Florida Senate - 2013                      CS for CS for SB 1150
       
       
       
       By the Committees on Appropriations; and Governmental Oversight
       and Accountability; and Senators Benacquisto and Brandes
       
       
       
       576-04645-13                                          20131150c2
    1                        A bill to be entitled                      
    2         An act relating to governmental accountability;
    3         creating s. 119.0701, F.S.; providing definitions;
    4         providing that each public agency contract for
    5         services must meet specified requirements; requiring
    6         the public agency to enforce contract provisions if a
    7         contractor does not comply with a public records
    8         request; amending s. 119.12, F.S.; specifying what
    9         constitutes reasonable costs of enforcement in a civil
   10         action against an agency to enforce ch. 119, F.S.;
   11         amending s. 215.971, F.S.; requiring agreements funded
   12         with state or federal financial assistance to include
   13         additional provisions; authorizing the Chief Financial
   14         Officer to audit agreements before execution and
   15         providing requirements for such audits; requiring
   16         state agencies to designate a grants manager for each
   17         agreement and providing requirements and procedures
   18         for managers; requiring the Chief Financial Officer to
   19         perform audits of executed agreements and to discuss
   20         such audits with agency officials; requiring the
   21         agency head to respond to the audit; reordering and
   22         amending s. 215.985, F.S.; revising provisions
   23         relating to the Chief Financial Officer’s
   24         intergovernmental contract tracking system under the
   25         Transparency Florida Act; requiring state agencies to
   26         post certain information in the tracking system and to
   27         update that information; requiring that exempt and
   28         confidential information be redacted from contracts
   29         and procurement documents posted on the system;
   30         authorizing the Chief Financial Officer to make
   31         available to the public the information posted on the
   32         system through a secure website; providing an
   33         exception; authorizing the Department of Financial to
   34         adopt rules; repealing s. 216.0111, F.S., relating to
   35         a requirement that state agencies report certain
   36         contract information to the Department of Financial
   37         Services and transferring that requirement to s.
   38         215.985, F.S.; amending s. 287.012, F.S.; providing
   39         and revising definitions; amending s. 287.042, F.S.;
   40         revising powers, duties, and functions of the
   41         Department of Management Services; eliminating a duty
   42         of the department to maintain a vendor list;
   43         authorizing the department to lead or enter into joint
   44         agreements with governmental entities for the purchase
   45         of commodities or contractual services that can be
   46         used by multiple agencies; amending s. 287.056, F.S.;
   47         deleting provisions requiring certain inclusions in
   48         agency agreements; amending s. 287.057, F.S.;
   49         providing that contracts awarded pursuant to an
   50         invitation to bid shall be awarded to the responsible
   51         and responsive vendor that submits the lowest
   52         responsive bid; revising exceptions to the requirement
   53         that the purchase of specified commodities or
   54         contractual services be made only as a result of
   55         receiving competitive sealed bids, competitive sealed
   56         proposals, or competitive sealed replies; revising
   57         contractual services and commodities that are not
   58         subject to competitive solicitation requirements by
   59         virtue of being available only from a single source;
   60         providing that a contract for commodities or
   61         contractual services may be awarded without
   62         competition if the recipient of funds is established
   63         during the appropriations process; revising provisions
   64         relating to extension of a contract for commodities or
   65         contractual services; authorizing an agency to
   66         negotiate better pricing upon renewal of a contract;
   67         providing training requirements for contract managers
   68         responsible for contracts in excess of a specified
   69         threshold amount; providing contract manager
   70         certification for contract managers responsible for
   71         contracts in excess of a specified threshold amount;
   72         providing that the department is responsible for
   73         establishing and disseminating the requirements for
   74         certification of a contract manager; providing that
   75         training will be conducted jointly by the Department
   76         of Management Services and the Department of Financial
   77         Services; providing training guidelines and
   78         requirements; requiring the department, in
   79         consultation with the Chief Financial Officer to
   80         maintain a program for online procurement of
   81         commodities and contractual services; amending s.
   82         287.0571, F.S.; revising nonapplicability of a
   83         business case to outsource; amending s. 287.058, F.S.;
   84         defining the term “performance measure”; revising
   85         references within provisions relating to purchase
   86         orders used in lieu of written agreements for classes
   87         of contractual services; revising terminology;
   88         authorizing the Chief Financial Officer to audit
   89         contracts before execution and providing requirements
   90         for such audits; creating s. 287.136, F.S.; requiring
   91         the Chief Financial Officer to perform audits of
   92         executed contract documents and to discuss such audits
   93         with the agency officials; requiring the agency head
   94         to respond to the audit; amending s. 287.076, F.S.;
   95         providing that Project Management Professionals
   96         training for personnel involved in managing
   97         outsourcings and negotiations is subject to annual
   98         appropriations; amending ss. 16.0155, 283.33, 394.457,
   99         402.7305, 409.9132, 427.0135, 445.024, 627.311,
  100         627.351, 765.5155, and 893.055, F.S.; conforming
  101         cross-references; providing effective dates.
  102  
  103  Be It Enacted by the Legislature of the State of Florida:
  104  
  105         Section 1. Section 119.0701, Florida Statutes, is created
  106  to read:
  107         119.0701Contracts; public records.—
  108         (1) For purposes of this section, the term:
  109         (a) “Contractor” means an individual, partnership,
  110  corporation, or business entity that enters into a contract for
  111  services with a public agency and is acting on behalf of the
  112  public agency as provided under s. 119.011(2).
  113         (b) “Public agency” means a state, county, district,
  114  authority, or municipal officer, or department, division, board,
  115  bureau, commission, or other separate unit of government created
  116  or established by law.
  117         (2) In addition to other contract requirements provided by
  118  law, each public agency contract for services must include a
  119  provision that requires the contractor and its subcontractors to
  120  comply with public records laws, specifically to:
  121         (a) Keep and maintain public records that ordinarily and
  122  necessarily would be required by the public agency in order to
  123  perform the service.
  124         (b) Provide the public with access to public records on the
  125  same terms and conditions that the public agency would provide
  126  the records and at a cost that does not exceed the cost provided
  127  in this chapter or as otherwise provided by law.
  128         (c) Ensure that public records that are exempt or
  129  confidential and exempt from public records disclosure
  130  requirements are not disclosed except as authorized by law.
  131         (d) Meet all requirements for retaining public records and
  132  transfer, at no cost, to the public agency all public records in
  133  possession of the contractor upon termination of the contract
  134  and destroy any duplicate public records that are exempt or
  135  confidential and exempt from public records disclosure
  136  requirements. All records stored electronically must be provided
  137  to the public agency in a format that is compatible with the
  138  information technology systems of the public agency.
  139         (3) If a contractor or its subcontractor does not comply
  140  with a public records request, the public agency shall enforce
  141  the contract provisions in accordance with the contract.
  142         Section 2. Section 119.12, Florida Statutes, is amended to
  143  read:
  144         119.12 Attorney Attorney’s fees.—If a civil action is filed
  145  against an agency to enforce the provisions of this chapter and
  146  if the court determines that such agency unlawfully refused to
  147  permit a public record to be inspected or copied, the court
  148  shall assess and award, against the agency responsible, the
  149  reasonable costs of enforcement. The reasonable costs of
  150  enforcement include, but are not limited to, including
  151  reasonable attorney attorneys’ fees, including those reasonable
  152  attorney fees incurred in litigating entitlement to and the
  153  determination or quantification of attorney fees for the
  154  underlying matter.
  155         Section 3. Section 215.971, Florida Statutes, is amended to
  156  read:
  157         215.971 Agreements funded with federal or and state
  158  assistance.—
  159         (1)For An agency agreement that provides state financial
  160  assistance to a recipient or subrecipient, as those terms are
  161  defined in s. 215.97, or that provides federal financial
  162  assistance to a subrecipient, as defined by applicable United
  163  States Office of Management and Budget circulars, must the
  164  agreement shall include all of the following:
  165         (a)(1) A provision specifying a scope of work that clearly
  166  establishes the tasks that the recipient or subrecipient is
  167  required to perform.; and
  168         (b)(2) A provision dividing the agreement into quantifiable
  169  units of deliverables that must be received and accepted in
  170  writing by the agency before payment. Each deliverable must be
  171  directly related to the scope of work and must specify the
  172  required minimum level of service to be performed and the
  173  criteria for evaluating the successful completion of each
  174  deliverable.
  175         (c)A provision specifying the financial consequences that
  176  apply if the recipient or subrecipient fails to perform the
  177  minimum level of service required by the agreement. The
  178  provision can be excluded from the agreement only if financial
  179  consequences are prohibited by the federal agency awarding the
  180  grant. Funds refunded to a state agency from a recipient or
  181  subrecipient for failure to perform as required under the
  182  agreement may be expended only in direct support of the program
  183  from which the agreement originated.
  184         (d)A provision specifying that a recipient or subrecipient
  185  of federal or state financial assistance may expend funds only
  186  for allowable costs resulting from obligations incurred during
  187  the specified agreement period.
  188         (e)A provision specifying that any balance of unobligated
  189  funds which has been advanced or paid must be refunded to the
  190  state agency.
  191         (f)A provision specifying that any funds paid in excess of
  192  the amount to which the recipient or subrecipient is entitled
  193  under the terms and conditions of the agreement must be refunded
  194  to the state agency.
  195         (g)Any additional information required pursuant to s.
  196  215.97.
  197         (2)The Chief Financial Officer may audit an agreement
  198  funded with state or federal assistance before the execution of
  199  such agreement in accordance with rules adopted by the
  200  Department of Financial Services. The audit must ensure that
  201  applicable laws have been met; that the agreement document
  202  contains a clear statement of work, quantifiable and measurable
  203  deliverables, performance measures, financial consequences for
  204  nonperformance, and clear terms and conditions that protect the
  205  interests of the state; and that the associated costs of the
  206  agreement are not unreasonable or inappropriate. The audit must
  207  ensure that all contracting laws have been met and that
  208  documentation is available to support the agreement. An
  209  agreement that does not comply with this section may be returned
  210  to the submitting agency for revision.
