Bill Text: FL S2386 | 2010 | Regular Session | Enrolled
Bill Title: State Financial Matters [WPSC]
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2010-05-28 - Approved by Governor; Chapter No. 2010-151; companion bill(s) passed, see CS/CS/SB 1412 (Ch. 2010-102) [S2386 Detail]
Download: Florida-2010-S2386-Enrolled.html
ENROLLED 2010 Legislature CS for SB 2386, 1st Engrossed 20102386er 1 2 An act relating to state financial matters; amending 3 s. 14.204, F.S.; conforming a cross-reference; 4 amending s. 17.20, F.S.; providing that each agency is 5 responsible for exercising due diligence in securing 6 payment for all accounts receivable and other claims 7 due the state; creating requirements for agencies for 8 purposes of reporting delinquent accounts receivable; 9 requiring agencies to report annually to the 10 Legislature and Chief Financial Officer on accounts 11 receivable and other claims due the state; requiring 12 the Chief Financial Officer to report annually to the 13 Governor and Legislature on claims for collections due 14 the state; amending s. 17.29, F.S.; authorizing the 15 Chief Financial Officer to adopt rules requiring that 16 payments made by the state for goods, services, or 17 anything of value be made by electronic means; 18 requiring that the rules include methods for 19 accommodating persons who may not be able to receive 20 payment by electronic means; authorizing the Chief 21 Financial Officer to make payments by warrant if 22 administratively necessary; amending ss. 43.16, 23 61.1826 and 112.3215, F.S.; conforming cross 24 references; amending s. 215.322, F.S.; conforming 25 provisions to changes made by the act to authorize 26 state agencies, local governments, and the judicial 27 branch to accept payments by electronic funds 28 transfers; providing for the adoption of rules to 29 facilitate such payments and to accommodate persons 30 who may not be able to make payments by electronic 31 means; authorizing the Chief Financial Officer to 32 adopt rules establishing uniform security safeguards 33 for cardholder data; creating s. 215.971, F.S.; 34 requiring that agency agreements that provide state or 35 federal financial assistance to a recipient or 36 subrecipient include certain provisions; amending s. 37 216.3475, F.S.; requiring an agency that is awarded 38 funding on a noncompetitive basis for certain services 39 as specified in the General Appropriations Act to 40 maintain specified documentation supporting a cost 41 analysis; amending s. 255.249, F.S.; conforming a 42 provision to the repeal of s. 287.1345, F.S.; amending 43 s. 255.25, F.S.; conforming a provision to the repeal 44 of s. 287.1345, F.S.; conforming a cross-reference; 45 amending s. 283.32, F.S.; conforming provisions to the 46 repeal of s. 287.045, F.S.; amending s. 286.0113, 47 F.S.; conforming a cross-reference; amending s. 48 287.012, F.S.; revising, eliminating, and providing 49 definitions; amending s. 287.017, F.S.; revising the 50 threshold amounts for state purchasing categories; 51 eliminating a requirement that the Department of 52 Management Services adopt rules to adjust the 53 threshold amounts; amending s. 287.022, F.S.; 54 conforming a cross-reference; repealing s. 287.045, 55 F.S., relating to procurement of products and 56 materials with recycled content; amending s. 287.056, 57 F.S.; specifying the provisions to be included in 58 state agency purchasing agreements; amending s. 59 287.057, F.S.; revising and organizing provisions 60 relating to the procurement of commodities and 61 contractual services by the state; specifying 62 authorized uses for competitive solicitation 63 processes; providing procedures and requirements with 64 respect to competitive solicitation; specifying types 65 of procurements for which invitations to bid, requests 66 for proposals, and invitations to negotiate are to be 67 used and providing procedures and requirements with 68 respect thereto; revising contractual services and 69 commodities that are not subject to competitive 70 solicitation requirements; prohibiting an agency from 71 dividing the solicitation of commodities or 72 contractual services in order to avoid specified 73 requirements; requiring that an agency avoid, 74 neutralize, or mitigate significant potential 75 organizational conflicts of interests before a 76 contract is awarded; providing procedures and 77 requirements with respect to mitigation of such 78 conflicts of interest; authorizing an agency to 79 proceed with a contract award when such conflict 80 cannot be avoided or mitigated under specified 81 circumstances and providing a restriction on such 82 award; specifying conditions that constitute an unfair 83 competitive advantage for a vendor; amending s. 84 287.0571, F.S.; revising applicability of ss. 85 287.0571-287.0574, F.S.; specifying procurements and 86 contracts to which s. 287.0571, F.S., relating to 87 agency business cases for outsourcing of specified 88 projects, does not apply; requiring an agency to 89 complete a business case for any outsourcing project 90 that has an expected cost in excess of a specified 91 amount within a single fiscal year; providing for the 92 submission of the business case in accordance with 93 provisions governing the submission of agency 94 legislative budget requests; providing that a business 95 case is not subject to challenge; providing required 96 components of a business case; specifying required 97 provisions for a contract for a proposed outsourcing; 98 repealing s. 287.05721, F.S., relating to definitions; 99 repealing s. 287.0573, F.S., relating to the Council 100 on Efficient Government and its membership and duties; 101 repealing s. 287.0574, F.S., relating to provisions 102 governing business cases for outsourcing and the 103 review and analysis conducted thereunder, the 104 requirements of which are relocated in other sections 105 of Florida Statutes set forth in the act; creating s. 106 287.0575, F.S.; establishing duties and 107 responsibilities of the Department of Children and 108 Family Services, the Agency for Persons with 109 Disabilities, the Department of Health, the Department 110 of Elderly Affairs, and the Department of Veterans’ 111 Affairs, and service providers under contract to those 112 agencies, with respect to coordination of contracted 113 services; requiring state agencies contracting for 114 health and human services to notify their contract 115 service providers of certain requirements by a 116 specified date or upon entering into any new contract 117 for health and human services; requiring each service 118 provider that has more than one contract with one or 119 more state agencies to provide health and human 120 services to provide to each of its contract managers a 121 comprehensive list of its health and human services 122 contracts by a specified date; specifying information 123 to be contained in the list; providing for assignment, 124 by a specified date, of a single lead administrative 125 coordinator for each service provider from among 126 agencies having multiple health and human services 127 contracts; requiring that the lead administrative 128 coordinator provide notice of his or her designation 129 to the service provider and to the agency contract 130 managers for each affected contract; providing the 131 method of selecting the lead administrative 132 coordinator; providing responsibilities of the 133 designated lead administrative coordinator; providing 134 duties of contract managers for agency contracts; 135 providing for nonapplicability under certain 136 circumstances; requiring annual performance 137 evaluations of designated lead administrative 138 coordinators by each agency contracting for health and 139 human services; providing for a report to the Governor 140 and Legislature; amending s. 287.058, F.S.; revising 141 provisions regarding contracts for services; 142 specifying provisions to be included in such 143 contracts; amending s. 287.059, F.S.; conforming a 144 cross-reference; repealing s. 287.1345, F.S., relating 145 to surcharge on users of state term contracts; 146 amending ss. 295.187, 394.457, 394.47865, 402.40, 147 402.7305, 408.045, 427.0135, 445.024, 481.205, 570.07, 148 627.311, 627.351, 765.5155, 893.055 and 1013.38, F.S., 149 and s. 21 of chapter 2009-55 and s. 31 of chapter 150 2009-223, Laws of Florida; conforming cross 151 references; providing that statutorily authorized 152 transaction or user fees do not apply to certain 153 contracts for services if the services were exempt 154 from such fees before a specified date; requiring 155 state agencies to provide specified information to the 156 Department of Financial Services relating to the 157 purchase of commodities or services; requiring state 158 agencies to review and renegotiate contract renewals 159 and reprocurements in an effort to reduce contract 160 payments; requiring the Executive Office of the 161 Governor to place savings from the renegotiation of 162 contract renewals or reprocurements in reserve; 163 requiring each state agency to review its contracts to 164 ensure that contractors comply with applicable 165 preferred-pricing clauses; requiring certain contracts 166 containing a preferred-pricing clause to require that 167 the contractor submit an affidavit attesting to the 168 contractor’s compliance with the clause; defining the 169 term “preferred-pricing clause”; requiring that each 170 entity expending funds provided for in the 2010-2011 171 fiscal year give preference to vendors or businesses 172 that have a principal place of business in Florida and 173 that commit contractually to maximize the use of state 174 residents, products, and businesses; providing an 175 exception; requiring state agencies to report 176 contractor compliance with such requirement to the 177 Agency for Workforce Innovation; providing an 178 appropriation and authorizing additional positions; 179 providing an effective date. 180 181 Be It Enacted by the Legislature of the State of Florida: 182 183 Section 1. Paragraph (d) of subsection (4) of section 184 14.204, Florida Statutes, is amended to read: 185 14.204 Agency for Enterprise Information Technology.—The 186 Agency for Enterprise Information Technology is created within 187 the Executive Office of the Governor. 188 (4) The agency shall have the following duties and 189 responsibilities: 190 (d) Plan and establish policies for managing proposed 191 statutorily authorized enterprise information technology 192 services, which includes: 193 1. Developing business cases that, when applicable, include 194 the components identified in s. 287.0571287.0574; 195 2. Establishing and coordinating project-management teams; 196 3. Establishing formal risk-assessment and mitigation 197 processes; and 198 4. Providing for independent monitoring of projects for 199 recommended corrective actions. 200 Section 2. Section 17.20, Florida Statutes, is amended to 201 read: 202 17.20 Assignment of claims for collection.— 203 (1) The Chief Financial Officer shall charge the state 204 attorneys with the collection of all claims that are placed in 205 their hands for collection of money or property for the state or 206 any county or special district, or that it otherwise requires 207 them to collect. The charges are evidence of indebtedness of a 208 state attorney against whom any charge is made for the full 209 amount of the claim, until the charges have been collected and 210 paid into the treasury of the state or of the county or special 211 district or the legal remedies of the state have been exhausted, 212 or until the state attorney demonstrates to the Chief Financial 213 Officer that the failure to collect the charges is not due to 214 negligence and the Chief Financial Officer has made a proper 215 entry of satisfaction of the charge against the state attorney. 216 (2) The Chief Financial Officer may assign the collection 217 of any claim to a collection agent or agents who areis218 registered and in good standing pursuant to chapter 559, if the 219 Chief Financial Officer determines the assignation to be cost 220 effective. The Chief Financial Officer maypay an agent from any221amount collected under the claim a fee that the Chief Financial222Officer and the agent have agreed upon; may authorize the agent223to deduct the fee from the amount collected; may require the224appropriate state agency, county, or special district to pay the225agent the fee from any amount collected by the agent on its226behalf; or mayauthorize the agent or agents to add athefee to 227 the amount to be collected. 228 (3) Each agency shall be responsible for exercising due 229 diligence in securing full payment of all accounts receivable 230 and other claims due the state. 231 (a) No later than 120 days after the date on which the 232 account or other claim was due and payable, unless another 233 period is approved by the Chief Financial Officer, and after 234 exhausting other lawful measures available to the agency, each 235 agency shall report the delinquent accounts receivable as 236 directed by the Chief Financial Officer to the appropriate 237 collection agent for further action, excluding those agencies 238 that collect delinquent accounts pursuant to independent 239 statutory authority. 240 (b) An agency that has delinquent accounts receivable, 241 which the agency considers to be of a nature that assignment to 242 a collection agency would be inappropriate, may request in 243 writing for an exemption for those accounts. The request shall 244 fully explain the nature of the delinquent accounts receivable 245 and the reasons the agency believes such accounts would be 246 precluded from being assigned to a collection agency. The Chief 247 Financial Officer shall disapprove the request in writing unless 248 the agency shows that a demonstrative harm to the state will 249 occur as a result of assignment to a collection agency. 250 (c) Agencies that have delinquent accounts receivable, 251 which accounts are of such a nature that it would not be 252 appropriate to transfer collection of those delinquent accounts 253 to the Chief Financial Officer within 120 days after the date 254 they are due and payable, may request in writing a different 255 period of time for transfer of collection of such accounts. The 256 request shall fully explain the nature of the delinquent 257 accounts receivable and include a recommendation as to an 258 appropriate period. 259 (4) Beginning October 1, 2010, and each October 1 260 thereafter, each agency shall submit a report to the President 261 of the Senate, the Speaker of the House of Representatives, and 262 the Chief Financial Officer which includes: 263 (a) A detailed list and total of all accounts that were 264 referred for collection and the status of such accounts, 265 including the date referred, any amounts collected, and the 266 total that remains uncollected. 267 (b) A list and total of all delinquent accounts that were 268 not referred to a collection agency, the reasons for not 269 referring those accounts, and the actions taken by the agency to 270 collect. 271 (c) A list of all accounts or claims, including a 272 description and the total amount of each account or claim, which 273 were written off or waived by the agency for any reason during 274 the prior fiscal year, the reason for being written off, and 275 whether any of those accounts continue to be pursued by a 276 collection agent. 277 (5) Beginning December 1, 2010, and each December 1 278 thereafter, the Chief Financial Officer shall provide to the 279 Governor, the President of the Senate, and the Speaker of the 280 House of Representatives a report that details the following 281 information for any contracted collection agent: 282 (a) The amount of claims referred for collection by each 283 agency, cumulatively and annually. 284 (b) The number of accounts by age and amount. 285 (c) A listing of those agencies that failed to report known 286 claims to the Chief Financial Officer in a timely manner as 287 prescribed in subsection (3). 288 (d) The total amount of claims collected, cumulatively and 289 annually. 290 (6)(3)Notwithstanding any other provision of law, in any 291 contract providing for the location or collection of unclaimed 292 property, the Chief Financial Officer may authorize the 293 contractor to deduct its fees and expenses for services provided 294 under the contract from the unclaimed property that the 295 contractor has recovered or collected under the contract. The 296 Chief Financial Officer shall annually report to the Governor, 297 President of the Senate, and the Speaker of the House of 298 Representatives the total amount collected or recovered by each 299 contractor during the previous fiscal year and the total fees 300 and expenses deducted by each contractor. 301 Section 3. Section 17.29, Florida Statutes, is amended to 302 read: 303 17.29 Authority to prescribe rules.—The Chief Financial 304 Officer may adopt rules pursuant to ss. 120.536(1) and 120.54 to 305 implement this chapter and the duties assigned by statute or the 306 State Constitution. Such rules may include, but are not limited 307 to, the following: 308 (1) Procedures or policies relating to the processing of 309 payments from salaries, other personal services, or any other 310 applicable appropriation. 311 (2) Procedures for processing interagency and intraagency 312 payments thatwhichdo not require the issuance of a state 313 warrant. 314 (3) Procedures or policies requiring that payments made by 315 the state for goods, services, or anything of value be made by 316 electronic means, including, but not limited to, debit cards, 317 credit cards, or electronic funds transfers. 318 (4) A method that reasonably accommodates persons who, 319 because of technological, financial, or other hardship, may not 320 be able to receive payments by electronic means. The Chief 321 Financial Officer may make payments by state warrant if deemed 322 administratively necessary. 323 Section 4. Subsection (1) of section 43.16, Florida 324 Statutes, is amended to read: 325 43.16 Justice Administrative Commission; membership, powers 326 and duties.— 327 (1) There is hereby created a Justice Administrative 328 Commission, with headquarters located in the state capital. The 329 necessary office space for use of the commission shall be 330 furnished by the proper state agency in charge of state 331 buildings. For purposes of the fees imposed on agencies pursuant 332 to s. 287.057(22)(23), the Justice Administrative Commission 333 shall be exempt from such fees. 334 Section 5. Paragraph (e) of subsection (1) of section 335 61.1826, Florida Statutes, is amended to read: 336 61.1826 Procurement of services for State Disbursement Unit 337 and the non-Title IV-D component of the State Case Registry; 338 contracts and cooperative agreements; penalties; withholding 339 payment.— 340 (1) LEGISLATIVE FINDINGS.