
355  for costs incurred by the corporation in its operations, 
356  including, but not limited to, payment of debt service, 
357  reserves, or other costs in relation to bonds issued by the 
358  corporation, for use by the corporation at the request of the 
359  department to directly provide the types of local financial 
360  assistance provided for in s. 403.1835(3), or for payment of the 
361  administrative costs of the corporation. The department may not 
362  transfer funds under any service contract with the corporation 
363  without specific appropriation for such purpose in the General 
364  Appropriations Act, except for administrative expenses incurred 
365  by the State Board of Administration or other expenses necessary 
366  under documents authorizing or securing previously issued bonds 
367  of the corporation. The service contracts may also provide for 
368  the assignment or transfer to the corporation of any loans made 
369  by the department. The service contracts may establish the 
370  operating relationship between the department and the 
371  corporation and must shall require the department to request the 
372  corporation to issue bonds before any issuance of bonds by the 
373  corporation, to take any actions necessary to enforce the 
374  agreements entered into between the corporation and other 
375  parties, and to take all other actions necessary to assist the 
376  corporation in its operations. In compliance with s. 287.0641 
377  and other applicable provisions of law, the obligations of the 
378  department under the service contracts do not constitute a 
379  general obligation of the state or a pledge of the faith and 
380  credit or taxing power of the state, nor may the obligations be 
381  construed in any manner as an obligation of the State Board of 
382  Administration or entities for which it invests funds, or of the 
383  department except as provided in this section as payable solely 
384  from amounts available under any service contract between the 
385  corporation and the department, subject to appropriation. The In 
386  compliance with this subsection and s. 287.0582, service 
387  contracts must expressly include the statements required under 
388  s. 216.313. following statement: “The State of Florida’s 
389  performance and obligation to pay under this contract is 
390  contingent upon an annual appropriation by the Legislature.” 
391         (10) The corporation is not a special district for purposes 
392  of chapter 189 or a unit of local government for purposes of 
393  part III of chapter 218. The provisions of chapters 120 and 215, 
394  except the limitation on interest rates provided by s. 215.84, 
395  which applies to obligations of the corporation issued under 
396  this section, and part I of chapter 287, except s. ss. 287.0582 
397  and 287.0641, does do not apply to this section, the corporation 
398  created in this section, the service contracts entered into 
399  under this section, or debt obligations issued by the 
400  corporation as provided in this section. 
401         Section 10. This act shall take effect July 1, 2010, and 
402  applies to initial contracts and agreements, amendments to a 
403  contract or agreement, and extensions or renewals of a contract 
404  or agreement which are executed on or after that date.