  211         (a)The Chief Financial Officer may establish dollar
  212  thresholds and other criteria for determining which agreements
  213  will be audited before execution. The Chief Financial Officer
  214  may revise such thresholds and other criteria for an agency or
  215  unit of an agency as he or she deems appropriate.
  216         (b)The Chief Financial Officer shall have up to 10
  217  business days after receipt of the proposed grant agreement to
  218  make a final determination of any deficiencies in the agreement
  219  and shall provide the agency with information regarding any
  220  deficiencies at the conclusion of the review. The Chief
  221  Financial Officer and the agency entering into the agreement may
  222  agree to a longer review period. The agency is responsible for
  223  addressing the deficiencies and shall have the option to
  224  resubmit the agreement for subsequent review before execution.
  225  The Chief Financial Officer shall perform a subsequent review to
  226  verify that all deficiencies have been addressed upon processing
  227  the first payment.
  228         (3)For each agreement funded with federal or state
  229  financial assistance, the state agency shall designate an
  230  employee to function as a grant manager who shall be responsible
  231  for enforcing performance of the agreement’s terms and
  232  conditions and who shall serve as a liaison with the recipient
  233  or subrecipient.
  234         (a) Each grant manager who is responsible for agreements in
  235  excess of the threshold amount for CATEGORY TWO under s. 287.017
  236  must complete the training and become a certified contract
  237  manager as provided under s. 287.057(14).
  238         (b) The Chief Financial Officer shall establish and
  239  disseminate uniform procedures for grant management pursuant to
  240  s. 17.03(3) to ensure that services have been rendered in
  241  accordance with agreement terms before the agency processes an
  242  invoice for payment. The procedures must include, but need not
  243  be limited to, procedures for monitoring and documenting
  244  recipient or subrecipient performance, reviewing and documenting
  245  all deliverables for which payment is requested by the recipient
  246  or subrecipient, and providing written certification by the
  247  grant manager of the agency’s receipt of goods and services.
  248         (c)The grant manager shall reconcile and verify all funds
  249  received against all funds expended during the grant agreement
  250  period and produce a final reconciliation report. The final
  251  report must identify any funds paid in excess of the
  252  expenditures incurred by the recipient or subrecipient.
  253         (4)The Chief Financial Officer shall perform audits of the
  254  executed state and federal grant agreement documents and grant
  255  manager’s records in order to ensure that adequate internal
  256  controls are in place for complying with the terms and
  257  conditions of such agreements and for validation and receipt of
  258  goods and services.
  259         (a)At the conclusion of the audit, the Chief Financial
  260  Officer’s designee shall discuss the audit and potential
  261  findings with the official whose office is subject to audit. The
  262  final audit report shall be submitted to the agency head.
  263         (b) Within 30 days after the receipt of the final audit
  264  report, the agency head shall submit to the Chief Financial
  265  Officer or designee, his or her written statement of explanation
  266  or rebuttal concerning findings requiring corrective action,
  267  including corrective action to be taken to preclude a
  268  recurrence.
  269         Section 4. Subsection (2) of section 215.985, Florida
  270  Statutes, is reordered and amended and subsection (16) of that
  271  section is amended, to read:
  272         215.985 Transparency in government spending.—
  273         (2) As used in this section, the term:
  274         (c)(a) “Governmental entity” means any state, regional,
  275  county, municipal, special district, or other political
  276  subdivision whether executive, judicial, or legislative,
  277  including, but not limited to, any department, division, bureau,
  278  commission, authority, district, or agency thereof, or any
  279  public school, Florida College System institution, state
  280  university, or associated board.
  281         (d)(b) “Website” means a site on the Internet which is
  282  easily accessible to the public at no cost and does not require
  283  the user to provide any information.
  284         (a)(c) “Committee” means the Legislative Auditing Committee
  285  created in s. 11.40.
  286         (b) “Contract” means any written agreement or purchase
  287  order issued for the purchase of goods or services and any
  288  written agreements for the receipt of federal or state financial
  289  assistance.
  290         (16) The Chief Financial Officer shall establish and
  291  maintain a secure, shared state contract tracking provide public
  292  access to a state contract management system.
  293         (a) Within 30 calendar days after executing a contract,
  294  each state agency as defined in s. 216.011(1) shall post all of
  295  the following that provides information and documentation
  296  relating to that contract on the contract tracking system, as
  297  required by rule: contracts procured by governmental entities.
  298         1.The names of the contracting entities.
  299         2.The procurement method.
  300         3.The contract beginning and end dates.
  301         4.The nature or type of the commodities or services
  302  purchased.
  303         5.Applicable contract unit prices and deliverables.
  304         6.Total compensation to be paid or received under the
  305  contract.
  306         7.All payments made to the contractor to date.
  307         8.Applicable contract performance measures.
  308         9.The justification for not using competitive solicitation
  309  to procure the contract, including citation to any statutory
  310  exemption or exception from competitive solicitation, if
  311  applicable.
  312         10.Electronic copies of the contract and procurement
  313  documents that have been redacted to conceal exempt or
  314  confidential information.
  315         11.Any other information required by the Chief Financial
  316  Officer.
  317         (a) The data collected in the system must include, but need
  318  not be limited to, the contracting agency; the procurement
  319  method; the contract beginning and ending dates; the type of
  320  commodity or service; the purpose of the commodity or service;
  321  the compensation to be paid; compliance information, such as
  322  performance metrics for the service or commodity; contract
  323  violations; the number of extensions or renewals; and the
  324  statutory authority for providing the service.
  325         (b) The affected state governmental agency shall update the
  326  information described in paragraph (a) in the contract tracking
  327  system within 30 calendar days after a major modification or
  328  amendment change to an existing contract or the execution of a
  329  new contract, agency procurement staff of the affected state
  330  governmental entity shall update the necessary information in
  331  the state contract management system. A major modification or
  332  amendment change to a contract includes, but is not limited to,
  333  a renewal, termination, or extension of the contract, or an
  334  amendment to the contract as determined by the Chief Financial
  335  Officer.
  336         (c) Each state agency identified in paragraph (a) shall
  337  redact, as defined in s. 119.011, exempt or confidential
  338  information from the contract or procurement documents before
  339  posting an electronic copy on the contract tracking system.
  340         1. If a state agency becomes aware that an electronic copy
  341  of a contract or procurement document that it posted has not
  342  been properly redacted, the state agency must immediately notify
  343  the Chief Financial Officer so that the contract or procurement
  344  document may be removed. Within 7 business days, the state
  345  agency shall provide the Chief Financial Officer with a properly
  346  redacted copy for posting.
  347         2. If a party to a contract, or authorized representative,
  348  discovers that an electronic copy of a contract or procurement
  349  document on the system has not been properly redacted, the party
  350  or representative may request the state agency that posted the
  351  document to redact the exempt or confidential information. Upon
  352  receipt of a request in compliance with this subparagraph, the
  353  state agency that posted the document shall redact the exempt or
  354  confidential information.
  355         a. Such request must be in writing and delivered by mail,
  356  facsimile, or electronic transmission or in person to the state
  357  agency that posted the information. The request must identify
  358  the specific document, the page numbers that include the exempt
  359  or confidential information, the information that is exempt or
  360  confidential, and the relevant statutory exemption. A fee may
  361  not be charged for a redaction made pursuant to such request.
  362         b. If necessary, a party to the contract may petition the
  363  circuit court for an order directing compliance with this
  364  paragraph.
  365         3. The Chief Financial Officer, the Department of Financial
  366  Services, or any officer, employee, or contractor thereof, is
  367  not responsible for redacting exempt or confidential information
  368  from an electronic copy of a contract or procurement document
  369  posted by another state agency on the system and is not liable
  370  for the failure of the state agency to redact the exempt or
  371  confidential information. The Chief Financial Officer may notify
  372  the posting state agency if a document posted on the tracking
  373  system contains exempt or confidential information.
  374         (d) Pursuant to ss. 119.01 and 119.07, the Chief Financial
  375  Officer may make information posted on the contract tracking
  376  system available for viewing and download by the public through
  377  a secure website. Unless otherwise provided by law, information
  378  retrieved electronically pursuant to this paragraph is not
  379  admissible in court as an authenticated document.
  380         1. The Chief Financial Officer may regulate and prohibit
  381  the posting of records that could facilitate identity theft or
  382  fraud, such as signatures; compromise or reveal an agency
  383  investigation; reveal the identity of undercover personnel;
  384  reveal proprietary confidential business information or trade
  385  secrets; reveal an individual’s medical information; or reveal
  386  any other record or information that the Chief Financial Officer
  387  believes may jeopardize the health, safety, or welfare of the
  388  public. However, such prohibition does not supersede the duty of
  389  a state agency to provide a copy of a public record upon
  390  request. The Chief Financial Officer shall use appropriate
  391  Internet security measures to ensure that no person has the
  392  ability to alter or modify records available on the website.
  393         2. Records made available on the website, including
  394  electronic copies of contracts or procurement documents, may not
  395  reveal information made exempt or confidential by law. Notice of
  396  the right of an affected party to request redaction of exempt or
  397  confidential information pursuant to paragraph (c) must be
  398  displayed on the website.
  399         (e) The posting of information on the contract tracking
  400  system or the provision of contract information on a website for
  401  public viewing and downloading does not supersede the duty of a
  402  state agency to respond to a public record request for such
  403  information or to a subpoena for such information.
  404         1. A request for a copy of a contract or procurement
  405  document or a certified copy of a contract or procurement
  406  document must be made to the state agency that is party to the
  407  contract. Such request may not be made to the Chief Financial
  408  Officer or the Department of Financial Services or any officer,
  409  employee, or contractor thereof unless the Chief Financial
  410  Officer or department is a party to the contract.
  411         2. A subpoena for a copy of a contract or procurement
  412  document or certified copy of a contract or procurement document
  413  must be served on the state agency that is a party to the
  414  contract and that maintains the original documents. The Chief
  415  Financial Officer or the Department of Financial Services or any
  416  officer, employee, or contractor thereof may not be served a
  417  subpoena for those records unless the Chief Financial Officer or
  418  the department is a party to the contract.