—The Legislature finds that the 341 clerks of court play a vital role, as essential participants in 342 the establishment, modification, collection, and enforcement of 343 child support, in securing the health, safety, and welfare of 344 the children of this state. The Legislature further finds and 345 declares that: 346 (e) The potential loss of substantial federal funds poses a 347 direct and immediate threat to the health, safety, and welfare 348 of the children and citizens of the state and constitutes an 349 emergency for purposes of s. 287.057(3)(5)(a). 350 351 For these reasons, the Legislature hereby directs the Department 352 of Revenue, subject to the provisions of subsection (5), to 353 contract with the Florida Association of Court Clerks and each 354 depository to perform duties with respect to the operation and 355 maintenance of a State Disbursement Unit and the non-Title IV-D 356 component of the State Case Registry as further provided by this 357 section. 358 Section 6. Paragraph (h) of subsection (1) of section 359 112.3215, Florida Statutes, is amended to read: 360 112.3215 Lobbying before the executive branch or the 361 Constitution Revision Commission; registration and reporting; 362 investigation by commission.— 363 (1) For the purposes of this section: 364 (h) “Lobbyist” means a person who is employed and receives 365 payment, or who contracts for economic consideration, for the 366 purpose of lobbying, or a person who is principally employed for 367 governmental affairs by another person or governmental entity to 368 lobby on behalf of that other person or governmental entity. 369 “Lobbyist” does not include a person who is: 370 1. An attorney, or any person, who represents a client in a 371 judicial proceeding or in a formal administrative proceeding 372 conducted pursuant to chapter 120 or any other formal hearing 373 before an agency, board, commission, or authority of this state. 374 2. An employee of an agency or of a legislative or judicial 375 branch entity acting in the normal course of his or her duties. 376 3. A confidential informant who is providing, or wishes to 377 provide, confidential information to be used for law enforcement 378 purposes. 379 4. A person who lobbies to procure a contract pursuant to 380 chapter 287 which contract is less than the threshold for 381 CATEGORY ONE as provided in s. 287.017(1)(a). 382 Section 7. Section 215.322, Florida Statutes, is amended to 383 read: 384 215.322 Acceptance of credit cards, charge cards,ordebit 385 cards, or electronic funds transfers by state agencies, units of 386 local government, and the judicial branch.— 387 (1) It is the intent of the Legislature to encourage state 388 agencies, the judicial branch, and units of local government to 389 make their goods, services, and information more convenient to 390 the public through the acceptance of payments by credit cards, 391 charge cards,anddebit cards, or other means of electronic 392 funds transfers to the maximum extent practicable when the 393 benefits to the participating agency and the public substantiate 394 the cost of accepting these types of payments. 395 (2) A state agency as defined in s. 216.011, or the 396 judicial branch, may accept credit cards, charge cards,ordebit 397 cards, or electronic funds transfers in payment for goods and 398 services with the prior approval of the Chief Financial Officer. 399 If the Internet or other related electronic methods are to be 400 used as the collection medium, the Agency for Enterprise 401 Information Technology shall review and recommend to the Chief 402 Financial Officer whether to approve the request with regard to 403 the process or procedure to be used. 404 (3) The Chief Financial Officer shall adopt rules governing 405 the establishment and acceptance of credit cards, charge cards, 406ordebit cards, or electronic funds transfers by state agencies 407 or the judicial branch, including, but not limited to, the 408 following: 409 (a) UseUtilizationof a standardized contract between the 410 financial institution or other appropriate intermediaries and 411 the agency or judicial branch which shall be developed by the 412 Chief Financial Officer or approval by the Chief Financial 413 Officer of a substitute agreement. 414 (b) Procedures thatwhichpermit an agency or officer 415 accepting payment by credit card, charge card,ordebit card, or 416 electronic funds transfer to impose a convenience fee upon the 417 person making the payment. However, the total amount of such 418 convenience fees mayshallnot exceed the total cost to the 419 state agency. A convenience fee is not refundable to the payor. 420 HoweverNotwithstanding the foregoing, this section doesshall421 notbe construed topermit the imposition of surcharges on any 422 other credit card purchase in violation of s. 501.0117. 423 (c) All service fees payable pursuant to this sectionwhen424practicableshall be invoiced and paid by state warrant or such 425 other manner that is satisfactory to the Chief Financial Officer 426 in accordance with the time periods specified in s. 215.422, if 427 practicable. 428 (d) Submission of information to the Chief Financial 429 Officer concerning the acceptance of credit cards, charge cards, 430ordebit cards, or electronic funds transfers by all state 431 agencies or the judicial branch. 432 (e) A methodology for agencies to use when completing the 433 cost-benefit analysis referred to in subsection (1). The 434 methodology must consider all quantifiable cost reductions, 435 other benefits to the agency, and the potential impact on 436 general revenue. The methodology must also consider 437 nonquantifiable benefits such as the convenience to individuals 438 and businesses that would benefit from the ability to pay for 439 state goods and services through the use of credit cards, charge 440 cards,anddebit cards, or electronic funds transfers. 441 (4) The Chief Financial Officer may establish contracts 442 with one or more financial institutions, credit card companies, 443 or other entities thatwhichmay lawfully provide such services, 444 in a manner consistent with chapter 287, for processing credit 445 card, charge card,ordebit card, or electronic funds transfer 446 collections for deposit into the State Treasury or another 447 qualified public depository. Any state agency, or the judicial 448 branch, which accepts payment by credit card, charge card,or449 debit card, or electronic funds transfer shall use at least one 450 of the contractors established by the Chief Financial Officer, 451 unless the state agency or judicial branch obtains authorization 452 from the Chief Financial Officer to use another contractor that 453whichis more advantageous to thesuchstate agency or the 454 judicial branch. TheSuchcontracts may authorize a unit of 455 local government to use the services upon the same terms and 456 conditions for deposit of credit card, charge card,ordebit 457 card, or electronic funds transfer transactions into its 458 qualified public depositories. 459 (5) A unit of local government, includingwhich term means460 a municipality, special district, or board of county 461 commissioners or other governing body of a county,however462styled, including that ofa consolidated or metropolitan 463 government, andmeansany clerk of the circuit court, sheriff, 464 property appraiser, tax collector, or supervisor of elections, 465 is authorized to accept payment by use of credit cards, charge 466 cards,andbank debit cards, and electronic funds transfers for 467 financial obligations that are owing to such unit of local 468 government and to surcharge the person who uses a credit card, 469 charge card,orbank debit card, or electronic funds transfer in 470 payment of taxes, license fees, tuition, fines, civil penalties, 471 court-ordered payments, or court costs, or other statutorily 472 prescribed revenues an amount sufficient to pay the service fee 473 charges by the financial institution, vending service company, 474 or credit card company for such services. A unit of local 475 government shall verify both the validity of any credit card, 476 charge card,orbank debit card, or electronic funds transfer 477 used pursuant to this subsection and the existence of 478 appropriate credit with respect to the person using the card or 479 transfer. The unit of local government does not incur any 480 liability as a result of such verification or any subsequent 481 action taken. 482 (6) Any action required to be performed by a state officer 483 or agency pursuant to this section shall be performed within 10 484 working days after receipt of the request for approval or be 485 deemed approved if not acted upon within that time. 486 (7)Nothing contained inThis section does notshall be487construed toprohibit a state agency or the judicial branch from 488 continuing to accept charge cards,ordebit cards, or electronic 489 funds transfers pursuant to a contract thatwhichwas lawfully 490 entered into beforeprior tothe effective date of this act, 491 unless specifically directed otherwise in the General 492 Appropriations Act. However, such contract mayshallnot be 493 extended or renewed after the effective date of this act unless 494 such renewal and extension conforms to the requirements of this 495 section. 496 (8) When deemed administratively necessary, a state agency, 497 as defined in s. 216.011, or the judicial branch may adopt rules 498 requiring that payments for goods, services, or anything of 499 value be made by electronic means, including, but not limited 500 to, credit cards, charge cards, debit cards, or electronic funds 501 transfers. However, the rules may not conflict with any similar 502 rules adopted by the Chief Financial Officer. The rules must 503 provide a method to reasonably accommodate persons who, because 504 of technological, financial, or other hardship, may not be able 505 to make payment by electronic means. 506 (9) For payment programs in which credit cards, charge 507 cards, or debit cards are accepted by state agencies, the 508 judicial branch, or units of local government, the Chief 509 Financial Officer, in consultation with the Agency for 510 Enterprise Information Technology, may adopt rules to establish 511 uniform security safeguards for cardholder data and to ensure 512 compliance with the Payment Card Industry Data Security 513 Standards. 514 Section 8. Section 215.971, Florida Statutes, is created to 515 read: 516 215.971 Agreements funded with federal and state 517 assistance.—For an agency agreement that provides state 518 financial assistance to a recipient or subrecipient, as those 519 terms are defined in s. 215.97, or that provides federal 520 financial assistance to a subrecipient, as defined by applicable 521 United States Office of Management and Budget circulars, the 522 agreement shall include: 523 (1) A provision specifying a scope of work that clearly 524 establishes the tasks that the recipient or subrecipient is 525 required to perform; and 526 (2) A provision dividing the agreement into quantifiable 527 units of deliverables that must be received and accepted in 528 writing by the agency before payment. Each deliverable must be 529 directly related to the scope of work and must specify the 530 required minimum level of service to be performed and the 531 criteria for evaluating the successful completion of each 532 deliverable. 533 Section 9. Section 216.3475, Florida Statutes, is amended 534 to read: 535 216.3475 Maximum rate of payment for services funded under 536 General Appropriations Act or awarded on a noncompetitive 537 basis.—A person or entity that is designated by the General 538 Appropriations Act, or that is awarded funding on a 539 noncompetitive basis, to provide services for which funds are 540 appropriated by that act may not receive a rate of payment in 541 excess of the competitive prevailing rate for those services 542 unless expressly authorized in the General Appropriations Act. 543 Each agency shall maintain records to support a cost analysis, 544 which includes a detailed budget submitted by the person or 545 entity awarded funding and the agency’s documented review of 546 individual cost elements from the submitted budget for 547 allowability, reasonableness, and necessity. 548 Section 10. Subsection (6) of section 255.249, Florida 549 Statutes, is amended to read: 550 255.249 Department of Management Services; responsibility; 551 department rules.— 552 (6) The department may contract for real estate consulting 553 or tenant brokerage services in order to carry out its duties 554 relating to the strategic leasing plan. The contract shall be 555 procured pursuant to s. 287.057. The vendor that is awarded the 556 contract shall be compensated by the department, subject to the 557 provisions of the contract, and such compensation is subject to 558 appropriation by the Legislature. The real estate consultant or 559 tenant broker may not receive compensation directly from a 560 lessor for services that are rendered pursuant to the contract. 561Moneys paid to the real estate consultant or tenant broker are562exempt from any charge imposed under s.287.1345.Moneys paid by 563 a lessor to the department under a facility-leasing arrangement 564 are not subject to the charges imposed under s. 215.20. 565 Section 11. Paragraph (h) of subsection (3) of section 566 255.25, Florida Statutes, is amended to read: 567 255.25 Approval required prior to construction or lease of 568 buildings.— 569 (3) 570 (h) The Department of Management Services may, pursuant to 571 s. 287.042(2)(a), procure a term contract for real estate 572 consulting and brokerage services. A state agency may not 573 purchase services from the contract unless the contract has been 574 procured under s. 287.057(1), (2), or (3)after March 1, 2007, 575 and contains the following provisions or requirements: 576 1. Awarded brokers must maintain an office or presence in 577 the market served. In awarding the contract, preference must be 578 given to brokers that are licensed in this state under chapter 579 475 and that have 3 or more years of experience in the market 580 served. The contract may be made with up to three tenant brokers 581 in order to serve the marketplace in the north, central, and 582 south areas of the state. 583 2. Each contracted tenant broker shall work under the 584 direction, supervision, and authority of the state agency, 585 subject to the rules governing lease procurements. 586 3. The department shall provide training for the awarded 587 tenant brokers concerning the rules governing the procurement of 588 leases. 589 4. Tenant brokers must comply with all applicable 590 provisions of s. 475.278. 591 5. Real estate consultants and tenant brokers shall be 592 compensated by the state agency, subject to the provisions of 593 the term contract, and such compensation is subject to 594 appropriation by the Legislature. A real estate consultant or 595 tenant broker may not receive compensation directly from a 596 lessor for services that are rendered under the term contract. 597Moneys paid to a real estate consultant or tenant broker are598exempt from any charge imposed under s.287.1345.Moneys paid by 599 a lessor to the state agency under a facility leasing 600 arrangement are not subject to the charges imposed under s. 601 215.20. All terms relating to the compensation of the real 602 estate consultant or tenant broker shall be specified in the 603 term contract and may not be supplemented or modified by the 604 state agency using the contract. 605 6. The department shall conduct periodic customer 606 satisfaction surveys. 607 7. Each state agency shall report the following information 608 to the department: 609 a. The number of leases that adhere to the goal of the 610 workspace-management initiative of 180 square feet per FTE. 611 b. The quality of space leased and the adequacy of tenant 612 improvement funds. 613 c. The timeliness of lease procurement, measured from the 614 date of the agency’s request to the finalization of the lease. 615 d. Whether cost-benefit analyses were performed before 616 execution of the lease in order to ensure that the lease is in 617 the best interest of the state. 618 e. The lease costs compared to market rates for similar 619 types and classifications of space according to the official 620 classifications of the Building Owners and Managers Association. 621 Section 12. Subsections (2) and (3) of section 283.32, 622 Florida Statutes, are amended to read: 623 283.32 Recycled paper to be used by each agency; printing 624 bids certifying use of recycled paper; percentage preference in 625 awarding contracts.— 626 (2) Each agency shall require a vendor that submits a bid 627 for a contract for printingand that wishes to be considered for628the price preference described in s.287.045to certify in 629 writing the percentage of recycled content of the material used 630 for such printing. Such vendor may certify that the material 631 contains no recycled content. 632 (3) Upon evaluation of bids for each printing contract, the 633 agency shall identify the lowest responsive bid and any other 634 responsive bids in which it has been certified that the 635 materials used in printing contain at least the minimum 636 percentage of recycled content that is set forth by the 637 department.In awarding a contract for printing, the agency may638allow up to a 10-percent price preference, as provided in s.639287.045, to a responsible and responsive vendor that has640certified that the materials used in printing contain at least641the minimum percentage of recycled content established by the642department.If no vendors offer materials for printing that 643 contain the minimum prescribed recycled content, the contract 644 shall be awarded to the responsible vendor that submits the 645 lowest responsive bid. 646 Section 13. Paragraph (a) of subsection (2) of section 647 286.0113, Florida Statutes, is amended to read: 648 286.0113 General exemptions from public meetings.— 649 (2)(a) A meeting at which a negotiation with a vendor is 650 conducted pursuant to s. 287.057(1)(3)is exempt from s. 286.011 651 and s. 24(b), Art. I of the State Constitution. 652 Section 14. Section 287.012, Florida Statutes, is amended 653 to read: 654 287.012 Definitions.—As used in this part, the term: 655 (1) “Agency” means any of the various state officers, 656 departments, boards, commissions, divisions, bureaus, and 657 councils and any other unit of organization, however designated, 658 of the executive branch of state government. “Agency” does not 659 include the university and college boards of trustees or the 660 state universities and colleges. 661 (2) “Agency head” means, with respect to an agency headed 662 by a collegial body, the executive director or chief 663 administrative officer of the agency. 664 (3) “Artistic services”“Artist”means the rendering by a 665 contractor of its time and effort to create or perform an 666 artistic work in the fieldsan individual or group of667individuals who profess and practice a demonstrated creative668talent and skill in the areaof music, dance, drama, folk art, 669 creative writing, painting, sculpture, photography, graphic 670 arts, craft arts, industrial design, costume design, fashion 671 design, motion pictures, television, radio, or tape and sound 672 recordingor in any other related field. 