  419         (f) The requirement under paragraphs (a) and (b) that each
  420  agency post information and documentation relating to contracts
  421  on the tracking system does not apply to any record that could
  422  reveal attorney work product or strategy.
  423         (g) The Chief Financial Officer may adopt rules to
  424  administer this subsection.
  425         Section 5. Section 216.0111, Florida Statutes, is repealed.
  426         Section 6. Subsections (4) through (28) of section 287.012,
  427  Florida Statutes, are amended to read:
  428         287.012 Definitions.—As used in this part, the term:
  429         (4) “Best value” means the highest overall value to the
  430  state based on objective factors that include, but are not
  431  limited to, price, quality, design, and workmanship.
  432         (5) “Commodity” means any of the various supplies,
  433  materials, goods, merchandise, food, equipment, information
  434  technology, and other personal property, including a mobile
  435  home, trailer, or other portable structure that has with floor
  436  space of less than 5,000 square feet of floor space, purchased,
  437  leased, or otherwise contracted for by the state and its
  438  agencies. The term “Commodity” also includes interest on
  439  deferred-payment commodity contracts approved pursuant to s.
  440  287.063 entered into by an agency for the purchase of other
  441  commodities. However, commodities purchased for resale are
  442  excluded from this definition. Printing of publications shall be
  443  considered a commodity if procured when let upon contract
  444  pursuant to s. 283.33, whether purchased for resale or not.
  445         (6) “Competitive solicitation” means the process of
  446  requesting and receiving two or more sealed bids, proposals, or
  447  replies submitted by responsive vendors in accordance with the
  448  terms of a competitive process, regardless of the method of
  449  procurement.
  450         (7) “Contractor” means a person who contracts to sell
  451  commodities or contractual services to an agency.
  452         (8) “Contractual service” means the rendering by a
  453  contractor of its time and effort rather than the furnishing of
  454  specific commodities. The term applies only to those services
  455  rendered by individuals and firms who are independent
  456  contractors, and such services may include, but are not limited
  457  to, evaluations; consultations; maintenance; accounting;
  458  security; management systems; management consulting; educational
  459  training programs; research and development studies or reports
  460  on the findings of consultants engaged thereunder; and
  461  professional, technical, and social services. The term
  462  “Contractual service” does not include a any contract for the
  463  furnishing of labor or materials for the construction,
  464  renovation, repair, modification, or demolition of a any
  465  facility, building, portion of building, utility, park, parking
  466  lot, or structure or other improvement to real property entered
  467  into pursuant to chapter 255 and rules adopted thereunder.
  468         (9) “Department” means the Department of Management
  469  Services.
  470         (10) “Electronic posting” or “electronically post” means
  471  the noticing of solicitations, agency decisions or intended
  472  decisions, or other matters relating to procurement on a
  473  centralized Internet website designated by the department for
  474  this purpose, and in the manner and form required under s.
  475  120.57(3)(a).
  476         (11) “Eligible user” means any person or entity authorized
  477  by the department pursuant to rule to purchase from state term
  478  contracts or to use the online procurement system.
  479         (12) “Exceptional purchase” means any purchase of
  480  commodities or contractual services excepted by law or rule from
  481  the requirements for competitive solicitation, including, but
  482  not limited to, purchases from a single source; purchases upon
  483  receipt of less than two responsive bids, proposals, or replies;
  484  purchases made by an agency, after receiving approval from the
  485  department, from a contract procured, pursuant to s. 287.057(1),
  486  or by another agency; and purchases made without advertisement
  487  in the manner required under by s. 287.042(3)(b).
  488         (13) “Extension” means an increase in the time allowed for
  489  the contract period due to circumstances which, without fault of
  490  either party, make performance impracticable or impossible, or
  491  which prevent a new contract from being executed, with or
  492  without a proportional increase in the total dollar amount, with
  493  any increase to be based on the method and rate previously
  494  established in the contract.
  495         (14) “Governmental entity” means a political subdivision or
  496  agency of this state or of any state of the United States,
  497  including, but not limited to, state government, county,
  498  municipality, school district, nonprofit public university or
  499  college, single-purpose or multipurpose special district,
  500  single-purpose or multipurpose public authority, metropolitan or
  501  consolidated government, separate legal entity or administrative
  502  entity, or any agency of the Federal Government.
  503         (15)(14) “Information technology” has the same meaning as
  504  provided ascribed in s. 282.0041.
  505         (16)(15) “Invitation to bid” means a written or
  506  electronically posted solicitation for competitive sealed bids.
  507         (17)(16) “Invitation to negotiate” means a written or
  508  electronically posted solicitation for competitive sealed
  509  replies to select one or more vendors with which to commence
  510  negotiations for the procurement of commodities or contractual
  511  services.
  512         (18)(17) “Minority business enterprise” has the same
  513  meaning as provided ascribed in s. 288.703.
  514         (19)(18) “Office” means the Office of Supplier Diversity of
  515  the Department of Management Services.
  516         (20)(19) “Outsource” means the process of contracting with
  517  a vendor to provide a service as defined in s. 216.011(1)(f), in
  518  whole or in part, or an activity as defined in s.
  519  216.011(1)(rr), while a state agency retains the responsibility
  520  and accountability for the service or activity and there is a
  521  transfer of management responsibility for the delivery of
  522  resources and the performance of those resources.
  523         (21)(20) “Renewal” means contracting with the same
  524  contractor for an additional contract period after the initial
  525  contract period, only if pursuant to contract terms specifically
  526  providing for such renewal.
  527         (22)(21) “Request for information” means a written or
  528  electronically posted request made by an agency to vendors for
  529  information concerning commodities or contractual services.
  530  Responses to these requests are not offers and may not be
  531  accepted by the agency to form a binding contract.
  532         (23)(22) “Request for proposals” means a written or
  533  electronically posted solicitation for competitive sealed
  534  proposals.
  535         (24)(23) “Request for a quote” means an oral, electronic,
  536  or written request for written pricing or services information
  537  from a state term contract vendor for commodities or contractual
  538  services available on a state term contract from that vendor.
  539         (25)(24) “Responsible vendor” means a vendor who has the
  540  capability in all respects to fully perform the contract
  541  requirements and the integrity and reliability that will assure
  542  good faith performance.
  543         (26)(25) “Responsive bid,” “responsive proposal,” or
  544  “responsive reply” means a bid, or proposal, or reply submitted
  545  by a responsive and responsible vendor which that conforms in
  546  all material respects to the solicitation.
  547         (27)(26) “Responsive vendor” means a vendor that has
  548  submitted a bid, proposal, or reply that conforms in all
  549  material respects to the solicitation.
  550         (28)(27) “State term contract” means a term contract that
  551  is competitively procured by the department pursuant to s.
  552  287.057 and that is used by agencies and eligible users pursuant
  553  to s. 287.056.
  554         (29)(28) “Term contract” means an indefinite quantity
  555  contract to furnish commodities or contractual services during a
  556  defined period.
  557         Section 7. Paragraph (a) of subsection (1), paragraph (b)
  558  of subsection (2), and subsections (8) and (15) of section
  559  287.042, Florida Statutes, are amended to read:
  560         287.042 Powers, duties, and functions.—The department shall
  561  have the following powers, duties, and functions:
  562         (1)(a) To canvass all sources of supply, establish and
  563  maintain a vendor list, and contract for the purchase, lease, or
  564  acquisition, including purchase by installment sales or lease
  565  purchase contracts which may provide for the payment of interest
  566  on unpaid portions of the purchase price, of all commodities and
  567  contractual services required by any agency under this chapter.
  568  Any contract providing for deferred payments and the payment of
  569  interest is shall be subject to specific rules adopted by the
  570  department.
  571         (2)
  572         (b) As an alternative to any provision in s. 120.57(3)(c),
  573  the department may proceed with the competitive solicitation or
  574  contract award process of a term contract when the Secretary of
  575  Management Services the department or his or her designee sets
  576  forth in writing particular facts and circumstances that which
  577  demonstrate that the delay incident to staying the solicitation
  578  or contract award process would be detrimental to the interests
  579  of the state. After the award of a contract resulting from a
  580  competitive solicitation in which a timely protest was received
  581  and in which the state did not prevail, the contract may be
  582  canceled and reawarded.
  583         (8) To provide any commodity and contractual service
  584  purchasing rules to the Chief Financial Officer and all agencies
  585  electronically or through an electronic medium or other means.
  586  Agencies may not approve an any account or request any payment
  587  of an any account for the purchase of any commodity or the
  588  procurement of any contractual service covered by a purchasing
  589  or contractual service rule except as authorized therein. The
  590  department shall furnish copies of rules adopted by the
  591  department to any county, municipality, or other local public
  592  agency requesting them.
  593         (15) To lead or enter into joint agreements with
  594  governmental entities agencies, as defined in s. 163.3164, for
  595  the purpose of pooling funds for the purchase of commodities or
  596  contractual services information technology that can be used by
  597  multiple agencies.
  598         (a) Each agency that has been appropriated or has existing
  599  funds for such purchase, shall, upon contract award by the
  600  department, transfer its their portion of the funds into the
  601  department’s Operating Trust Fund for payment by the department.
  602  The funds shall be transferred by the Executive Office of the
  603  Governor pursuant to the agency budget amendment request
  604  provisions under in chapter 216.
  605         (b) Agencies that sign the joint agreements are financially
  606  obligated for their portion of the agreed-upon funds. If an
  607  agency becomes more than 90 days delinquent in paying the funds,
  608  the department shall certify to the Chief Financial Officer the
  609  amount due, and the Chief Financial Officer shall transfer the
  610  amount due to the Operating Trust Fund of the department from
  611  any of the agency’s available funds. The Chief Financial Officer
  612  shall report these transfers and the reasons for the transfers
  613  to the Executive Office of the Governor and the legislative
  614  appropriations committees.
  615         Section 8. Subsection (1) of section 287.056, Florida
  616  Statutes, is amended to read:
  617         287.056 Purchases from purchasing agreements and state term
  618  contracts.—
  619         (1) Agencies shall, and eligible users may, purchase
  620  commodities and contractual services from purchasing agreements
  621  established and state term contracts procured, pursuant to s.
  622  287.057, by the department. Each agency agreement made under
  623  this subsection shall include:
  624         (a) A provision specifying a scope of work that clearly
  625  establishes all tasks that the contractor is required to
  626  perform.
  627         (b) A provision dividing the contract into quantifiable,
  628  measurable, and verifiable units of deliverables that must be
  629  received and accepted in writing by the contract manager before
  630  payment. Each deliverable must be directly related to the scope
  631  of work and specify the required minimum level of service to be
  632  performed and the criteria for evaluating the successful
  633  completion of each deliverable.
  634         Section 9. Paragraph (a) of subsection (1) and subsections
  635  (3), (10), (12), (13), (16), and (22) of section 287.057,
  636  Florida Statutes, are amended to read:
  637         287.057 Procurement of commodities or contractual
  638  services.—
  639         (1) The competitive solicitation processes authorized in
  640  this section shall be used for procurement of commodities or
  641  contractual services in excess of the threshold amount provided
  642  for CATEGORY TWO in s. 287.017. Any competitive solicitation
  643  shall be made available simultaneously to all vendors, must
  644  include the time and date for the receipt of bids, proposals, or
  645  replies and of the public opening, and must include all
  646  contractual terms and conditions applicable to the procurement,
  647  including the criteria to be used in determining acceptability
  648  and relative merit of the bid, proposal, or reply.
  649         (a) Invitation to bid.—The invitation to bid shall be used
  650  when the agency is capable of specifically defining the scope of
  651  work for which a contractual service is required or when the
  652  agency is capable of establishing precise specifications
  653  defining the actual commodity or group of commodities required.
  654         1. All invitations to bid must include:
  655         a. A detailed description of the commodities or contractual
  656  services sought; and
  657         b. If the agency contemplates renewal of the contract, a
  658  statement to that effect.
  659         2. Bids submitted in response to an invitation to bid in
  660  which the agency contemplates renewal of the contract must
  661  include the price for each year for which the contract may be
  662  renewed.
  663         3. Evaluation of bids must shall include consideration of
  664  the total cost for each year of the contract, including renewal
  665  years, as submitted by the vendor.
  666         4. The contract shall be awarded to the responsible and
  667  responsive vendor who submits the lowest responsive bid.
  668         (3) If When the purchase price of commodities or
  669  contractual services exceeds the threshold amount provided in s.
  670  287.017 for CATEGORY TWO, no purchase of commodities or
  671  contractual services may not be made without receiving
  672  competitive sealed bids, competitive sealed proposals, or
  673  competitive sealed replies unless:
  674         (a) The agency head determines in writing that an immediate
  675  danger to the public health, safety, or welfare or other
  676  substantial loss to the state requires emergency action. After
  677  the agency head signs makes such a written determination, the
  678  agency may proceed with the procurement of commodities or
  679  contractual services necessitated by the immediate danger,
  680  without receiving competitive sealed bids, competitive sealed
  681  proposals, or competitive sealed replies. However, the such
  682  emergency procurement shall be made by obtaining pricing
  683  information from at least two prospective vendors, which must be
  684  retained in the contract file, unless the agency determines in
  685  writing that the time required to obtain pricing information
  686  will increase the immediate danger to the public health, safety,
  687  or welfare or other substantial loss to the state. The agency
  688  shall furnish copies of all written determinations certified
  689  under oath and any other documents relating to the emergency
  690  action to the department. A copy of the written statement shall
  691  be furnished to the Chief Financial Officer with the voucher
  692  authorizing payment. The individual purchase of personal
  693  clothing, shelter, or supplies which are needed on an emergency
  694  basis to avoid institutionalization or placement in a more
  695  restrictive setting is an emergency for the purposes of this
  696  paragraph, and the filing with the department of such statement
  697  is not required in such circumstances. In the case of the
  698  emergency purchase of insurance, the period of coverage of such
  699  insurance may shall not exceed a period of 30 days, and all such
  700  emergency purchases shall be reported to the department.
  701         (b) The purchase is made by an agency from a state term
  702  contract procured, pursuant to this section, by the department
  703  or by an agency, after receiving approval from the department,
  704  from a contract procured, pursuant to subsection (1), by another
  705  agency.
  706         (c) Commodities or contractual services available only from
  707  a single source may be excepted from the competitive
  708  solicitation requirements. If When an agency believes that
  709  commodities or contractual services are available only from a
  710  single source, the agency shall electronically post a
  711  description of the commodities or contractual services sought
  712  for a period of at least 7 business days. The description must
  713  include a request that prospective vendors provide information
  714  regarding their ability to supply the commodities or contractual
  715  services described. If it is determined in writing by the
  716  agency, after reviewing any information received from
  717  prospective vendors, that the commodities or contractual
  718  services are available only from a single source, the agency
  719  shall:
  720         1. provide notice of its intended decision to enter a
  721  single-source purchase contract in the manner specified in s.
  722  120.57(3), if the amount of the contract does not exceed the
  723  threshold amount provided in s. 287.017 for CATEGORY FOUR.
  724         2. Request approval from the department for the single
  725  source purchase, if the amount of the contract exceeds the
  726  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
  727  agency shall initiate its request for approval in a form
  728  prescribed by the department, which request may be
  729  electronically transmitted. The failure of the department to
  730  approve or disapprove the agency’s request for approval within
  731  21 days after receiving such request shall constitute prior
  732  approval of the department. If the department approves the
  733  agency’s request, the agency shall provide notice of its
  734  intended decision to enter a single-source contract in the
  735  manner specified in s. 120.57(3).
  736         (d) When it is in the best interest of the state, the
  737  secretary of the department or his or her designee may authorize
  738  the Support Program to purchase insurance by negotiation, but
  739  such purchase shall be made only under conditions most favorable
  740  to the public interest.
  741         (d)(e) Prescriptive assistive devices for the purpose of
  742  medical, developmental, or vocational rehabilitation of clients
  743  are excepted from competitive-solicitation requirements and
  744  shall be procured pursuant to an established fee schedule or by
  745  any other method that which ensures the best price for the
  746  state, taking into consideration the needs of the client.
  747  Prescriptive assistive devices include, but are not limited to,
  748  prosthetics, orthotics, and wheelchairs. For purchases made
  749  pursuant to this paragraph, state agencies shall annually file
  750  with the department a description of the purchases and methods
  751  of procurement.
  752         (e)(f) The following contractual services and commodities
  753  are not subject to the competitive-solicitation requirements of
  754  this section:
  755         1. Artistic services. As used in For the purposes of this
  756  subsection, the term “artistic services” does not include
  757  advertising or typesetting. As used in this subparagraph, the
  758  term “advertising” means the making of a representation in any
  759  form in connection with a trade, business, craft, or profession
  760  in order to promote the supply of commodities or services by the
  761  person promoting the commodities or contractual services.
  762         2. Academic program reviews if the fee for such services
  763  does not exceed $50,000.
  764         3. Lectures by individuals.
  765         4. Legal services, including attorney, paralegal, expert
  766  witness, appraisal, or mediator services.
  767         5.a. Health services involving examination, diagnosis,
  768  treatment, prevention, medical consultation, or administration.
  769  The term also includes,
  770         b. Beginning January 1, 2011, health services, including,
  771  but is not limited to, substance abuse and mental health
  772  services, involving examination, diagnosis, treatment,
  773  prevention, or medical consultation if, when such services are
  774  offered to eligible individuals participating in a specific
  775  program that qualifies multiple providers and uses a standard
  776  payment methodology. Reimbursement of administrative costs for
  777  providers of services purchased in this manner are shall also be
  778  exempt. For purposes of this subparagraph sub-subparagraph, the
  779  term “providers” means health professionals and, health
  780  facilities, or organizations that deliver or arrange for the
  781  delivery of health services.
  782         6. Services provided to persons with mental or physical
  783  disabilities by not-for-profit corporations that which have
  784  obtained exemptions under the provisions of s. 501(c)(3) of the
  785  United States Internal Revenue Code or when such services are
  786  governed by the provisions of Office of Management and Budget
  787  Circular A-122. However, in acquiring such services, the agency
  788  shall consider the ability of the vendor, past performance,
  789  willingness to meet time requirements, and price.
  790         7. Medicaid services delivered to an eligible Medicaid
  791  recipient unless the agency is directed otherwise in law.
  792         8. Family placement services.
  793         9. Prevention services related to mental health, including
  794  drug abuse prevention programs, child abuse prevention programs,
  795  and shelters for runaways, operated by not-for-profit
  796  corporations. However, in acquiring such services, the agency
  797  shall consider the ability of the vendor, past performance,
  798  willingness to meet time requirements, and price.
  799         10. Training and education services provided to injured
  800  employees pursuant to s. 440.491(6).
  801         11. Contracts entered into pursuant to s. 337.11.
  802         12. Services or commodities provided by governmental
  803  entities agencies.
  804         13. Statewide public service announcement programs provided
  805  by a Florida statewide nonprofit corporation under s. 501(c)(6)
  806  of the Internal Revenue Code which have, with a guaranteed
  807  documented match of at least $3 to $1.
  808         (f)(g) Continuing education events or programs that are
  809  offered to the general public and for which fees have been
  810  collected which that pay all expenses associated with the event
  811  or program are exempt from requirements for competitive
  812  solicitation.
  813         (10) A contract for commodities or contractual services may
  814  be awarded without competition if state or federal law
  815  prescribes with whom the agency must contract or if the rate of
  816  payment or the recipient of the funds is established during the
  817  appropriations process.
  818         (12) Extension of a contract for commodities or contractual
  819  services must shall be in writing for a period not to exceed 6
  820  months and is shall be subject to the same terms and conditions
  821  set forth in the initial contract and any written amendments
  822  signed by the parties. There may shall be only one extension of
  823  a contract unless the failure to meet the criteria set forth in
  824  the contract for completion of the contract is due to events
  825  beyond the control of the contractor.