673 (4) “Best value” means the highest overall value to the 674 state based on objective factors that include, but are not 675 limited to, price, quality, design, and workmanship. 676 (5) “Commodity” means any of the various supplies, 677 materials, goods, merchandise, food, equipment, information 678 technology, and other personal property, including a mobile 679 home, trailer, or other portable structure with floor space of 680 less than 5,000 square feet, purchased, leased, or otherwise 681 contracted for by the state and its agencies. “Commodity” also 682 includes interest on deferred-payment commodity contracts 683 approved pursuant to s. 287.063 entered into by an agency for 684 the purchase of other commodities. However, commodities 685 purchased for resale are excluded from this definition.Further,686a prescribed drug, medical supply, or device required by a687licensed health care provider as a part of providing health688services involving examination, diagnosis, treatment,689prevention, medical consultation, or administration for clients690at the time the service is provided is not considered to be a691“commodity.”Printing of publications shall be considered a 692 commodity when let upon contract pursuant to s. 283.33, whether 693 purchased for resale or not. 694 (6) “Competitive solicitationsealed bids,”“competitive695sealed proposals,” or “competitive sealed replies”means the 696 process of requesting and receiving two or more sealed bids, 697 proposals, or replies submitted by responsive vendors in 698 accordance with the terms of a competitive process, regardless 699 of the method of procurementand includes bids, proposals, or700replies transmitted by electronic means in lieu of or in701addition to written bids, proposals, or replies. 702(7) “Competitive solicitation” or “solicitation” means an703invitation to bid, a request for proposals, or an invitation to704negotiate.705 (7)(8)“Contractor” means a person who contracts to sell 706 commodities or contractual services to an agency. 707 (8)(9)“Contractual service” means the rendering by a 708 contractor of its time and effort rather than the furnishing of 709 specific commodities. The term applies only to those services 710 rendered by individuals and firms who are independent 711 contractors, and such services may include, but are not limited 712 to, evaluations; consultations; maintenance; accounting; 713 security; management systems; management consulting; educational 714 training programs; research and development studies or reports 715 on the findings of consultants engaged thereunder; and 716 professional, technical, and social services. “Contractual 717 service” does not include any contract for the furnishing of 718 labor or materials for the construction, renovation, repair, 719 modification, or demolition of any facility, building, portion 720 of building, utility, park, parking lot, or structure or other 721 improvement to real property entered into pursuant to chapter 722 255 and rules adopted thereunder. 723 (9)(10)“Department” means the Department of Management 724 Services. 725 (10)(11)“Electronic posting” or “electronically post” 726 means the noticingpostingof solicitations, agency decisions or 727 intended decisions, or other matters relating to procurement on 728 a centralized Internet website designated by the department for 729 this purpose. 730 (11)(12)“Eligible user” means any person or entity 731 authorized by the department pursuant to rule to purchase from 732 state term contracts or to use the online procurement system. 733 (12)(13)“Exceptional purchase” means any purchase of 734 commodities or contractual services excepted by law or rule from 735 the requirements for competitive solicitation, including, but 736 not limited to, purchases from a single source; purchases upon 737 receipt of less than two responsive bids, proposals, or replies; 738 purchases made by an agency, after receiving approval from the 739 department, from a contract procured, pursuant to s. 287.057(1), 740 or(2), or (3),by another agency; and purchases made without 741 advertisement in the manner required by s. 287.042(3)(b). 742 (13)(14)“Extension” means an increase in the time allowed 743 for the contract period due to circumstances which, without 744 fault of either party, make performance impracticable or 745 impossible, or which prevent a new contract from being executed, 746 with or without a proportional increase in the total dollar 747 amount, with any increase to be based on the method and rate 748 previously established in the contract. 749 (14)(15)“Information technology” has the meaning ascribed 750 in s. 282.0041. 751 (15)(16)“Invitation to bid” means a written or 752 electronically posted solicitation for competitive sealed bids. 753The invitation to bid is used when the agency is capable of754specifically defining the scope of work for which a contractual755service is required or when the agency is capable of756establishing precise specifications defining the actual757commodity or group of commodities required. A written758solicitation includes a solicitation that is electronically759posted.760 (16)(17)“Invitation to negotiate” means a written or 761 electronically posted solicitation for competitive sealed 762 replies to select one or more vendors with which to commence 763 negotiations for the procurement of commodities or contractual 764 services.The invitation to negotiate is used when the agency765determines that negotiations may be necessary for the state to766receive the best value. A written solicitation includes a767solicitation that is electronically posted.768 (17)(18)“Minority business enterprise” has the meaning 769 ascribed in s. 288.703. 770 (18)(19)“Office” means the Office of Supplier Diversity of 771 the Department of Management Services. 772 (19) “Outsource” means the process of contracting with a 773 vendor to provide a service as defined in s. 216.011(1)(f), in 774 whole or in part, or an activity as defined in s. 775 216.011(1)(rr), while a state agency retains the responsibility 776 and accountability for the service or activity and there is a 777 transfer of management responsibility for the delivery of 778 resources and the performance of those resources. 779 (20) “Renewal” means contracting with the same contractor 780 for an additional contract period after the initial contract 781 period, only if pursuant to contract terms specifically 782 providing for such renewal. 783 (21) “Request for information” means a written or 784 electronically posted request made by an agency to vendors for 785 information concerning commodities or contractual services. 786 Responses to these requests are not offers and may not be 787 accepted by the agency to form a binding contract. 788 (22) “Request for proposals” means a written or 789 electronically posted solicitation for competitive sealed 790 proposals.The request for proposals is used when it is not791practicable for the agency to specifically define the scope of792work for which the commodity, group of commodities, or793contractual service is required and when the agency is794requesting that a responsible vendor propose a commodity, group795of commodities, or contractual service to meet the796specifications of the solicitation document. A written797solicitation includes a solicitation that is electronically798posted.799 (23) “Request for a quote” means an oral or written request 800 for written pricing or services information from a state term 801 contract vendor for commodities or contractual services 802 available on a state term contract from that vendor. 803 (24) “Responsible vendor” means a vendor who has the 804 capability in all respects to fully perform the contract 805 requirements and the integrity and reliability that will assure 806 good faith performance. 807 (25) “Responsive bid,” “responsive proposal,” or 808 “responsive reply” means a bid, or proposal, or reply submitted 809 by a responsive and responsible vendor that conforms in all 810 material respects to the solicitation. 811 (26) “Responsive vendor” means a vendor that has submitted 812 a bid, proposal, or reply that conforms in all material respects 813 to the solicitation. 814 (27) “State term contract” means a term contract that is 815 competitively procured by the department pursuant to s. 287.057 816 and that is used by agencies and eligible users pursuant to s. 817 287.056. 818 (28) “Term contract” means an indefinite quantity contract 819 to furnish commodities or contractual services during a defined 820 period. 821 Section 15. Section 287.017, Florida Statutes, is amended 822 to read: 823 287.017 Purchasing categories, threshold amounts;824procedures for automatic adjustment by department.— 825(1)The following purchasing categories are hereby created: 826 (1)(a)CATEGORY ONE: $20,000$15,000. 827 (2)(b)CATEGORY TWO: $35,000$25,000. 828 (3)(c)CATEGORY THREE: $65,000$50,000. 829 (4)(d)CATEGORY FOUR: $195,000$150,000. 830 (5)(e)CATEGORY FIVE: $325,000$250,000. 831(2) The department shall adopt rules to adjust the amounts832provided in subsection (1) based upon the rate of change of a833nationally recognized price index. Such rules shall include, but834not be limited to, the following:835(a) Designation of the nationally recognized price index or836component thereof used to calculate the proper adjustment837authorized in this section.838(b) The procedure for rounding results.839(c) The effective date of each adjustment based upon the840previous calendar year data.841 Section 16. Subsection (1) of section 287.022, Florida 842 Statutes, is amended to read: 843 287.022 Purchase of insurance.— 844 (1) Insurance, while not a commodity, nevertheless shall be 845 purchased for all agencies by the department, except that 846 agencies may purchase title insurance for land acquisition and 847 may make emergency purchases of insurance pursuant to s. 848 287.057(3)(5)(a). The procedures for purchasing insurance, 849 whether the purchase is made by the department or by the 850 agencies, shall be the same as those set forth herein for the 851 purchase of commodities. 852 Section 17. Section 287.045, Florida Statutes, is repealed. 853 Section 18. Subsections (1) and (2) of section 287.056, 854 Florida Statutes, are amended to read: 855 287.056 Purchases from purchasing agreements and state term 856 contracts.— 857 (1) Agencies shall, and eligible users may, purchase 858 commodities and contractual services from purchasing agreements 859 established and state term contracts procured, pursuant to s. 860 287.057, by the department. Each agency agreement made under 861 this subsection shall include: 862 (a) A provision specifying a scope of work that clearly 863 establishes all tasks that the contractor is required to 864 perform. 865 (b) A provision dividing the contract into quantifiable, 866 measurable, and verifiable units of deliverables that must be 867 received and accepted in writing by the contract manager before 868 payment. Each deliverable must be directly related to the scope 869 of work and specify the required minimum level of service to be 870 performed and the criteria for evaluating the successful 871 completion of each deliverable. 872 (2) Agencies may have the option to purchase commodities or 873 contractual services from state term contracts procured, 874 pursuant to s. 287.057, by the departmentwhich contain a user875surcharge pursuant to s.287.1345as determined by the876department. 877 Section 19. Section 287.057, Florida Statutes, is amended 878 to read: 879 287.057 Procurement of commodities or contractual 880 services.— 881 (1) The competitive solicitation processes authorized in 882 this section shall be used for procurement of commodities or 883 contractual services in excess of the threshold amount provided 884 for CATEGORY TWO in s. 287.017. Any competitive solicitation 885 shall be made available simultaneously to all vendors, must 886 include the time and date for the receipt of bids, proposals, or 887 replies and of the public opening, and must include all 888 contractual terms and conditions applicable to the procurement, 889 including the criteria to be used in determining acceptability 890 and relative merit of the bid, proposal, or reply. 891 (a) Invitation to bid.—The invitation to bid shall be used 892 when the agency is capable of specifically defining the scope of 893 work for which a contractual service is required or when the 894 agency is capable of establishing precise specifications 895 defining the actual commodity or group of commodities required. 896 1. All invitations to bid must include: 897 a. A detailed description of the commodities or contractual 898 services sought; and 899 b. If the agency contemplates renewal of the contract, a 900 statement to that effect. 901 2. Bids submitted in response to an invitation to bid in 902 which the agency contemplates renewal of the contract must 903 include the price for each year for which the contract may be 904 renewed. 905 3. Evaluation of bids shall include consideration of the 906 total cost for each year of the contract, including renewal 907 years, as submitted by the vendor. 908 (b) Request for proposals.—An agency shall use a request 909 for proposals when the purposes and uses for which the 910 commodity, group of commodities, or contractual service being 911 sought can be specifically defined and the agency is capable of 912 identifying necessary deliverables. Various combinations or 913 versions of commodities or contractual services may be proposed 914 by a responsive vendor to meet the specifications of the 915 solicitation document. 916 1. Before issuing a request for proposals, the agency must 917 determine and specify in writing the reasons that procurement by 918 invitation to bid is not practicable. 919 2. All requests for proposals must include: 920 a. A statement describing the commodities or contractual 921 services sought; 922 b. The relative importance of price and other evaluation 923 criteria; and 924 c. If the agency contemplates renewal of the contract, a 925 statement to that effect. 926 3. Criteria that will be used for evaluation of proposals 927 shall include, but are not limited to: 928 a. Price, which must be specified in the proposal; 929 b. If the agency contemplates renewal of the contract, the 930 price for each year for which the contract may be renewed; and 931 c. Consideration of the total cost for each year of the 932 contract, including renewal years, as submitted by the vendor. 933 4. The contract shall be awarded by written notice to the 934 responsible and responsive vendor whose proposal is determined 935 in writing to be the most advantageous to the state, taking into 936 consideration the price and other criteria set forth in the 937 request for proposals. The contract file shall contain 938 documentation supporting the basis on which the award is made. 939 (c) Invitation to negotiate.—The invitation to negotiate is 940 a solicitation used by an agency which is intended to determine 941 the best method for achieving a specific goal or solving a 942 particular problem and identifies one or more responsive vendors 943 with which the agency may negotiate in order to receive the best 944 value. 945 1. Before issuing an invitation to negotiate, the head of 946 an agency must determine and specify in writing the reasons that 947 procurement by an invitation to bid or a request for proposal is 948 not practicable. 949 2. The invitation to negotiate must describe the questions 950 being explored, the facts being sought, and the specific goals 951 or problems that are the subject of the solicitation. 952 3. The criteria that will be used for determining the 953 acceptability of the reply and guiding the selection of the 954 vendors with which the agency will negotiate must be specified. 955 4. The agency shall evaluate replies against all evaluation 956 criteria set forth in the invitation to negotiate in order to 957 establish a competitive range of replies reasonably susceptible 958 of award. The agency may select one or more vendors within the 959 competitive range with which to commence negotiations. After 960 negotiations are conducted, the agency shall award the contract 961 to the responsible and responsive vendor that the agency 962 determines will provide the best value to the state, based on 963 the selection criteria. 964 5. The contract file for a vendor selected through an 965 invitation to negotiate must contain a short plain statement 966 that explains the basis for the selection of the vendor and that 967 sets forth the vendor’s deliverables and price, pursuant to the 968 contract, along with an explanation of how these deliverables 969 and price provide the best value to the state. 