  826         (13) Contracts for commodities or contractual services may
  827  be renewed for a period that may not exceed 3 years or the term
  828  of the original contract, whichever period is longer. Renewal of
  829  a contract for commodities or contractual services must shall be
  830  in writing and is shall be subject to the same terms and
  831  conditions set forth in the initial contract and any written
  832  amendments signed by the parties. If the commodity or
  833  contractual service is purchased as a result of the solicitation
  834  of bids, proposals, or replies, the price of the commodity or
  835  contractual service to be renewed must shall be specified in the
  836  bid, proposal, or reply, except that an agency may negotiate
  837  lower pricing. A renewal contract may not include any
  838  compensation for costs associated with the renewal. Renewals are
  839  shall be contingent upon satisfactory performance evaluations by
  840  the agency and subject to the availability of funds. Exceptional
  841  purchase contracts pursuant to paragraphs (3)(a) and (c) may not
  842  be renewed. With the exception of subsection (10) (12), if a
  843  contract amendment results in a longer contract term or
  844  increased payments, a state agency may not renew or amend a
  845  contract for the outsourcing of a service or activity that has
  846  an original term value exceeding the sum of $10 million before
  847  submitting a written report concerning contract performance to
  848  the Governor, the President of the Senate, and the Speaker of
  849  the House of Representatives at least 90 days before execution
  850  of the renewal or amendment.
  851         (16)(a) For a contract in excess of the threshold amount
  852  provided in s. 287.017 for CATEGORY FOUR, the agency head shall
  853  appoint:
  854         1.(a) At least three persons to evaluate proposals and
  855  replies who collectively have experience and knowledge in the
  856  program areas and service requirements for which commodities or
  857  contractual services are sought.
  858         2.(b) At least three persons to conduct negotiations during
  859  a competitive sealed reply procurement who collectively have
  860  experience and knowledge in negotiating contracts, contract
  861  procurement, and the program areas and service requirements for
  862  which commodities or contractual services are sought.
  863         (b) If When the value of a contract is in excess of $1
  864  million in any fiscal year, at least one of the persons
  865  conducting negotiations must be certified as a contract
  866  negotiator based upon department rules adopted by the Department
  867  of Management Services in order to ensure that certified
  868  contract negotiators are knowledgeable about effective
  869  negotiation strategies, capable of successfully implementing
  870  those strategies, and involved appropriately in the procurement
  871  process. At a minimum, the rules must address the qualifications
  872  required for certification, the method of certification, and the
  873  procedure for involving the certified negotiator. If the value
  874  of a contract is in excess of $10 million in any fiscal year, at
  875  least one of the persons conducting negotiations must be a
  876  Project Management Professional, as certified by the Project
  877  Management Institute.
  878         (22) The department, in consultation with the Chief
  879  Financial Officer Agency for Enterprise Information Technology
  880  and the Comptroller, shall maintain develop a program for online
  881  procurement of commodities and contractual services. To enable
  882  the state to promote open competition and to leverage its buying
  883  power, agencies shall participate in the online procurement
  884  program, and eligible users may participate in the program. Only
  885  vendors prequalified as meeting mandatory requirements and
  886  qualifications criteria may participate in online procurement.
  887         (a) The department, in consultation with the agency, may
  888  contract for equipment and services necessary to develop and
  889  implement online procurement.
  890         (b) The department, in consultation with the agency, shall
  891  adopt rules, pursuant to ss. 120.536(1) and 120.54, to
  892  administer the program for online procurement. The rules must
  893  shall include, but not be limited to:
  894         1. Determining the requirements and qualification criteria
  895  for prequalifying vendors.
  896         2. Establishing the procedures for conducting online
  897  procurement.
  898         3. Establishing the criteria for eligible commodities and
  899  contractual services.
  900         4. Establishing the procedures for providing access to
  901  online procurement.
  902         5. Determining the criteria warranting any exceptions to
  903  participation in the online procurement program.
  904         (c) The department may impose and shall collect all fees
  905  for the use of the online procurement systems.
  906         1. The fees may be imposed on an individual transaction
  907  basis or as a fixed percentage of the cost savings generated. At
  908  a minimum, the fees must be set in an amount sufficient to cover
  909  the projected costs of the services, including administrative
  910  and project service costs in accordance with the policies of the
  911  department.
  912         2. If the department contracts with a provider for online
  913  procurement, the department, pursuant to appropriation, shall
  914  compensate the provider from the fees after the department has
  915  satisfied all ongoing costs. The provider shall report
  916  transaction data to the department each month so that the
  917  department may determine the amount due and payable to the
  918  department from each vendor.
  919         3. All fees that are due and payable to the state on a
  920  transactional basis or as a fixed percentage of the cost savings
  921  generated are subject to s. 215.31 and must be remitted within
  922  40 days after receipt of payment for which the fees are due. For
  923  fees that are not remitted within 40 days, the vendor shall pay
  924  interest at the rate established under s. 55.03(1) on the unpaid
  925  balance from the expiration of the 40-day period until the fees
  926  are remitted.
  927         4. All fees and surcharges collected under this paragraph
  928  shall be deposited in the Operating Trust Fund as provided by
  929  law.
  930         Section 10. Effective December 1, 2014, subsection (14) of
  931  section 287.057, Florida Statutes, is amended to read:
  932         287.057 Procurement of commodities or contractual
  933  services.—
  934         (14) For each contractual services contract, the agency
  935  shall designate an employee to function as contract manager who
  936  is shall be responsible for enforcing performance of the
  937  contract terms and conditions and serve as a liaison with the
  938  contractor.
  939         (a) Each contract manager who is responsible for contracts
  940  in excess of the threshold amount for CATEGORY TWO must, at a
  941  minimum, complete attend training conducted by the Chief
  942  Financial Officer for accountability in contracts and grant
  943  management. The Chief Financial Officer shall establish and
  944  disseminate uniform procedures pursuant to s. 17.03(3) to ensure
  945  that contractual services have been rendered in accordance with
  946  the contract terms before the agency processes the invoice for
  947  payment. The procedures must shall include, but need not be
  948  limited to, procedures for monitoring and documenting contractor
  949  performance, reviewing and documenting all deliverables for
  950  which payment is requested by vendors, and providing written
  951  certification by contract managers of the agency’s receipt of
  952  goods and services.
  953         (b) Each contract manager who is responsible for contracts
  954  in excess of $100,000 annually must complete training in
  955  contract management and become a certified contract manager. The
  956  department is responsible for establishing and disseminating the
  957  requirements for certification which include completing the
  958  training conducted by the Chief Financial Officer for
  959  accountability in contracts and grant management. Training and
  960  certification must be coordinated by the department, and the
  961  training must be conducted jointly by the department and the
  962  Department of Financial Services. Training must promote best
  963  practices and procedures related to negotiating, managing, and
  964  ensuring accountability in agency contracts and grant
  965  agreements, which must include the use of case studies based
  966  upon previous audits, contracts, and grant agreements. All
  967  agency contract managers must become certified within 24 months
  968  after establishment of the training and certification
  969  requirements by the department and the Department of Financial
  970  Services.
  971         Section 11. Paragraph (a) of subsection (3) of section
  972  287.0571, Florida Statutes, is amended to read:
  973         287.0571 Business case to outsource; applicability.—
  974         (3) This section does not apply to:
  975         (a) A procurement of commodities and contractual services
  976  listed in s. 287.057(3)(d) and (e) 287.057(3)(e), (f), and (g)
  977  and (21).
  978         Section 12. Subsections (1), (2), and (5) of section
  979  287.058, Florida Statutes, are amended, and subsection (7) is
  980  added to that section, to read:
  981         287.058 Contract document.—
  982         (1) Every procurement of contractual services in excess of
  983  the threshold amount provided in s. 287.017 for CATEGORY TWO,
  984  except for the providing of health and mental health services or
  985  drugs in the examination, diagnosis, or treatment of sick or
  986  injured state employees or the providing of other benefits as
  987  required by the provisions of chapter 440, shall be evidenced by
  988  a written agreement embodying all provisions and conditions of
  989  the procurement of such services, which shall, where applicable,
  990  include, but not be limited to, a provision:
  991         (a) That bills for fees or other compensation for services
  992  or expenses be submitted in detail sufficient for a proper
  993  preaudit and postaudit thereof.
  994         (b) That bills for any travel expenses be submitted in
  995  accordance with s. 112.061. A state agency may establish rates
  996  lower than the maximum provided in s. 112.061.
  997         (c) Allowing unilateral cancellation by the agency for
  998  refusal by the contractor to allow public access to all
  999  documents, papers, letters, or other material made or received
 1000  by the contractor in conjunction with the contract, unless the
 1001  records are exempt from s. 24(a) of Art. I of the State
 1002  Constitution and s. 119.07(1).
 1003         (d) Specifying a scope of work that clearly establishes all
 1004  tasks the contractor is required to perform.
 1005         (e) Dividing the contract into quantifiable, measurable,
 1006  and verifiable units of deliverables that must be received and
 1007  accepted in writing by the contract manager before payment. Each
 1008  deliverable must be directly related to the scope of work and
 1009  specify a performance measure. As used in this paragraph, the
 1010  term “performance measure” means the required minimum acceptable
 1011  level of service to be performed and criteria for evaluating the
 1012  successful completion of each deliverable.
 1013         (f) Specifying the criteria and the final date by which
 1014  such criteria must be met for completion of the contract.
 1015         (g) Specifying that the contract may be renewed for a
 1016  period that may not exceed 3 years or the term of the original
 1017  contract, whichever period is longer, specifying the renewal
 1018  price for the contractual service as set forth in the bid,
 1019  proposal, or reply, specifying that costs for the renewal may
 1020  not be charged, and specifying that renewals are shall be
 1021  contingent upon satisfactory performance evaluations by the
 1022  agency and subject to the availability of funds. Exceptional
 1023  purchase contracts pursuant to s. 287.057(3)(a) and (c) may not
 1024  be renewed.
 1025         (h) Specifying the financial consequences that the agency
 1026  must apply if the contractor fails to perform in accordance with
 1027  the contract.
 1028         (i) Addressing the property rights of any intellectual
 1029  property related to the contract and the specific rights of the
 1030  state regarding the intellectual property if the contractor
 1031  fails to provide the services or is no longer providing
 1032  services.
 1033  
 1034  In lieu of a written agreement, the agency department may
 1035  authorize the use of a purchase order for classes of contractual
 1036  services, if the provisions of paragraphs (a)-(i) are included
 1037  in the purchase order or solicitation. The purchase order must
 1038  include, but need not be limited to, an adequate description of
 1039  the services, the contract period, and the method of payment. In
 1040  lieu of printing the provisions of paragraphs (a)-(c) and (g)
 1041  (a)-(i) in the contract document or purchase order, agencies may
 1042  incorporate the requirements of paragraphs (a)-(c) and (g) (a)
 1043  (i) by reference.
 1044         (2) The written agreement shall be signed by the agency
 1045  head or designee and the contractor before prior to the
 1046  rendering of any contractual service the value of which is in
 1047  excess of the threshold amount provided in s. 287.017 for
 1048  CATEGORY TWO, except in the case of a valid emergency as
 1049  certified by the agency head. The written statement
 1050  certification of an emergency must shall be prepared within 30
 1051  days after the contractor begins rendering the service and must
 1052  shall state the particular facts and circumstances which
 1053  precluded the execution of the written agreement before prior to
 1054  the rendering of the service. If the agency fails to have the
 1055  contract signed by the agency head or designee and the
 1056  contractor before prior to rendering the contractual service,
 1057  and if an emergency does not exist, the agency head shall,
 1058  within no later than 30 days after the contractor begins
 1059  rendering the service, certify the specific conditions and
 1060  circumstances to the department as well as describe actions
 1061  taken to prevent recurrence of such noncompliance. The agency
 1062  head may delegate the written statement certification only to
 1063  other senior management agency personnel. A copy of the written
 1064  statement certification shall be furnished to the Chief
 1065  Financial Officer with the voucher authorizing payment. The
 1066  department shall report repeated instances of noncompliance by
 1067  an agency to the Auditor General. Nothing in This subsection
 1068  does not shall be deemed to authorize additional compensation
 1069  prohibited under by s. 215.425. The procurement of contractual
 1070  services may shall not be divided so as to avoid the provisions
 1071  of this section.
 1072         (5) Unless otherwise provided in the General Appropriations
 1073  Act or the substantive bill implementing the General
 1074  Appropriations Act, the Chief Financial Officer may waive the
 1075  requirements of this section for services which are included in
 1076  s. 287.057(3)(e) 287.057(3)(f).
 1077         (7) The Chief Financial Officer may audit a contract
 1078  subject to this chapter before the execution of such contract in
 1079  accordance with rules adopted by the Department of Financial
 1080  Services. The audit must ensure that applicable laws have been
 1081  met; that the contract document contains a clear statement of
 1082  work, quantifiable and measurable deliverables, performance
 1083  measures, financial consequences for nonperformance, and clear
 1084  terms and conditions that protect the interests of the state;
 1085  and that the associated costs of the contract are not
 1086  unreasonable or inappropriate. The audit must ensure that all
 1087  contracting laws have been met and that documentation is
 1088  available to support the contract. A contract that does not
 1089  comply with this section may be returned to the submitting
 1090  agency for revision.
 1091         (a) The Chief Financial Officer may establish dollar
 1092  thresholds and other criteria for sampling the contracts that
 1093  are to be audited before execution. The Chief Financial Officer
 1094  may revise such thresholds and other criteria for an agency or
 1095  unit of an agency as deemed appropriate.
 1096         (b) The Chief Financial Officer shall make a final
 1097  determination of any deficiencies in the contract within 10
 1098  business days after receipt of the proposed contract and shall
 1099  include information regarding the deficiencies in the audit
 1100  report provided to the agency entering into the contract. The
 1101  Chief Financial Officer and the agency entering into the
 1102  contract may agree to a longer review period. The agency is
 1103  responsible for addressing the deficiencies and shall have the
 1104  option to resubmit the contract for subsequent review before
 1105  execution. The Chief Financial Officer shall perform a
 1106  subsequent review to verify that all deficiencies have been
 1107  addressed upon processing the first payment.
 1108         Section 13. Section 287.136, Florida Statutes, is created
 1109  to read:
 1110         287.136Audit of executed contract documents.—The Chief
 1111  Financial Officer shall perform audits of an executed contract
 1112  documents and contract manager’s records to ensure that adequate
 1113  internal controls are in place for complying with the terms and
 1114  conditions of the contract and for the validation and receipt of
 1115  goods and services.
 1116         (1) At the conclusion of the audit, the Chief Financial
 1117  Officer’s designee shall discuss the audit and potential
 1118  findings with the official whose office is subject to audit. The
 1119  final audit report shall be submitted to the agency head.
 1120         (2) Within 30 days after the receipt of the final audit
 1121  report, the agency head shall submit to the Chief Financial
 1122  Officer or designee, his or her written statement of explanation
 1123  or rebuttal concerning findings requiring corrective action,
 1124  including corrective action to be taken to preclude a
 1125  recurrence.
 1126         Section 14. Section 287.076, Florida Statutes, is amended
 1127  to read:
 1128         287.076 Project Management Professionals training for
 1129  personnel involved in managing outsourcings and negotiations;
 1130  funding.—The department of Management Services may implement a
 1131  program to train state agency employees who are involved in
 1132  managing outsourcings as Project Management Professionals, as
 1133  certified by the Project Management Institute. For the 2006-2007
 1134  fiscal year, the sum of $500,000 in recurring funds from the
 1135  General Revenue Fund is appropriated to the Department of
 1136  Management Services to implement this program. Subject to annual
 1137  appropriations, the department of Management Services, in
 1138  consultation with entities subject to this part act, shall
 1139  identify personnel to participate in this training based on
 1140  requested need and ensure that each agency is represented. The
 1141  department of Management Services may remit payment for this
 1142  training on behalf of all participating personnel.
 1143         Section 15. Subsection (3) of section 16.0155, Florida
 1144  Statutes, is amended to read:
 1145         16.0155 Contingency fee agreements.—
 1146         (3) Notwithstanding the exemption provided in s.
 1147  287.057(3)(e), if the Attorney General makes the determination
 1148  described in subsection (2), he or she notwithstanding the
 1149  exemption provided in s. 287.057(3)(f), the Attorney General
 1150  shall request proposals from private attorneys to represent the
 1151  department on a contingency-fee basis, unless the Attorney
 1152  General determines in writing that requesting proposals is not
 1153  feasible under the circumstances. The written determination does
 1154  not constitute a final agency action subject to review pursuant
 1155  to ss. 120.569 and 120.57. For purposes of this subsection only,
 1156  the department is exempt from the requirements of s. 120.57(3),
 1157  and neither the request for proposals nor the contract award is
 1158  subject to challenge pursuant to ss. 120.569 and 120.57.
 1159         Section 16. Subsection (1) of section 283.33, Florida
 1160  Statutes, is amended to read:
 1161         283.33 Printing of publications; lowest bidder awards.—
 1162         (1) Publications may be printed and prepared in-house, by
 1163  another agency or the Legislature, or purchased on bid,
 1164  whichever is more economical and practicable as determined by
 1165  the agency. An agency may contract for binding separately when
 1166  more economical or practicable, whether or not the remainder of
 1167  the printing is done in-house. A vendor may subcontract for
 1168  binding and still be considered a responsible vendor as defined
 1169  in s. 287.012, notwithstanding s. 287.012(24).
 1170         Section 17. Subsection (3) of section 394.457, Florida
 1171  Statutes, is amended to read:
 1172         394.457 Operation and administration.—
 1173         (3) POWER TO CONTRACT.—The department may contract to
 1174  provide, and be provided with, services and facilities in order
 1175  to carry out its responsibilities under this part with the
 1176  following agencies: public and private hospitals; receiving and
 1177  treatment facilities; clinics; laboratories; departments,
 1178  divisions, and other units of state government; the state
 1179  colleges and universities; the community colleges; private
 1180  colleges and universities; counties, municipalities, and any
 1181  other governmental unit, including facilities of the United
 1182  States Government; and any other public or private entity which
 1183  provides or needs facilities or services. Baker Act funds for
 1184  community inpatient, crisis stabilization, short-term
 1185  residential treatment, and screening services must be allocated
 1186  to each county pursuant to the department’s funding allocation
 1187  methodology. Notwithstanding s. 287.057(3)(e) the provisions of
 1188  s. 287.057(3)(f), contracts for community-based Baker Act
 1189  services for inpatient, crisis stabilization, short-term
 1190  residential treatment, and screening provided under this part,
 1191  other than those with other units of government, to be provided
 1192  for the department must be awarded using competitive sealed bids
 1193  if when the county commission of the county receiving the
 1194  services makes a request to the department’s district office by
 1195  January 15 of the contracting year. The district may shall not
 1196  enter into a competitively bid contract under this provision if
 1197  such action will result in increases of state or local
 1198  expenditures for Baker Act services within the district.
 1199  Contracts for these Baker Act services using competitive sealed
 1200  bids are will be effective for 3 years. The department shall
 1201  adopt rules establishing minimum standards for such contracted
 1202  services and facilities and shall make periodic audits and
 1203  inspections to assure that the contracted services are provided
 1204  and meet the standards of the department.
 1205         Section 18. Paragraph (a) of subsection (2) of section
 1206  402.7305, Florida Statutes, is amended to read:
 1207         402.7305 Department of Children and Family Services;
 1208  procurement of contractual services; contract management.—
 1209         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
 1210         (a) Notwithstanding s. 287.057(3)(e)12. 287.057(3)(f)12.,
 1211  if whenever the department intends to contract with a public
 1212  postsecondary institution to provide a service, the department
 1213  must allow all public postsecondary institutions in this state
 1214  that are accredited by the Southern Association of Colleges and
 1215  Schools to bid on the contract. Thereafter, notwithstanding any
 1216  other provision of law to the contrary, if a public
 1217  postsecondary institution intends to subcontract for any service
 1218  awarded in the contract, the subcontracted service must be
 1219  procured by competitive procedures.