970(1)(a) Unless otherwise authorized by law, all contracts971for the purchase of commodities or contractual services in972excess of the threshold amount provided in s.287.017for973CATEGORY TWO shall be awarded by competitive sealed bidding. An974invitation to bid shall be made available simultaneously to all975vendors and must include a detailed description of the976commodities or contractual services sought; the time and date977for the receipt of bids and of the public opening; and all978contractual terms and conditions applicable to the procurement,979including the criteria to be used in determining acceptability980of the bid. If the agency contemplates renewal of the contract,981that fact must be stated in the invitation to bid. The bid shall982include the price for each year for which the contract may be983renewed. Evaluation of bids shall include consideration of the984total cost for each year as submitted by the vendor. Criteria985that were not set forth in the invitation to bid may not be used986in determining acceptability of the bid.987(b) The contract shall be awarded with reasonable988promptness by written notice to the responsible and responsive989vendor that submits the lowest responsive bid. This bid must be990determined in writing to meet the requirements and criteria set991forth in the invitation to bid.992(2)(a) If an agency determines in writing that the use of993an invitation to bid is not practicable, commodities or994contractual services shall be procured by competitive sealed995proposals. A request for proposals shall be made available996simultaneously to all vendors, and must include a statement of997the commodities or contractual services sought; the time and998date for the receipt of proposals and of the public opening; and999all contractual terms and conditions applicable to the1000procurement, including the criteria, which shall include, but1001need not be limited to, price, to be used in determining1002acceptability of the proposal. The relative importance of price1003and other evaluation criteria shall be indicated. If the agency1004contemplates renewal of the commodities or contractual services1005contract, that fact must be stated in the request for proposals.1006The proposal shall include the price for each year for which the1007contract may be renewed. Evaluation of proposals shall include1008consideration of the total cost for each year as submitted by1009the vendor.1010(b) The contract shall be awarded to the responsible and1011responsive vendor whose proposal is determined in writing to be1012the most advantageous to the state, taking into consideration1013the price and the other criteria set forth in the request for1014proposals. The contract file shall contain documentation1015supporting the basis on which the award is made.1016(3)(a) If the agency determines in writing that the use of1017an invitation to bid or a request for proposals will not result1018in the best value to the state, the agency may procure1019commodities and contractual services by competitive sealed1020replies. The agency’s written determination must specify reasons1021that explain why negotiation may be necessary in order for the1022state to achieve the best value and must be approved in writing1023by the agency head or his or her designee prior to the1024advertisement of an invitation to negotiate. An invitation to1025negotiate shall be made available to all vendors simultaneously1026and must include a statement of the commodities or contractual1027services sought; the time and date for the receipt of replies1028and of the public opening; and all terms and conditions1029applicable to the procurement, including the criteria to be used1030in determining the acceptability of the reply. If the agency1031contemplates renewal of the contract, that fact must be stated1032in the invitation to negotiate. The reply shall include the1033price for each year for which the contract may be renewed.1034(b) The agency shall evaluate and rank responsive replies1035against all evaluation criteria set forth in the invitation to1036negotiate and shall select, based on the ranking, one or more1037vendors with which to commence negotiations. After negotiations1038are conducted, the agency shall award the contract to the1039responsible and responsive vendor that the agency determines1040will provide the best value to the state. The contract file must1041contain a short plain statement that explains the basis for1042vendor selection and that sets forth the vendor’s deliverables1043and price, pursuant to the contract, with an explanation of how1044these deliverables and price provide the best value to the1045state.1046 (2)(4)Prior to the time for receipt of bids, proposals, or 1047 replies, an agency may conduct a conference or written question 1048 and answer period for purposes of assuring the vendor’s full 1049 understanding of the solicitation requirements. The vendors 1050 shall be accorded fair and equal treatment. 1051 (3)(5)When the purchase price of commodities or 1052 contractual services exceeds the threshold amount provided in s. 1053 287.017 for CATEGORY TWO, no purchase of commodities or 1054 contractual services may be made without receiving competitive 1055 sealed bids, competitive sealed proposals, or competitive sealed 1056 replies unless: 1057 (a) The agency head determines in writing that an immediate 1058 danger to the public health, safety, or welfare or other 1059 substantial loss to the state requires emergency action. After 1060 the agency head makes such a written determination, the agency 1061 may proceed with the procurement of commodities or contractual 1062 services necessitated by the immediate danger, without receiving 1063 competitive sealed bids, competitive sealed proposals, or 1064 competitive sealed replies. However, such emergency procurement 1065 shall be made by obtaining pricing information from at least two 1066 prospective vendors, which must be retained in the contract 1067 file, unless the agency determines in writing that the time 1068 required to obtain pricing information will increase the 1069 immediate danger to the public health, safety, or welfare or 1070 other substantial loss to the state. The agency shall furnish 1071 copies of all written determinations certified under oath and 1072 any other documents relating to the emergency action to the 1073 department. A copy of the statement shall be furnished to the 1074 Chief Financial Officer with the voucher authorizing payment. 1075 The individual purchase of personal clothing, shelter, or 1076 supplies which are needed on an emergency basis to avoid 1077 institutionalization or placement in a more restrictive setting 1078 is an emergency for the purposes of this paragraph, and the 1079 filing with the department of such statement is not required in 1080 such circumstances. In the case of the emergency purchase of 1081 insurance, the period of coverage of such insurance shall not 1082 exceed a period of 30 days, and all such emergency purchases 1083 shall be reported to the department. 1084 (b) The purchase is made by an agency from a state term 1085 contract procured, pursuant to this section, by the department 1086 or by an agency, after receiving approval from the department, 1087 from a contract procured, pursuant to subsection (1),subsection1088(2), or subsection (3),by another agency. 1089 (c) Commodities or contractual services available only from 1090 a single source may be excepted from the competitive 1091 solicitation requirements. When an agency believes that 1092 commodities or contractual services are available only from a 1093 single source, the agency shall electronically post a 1094 description of the commodities or contractual services sought 1095 for a period of at least 7 business days. The description must 1096 include a request that prospective vendors provide information 1097 regarding their ability to supply the commodities or contractual 1098 services described. If it is determined in writing by the 1099 agency, after reviewing any information received from 1100 prospective vendors, that the commodities or contractual 1101 services are available only from a single source, the agency 1102 shall: 1103 1. Provide notice of its intended decision to enter a 1104 single-source purchase contract in the manner specified in s. 1105 120.57(3), if the amount of the contract does not exceed the 1106 threshold amount provided in s. 287.017 for CATEGORY FOUR. 1107 2. Request approval from the department for the single 1108 source purchase, if the amount of the contract exceeds the 1109 threshold amount provided in s. 287.017 for CATEGORY FOUR. The 1110 agency shall initiate its request for approval in a form 1111 prescribed by the department, which request may be 1112 electronically transmitted. The failure of the department to 1113 approve or disapprove the agency’s request for approval within 1114 21 days after receiving such request shall constitute prior 1115 approval of the department. If the department approves the 1116 agency’s request, the agency shall provide notice of its 1117 intended decision to enter a single-source contract in the 1118 manner specified in s. 120.57(3). 1119 (d) When it is in the best interest of the state, the 1120 secretary of the department or his or her designee may authorize 1121 the Support Program to purchase insurance by negotiation, but 1122 such purchase shall be made only under conditions most favorable 1123 to the public interest. 1124 (e) Prescriptive assistive devices for the purpose of 1125 medical, developmental, or vocational rehabilitation of clients 1126 are excepted from competitive-solicitation requirements and 1127 shall be procured pursuant to an established fee schedule or by 1128 any other method which ensures the best price for the state, 1129 taking into consideration the needs of the client. Prescriptive 1130 assistive devices include, but are not limited to, prosthetics, 1131 orthotics, and wheelchairs. For purchases made pursuant to this 1132 paragraph, state agencies shall annually file with the 1133 department a description of the purchases and methods of 1134 procurement. 1135 (f) The following contractual services and commodities are 1136 not subject to the competitive-solicitation requirements of this 1137 section: 1138 1. Artistic services. For the purposes of this subsection, 1139 the term “artistic services” does not include advertising or 1140 typesetting. As used in this subparagraph, the term 1141 “advertising” means the making of a representation in any form 1142 in connection with a trade, business, craft, or profession in 1143 order to promote the supply of commodities or services by the 1144 person promoting the commodities or contractual services. 1145 2. Academic program reviews if the fee for such services 1146 does not exceed $50,000. 1147 3. Lectures by individuals. 11484. Auditing services.1149 4.5.Legal services, including attorney, paralegal, expert 1150 witness, appraisal, or mediator services. 1151 5.a.6.Health services involving examination, diagnosis, 1152 treatment, prevention, medical consultation, or administration. 1153 b. Beginning January 1, 2011, health services, including, 1154 but not limited to, substance abuse and mental health services, 1155 involving examination, diagnosis, treatment, prevention, or 1156 medical consultation, when such services are offered to eligible 1157 individuals participating in a specific program that qualifies 1158 multiple providers and uses a standard payment methodology. 1159 Reimbursement of administrative costs for providers of services 1160 purchased in this manner shall also be exempt. For purposes of 1161 this sub-subparagraph, “providers” means health professionals, 1162 health facilities, or organizations that deliver or arrange for 1163 the delivery of health services. 1164 6.7.Services provided to persons with mental or physical 1165 disabilities by not-for-profit corporations which have obtained 1166 exemptions under the provisions of s. 501(c)(3) of the United 1167 States Internal Revenue Code or when such services are governed 1168 by the provisions of Office of Management and Budget Circular A 1169 122. However, in acquiring such services, the agency shall 1170 consider the ability of the vendor, past performance, 1171 willingness to meet time requirements, and price. 1172 7.8.Medicaid services delivered to an eligible Medicaid 1173 recipient unless the agency is directed otherwise in lawby a1174health care provider who has not previously applied for and1175received a Medicaid provider number from the Agency for Health1176Care Administration.However, this exception shall be valid for1177a period not to exceed 90 days after the date of delivery to the1178Medicaid recipient and shall not be renewed by the agency.1179 8.9.Family placement services. 1180 9.10.Prevention services related to mental health, 1181 including drug abuse prevention programs, child abuse prevention 1182 programs, and shelters for runaways, operated by not-for-profit 1183 corporations. However, in acquiring such services, the agency 1184 shall consider the ability of the vendor, past performance, 1185 willingness to meet time requirements, and price. 1186 10.11.Training and education services provided to injured 1187 employees pursuant to s. 440.491(6). 1188 11.12.Contracts entered into pursuant to s. 337.11. 1189 12.13.Services or commodities provided by governmental 1190 agencies. 1191 (g) Continuing education events or programs that are 1192 offered to the general public and for which fees have been 1193 collected that pay all expenses associated with the event or 1194 program are exempt from requirements for competitive 1195 solicitation. 1196 (4) An agency must document its compliance with s. 216.3475 1197 if the purchase of contractual services exceeds the threshold 1198 amount provided in s. 287.017 for CATEGORY TWO and such services 1199 are not competitively procured. 1200 (5)(6)If less than two responsive bids, proposals, or 1201 replies for commodity or contractual services purchases are 1202 received, the department or other agency may negotiate on the 1203 best terms and conditions. The department or other agency shall 1204 document the reasons that such action is in the best interest of 1205 the state in lieu of resoliciting competitive sealed bids, 1206 proposals, or replies. Each agency shall report all such actions 1207 to the department on a quarterly basis, in a manner and form 1208 prescribed by the department. 1209 (6)(7)Upon issuance of any solicitation, an agency shall, 1210 upon request by the department, forward to the department one 1211 copy of each solicitation for all commodity and contractual 1212 services purchases in excess of the threshold amount provided in 1213 s. 287.017 for CATEGORY TWO. An agency shall also, upon request, 1214 furnish a copy of all competitive-solicitation tabulations. The 1215 Office of Supplier Diversity may also request from the agencies 1216 any information submitted to the department pursuant to this 1217 subsection. 1218 (7)(8)(a) In order to strive to meet the minority business 1219 enterprise procurement goals set forth in s. 287.09451, an 1220 agency may reserve any contract for competitive solicitation 1221 only among certified minority business enterprises. Agencies 1222 shall review all their contracts each fiscal year and shall 1223 determine which contracts may be reserved for solicitation only 1224 among certified minority business enterprises. This reservation 1225 may only be used when it is determined, by reasonable and 1226 objective means, before the solicitation that there are capable, 1227 qualified certified minority business enterprises available to 1228 submit a bid, proposal, or reply on a contract to provide for 1229 effective competition. The Office of Supplier Diversity shall 1230 consult with any agency in reaching such determination when 1231 deemed appropriate. 1232 (b) Before a contract may be reserved for solicitation only 1233 among certified minority business enterprises, the agency head 1234 must find that such a reservation is in the best interests of 1235 the state. All determinations shall be subject to s. 1236 287.09451(5). Once a decision has been made to reserve a 1237 contract, but before sealed bids, proposals, or replies are 1238 requested, the agency shall estimate what it expects the amount 1239 of the contract to be, based on the nature of the services or 1240 commodities involved and their value under prevailing market 1241 conditions. If all the sealed bids, proposals, or replies 1242 received are over this estimate, the agency may reject the bids, 1243 proposals, or replies and request new ones from certified 1244 minority business enterprises, or the agency may reject the 1245 bids, proposals, or replies and reopen the bidding to all 1246 eligible vendors. 1247 (c) All agencies shall consider the use of price 1248 preferences of up to 10 percent, weighted preference formulas, 1249 or other preferences for vendors as determined appropriate 1250 pursuant to guidelines established in accordance with s. 1251 287.09451(4) to increase the participation of minority business 1252 enterprises. 1253 (d) All agencies shall avoid any undue concentration of 1254 contracts or purchases in categories of commodities or 1255 contractual services in order to meet the minority business 1256 enterprise purchasing goals in s. 287.09451. 1257 (8)(9)An agency may reserve any contract for competitive 1258 solicitation only among vendors who agree to use certified 1259 minority business enterprises as subcontractors or subvendors. 1260 The percentage of funds, in terms of gross contract amount and 1261 revenues, which must be expended with the certified minority 1262 business enterprise subcontractors and subvendors shall be 1263 determined by the agency before such contracts may be reserved. 1264 In order to bid on a contract so reserved, the vendor shall 1265 identify those certified minority business enterprises which 1266 will be utilized as subcontractors or subvendors by sworn 1267 statement. At the time of performance or project completion, the 1268 contractor shall report by sworn statement the payments and 1269 completion of work for all certified minority business 1270 enterprises used in the contract. 1271 (9)(10)An agency shall not divide the solicitation 1272procurementof commodities or contractual services so as to 1273 avoid the requirements of subsections (1)-(3)(1) through (5). 1274 (10)(11)A contract for commodities or contractual services 1275 may be awarded without competition if state or federal law 1276 prescribes with whom the agency must contract or if the rate of 1277 payment is established during the appropriations process. 1278 (11)(12)If two equal responses to a solicitation or a 1279 request for quote are received and one response is from a 1280 certified minority business enterprise, the agency shall enter 1281 into a contract with the certified minority business enterprise. 1282 (12)(13)Extension of a contract for contractual services 1283 shall be in writing for a period not to exceed 6 months and 1284 shall be subject to the same terms and conditions set forth in 1285 the initial contract. There shall be only one extension of a 1286 contract unless the failure to meet the criteria set forth in 1287 the contract for completion of the contract is due to events 1288 beyond the control of the contractor. 1289 (13)(14)(a) Contracts for commodities or contractual 1290 services may be renewed for a period that may not exceed 3 years 1291 or the term of the original contract, whichever period is 1292 longer. Renewal of a contract for commodities or contractual 1293 services shall be in writing and shall be subject to the same 1294 terms and conditions set forth in the initial contract. If the 1295 commodity or contractual service is purchased as a result of the 1296 solicitation of bids, proposals, or replies, the price of the 1297 commodity or contractual service to be renewed shall be 1298 specified in the bid, proposal, or reply. A renewal contract may 1299 not include any compensation for costs associated with the 1300 renewal. Renewals shall be contingent upon satisfactory 1301 performance evaluations by the agency and subject to the 1302 availability of funds. Exceptional purchase contracts pursuant 1303 to paragraphs (3)(5)(a) and (c) may not be renewed. With the 1304 exception of subsection (12)(13), if a contract amendment 1305 results in a longer contract term or increased payments, a state 1306 agency may not renew or amend a contract for the outsourcing of 1307 a service or activity that has an original term value exceeding 1308 the sum of $10 million before submitting a written report 1309 concerning contract performance to the Governor, the President 1310 of the Senate, and the Speaker of the House of Representatives 1311 at least 90 days before execution of the renewal or amendment. 1312 (b) The Department of Health shall enter into an agreement, 1313 not to exceed 20 years, with a private contractor to finance, 1314 design, and construct a hospital, of no more than 50 beds, for 1315 the treatment of patients with active tuberculosis and to 1316 operate all aspects of daily operations within the facility. The 1317 contractor may sponsor the issuance of tax-exempt certificates 1318 of participation or other securities to finance the project, and 1319 the state may enter into a lease-purchase agreement for the 1320 facility. The department shall begin the implementation of this 1321 initiative by July 1, 2008. This paragraph expires July 1, 2009. 1322 (14)(15)For each contractual services contract, the agency 1323 shall designate an employee to function as contract manager who 1324 shall be responsible for enforcing performance of the contract 1325 terms and conditions and serve as a liaison with the contractor. 1326 Each contract manager who is responsible for contracts in excess 1327 of the threshold amount for CATEGORY TWO must attend training 1328 conducted by the Chief Financial Officer for accountability in 1329 contracts and grant management. The Chief Financial Officer 1330agencyshall establish and disseminate uniform procedures 1331 pursuant to s. 17.03(3) to ensure that contractual services have 1332 been rendered in accordance with the contract terms before the 1333 agency processesprior to processingthe invoice for payment. 1334 The procedures shall include, but need not be limited to, 1335 procedures for monitoring and documenting contractor 1336 performance, reviewing and documenting all deliverables for 1337 which payment is requested by vendors, and providing written 1338 certification by contract managers of the agency’s receipt of 1339 goods and services. 1340 (15)(16)Each agency shall designate at least one employee 1341 who shall serve as a contract administrator responsible for 1342 maintaining a contract file and financial information on all 1343 contractual services contracts and who shall serve as a liaison 1344 with the contract managers and the department. 1345 (16)(17)For a contract in excess of the threshold amount 1346 provided in s. 287.017 for CATEGORY FOUR, the agency head shall 1347 appoint: 1348 (a) At least three persons to evaluate proposals and 1349 replies who collectively have experience and knowledge in the 1350 program areas and service requirements for which commodities or 1351 contractual services are sought. 1352 (b) At least three persons to conduct negotiations during a 1353 competitive sealed reply procurement who collectively have 1354 experience and knowledge in negotiating contracts, contract 1355 procurement, and the program areas and service requirements for 1356 which commodities or contractual services are sought. When the 1357 value of a contract is in excess of $1 million in any fiscal 1358 year, at least one of the persons conducting negotiations must 1359 be certified as a contract negotiator based upon rules adopted 1360 by the Department of Management Services in order to ensure that 1361 certified contract negotiators are knowledgeable about effective 1362 negotiation strategies, capable of successfully implementing 1363 those strategies, and involved appropriately in the procurement 1364 process. At a minimum, the rules must address the qualifications 1365 required for certification, the method of certification, and the 1366 procedure for involving the certified negotiator. If the value 1367 of a contract is in excess of $10 million in any fiscal year, at 1368 least one of the persons conducting negotiations must be a 1369 Project Management Professional, as certified by the Project 1370 Management Institute. 1371 (17)(a)1. Each agency must avoid, neutralize, or mitigate 1372 significant potential organizational conflicts of interest 1373 before a contract is awarded. If the agency elects to mitigate 1374 the significant potential organizational conflict or conflicts 1375 of interest, an adequate mitigation plan, including 1376 organizational, physical, and electronic barriers, shall be 1377 developed. 1378 2. If a conflict cannot be avoided or mitigated, an agency 1379 may proceed with the contract award if the agency head certifies 1380 that the award is in the best interests of the state. The agency 1381 head must specify in writing the basis for the certification. 1382 (b)1. An agency head may not proceed with a contract award 1383 under subparagraph (a)2. if a conflict of interest is based upon 1384 the vendor gaining an unfair competitive advantage. 1385 2. An unfair competitive advantage exists when the vendor 1386 competing for the award of a contract obtained: 1387 a. Access to information that is not available to the 1388 public and would assist the vendor in obtaining the contract; or 1389 b. Source selection information that is relevant to the 1390 contract but is not available to all competitors and that would 1391 assist the vendor in obtaining the contract. 1392 (c)(18)A person who receives a contract that has not been 1393 procured pursuant to subsections (1)-(3)(1) through (5)to 1394 perform a feasibility study of the potential implementation of a 1395 subsequent contract, who participates in the drafting of a 1396 solicitation or who develops a program for future 1397 implementation, is not eligible to contract with the agency for 1398 any other contracts dealing with that specific subject matter, 1399 and any firm in which such person has any interest is not 1400 eligible to receive such contract. However, this prohibition 1401 does not prevent a vendor who responds to a request for 1402 information from being eligible to contract with an agency. 1403 (18)(19)Each agency shall establish a review and approval 1404 process for all contractual services contracts costing more than 1405 the threshold amount provided for in s. 287.017 for CATEGORY 1406 THREE which shall include, but not be limited to, program, 1407 financial, and legal review and approval. Such reviews and 1408 approvals shall be obtained before the contract is executed. 1409 (19)(20)In any procurement that costs more than the 1410 threshold amount provided for in s. 287.017 for CATEGORY TWO and 1411 is accomplished without competition, the individuals taking part 1412 in the development or selection of criteria for evaluation, the 1413 evaluation process, and the award process shall attest in 1414 writing that they are independent of, and have no conflict of 1415 interest in, the entities evaluated and selected. 1416 (20)(21)Nothing in this section shall affect the validity 1417 or effect of any contract in existence on October 1, 1990. 1418 (21)(22)An agency may contract for services with any 1419 independent, nonprofit college or university which is located 1420 within the state and is accredited by the Southern Association 1421 of Colleges and Schools, on the same basis as it may contract 1422 with any state university and college. 1423 (22)(23)The department, in consultation with the Agency 1424 for Enterprise Information Technology and the Comptroller, shall 1425 develop a program for online procurement of commodities and 1426 contractual services. To enable the state to promote open 1427 competition and to leverage its buying power, agencies shall 1428 participate in the online procurement program, and eligible 1429 users may participate in the program. Only vendors prequalified 1430 as meeting mandatory requirements and qualifications criteria 1431 may participate in online procurement. 1432 (a) The department, in consultation with the agency, may 1433 contract for equipment and services necessary to develop and 1434 implement online procurement. 1435 (b) The department, in consultation with the agency, shall 1436 adopt rules, pursuant to ss. 120.536(1) and 120.54, to 1437 administer the program for online procurement. The rules shall 1438 include, but not be limited to: 1439 1. Determining the requirements and qualification criteria 1440 for prequalifying vendors. 1441 2. Establishing the procedures for conducting online 1442 procurement. 1443 3. Establishing the criteria for eligible commodities and 1444 contractual services. 1445 4. Establishing the procedures for providing access to 1446 online procurement. 1447 5. Determining the criteria warranting any exceptions to 1448 participation in the online procurement program. 1449 (c) The department may impose and shall collect all fees 1450 for the use of the online procurement systems. 1451 1. The fees may be imposed on an individual transaction 1452 basis or as a fixed percentage of the cost savings generated. At 1453 a minimum, the fees must be set in an amount sufficient to cover 1454 the projected costs of the services, including administrative 1455 and project service costs in accordance with the policies of the 1456 department. 1457 2. If the department contracts with a provider for online 1458 procurement, the department, pursuant to appropriation, shall 1459 compensate the provider from the fees after the department has 1460 satisfied all ongoing costs. The provider shall report 1461 transaction data to the department each month so that the 1462 department may determine the amount due and payable to the 1463 department from each vendor. 1464 3. All fees that are due and payable to the state on a 1465 transactional basis or as a fixed percentage of the cost savings 1466 generated are subject to s. 215.31 and must be remitted within 1467 40 days after receipt of payment for which the fees are due. For 1468 fees that are not remitted within 40 days, the vendor shall pay 1469 interest at the rate established under s. 55.03(1) on the unpaid 1470 balance from the expiration of the 40-day period until the fees 1471 are remitted. 1472 4. All fees and surcharges collected under this paragraph 1473 shall be deposited in the Operating Trust Fund as provided by 1474 law. 1475 (23)(24)Each solicitation for the procurement of 1476 commodities or contractual services shall include the following 1477 provision: “Respondents to this solicitation or persons acting 1478 on their behalf may not contact, between the release of the 1479 solicitation and the end of the 72-hour period following the 1480 agency posting the notice of intended award, excluding 1481 Saturdays, Sundays, and state holidays, any employee or officer 1482 of the executive or legislative branch concerning any aspect of 1483 this solicitation, except in writing to the procurement officer 1484 or as provided in the solicitation documents. Violation of this 1485 provision may be grounds for rejecting a response.” 1486 Section 20. Section 287.0571, Florida Statutes, is amended 1487 to read: 1488 287.0571 Business case to outsource; applicabilityof ss.1489287.0571-287.0574.— 1490(1) Sections287.0571-287.0574may be cited as the “Florida1491Efficient Government Act.”1492 (1)(2)It is the intent of the Legislature that each state 1493 agency focus on its core mission and deliver services 1494 effectively and efficiently by leveraging resources and 1495 contracting with private sector vendors whenever vendors can 1496 more effectively and efficiently provide services and reduce the 1497 cost of government. 1498 (2)(3)It is further the intent of the Legislature that 1499 business cases to outsource be evaluated for feasibility, cost 1500 effectiveness, and efficiency before a state agency proceeds 1501 with any outsourcing of services. 1502 (3)(4)This section doesSections287.0571-287.0574donot 1503 apply to: 1504 (a) A procurement of commodities and contractual services 1505 listed in s. 287.057(3)(5)(e), (f), and (g) and (21)(22). 1506 (b) A procurement of contractual services subject to s. 1507 287.055. 1508 (c) A contract in support of the planning, development, 1509 implementation, operation, or maintenance of the road, bridge, 1510 and public transportation construction program of the Department 1511 of Transportation. 1512 (d) A procurement of commodities or contractual services 1513 which does not constitute an outsourcing of services or 1514 activities. 1515 (4) An agency shall complete a business case for any 1516 outsourcing project that has an expected cost in excess of $10 1517 million within a single fiscal year. The business case shall be 1518 submitted pursuant to s. 216.023. The business case shall be 1519 available as part of the solicitation but is not subject to 1520 challenge and shall include the following: 1521 (a) A detailed description of the service or activity for 1522 which the outsourcing is proposed. 1523 (b) A description and analysis of the state agency’s 1524 current performance, based on existing performance metrics if 1525 the state agency is currently performing the service or 1526 activity. 1527 (c) The goals desired to be achieved through the proposed 1528 outsourcing and the rationale for such goals. 1529 (d) A citation to the existing or proposed legal authority 1530 for outsourcing the service or activity. 1531 (e) A description of available options for achieving the 1532 goals. If state employees are currently performing the service 1533 or activity, at least one option involving maintaining state 1534 provision of the service or activity shall be included. 1535 (f) An analysis of the advantages and disadvantages of each 1536 option, including, at a minimum, potential performance 1537 improvements and risks. 1538 (g) A description of the current market for the contractual 1539 services that are under consideration for outsourcing. 1540 (h) A cost-benefit analysis documenting the direct and 1541 indirect specific baseline costs, savings, and qualitative and 1542 quantitative benefits involved in or resulting from the 1543 implementation of the recommended option or options. Such 1544 analysis must specify the schedule that, at a minimum, must be 1545 adhered to in order to achieve the estimated savings. All 1546 elements of cost must be clearly identified in the cost-benefit 1547 analysis, described in the business case, and supported by 1548 applicable records and reports. The state agency head shall 1549 attest that, based on the data and information underlying the 1550 business case, to the best of his or her knowledge, all 1551 projected costs, savings, and benefits are valid and achievable. 1552 As used in this section, the term “cost” means the reasonable, 1553 relevant, and verifiable cost, which may include, but is not 1554 limited to, elements such as personnel, materials and supplies, 1555 services, equipment, capital depreciation, rent, maintenance and 1556 repairs, utilities, insurance, personnel travel, overhead, and 1557 interim and final payments. The appropriate elements shall 1558 depend on the nature of the specific initiative. As used in this 1559 paragraph, the term “savings” means the difference between the 1560 direct and indirect actual annual baseline costs compared to the 1561 projected annual cost for the contracted functions or 1562 responsibilities in any succeeding state fiscal year during the 1563 term of the contract. 1564 (i) A description of differences among current state agency 1565 policies and processes and, as appropriate, a discussion of 1566 options for or a plan to standardize, consolidate, or revise 1567 current policies and processes, if any, to reduce the 1568 customization of any proposed solution that would otherwise be 1569 required. 1570 (j) A description of the specific performance standards 1571 that must, at a minimum, be met to ensure adequate performance. 1572 (k) The projected timeframe for key events from the 1573 beginning of the procurement process through the expiration of a 1574 contract. 1575 (l) A plan to ensure compliance with the public-records 1576 law. 1577 (m) A specific and feasible contingency plan addressing 1578 contractor nonperformance and a description of the tasks 1579 involved in and costs required for its implementation. 1580 (n) A state agency’s transition plan for addressing changes 1581 in the number of agency personnel, affected business processes, 1582 employee transition issues, and communication with affected 1583 stakeholders, such as agency clients and the public. The 1584 transition plan must contain a reemployment and retraining 1585 assistance plan for employees who are not retained by the state 1586 agency or employed by the contractor. 1587 (o) A plan for ensuring access by persons with disabilities 1588 in compliance with applicable state and federal law. 1589 (5) In addition to the contract requirements provided in s. 1590 287.058, each contract for a proposed outsourcing, pursuant to 1591 this section, must include, but need not be limited to, the 1592 following contractual provisions: 1593 (a) A scope-of-work provision that clearly specifies each 1594 service or deliverable to be provided, including a description 1595 of each deliverable or activity that is quantifiable, 1596 measurable, and verifiable. This provision must include a clause 1597 that states if a particular service or deliverable is 1598 inadvertently omitted or not clearly specified but determined to 1599 be operationally necessary and verified to have been performed 1600 by the agency within the 12 months before the execution of the 1601 contract, such service or deliverable will be provided by the 1602 contractor through the identified contract-amendment process. 1603 (b) A service-level-agreement provision describing all 1604 services to be provided under the terms of the agreement, the 1605 state agency’s service requirements and performance objectives, 1606 specific responsibilities of the state agency and the 1607 contractor, and the process for amending any portion of the 1608 service-level agreement. Each service-level agreement must 1609 contain an exclusivity clause that allows the state agency to 1610 retain the right to perform the service or activity, directly or 1611 with another contractor, if service levels are not being 1612 achieved. 1613 (c) A provision that identifies all associated costs, 1614 specific payment terms, and payment schedules, including 1615 provisions governing incentives and financial disincentives and 1616 criteria governing payment. 1617 (d) A provision that identifies a clear and specific 1618 transition plan that will be implemented in order to complete 1619 all required activities needed to transfer the service or 1620 activity from the state agency to the contractor and operate the 1621 service or activity successfully. 1622 (e) A performance-standards provision that identifies all 1623 required performance standards, which must include, at a 1624 minimum: 1625 1. Detailed and measurable acceptance criteria for each 1626 deliverable and service to be provided to the state agency under 1627 the terms of the contract which document the required 1628 performance level. 1629 2. A method for monitoring and reporting progress in 1630 achieving specified performance standards and levels. 1631 3. The sanctions or disincentives that shall be imposed for 1632 nonperformance by the contractor or state agency. 1633 (f) A provision that requires the contractor and its 1634 subcontractors to maintain adequate accounting records that 1635 comply with all applicable federal and state laws and generally 1636 accepted accounting principles. 