 1220         Section 19. Section 409.9132, Florida Statutes, is amended
 1221  to read:
 1222         409.9132 Pilot project to monitor home health services.—The
 1223  Agency for Health Care Administration shall expand the home
 1224  health agency monitoring pilot project in Miami-Dade County on a
 1225  statewide basis effective July 1, 2012, except in counties in
 1226  which the program is will not be cost-effective, as determined
 1227  by the agency. The agency shall contract with a vendor to verify
 1228  the utilization and delivery of home health services and provide
 1229  an electronic billing interface for home health services. The
 1230  contract must require the creation of a program to submit claims
 1231  electronically for the delivery of home health services. The
 1232  program must verify telephonically visits for the delivery of
 1233  home health services using voice biometrics. The agency may seek
 1234  amendments to the Medicaid state plan and waivers of federal
 1235  laws, as necessary, to implement or expand the pilot project.
 1236  Notwithstanding s. 287.057(3)(e) 287.057(3)(f), the agency must
 1237  award the contract through the competitive solicitation process
 1238  and may use the current contract to expand the home health
 1239  agency monitoring pilot project to include additional counties
 1240  as authorized under this section.
 1241         Section 20. Subsection (3) of section 427.0135, Florida
 1242  Statutes, is amended to read:
 1243         427.0135 Purchasing agencies; duties and responsibilities.
 1244  Each purchasing agency, in carrying out the policies and
 1245  procedures of the commission, shall:
 1246         (3) Not procure transportation disadvantaged services
 1247  without initially negotiating with the commission, as provided
 1248  in s. 287.057(3)(e)12. 287.057(3)(f)12., or unless otherwise
 1249  authorized by statute. If the purchasing agency, after
 1250  consultation with the commission, determines that it cannot
 1251  reach mutually acceptable contract terms with the commission,
 1252  the purchasing agency may contract for the same transportation
 1253  services provided in a more cost-effective manner and of
 1254  comparable or higher quality and standards. The Medicaid agency
 1255  shall implement this subsection in a manner consistent with s.
 1256  409.908(18) and as otherwise limited or directed by the General
 1257  Appropriations Act.
 1258         Section 21. Paragraph (c) of subsection (5) of section
 1259  445.024, Florida Statutes, is amended to read:
 1260         445.024 Work requirements.—
 1261         (5) USE OF CONTRACTS.—Regional workforce boards shall
 1262  provide work activities, training, and other services, as
 1263  appropriate, through contracts. In contracting for work
 1264  activities, training, or services, the following applies:
 1265         (c) Notwithstanding the exemption from the competitive
 1266  sealed bid requirements provided in s. 287.057(3)(e)
 1267  287.057(3)(f) for certain contractual services, each contract
 1268  awarded under this chapter must be awarded on the basis of a
 1269  competitive sealed bid, except for a contract with a
 1270  governmental entity as determined by the regional workforce
 1271  board.
 1272         Section 22. Paragraph (c) of subsection (5) of section
 1273  627.311, Florida Statutes, is amended to read:
 1274         627.311 Joint underwriters and joint reinsurers; public
 1275  records and public meetings exemptions.—
 1276         (5)
 1277         (c) The operation of the plan shall be governed by a plan
 1278  of operation that is prepared at the direction of the board of
 1279  governors and approved by order of the office. The plan is
 1280  subject to continuous review by the office. The office may, by
 1281  order, withdraw approval of all or part of a plan if the office
 1282  determines that conditions have changed since approval was
 1283  granted and that the purposes of the plan require changes in the
 1284  plan. The plan of operation must shall:
 1285         1. Authorize the board to engage in the activities
 1286  necessary to implement this subsection, including, but not
 1287  limited to, borrowing money.
 1288         2. Develop criteria for eligibility for coverage by the
 1289  plan, including, but not limited to, documented rejection by at
 1290  least two insurers which reasonably assures that insureds
 1291  covered under the plan are unable to acquire coverage in the
 1292  voluntary market.
 1293         3. Require notice from the agent to the insured at the time
 1294  of the application for coverage that the application is for
 1295  coverage with the plan and that coverage may be available
 1296  through an insurer, group self-insurers’ fund, commercial self
 1297  insurance fund, or assessable mutual insurer through another
 1298  agent at a lower cost.
 1299         4. Establish programs to encourage insurers to provide
 1300  coverage to applicants of the plan in the voluntary market and
 1301  to insureds of the plan, including, but not limited to:
 1302         a. Establishing procedures for an insurer to use in
 1303  notifying the plan of the insurer’s desire to provide coverage
 1304  to applicants to the plan or existing insureds of the plan and
 1305  in describing the types of risks in which the insurer is
 1306  interested. The description of the desired risks must be on a
 1307  form developed by the plan.
 1308         b. Developing forms and procedures that provide an insurer
 1309  with the information necessary to determine whether the insurer
 1310  wants to write particular applicants to the plan or insureds of
 1311  the plan.
 1312         c. Developing procedures for notice to the plan and the
 1313  applicant to the plan or insured of the plan that an insurer
 1314  will insure the applicant or the insured of the plan, and notice
 1315  of the cost of the coverage offered; and developing procedures
 1316  for the selection of an insuring entity by the applicant or
 1317  insured of the plan.
 1318         d. Provide for a market-assistance plan to assist in the
 1319  placement of employers. All applications for coverage in the
 1320  plan received 45 days before the effective date for coverage
 1321  shall be processed through the market-assistance plan. A market
 1322  assistance plan specifically designed to serve the needs of
 1323  small, good policyholders as defined by the board must be
 1324  reviewed and updated periodically.
 1325         5. Provide for policy and claims services to the insureds
 1326  of the plan of the nature and quality provided for insureds in
 1327  the voluntary market.
 1328         6. Provide for the review of applications for coverage with
 1329  the plan for reasonableness and accuracy, using any available
 1330  historic information regarding the insured.
 1331         7. Provide for procedures for auditing insureds of the plan
 1332  which are based on reasonable business judgment and are designed
 1333  to maximize the likelihood that the plan will collect the
 1334  appropriate premiums.
 1335         8. Authorize the plan to terminate the coverage of and
 1336  refuse future coverage for any insured that submits a fraudulent
 1337  application to the plan or provides fraudulent or grossly
 1338  erroneous records to the plan or to any service provider of the
 1339  plan in conjunction with the activities of the plan.
 1340         9. Establish service standards for agents who submit
 1341  business to the plan.
 1342         10. Establish criteria and procedures to prohibit any agent
 1343  who does not adhere to the established service standards from
 1344  placing business with the plan or receiving, directly or
 1345  indirectly, any commissions for business placed with the plan.
 1346         11. Provide for the establishment of reasonable safety
 1347  programs for all insureds in the plan. All insureds of the plan
 1348  must participate in the safety program.
 1349         12. Authorize the plan to terminate the coverage of and
 1350  refuse future coverage to any insured who fails to pay premiums
 1351  or surcharges when due; who, at the time of application, is
 1352  delinquent in payments of workers’ compensation or employer’s
 1353  liability insurance premiums or surcharges owed to an insurer,
 1354  group self-insurers’ fund, commercial self-insurance fund, or
 1355  assessable mutual insurer licensed to write such coverage in
 1356  this state; or who refuses to substantially comply with any
 1357  safety programs recommended by the plan.
 1358         13. Authorize the board of governors to provide the goods
 1359  and services required by the plan through staff employed by the
 1360  plan, through reasonably compensated service providers who
 1361  contract with the plan to provide services as specified by the
 1362  board of governors, or through a combination of employees and
 1363  service providers.
 1364         a. Purchases that equal or exceed $2,500 but are less than
 1365  or equal to $25,000, shall be made by receipt of written quotes,
 1366  telephone quotes, or informal bids, if whenever practical. The
 1367  procurement of goods or services valued over $25,000 is subject
 1368  to competitive solicitation, except in situations in which the
 1369  goods or services are provided by a sole source or are deemed an
 1370  emergency purchase, or the services are exempted from
 1371  competitive-solicitation requirements under s. 287.057(3)(e)
 1372  287.057(3)(f). Justification for the sole-sourcing or emergency
 1373  procurement must be documented. Contracts for goods or services
 1374  valued at or over $100,000 are subject to board approval.
 1375         b. The board shall determine whether it is more cost
 1376  effective and in the best interests of the plan to use legal
 1377  services provided by in-house attorneys employed by the plan
 1378  rather than contracting with outside counsel. In making such
 1379  determination, the board shall document its findings and shall
 1380  consider the expertise needed; whether time commitments exceed
 1381  in-house staff resources; whether local representation is
 1382  needed; the travel, lodging, and other costs associated with in
 1383  house representation; and such other factors that the board
 1384  determines are relevant.
 1385         14. Provide for service standards for service providers,
 1386  methods of determining adherence to those service standards,
 1387  incentives and disincentives for service, and procedures for
 1388  terminating contracts for service providers that fail to adhere
 1389  to service standards.
 1390         15. Provide procedures for selecting service providers and
 1391  standards for qualification as a service provider that
 1392  reasonably assure that any service provider selected will
 1393  continue to operate as an ongoing concern and is capable of
 1394  providing the specified services in the manner required.
 1395         16. Provide for reasonable accounting and data-reporting
 1396  practices.
 1397         17. Provide for annual review of costs associated with the
 1398  administration and servicing of the policies issued by the plan
 1399  to determine alternatives by which costs can be reduced.
 1400         18. Authorize the acquisition of such excess insurance or
 1401  reinsurance as is consistent with the purposes of the plan.
 1402         19. Provide for an annual report to the office on a date
 1403  specified by the office and containing such information as the
 1404  office reasonably requires.
 1405         20. Establish multiple rating plans for various
 1406  classifications of risk which reflect risk of loss, hazard
 1407  grade, actual losses, size of premium, and compliance with loss
 1408  control. At least one of such plans must be a preferred-rating
 1409  plan to accommodate small-premium policyholders with good
 1410  experience as defined in sub-subparagraph 22.a.
 1411         21. Establish agent commission schedules.
 1412         22. For employers otherwise eligible for coverage under the
 1413  plan, establish three tiers of employers meeting the criteria
 1414  and subject to the rate limitations specified in this
 1415  subparagraph.
 1416         a. Tier One.—
 1417         (I) Criteria; rated employers.—An employer that has an
 1418  experience modification rating shall be included in Tier One if
 1419  the employer meets all of the following:
 1420         (A) The experience modification is below 1.00.