1637 (g) A provision that authorizes the state agency to have 1638 access to and to audit all records related to the contract and 1639 subcontracts, or any responsibilities or functions under the 1640 contract and subcontracts, for purposes of legislative 1641 oversight, and a requirement for audits by a service 1642 organization in accordance with professional auditing standards, 1643 if appropriate. 1644 (h) A provision that requires the contractor to interview 1645 and consider for employment with the contractor each displaced 1646 state employee who is interested in such employment. 1647 (i) A contingency-plan provision that describes the 1648 mechanism for continuing the operation of the service or 1649 activity, including transferring the service or activity back to 1650 the state agency or successor contractor if the contractor fails 1651 to perform and comply with the performance standards and levels 1652 of the contract and the contract is terminated. 1653 (j) A provision that requires the contractor and its 1654 subcontractors to comply with public-records laws, specifically 1655 to: 1656 1. Keep and maintain the public records that ordinarily and 1657 necessarily would be required by the state agency in order to 1658 perform the service or activity. 1659 2. Provide the public with access to such public records on 1660 the same terms and conditions that the state agency would 1661 provide the records and at a cost that does not exceed that 1662 provided in chapter 119 or as otherwise provided by law. 1663 3. Ensure that records that are exempt or records that are 1664 confidential and exempt are not disclosed except as authorized 1665 by law. 1666 4. Meet all requirements for retaining records and transfer 1667 to the state agency, at no cost, all public records in 1668 possession of the contractor upon termination of the contract 1669 and destroy any duplicate public records that are exempt or 1670 confidential and exempt. All records stored electronically must 1671 be provided to the state agency in a format that is compatible 1672 with the information technology systems of the state agency. 1673 (k)1. A provision that provides that any copyrightable or 1674 patentable intellectual property produced as a result of work or 1675 services performed under the contract, or in any way connected 1676 with the contract, shall be the property of the state, with only 1677 such exceptions as are clearly expressed and reasonably valued 1678 in the contract. 1679 2. A provision that provides that, if the primary purpose 1680 of the contract is the creation of intellectual property, the 1681 state shall retain an unencumbered right to use such property. 1682 (l) If applicable, a provision that allows the agency to 1683 purchase from the contractor, at its depreciated value, assets 1684 used by the contractor in the performance of the contract. If 1685 assets have not depreciated, the agency shall retain the right 1686 to negotiate to purchase at an agreed-upon cost. 1687 Section 21. Section 287.05721, Florida Statutes, is 1688 repealed. 1689 Section 22. Section 287.0573, Florida Statutes, is 1690 repealed. 1691 Section 23. Section 287.0574, Florida Statutes, is 1692 repealed. 1693 Section 24. Section 287.0575, Florida Statutes, is created 1694 to read: 1695 287.0575 Coordination of contracted services.—The following 1696 duties and responsibilities of the Department of Children and 1697 Family Services, the Agency for Persons with Disabilities, the 1698 Department of Health, the Department of Elderly Affairs, and the 1699 Department of Veterans’ Affairs, and service providers under 1700 contract to those agencies, are established: 1701 (1) No later than August 1, 2010, or upon entering into any 1702 new contract for health and human services, state agencies 1703 contracting for health and human services must notify their 1704 contract service providers of the requirements of this section. 1705 (2) No later than October 1, 2010, contract service 1706 providers that have more than one contract with one or more 1707 state agencies to provide health and human services must provide 1708 to each of their contract managers a comprehensive list of their 1709 health and human services contracts. The list must include the 1710 following information: 1711 (a) The name of each contracting state agency and the 1712 applicable office or program issuing the contract. 1713 (b) The identifying name and number of each contract. 1714 (c) The starting and ending date of each contract. 1715 (d) The amount of each contract. 1716 (e) A brief description of the purpose of the contract and 1717 the types of services provided under each contract. 1718 (f) The name and contact information of the contract 1719 manager. 1720 (3) With respect to contracts entered into on or after 1721 August 1, 2010, effective November 1, 2010, or 30 days after 1722 receiving the list provided under subsection (2), a single lead 1723 administrative coordinator for each contract service provider 1724 shall be designated as provided in this subsection from among 1725 the agencies having multiple contracts as provided in subsection 1726 (2). On or before the date such responsibilities are assumed, 1727 the designated lead administrative coordinator shall provide 1728 notice of his or her designation to the contract service 1729 provider and to the agency contract managers for each affected 1730 contract. Unless another lead administrative coordinator is 1731 selected by agreement of all affected contract managers, the 1732 designated lead administrative coordinator shall be the agency 1733 contract manager of the contract with the highest dollar value 1734 over the term of the contract, provided the term of the contract 1735 remaining at the time of designation exceeds 24 months. If the 1736 remaining terms of all contracts are 24 months or less, the 1737 designated lead administrative coordinator shall be the contract 1738 manager of the contract with the latest end date. A designated 1739 lead administrative coordinator, or his or her successor as 1740 contract manager, shall continue as lead administrative 1741 coordinator until another lead administrative coordinator is 1742 selected by agreement of all affected contract managers or until 1743 the end date of the contract for which the designated lead 1744 administrative coordinator serves as contract manager, at which 1745 time a new lead administrative coordinator shall be designated 1746 pursuant to this subsection, if applicable. 1747 (4) The designated lead administrative coordinator shall be 1748 responsible for: 1749 (a) Establishing a coordinated schedule for administrative 1750 and fiscal monitoring; 1751 (b) Consulting with other case managers to establish a 1752 single unified set of required administrative and fiscal 1753 documentation; 1754 (c) Consulting with other case managers to establish a 1755 single unified schedule for periodic updates of administrative 1756 and fiscal information; and 1757 (d) Maintaining an accessible electronic file of up-to-date 1758 administrative and fiscal documents, including, but not limited 1759 to, corporate documents, membership records, audits, and 1760 monitoring reports. 1761 (5) Contract managers for agency contracts other than the 1762 designated lead administrative coordinator must conduct 1763 administrative and fiscal monitoring activities in accordance 1764 with the coordinated schedule and must obtain any necessary 1765 administrative and fiscal documents from the designated lead 1766 administrative coordinator’s electronic file. 1767 (6) This section does not apply to routine program 1768 performance monitoring or prohibit a contracting agency from 1769 directly and immediately contacting the service provider when 1770 the health or safety of clients is at risk. 1771 (7) Each agency contracting for health and human services 1772 shall annually evaluate the performance of its designated lead 1773 administrative coordinator in establishing coordinated systems, 1774 improving efficiency, and reducing redundant monitoring 1775 activities for state agencies and their service providers. The 1776 annual report shall be submitted to the Governor, the President 1777 of the Senate, and the Speaker of the House of Representatives. 1778 Section 25. Subsections (1) and (5) of section 287.058, 1779 Florida Statutes, are amended to read: 1780 287.058 Contract document.— 1781 (1) Every procurement of contractual services in excess of 1782 the threshold amount provided in s. 287.017 for CATEGORY TWO, 1783 except for the providing of health and mental health services or 1784 drugs in the examination, diagnosis, or treatment of sick or 1785 injured state employees or the providing of other benefits as 1786 required by the provisions of chapter 440, shall be evidenced by 1787 a written agreement embodying all provisions and conditions of 1788 the procurement of such services, whichprovisions and1789conditionsshall, where applicable, include, butshallnot be 1790 limited to, a provision: 1791 (a)A provisionThat bills for fees or other compensation 1792 for services or expenses be submitted in detail sufficient for a 1793 proper preaudit and postaudit thereof. 1794 (b)A provisionThat bills for any travel expenses be 1795 submitted in accordance with s. 112.061. A state agency may 1796 establish rates lower than the maximum provided in s. 112.061. 1797 (c)A provisionAllowing unilateral cancellation by the 1798 agency for refusal by the contractor to allow public access to 1799 all documents, papers, letters, or other material made or 1800 received by the contractor in conjunction with the contract, 1801 unless the records are exempt from s. 24(a) of Art. I of the 1802 State Constitution and s. 119.07(1). 1803 (d) Specifying a scope of work that clearly establishes all 1804 tasks the contractor is required to perform. 1805 (e)(d)A provisionDividing the contract into quantifiable, 1806 measurable, and verifiable units of deliverables, which shall1807include, but not be limited to, reports, findings, and drafts,1808 that must be received and accepted in writing by the contract 1809 manager beforeprior topayment. Each deliverable must be 1810 directly related to the scope of work and specify the required 1811 minimum level of service to be performed and criteria for 1812 evaluating the successful completion of each deliverable. 1813 (f)(e)A provisionSpecifying the criteria and the final 1814 date by which such criteria must be met for completion of the 1815 contract. 1816 (g)(f)A provisionSpecifying that the contract may be 1817 renewed for a period that may not exceed 3 years or the term of 1818 the original contract, whichever period is longer, specifying 1819 the renewal price for the contractual service as set forth in 1820 the bid, proposal, or reply, specifying that costs for the 1821 renewal may not be charged, and specifying that renewals shall 1822 be contingent upon satisfactory performance evaluations by the 1823 agency and subject to the availability of funds. Exceptional 1824 purchase contracts pursuant to s. 287.057(3)(5)(a) and (c) may 1825 not be renewed. 1826 (h) Specifying the financial consequences that the agency 1827 must apply if the contractor fails to perform in accordance with 1828 the contract. 1829 (i) Addressing the property rights of any intellectual 1830 property related to the contract and the specific rights of the 1831 state regarding the intellectual property if the contractor 1832 fails to provide the services or is no longer providing 1833 services. 1834 1835 In lieu of a written agreement, the department may authorize the 1836 use of a purchase order for classes of contractual services, if 1837 the provisions of paragraphs (a)-(i)(a)-(f)are included in the 1838 purchase order or solicitation. The purchase order must include, 1839 but need not be limited to, an adequate description of the 1840 services, the contract period, and the method of payment. In 1841 lieu of printing the provisions of paragraphs (a)-(i)(a)-(f)in 1842 the contract document or purchase order, agencies may 1843 incorporate the requirements of paragraphs (a)-(i)(a)-(f)by 1844 reference. 1845 (5) Unless otherwise provided in the General Appropriations 1846 Act or the substantive bill implementing the General 1847 Appropriations Act, the Chief Financial Officer may waive the 1848 requirements of this section for services which are included in 1849 s. 287.057(3)(5)(f). 1850 Section 26. Subsection (14) of section 287.059, Florida 1851 Statutes, is amended to read: 1852 287.059 Private attorney services.— 1853 (14) The office of the Attorney General is authorized to 1854 competitively bid and contract with one or more court reporting 1855 services, on a circuitwide basis, on behalf of all state 1856 agencies in accordance with s. 287.057(2). The office of the 1857 Attorney General shall develop requests for proposal for court 1858 reporter services in consultation with the Florida Court 1859 Reporters Association. All agencies shall utilize the contracts 1860 for court reporting services entered into by the office of the 1861 Attorney General where in force, unless otherwise ordered by a 1862 court or unless an agency has a contract for court reporting 1863 services executed prior to May 5, 1993. 1864 Section 27. Section 287.1345, Florida Statutes, is 1865 repealed. 1866 Section 28. Paragraph (b) of subsection (4) of section 1867 295.187, Florida Statutes, is amended to read: 1868 295.187 Florida Service-Disabled Veteran Business 1869 Enterprise Opportunity Act.— 1870 (4) VENDOR PREFERENCE.— 1871 (b) Notwithstanding s. 287.057(11)(12), if a service 1872 disabled veteran business enterprise entitled to the vendor 1873 preference under this section and one or more businesses 1874 entitled to this preference or another vendor preference 1875 provided by law submit bids, proposals, or replies for 1876 procurement of commodities or contractual services that are 1877 equal with respect to all relevant considerations, including 1878 price, quality, and service, then the state agency shall award 1879 the procurement or contract to the business having the smallest 1880 net worth. 1881 Section 29. Subsection (3) of section 394.457, Florida 1882 Statutes, is amended to read: 1883 394.457 Operation and administration.— 1884 (3) POWER TO CONTRACT.—The department may contract to 1885 provide, and be provided with, services and facilities in order 1886 to carry out its responsibilities under this part with the 1887 following agencies: public and private hospitals; receiving and 1888 treatment facilities; clinics; laboratories; departments, 1889 divisions, and other units of state government; the state 1890 colleges and universities; the community colleges; private 1891 colleges and universities; counties, municipalities, and any 1892 other governmental unit, including facilities of the United 1893 States Government; and any other public or private entity which 1894 provides or needs facilities or services. Baker Act funds for 1895 community inpatient, crisis stabilization, short-term 1896 residential treatment, and screening services must be allocated 1897 to each county pursuant to the department’s funding allocation 1898 methodology. Notwithstanding the provisions of s. 1899 287.057(3)(5)(f), contracts for community-based Baker Act 1900 services for inpatient, crisis stabilization, short-term 1901 residential treatment, and screening provided under this part, 1902 other than those with other units of government, to be provided 1903 for the department must be awarded using competitive sealed bids 1904 when the county commission of the county receiving the services 1905 makes a request to the department’s district office by January 1906 15 of the contracting year. The district shall not enter into a 1907 competitively bid contract under this provision if such action 1908 will result in increases of state or local expenditures for 1909 Baker Act services within the district. Contracts for these 1910 Baker Act services using competitive sealed bids will be 1911 effective for 3 years. The department shall adopt rules 1912 establishing minimum standards for such contracted services and 1913 facilities and shall make periodic audits and inspections to 1914 assure that the contracted services are provided and meet the 1915 standards of the department. 1916 Section 30. Paragraph (a) of subsection (1) of section 1917 394.47865, Florida Statutes, is amended to read: 1918 394.47865 South Florida State Hospital; privatization.— 1919 (1) The Department of Children and Family Services shall, 1920 through a request for proposals, privatize South Florida State 1921 Hospital. The department shall plan to begin implementation of 1922 this privatization initiative by July 1, 1998. 1923 (a) Notwithstanding s. 287.057(13)(14), the department may 1924 enter into agreements, not to exceed 20 years, with a private 1925 provider, a coalition of providers, or another agency to 1926 finance, design, and construct a treatment facility having up to 1927 350 beds and to operate all aspects of daily operations within 1928 the facility. The department may subcontract any or all 1929 components of this procurement to a statutorily established 1930 state governmental entity that has successfully contracted with 1931 private companies for designing, financing, acquiring, leasing, 1932 constructing, and operating major privatized state facilities. 1933 Section 31. Paragraph (c) of subsection (5) and subsection 1934 (8) of section 402.40, Florida Statutes, are amended to read: 1935 402.40 Child welfare training.— 1936 (5) CORE COMPETENCIES.— 1937 (c) Notwithstanding s. 287.057(3)(5)and (21)(22), the 1938 department shall competitively solicit and contract for the 1939 development, validation, and periodic evaluation of the training 1940 curricula for the established single integrated curriculum. No 1941 more than one training curriculum may be developed for each 1942 specific subset of the core competencies. 1943 (8) ESTABLISHMENT OF TRAINING ACADEMIES.—The department 1944 shall establish child welfare training academies as part of a 1945 comprehensive system of child welfare training. In establishing 1946 a program of training, the department may contract for the 1947 operation of one or more training academies to perform one or 1948 more of the following: to offer one or more of the training 1949 curricula developed under subsection (5); to administer the 1950 certification process; to develop, validate, and periodically 1951 evaluate additional training curricula determined to be 1952 necessary, including advanced training that is specific to a 1953 region or contractor, or that meets a particular training need; 1954 or to offer the additional training curricula. The number, 1955 location, and timeframe for establishment of training academies 1956 shall be approved by the Secretary of Children and Family 1957 Services who shall ensure that the goals for the core 1958 competencies and the single integrated curriculum, the 1959 certification process, the trainer qualifications, and the 1960 additional training needs are addressed. Notwithstanding s. 1961 287.057(3)(5)and (21)(22), the department shall competitively 1962 solicit all training academy contracts. 1963 Section 32. Paragraphs (a) and (b) of subsection (2) and 1964 subsection (3) of section 402.7305, Florida Statutes, are 1965 amended to read: 1966 402.7305 Department of Children and Family Services; 1967 procurement of contractual services; contract management.— 1968 (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.— 1969 (a) Notwithstanding s. 287.057(3)(f)12.s.1970287.057(5)(f)13., whenever the department intends to contract 1971 with a public postsecondary institution to provide a service, 1972 the department must allow all public postsecondary institutions 1973 in this state that are accredited by the Southern Association of 1974 Colleges and Schools to bid on the contract. Thereafter, 1975 notwithstanding any other provision to the contrary, if a public 1976 postsecondary institution intends to subcontract for any service 1977 awarded in the contract, the subcontracted service must be 1978 procured by competitive procedures. 1979 (b) When it is in the best interest of a defined segment of 1980 its consumer population, the department may competitively 1981 procure and contract for systems of treatment or service that 1982 involve multiple providers, rather than procuring and 1983 contracting for treatment or services separately from each 1984 participating provider. The department must ensure that all 1985 providers that participate in the treatment or service system 1986 meet all applicable statutory, regulatory, service quality, and 1987 cost control requirements. If other governmental entities or 1988 units of special purpose government contribute matching funds to 1989 the support of a given system of treatment or service, the 1990 department shall formally request information from those funding 1991 entities in the procurement process and may take the information 1992 received into account in the selection process. If a local 1993 government contributes matching funds to support the system of 1994 treatment or contracted service and if the match constitutes at 1995 least 25 percent of the value of the contract, the department 1996 shall afford the governmental match contributor an opportunity 1997 to name an employee as one of the persons required by s. 1998 287.057(16)(17)to evaluate or negotiate certain contracts, 1999 unless the department sets forth in writing the reason why the 2000 inclusion would be contrary to the best interest of the state. 2001 Any employee so named by the governmental match contributor 2002 shall qualify as one of the persons required by s. 2003 287.057(16)(17). A governmental entity or unit of special 2004 purpose government may not name an employee as one of the 2005 persons required by s. 287.057(16)(17)if it, or any of its 2006 political subdivisions, executive agencies, or special 2007 districts, intends to compete for the contract to be awarded. 2008 The governmental funding entity or contributor of matching funds 2009 must comply with all procurement procedures set forth in s. 2010 287.057 when appropriate and required. 2011 (3) CONTRACT MANAGEMENT REQUIREMENTS AND PROCESS.—The 2012 Department of Children and Family Services shall review the time 2013 period for which the department executes contracts and shall 2014 execute multiyear contracts to make the most efficient use of 2015 the resources devoted to contract processing and execution. 2016 Whenever the department chooses not to use a multiyear contract, 2017 a justification for that decision must be contained in the 2018 contract. Notwithstanding s. 287.057(14)(15), the department is 2019 responsible for establishing a contract management process that 2020 requires a member of the department’s Senior Management or 2021 Selected Exempt Service to assign in writing the responsibility 2022 of a contract to a contract manager. The department shall 2023 maintain a set of procedures describing its contract management 2024 process which must minimally include the following requirements: 2025 (a) The contract manager shall maintain the official 2026 contract file throughout the duration of the contract and for a 2027 period not less than 6 years after the termination of the 2028 contract. 2029 (b) The contract manager shall review all invoices for 2030 compliance with the criteria and payment schedule provided for 2031 in the contract and shall approve payment of all invoices before 2032 their transmission to the Department of Financial Services for 2033 payment. 2034 (c) The contract manager shall maintain a schedule of 2035 payments and total amounts disbursed and shall periodically 2036 reconcile the records with the state’s official accounting 2037 records. 2038 (d) For contracts involving the provision of direct client 2039 services, the contract manager shall periodically visit the 2040 physical location where the services are delivered and speak 2041 directly to clients receiving the services and the staff 2042 responsible for delivering the services. 2043 (e) The contract manager shall meet at least once a month 2044 directly with the contractor’s representative and maintain 2045 records of such meetings. 2046 (f) The contract manager shall periodically document any 2047 differences between the required performance measures and the 2048 actual performance measures. If a contractor fails to meet and 2049 comply with the performance measures established in the 2050 contract, the department may allow a reasonable period for the 2051 contractor to correct performance deficiencies. If performance 2052 deficiencies are not resolved to the satisfaction of the 2053 department within the prescribed time, and if no extenuating 2054 circumstances can be documented by the contractor to the 2055 department’s satisfaction, the department must terminate the 2056 contract. The department may not enter into a new contract with 2057 that same contractor for the services for which the contract was 2058 previously terminated for a period of at least 24 months after 2059 the date of termination. The contract manager shall obtain and 2060 enforce corrective action plans, if appropriate, and maintain 2061 records regarding the completion or failure to complete 2062 corrective action items. 2063 (g) The contract manager shall document any contract 2064 modifications, which shall include recording any contract 2065 amendments as provided for in this section. 2066 (h) The contract manager shall be properly trained before 2067 being assigned responsibility for any contract. 2068 Section 33. Subsection (2) of section 408.045, Florida 2069 Statutes, is amended to read: 2070 408.045 Certificate of need; competitive sealed proposals.— 2071 (2) The agency shall make a decision regarding the issuance 2072 of the certificate of need in accordance with the provisions of 2073 s. 287.057(16)(17), rules adopted by the agency relating to 2074 intermediate care facilities for the developmentally disabled, 2075 and the criteria in s. 408.035, as further defined by rule. 2076 Section 34. Subsection (3) of section 427.0135, Florida 2077 Statutes, is amended to read: 2078 427.0135 Purchasing agencies; duties and responsibilities. 2079 Each purchasing agency, in carrying out the policies and 2080 procedures of the commission, shall: 2081 (3) Not procure transportation disadvantaged services 2082 without initially negotiating with the commission, as provided 2083 in s. 287.057(3)(f)12.s.287.057(5)(f)13., or unless otherwise 2084 authorized by statute. If the purchasing agency, after 2085 consultation with the commission, determines that it cannot 2086 reach mutually acceptable contract terms with the commission, 2087 the purchasing agency may contract for the same transportation 2088 services provided in a more cost-effective manner and of 2089 comparable or higher quality and standards. The Medicaid agency 2090 shall implement this subsection in a manner consistent with s. 2091 409.908(18) and as otherwise limited or directed by the General 2092 Appropriations Act. 2093 Section 35. Paragraph (c) of subsection (5) of section 2094 445.024, Florida Statutes, is amended to read: 2095 445.024 Work requirements.— 2096 (5) USE OF CONTRACTS.—Regional workforce boards shall 2097 provide work activities, training, and other services, as 2098 appropriate, through contracts. In contracting for work 2099 activities, training, or services, the following applies: 2100 (c) Notwithstanding the exemption from the competitive 2101 sealed bid requirements provided in s. 287.057(3)(5)(f) for 2102 certain contractual services, each contract awarded under this 2103 chapter must be awarded on the basis of a competitive sealed 2104 bid, except for a contract with a governmental entity as 2105 determined by the regional workforce board. 2106 Section 36. Paragraph (b) of subsection (3) of section 2107 481.205, Florida Statutes, is amended to read: 2108 481.205 Board of Architecture and Interior Design.— 2109 (3) 2110 (b) The board shall contract with a corporation or other 2111 business entity pursuant to s. 287.057(3)to provide 2112 investigative, legal, prosecutorial, and other services 2113 necessary to perform its duties. 2114 Section 37. Subsection (41) of section 570.07, Florida 2115 Statutes, is amended to read: 2116 570.07 Department of Agriculture and Consumer Services; 2117 functions, powers, and duties.—The department shall have and 2118 exercise the following functions, powers, and duties: 2119 (41) Notwithstanding the provisions of s. 287.057(22)(23)2120 that require all agencies to use the online procurement system 2121 developed by the Department of Management Services, the 2122 department may continue to use its own online system. However, 2123 vendors utilizing such system shall be prequalified as meeting 2124 mandatory requirements and qualifications and shall remit fees 2125 pursuant to s. 287.057(22)(23), and any rules implementing s. 2126 287.057. 2127 Section 38. Paragraph (c) of subsection (5) of section 2128 627.311, Florida Statutes, is amended to read: 2129 627.311 Joint underwriters and joint reinsurers; public 2130 records and public meetings exemptions.— 2131 (5) 2132 (c) The operation of the plan shall be governed by a plan 2133 of operation that is prepared at the direction of the board of 2134 governors and approved by order of the office. The plan is 2135 subject to continuous review by the office. The office may, by 2136 order, withdraw approval of all or part of a plan if the office 2137 determines that conditions have changed since approval was 2138 granted and that the purposes of the plan require changes in the 2139 plan. The plan of operation shall: 2140 1. Authorize the board to engage in the activities 2141 necessary to implement this subsection, including, but not 2142 limited to, borrowing money. 2143 2. Develop criteria for eligibility for coverage by the 2144 plan, including, but not limited to, documented rejection by at 2145 least two insurers which reasonably assures that insureds 2146 covered under the plan are unable to acquire coverage in the 2147 voluntary market. 2148 3. Require notice from the agent to the insured at the time 2149 of the application for coverage that the application is for 2150 coverage with the plan and that coverage may be available 2151 through an insurer, group self-insurers’ fund, commercial self 2152 insurance fund, or assessable mutual insurer through another 2153 agent at a lower cost. 2154 4. Establish programs to encourage insurers to provide 2155 coverage to applicants of the plan in the voluntary market and 2156 to insureds of the plan, including, but not limited to: 2157 a. Establishing procedures for an insurer to use in 2158 notifying the plan of the insurer’s desire to provide coverage 2159 to applicants to the plan or existing insureds of the plan and 2160 in describing the types of risks in which the insurer is 2161 interested. The description of the desired risks must be on a 2162 form developed by the plan. 2163 b. Developing forms and procedures that provide an insurer 2164 with the information necessary to determine whether the insurer 2165 wants to write particular applicants to the plan or insureds of 2166 the plan. 2167 c. Developing procedures for notice to the plan and the 2168 applicant to the plan or insured of the plan that an insurer 2169 will insure the applicant or the insured of the plan, and notice 2170 of the cost of the coverage offered; and developing procedures 2171 for the selection of an insuring entity by the applicant or 2172 insured of the plan. 2173 d. Provide for a market-assistance plan to assist in the 2174 placement of employers. All applications for coverage in the 2175 plan received 45 days before the effective date for coverage 2176 shall be processed through the market-assistance plan. A market 2177 assistance plan specifically designed to serve the needs of 2178 small, good policyholders as defined by the board must be 2179 reviewed and updated periodically. 2180 5. Provide for policy and claims services to the insureds 2181 of the plan of the nature and quality provided for insureds in 2182 the voluntary market. 2183 6. Provide for the review of applications for coverage with 2184 the plan for reasonableness and accuracy, using any available 2185 historic information regarding the insured. 2186 7. Provide for procedures for auditing insureds of the plan 2187 which are based on reasonable business judgment and are designed 2188 to maximize the likelihood that the plan will collect the 2189 appropriate premiums. 2190 8. Authorize the plan to terminate the coverage of and 2191 refuse future coverage for any insured that submits a fraudulent 2192 application to the plan or provides fraudulent or grossly 2193 erroneous records to the plan or to any service provider of the 2194 plan in conjunction with the activities of the plan. 2195 9. Establish service standards for agents who submit 2196 business to the plan. 2197 10. Establish criteria and procedures to prohibit any agent 2198 who does not adhere to the established service standards from 2199 placing business with the plan or receiving, directly or 2200 indirectly, any commissions for business placed with the plan. 2201 11. Provide for the establishment of reasonable safety 2202 programs for all insureds in the plan. All insureds of the plan 2203 must participate in the safety program. 2204 12. Authorize the plan to terminate the coverage of and 2205 refuse future coverage to any insured who fails to pay premiums 2206 or surcharges when due; who, at the time of application, is 2207 delinquent in payments of workers’ compensation or employer’s 2208 liability insurance premiums or surcharges owed to an insurer, 2209 group self-insurers’ fund, commercial self-insurance fund, or 2210 assessable mutual insurer licensed to write such coverage in 2211 this state; or who refuses to substantially comply with any 2212 safety programs recommended by the plan. 2213 13. Authorize the board of governors to provide the goods 2214 and services required by the plan through staff employed by the 2215 plan, through reasonably compensated service providers who 2216 contract with the plan to provide services as specified by the 2217 board of governors, or through a combination of employees and 2218 service providers. 2219 a. Purchases that equal or exceed $2,500 but are less than 2220 or equal to $25,000, shall be made by receipt of written quotes, 2221 telephone quotes, or informal bids, whenever practical. The 2222 procurement of goods or services valued over $25,000 is subject 2223 to competitive solicitation, except in situations in which the 2224 goods or services are provided by a sole source or are deemed an 2225 emergency purchase, or the services are exempted from 2226 competitive-solicitation requirements under s. 287.057(3)(5)(f). 2227 Justification for the sole-sourcing or emergency procurement 2228 must be documented. Contracts for goods or services valued at or 2229 over $100,000 are subject to board approval. 2230 b. The board shall determine whether it is more cost 2231 effective and in the best interests of the plan to use legal 2232 services provided by in-house attorneys employed by the plan 2233 rather than contracting with outside counsel. In making such 2234 determination, the board shall document its findings and shall 2235 consider the expertise needed; whether time commitments exceed 2236 in-house staff resources; whether local representation is 2237 needed; the travel, lodging, and other costs associated with in 2238 house representation; and such other factors that the board 2239 determines are relevant. 2240 14. Provide for service standards for service providers, 2241 methods of determining adherence to those service standards, 2242 incentives and disincentives for service, and procedures for 2243 terminating contracts for service providers that fail to adhere 2244 to service standards. 2245 15. Provide procedures for selecting service providers and 2246 standards for qualification as a service provider that 2247 reasonably assure that any service provider selected will 2248 continue to operate as an ongoing concern and is capable of 2249 providing the specified services in the manner required. 2250 16. Provide for reasonable accounting and data-reporting 2251 practices. 2252 17. Provide for annual review of costs associated with the 2253 administration and servicing of the policies issued by the plan 2254 to determine alternatives by which costs can be reduced. 2255 18. Authorize the acquisition of such excess insurance or 2256 reinsurance as is consistent with the purposes of the plan. 2257 19. Provide for an annual report to the office on a date 2258 specified by the office and containing such information as the 2259 office reasonably requires. 2260 20. Establish multiple rating plans for various 2261 classifications of risk which reflect risk of loss, hazard 2262 grade, actual losses, size of premium, and compliance with loss 2263 control. At least one of such plans must be a preferred-rating 2264 plan to accommodate small-premium policyholders with good 2265 experience as defined in sub-subparagraph 22.a. 2266 21. Establish agent commission schedules. 2267 22. For employers otherwise eligible for coverage under the 2268 plan, establish three tiers of employers meeting the criteria 2269 and subject to the rate limitations specified in this 2270 subparagraph. 2271 a. Tier One.— 2272 (I) Criteria; rated employers.—An employer that has an 2273 experience modification rating shall be included in Tier One if 2274 the employer meets all of the following: 2275 (A) The experience modification is below 1.00. 2276 (B) The employer had no lost-time claims subsequent to the 2277 applicable experience modification rating period. 2278 (C) The total of the employer’s medical-only claims 2279 subsequent to the applicable experience modification rating 2280 period did not exceed 20 percent of premium. 2281 (II) Criteria; non-rated employers.—An employer that does 2282 not have an experience modification rating shall be included in 2283 Tier One if the employer meets all of the following: 2284 (A) The employer had no lost-time claims for the 3-year 2285 period immediately preceding the inception date or renewal date 2286 of the employer’s coverage under the plan. 2287 (B) The total of the employer’s medical-only claims for the 2288 3-year period immediately preceding the inception date or 2289 renewal date of the employer’s coverage under the plan did not 2290 exceed 20 percent of premium. 2291 (C) The employer has secured workers’ compensation coverage 2292 for the entire 3-year period immediately preceding the inception 2293 date or renewal date of the employer’s coverage under the plan. 2294 (D) The employer is able to provide the plan with a loss 2295 history generated by the employer’s prior workers’ compensation 2296 insurer, except if the employer is not able to produce a loss 2297 history due to the insolvency of an insurer, the receiver shall 2298 provide to the plan, upon the request of the employer or the 2299 employer’s agent, a copy of the employer’s loss history from the 2300 records of the insolvent insurer if the loss history is 2301 contained in records of the insurer which are in the possession 2302 of the receiver. If the receiver is unable to produce the loss 2303 history, the employer may, in lieu of the loss history, submit 2304 an affidavit from the employer and the employer’s insurance 2305 agent setting forth the loss history. 2306 (E) The employer is not a new business. 2307 (III) Premiums.—The premiums for Tier One insureds shall be 2308 set at a premium level 25 percent above the comparable voluntary 2309 market premiums until the plan has sufficient experience as 2310 determined by the board to establish an actuarially sound rate 2311 for Tier One, at which point the board shall, subject to 2312 paragraph (e), adjust the rates, if necessary, to produce 2313 actuarially sound rates, provided such rate adjustment shall not 2314 take effect prior to January 1, 2007. 2315 b. Tier Two.— 2316 (I) Criteria; rated employers.—An employer that has an 2317 experience modification rating shall be included in Tier Two if 2318 the employer meets all of the following: 2319 (A) The experience modification is equal to or greater than 2320 1.00 but not greater than 1.10. 2321 (B) The employer had no lost-time claims subsequent to the 2322 applicable experience modification rating period. 2323 (C) The total of the employer’s medical-only claims 2324 subsequent to the applicable experience modification rating 2325 period did not exceed 20 percent of premium. 2326 (II) Criteria; non-rated employers.—An employer that does 2327 not have any experience modification rating shall be included in 2328 Tier Two if the employer is a new business. An employer shall be 2329 included in Tier Two if the employer has less than 3 years of 2330 loss experience in the 3-year period immediately preceding the 2331 inception date or renewal date of the employer’s coverage under 2332 the plan and the employer meets all of the following: 2333 (A) The employer had no lost-time claims for the 3-year 2334 period immediately preceding the inception date or renewal date 2335 of the employer’s coverage under the plan. 2336 (B) The total of the employer’s medical-only claims for the 2337 3-year period immediately preceding the inception date or 2338 renewal date of the employer’s coverage under the plan did not 2339 exceed 20 percent of premium. 2340 (C) The employer is able to provide the plan with a loss 2341 history generated by the workers’ compensation insurer that 2342 provided coverage for the portion or portions of such period 2343 during which the employer had secured workers’ compensation 2344 coverage, except if the employer is not able to produce a loss 2345 history due to the insolvency of an insurer, the receiver shall 2346 provide to the plan, upon the request of the employer or the 2347 employer’s agent, a copy of the employer’s loss history from the 2348 records of the insolvent insurer if the loss history is 2349 contained in records of the insurer which are in the possession 2350 of the receiver. If the receiver is unable to produce the loss 2351 history, the employer may, in lieu of the loss history, submit 2352 an affidavit from the employer and the employer’s insurance 2353 agent setting forth the loss history. 2354 (III) Premiums.—The premiums for Tier Two insureds shall be 2355 set at a rate level 50 percent above the comparable voluntary 2356 market premiums until the plan has sufficient experience as 2357 determined by the board to establish an actuarially sound rate 2358 for Tier Two, at which point the board shall, subject to 2359 paragraph (e), adjust the rates, if necessary, to produce 2360 actuarially sound rates, provided such rate adjustment shall not 2361 take effect prior to January 1, 2007. 2362 c. Tier Three.— 2363 (I) Eligibility.—An employer shall be included in Tier 2364 Three if the employer does not meet the criteria for Tier One or 2365 Tier Two. 2366 (II) Rates.—The board shall establish, subject to paragraph 2367 (e), and the plan shall charge, actuarially sound rates for Tier 2368 Three insureds. 2369 23. For Tier One or Tier Two employers which employ no 2370 nonexempt employees or which report payroll which is less than 2371 the minimum wage hourly rate for one full-time employee for 1 2372 year at 40 hours per week, the plan shall establish actuarially 2373 sound premiums, provided, however, that the premiums may not 2374 exceed $2,500. These premiums shall be in addition to the fee 2375 specified in subparagraph 26. When the plan establishes 2376 actuarially sound rates for all employers in Tier One and Tier 2377 Two, the premiums for employers referred to in this paragraph 2378 are no longer subject to the $2,500 cap. 2379 24. Provide for a depopulation program to reduce the number 2380 of insureds in the plan. If an employer insured through the plan 2381 is offered coverage from a voluntary market carrier: 2382 a. During the first 30 days of coverage under the plan; 2383 b. Before a policy is issued under the plan; 2384 c. By issuance of a policy upon expiration or cancellation 2385 of the policy under the plan; or 2386 d. By assumption of the plan’s obligation with respect to 2387 an in-force policy, 2388 2389 that employer is no longer eligible for coverage through the 2390 plan. The premium for risks assumed by the voluntary market 2391 carrier must be no greater than the premium the insured would 2392 have paid under the plan, and shall be adjusted upon renewal to 2393 reflect changes in the plan rates and the tier for which the 2394 insured would qualify as of the time of renewal. The insured may 2395 be charged such premiums only for the first 3 years of coverage 2396 in the voluntary market. A premium under this subparagraph is 2397 deemed approved and is not an excess premium for purposes of s. 2398 627.171. 2399 25. Require that policies issued and applications must 2400 include a notice that the policy could be replaced by a policy 2401 issued from a voluntary market carrier and that, if an offer of 2402 coverage is obtained from a voluntary market carrier, the 2403 policyholder is no longer eligible for coverage through the 2404 plan. The notice must also specify that acceptance of coverage 2405 under the plan creates a conclusive presumption that the 2406 applicant or policyholder is aware of this potential. 2407 26. Require that each application for coverage and each 2408 renewal premium be accompanied by a nonrefundable fee of $475 to 2409 cover costs of administration and fraud prevention. The board 2410 may, with the prior approval of the office, increase the amount 2411 of the fee pursuant to a rate filing to reflect increased costs 2412 of administration and fraud prevention. The fee is not subject 2413 to commission and is fully earned upon commencement of coverage. 2414 Section 39. Paragraph (e) of subsection (6) of section 2415 627.351, Florida Statutes, is amended to read: 2416 627.351 Insurance risk apportionment plans.— 2417 (6) CITIZENS PROPERTY INSURANCE CORPORATION.— 2418 (e) Purchases that equal or exceed $2,500, but are less 2419 than $25,000, shall be made by receipt of written quotes, 2420 written record of telephone quotes, or informal bids, whenever 2421 practical. The procurement of goods or services valued at or 2422 over $25,000 shall be subject to competitive solicitation, 2423 except in situations where the goods or services are provided by 2424 a sole source or are deemed an emergency purchase; the services 2425 are exempted from competitive solicitation requirements under s. 2426 287.057(3)(5)(f); or the procurement of services is subject to 2427 s. 627.3513. Justification for the sole-sourcing or emergency 2428 procurement must be documented. Contracts for goods or services 2429 valued at or over $100,000 are subject to approval by the board. 2430 Section 40. Subsection (2) of section 765.5155, Florida 2431 Statutes, is amended to read: 2432 765.5155 Donor registry; education program.— 2433 (2) The agency and the department shall jointly contract 2434 for the operation of a donor registry and education program. The 2435 contractor shall be procured by competitive solicitation 2436 pursuant to chapter 287, notwithstanding any exemption in s. 2437 287.057(3)(5)(f). When awarding the contract, priority shall be 2438 given to existing nonprofit groups that are based within the 2439 state, have expertise working with procurement organizations, 2440 have expertise in conducting statewide organ and tissue donor 2441 public education campaigns, and represent the needs of the organ 2442 and tissue donation community in the state. 2443 Section 41. Subsection (10) of section 893.055, Florida 2444 Statutes, is amended to read: 2445 893.055 Prescription drug monitoring program.— 2446 (10) All costs incurred by the department in administering 2447 the prescription drug monitoring program shall be funded through 2448 federal grants or private funding applied for or received by the 2449 state. The department may not commit funds for the monitoring 2450 program without ensuring funding is available. The prescription 2451 drug monitoring program and the implementation thereof are 2452 contingent upon receipt of the nonstate funding. The department 2453 and state government shall cooperate with the direct-support 2454 organization established pursuant to subsection (11) in seeking 2455 federal grant funds, other nonstate grant funds, gifts, 2456 donations, or other private moneys for the department so long as 2457 the costs of doing so are not considered material. Nonmaterial 2458 costs for this purpose include, but are not limited to, the 2459 costs of mailing and personnel assigned to research or apply for 2460 a grant. Notwithstanding the exemptions to competitive 2461 solicitation requirements under s. 287.057(3)(5)(f), the 2462 department shall comply with the competitive-solicitation 2463 requirements under s. 287.057 for the procurement of any goods 2464 or services required by this section. 2465 Section 42. Subsection (3) of section 1013.38, Florida 2466 Statutes, is amended to read: 2467 1013.38 Boards to ensure that facilities comply with 2468 building codes and life safety codes.— 2469 (3) The Department of Management Services may, upon 2470 request, provide facilities services for the Florida School for 2471 the Deaf and the Blind, the Division of Blind Services, and 2472 public broadcasting. As used in this section, the term 2473 “facilities services” means project management, code and design 2474 plan review, and code compliance inspection for projects as 2475 defined in s. 287.017(5)(1)(e). 2476 Section 43. Section 21 of chapter 2009-55, Laws of Florida, 2477 is amended to read: 2478 Section 21. The Agency for Health Care Administration shall 2479 develop and implement a home health agency monitoring pilot 2480 project in Miami-Dade County by January 1, 2010. The agency 2481 shall contract with a vendor to verify the utilization and the 2482 delivery of home health services and provide an electronic 2483 billing interface for such services. The contract must require 2484 the creation of a program to submit claims for the home health 2485 services electronically. The program must verify visits for the 2486 delivery of home health services telephonically using voice 2487 biometrics. The agency may seek amendments to the Medicaid state 2488 plan and waivers of federal law, as necessary, to implement the 2489 pilot project. Notwithstanding s. 287.057(3)(5)(f), Florida 2490 Statutes, the agency must award the contract through the 2491 competitive solicitation process. The agency shall submit a 2492 report to the Governor, the President of the Senate, and the 2493 Speaker of the House of Representatives evaluating the pilot 2494 project by February 1, 2011. 2495 Section 44. Section 31 of chapter 2009-223, Laws of 2496 Florida, is amended to read: 2497 Section 31. Pilot project to monitor home health services. 2498 The Agency for Health Care Administration shall develop and 2499 implement a home health agency monitoring pilot project in 2500 Miami-Dade County by January 1, 2010. The agency shall contract 2501 with a vendor to verify the utilization and delivery of home 2502 health services and provide an electronic billing interface for 2503 home health services. The contract must require the creation of 2504 a program to submit claims electronically for the delivery of 2505 home health services. The program must verify telephonically 2506 visits for the delivery of home health services using voice 2507 biometrics. The agency may seek amendments to the Medicaid state 2508 plan and waivers of federal laws, as necessary, to implement the 2509 pilot project. Notwithstanding s. 287.057(3)(5)(f), Florida 2510 Statutes, the agency must award the contract through the 2511 competitive solicitation process. The agency shall submit a 2512 report to the Governor, the President of the Senate, and the 2513 Speaker of the House of Representatives evaluating the pilot 2514 project by February 1, 2011. 2515 Section 45. Contracts for academic program reviews, 2516 auditing services, health services, or Medicaid services are 2517 subject to the transaction or user fees imposed under ss. 2518 287.042(1)(h) and 287.057(22), Florida Statutes, only to the 2519 extent that such contracts were not subject to such transaction 2520 or user fees before July 1, 2010. 2521 Section 46. (1) Each state agency, as defined in s. 2522 216.011, Florida Statutes, shall provide the following 2523 information to the Department of Financial Services regarding 2524 the agency’s contracted activities: 2525 (a) The nature of the commodities or services purchased. 2526 (b) The term of the contract. 2527 (c) The final obligation made by the agency. 2528 (d) A summary of any time constraints that apply to the 2529 procurement. 2530 (e) The justification for not using the competitive 2531 solicitation, including any statutory exemption or exception. 2532 (f) Other information regarding the contract or the 2533 procurement which may be required by the Department of Financial 2534 Services. 2535 (2) This section applies to any contract executed on or 2536 after July 1, 2010, for the purchase of commodities or 2537 contractual services in excess of the CATEGORY TWO threshold 2538 amount provided in s. 287.017, Florida Statutes, which is not: 2539 (a) Awarded by competitive solicitation pursuant to s. 2540 287.057(1), Florida Statutes; or 2541 (b) Purchased from a purchasing agreement or state term 2542 contract pursuant to s. 287.056, Florida Statutes. 2543 (3) An agency must submit the required information to the 2544 Department of Financial Services within 3 working days after 2545 executing the contract. 2546 Section 47. Each state agency, as defined in s. 216.011, 2547 Florida Statutes, shall review existing contract renewals and 2548 reprocurements with private providers and public-private 2549 providers in an effort to reduce contract payments by at least 3 2550 percent. It is the statewide goal to achieve substantial 2551 savings; however, it is the intent of the Legislature that the 2552 level and quality of services not be affected. Each agency shall 2553 renegotiate and reprocure contracts consistent with this 2554 section. Any savings that accrue through renegotiating the 2555 renewal or reprocurement of an existing contract shall be placed 2556 in reserve by the Executive Office of the Governor. 2557 Section 48. (1) Each state agency, as defined in s. 2558 216.011, Florida Statutes, shall review its contracts and, for 2559 any contract with a preferred-pricing clause, the agency shall 2560 ensure that the contractor complies with such clause. 2561 (2) Each contract executed, renewed, extended, or modified 2562 on or after July 1, 2010, which includes a preferred-pricing 2563 clause, must require an affidavit from an authorized 2564 representative of the contractor attesting that the contract is 2565 in compliance with the preferred-pricing clause. Such affidavit 2566 must be submitted at least annually. A contractor’s failure to 2567 comply with a preferred-pricing clause is grounds for 2568 terminating the contract at the state agency’s sole discretion. 2569 (3) As used in this section, the term “preferred-pricing 2570 clause” means a contractual provision under which the state is 2571 offered the most favorable price that the contractor offers to 2572 any client. 2573 Section 49. (1) Consistent with the principles of promoting 2574 employment of state residents, ensuring that the expenditure of 2575 state funds benefits state residents, and encouraging economic 2576 development within the state, each entity expending funds 2577 provided in the General Appropriations Act for the 2010-2011 2578 fiscal year for any purchase of goods and services in excess of 2579 $5 million shall give preference, to the maximum extent possible 2580 under or consistent with applicable state and federal laws, to 2581 vendors or businesses that have a principal place of business in 2582 the State of Florida and that commit contractually to maximize 2583 the use of state residents, state products, and other Florida 2584 based businesses in fulfilling their contractual duties. 2585 (2) This section does not apply to any contract that was 2586 funded prior to June 1, 2010. 2587 (3) Each state agency shall identify contracts that are 2588 subject to this section and shall report by March 1, 2011, to 2589 the Agency for Workforce Innovation each contractor’s compliance 2590 with this section. 2591 Section 50. The sum of $311,915 from the General Revenue 2592 Fund is appropriated and five full-time equivalent positions and 2593 associated salary rate are authorized to the Department of 2594 Financial Services to implement the provisions of this act. 2595 Section 51. This act shall take effect July 1, 2010.