 1421         (B) The employer had no lost-time claims subsequent to the
 1422  applicable experience modification rating period.
 1423         (C) The total of the employer’s medical-only claims
 1424  subsequent to the applicable experience modification rating
 1425  period did not exceed 20 percent of premium.
 1426         (II) Criteria; non-rated employers.—An employer that does
 1427  not have an experience modification rating shall be included in
 1428  Tier One if the employer meets all of the following:
 1429         (A) The employer had no lost-time claims for the 3-year
 1430  period immediately preceding the inception date or renewal date
 1431  of the employer’s coverage under the plan.
 1432         (B) The total of the employer’s medical-only claims for the
 1433  3-year period immediately preceding the inception date or
 1434  renewal date of the employer’s coverage under the plan did not
 1435  exceed 20 percent of premium.
 1436         (C) The employer has secured workers’ compensation coverage
 1437  for the entire 3-year period immediately preceding the inception
 1438  date or renewal date of the employer’s coverage under the plan.
 1439         (D) The employer is able to provide the plan with a loss
 1440  history generated by the employer’s prior workers’ compensation
 1441  insurer, except if the employer is not able to produce a loss
 1442  history due to the insolvency of an insurer, the receiver shall
 1443  provide to the plan, upon the request of the employer or the
 1444  employer’s agent, a copy of the employer’s loss history from the
 1445  records of the insolvent insurer if the loss history is
 1446  contained in records of the insurer which are in the possession
 1447  of the receiver. If the receiver is unable to produce the loss
 1448  history, the employer may, in lieu of the loss history, submit
 1449  an affidavit from the employer and the employer’s insurance
 1450  agent setting forth the loss history.
 1451         (E) The employer is not a new business.
 1452         (III) Premiums.—The premiums for Tier One insureds shall be
 1453  set at a premium level 25 percent above the comparable voluntary
 1454  market premiums until the plan has sufficient experience as
 1455  determined by the board to establish an actuarially sound rate
 1456  for Tier One, at which point the board shall, subject to
 1457  paragraph (e), adjust the rates, if necessary, to produce
 1458  actuarially sound rates, provided such rate adjustment shall not
 1459  take effect prior to January 1, 2007.
 1460         b. Tier Two.—
 1461         (I) Criteria; rated employers.—An employer that has an
 1462  experience modification rating shall be included in Tier Two if
 1463  the employer meets all of the following:
 1464         (A) The experience modification is equal to or greater than
 1465  1.00 but not greater than 1.10.
 1466         (B) The employer had no lost-time claims subsequent to the
 1467  applicable experience modification rating period.
 1468         (C) The total of the employer’s medical-only claims
 1469  subsequent to the applicable experience modification rating
 1470  period did not exceed 20 percent of premium.
 1471         (II) Criteria; non-rated employers.—An employer that does
 1472  not have any experience modification rating shall be included in
 1473  Tier Two if the employer is a new business. An employer shall be
 1474  included in Tier Two if the employer has less than 3 years of
 1475  loss experience in the 3-year period immediately preceding the
 1476  inception date or renewal date of the employer’s coverage under
 1477  the plan and the employer meets all of the following:
 1478         (A) The employer had no lost-time claims for the 3-year
 1479  period immediately preceding the inception date or renewal date
 1480  of the employer’s coverage under the plan.
 1481         (B) The total of the employer’s medical-only claims for the
 1482  3-year period immediately preceding the inception date or
 1483  renewal date of the employer’s coverage under the plan did not
 1484  exceed 20 percent of premium.
 1485         (C) The employer is able to provide the plan with a loss
 1486  history generated by the workers’ compensation insurer that
 1487  provided coverage for the portion or portions of such period
 1488  during which the employer had secured workers’ compensation
 1489  coverage, except if the employer is not able to produce a loss
 1490  history due to the insolvency of an insurer, the receiver shall
 1491  provide to the plan, upon the request of the employer or the
 1492  employer’s agent, a copy of the employer’s loss history from the
 1493  records of the insolvent insurer if the loss history is
 1494  contained in records of the insurer which are in the possession
 1495  of the receiver. If the receiver is unable to produce the loss
 1496  history, the employer may, in lieu of the loss history, submit
 1497  an affidavit from the employer and the employer’s insurance
 1498  agent setting forth the loss history.
 1499         (III) Premiums.—The premiums for Tier Two insureds shall be
 1500  set at a rate level 50 percent above the comparable voluntary
 1501  market premiums until the plan has sufficient experience as
 1502  determined by the board to establish an actuarially sound rate
 1503  for Tier Two, at which point the board shall, subject to
 1504  paragraph (e), adjust the rates, if necessary, to produce
 1505  actuarially sound rates, provided such rate adjustment shall not
 1506  take effect prior to January 1, 2007.
 1507         c. Tier Three.—
 1508         (I) Eligibility.—An employer shall be included in Tier
 1509  Three if the employer does not meet the criteria for Tier One or
 1510  Tier Two.
 1511         (II) Rates.—The board shall establish, subject to paragraph
 1512  (e), and the plan shall charge, actuarially sound rates for Tier
 1513  Three insureds.
 1514         23. For Tier One or Tier Two employers which employ no
 1515  nonexempt employees or which report payroll which is less than
 1516  the minimum wage hourly rate for one full-time employee for 1
 1517  year at 40 hours per week, the plan shall establish actuarially
 1518  sound premiums, provided, however, that the premiums may not
 1519  exceed $2,500. These premiums shall be in addition to the fee
 1520  specified in subparagraph 26. When the plan establishes
 1521  actuarially sound rates for all employers in Tier One and Tier
 1522  Two, the premiums for employers referred to in this paragraph
 1523  are no longer subject to the $2,500 cap.
 1524         24. Provide for a depopulation program to reduce the number
 1525  of insureds in the plan. If an employer insured through the plan
 1526  is offered coverage from a voluntary market carrier:
 1527         a. During the first 30 days of coverage under the plan;
 1528         b. Before a policy is issued under the plan;
 1529         c. By issuance of a policy upon expiration or cancellation
 1530  of the policy under the plan; or
 1531         d. By assumption of the plan’s obligation with respect to
 1532  an in-force policy,
 1533  
 1534  that employer is no longer eligible for coverage through the
 1535  plan. The premium for risks assumed by the voluntary market
 1536  carrier must be no greater than the premium the insured would
 1537  have paid under the plan, and shall be adjusted upon renewal to
 1538  reflect changes in the plan rates and the tier for which the
 1539  insured would qualify as of the time of renewal. The insured may
 1540  be charged such premiums only for the first 3 years of coverage
 1541  in the voluntary market. A premium under this subparagraph is
 1542  deemed approved and is not an excess premium for purposes of s.
 1543  627.171.
 1544         25. Require that policies issued and applications must
 1545  include a notice that the policy could be replaced by a policy
 1546  issued from a voluntary market carrier and that, if an offer of
 1547  coverage is obtained from a voluntary market carrier, the
 1548  policyholder is no longer eligible for coverage through the
 1549  plan. The notice must also specify that acceptance of coverage
 1550  under the plan creates a conclusive presumption that the
 1551  applicant or policyholder is aware of this potential.
 1552         26. Require that each application for coverage and each
 1553  renewal premium be accompanied by a nonrefundable fee of $475 to
 1554  cover costs of administration and fraud prevention. The board
 1555  may, with the prior approval of the office, increase the amount
 1556  of the fee pursuant to a rate filing to reflect increased costs
 1557  of administration and fraud prevention. The fee is not subject
 1558  to commission and is fully earned upon commencement of coverage.
 1559         Section 23. Paragraph (e) of subsection (6) of section
 1560  627.351, Florida Statutes, is amended to read:
 1561         627.351 Insurance risk apportionment plans.—
 1562         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 1563         (e) Purchases that equal or exceed $2,500, but are less
 1564  than $25,000, shall be made by receipt of written quotes,
 1565  written record of telephone quotes, or informal bids, if
 1566  whenever practical. The procurement of goods or services valued
 1567  at or over $25,000 is shall be subject to competitive
 1568  solicitation, except in situations where the goods or services
 1569  are provided by a sole source or are deemed an emergency
 1570  purchase; the services are exempted from competitive
 1571  solicitation requirements under s. 287.057(3)(e) 287.057(3)(f);
 1572  or the procurement of services is subject to s. 627.3513.
 1573  Justification for the sole-sourcing or emergency procurement
 1574  must be documented. Contracts for goods or services valued at or
 1575  over $100,000 are subject to approval by the board.
 1576         Section 24. Subsection (2) of section 765.5155, Florida
 1577  Statutes, is amended to read:
 1578         765.5155 Donor registry; education program.—
 1579         (2) The agency and the department shall jointly contract
 1580  for the operation of a donor registry and education program. The
 1581  contractor shall be procured by competitive solicitation
 1582  pursuant to chapter 287, notwithstanding an any exemption under
 1583  in s. 287.057(3)(e) 287.057(3)(f). When awarding the contract,
 1584  priority shall be given to existing nonprofit groups that are
 1585  based within the state, have expertise working with procurement
 1586  organizations, have expertise in conducting statewide organ and
 1587  tissue donor public education campaigns, and represent the needs
 1588  of the organ and tissue donation community in the state.
 1589         Section 25. Subsection (10) of section 893.055, Florida
 1590  Statutes, is amended to read:
 1591         893.055 Prescription drug monitoring program.—
 1592         (10) All costs incurred by the department in administering
 1593  the prescription drug monitoring program shall be funded through
 1594  federal grants or private funding applied for or received by the
 1595  state. The department may not commit funds for the monitoring
 1596  program without ensuring funding is available. The prescription
 1597  drug monitoring program and the implementation thereof are
 1598  contingent upon receipt of the nonstate funding. The department
 1599  and state government shall cooperate with the direct-support
 1600  organization established pursuant to subsection (11) in seeking
 1601  federal grant funds, other nonstate grant funds, gifts,
 1602  donations, or other private moneys for the department if so long
 1603  as the costs of doing so are not considered material.
 1604  Nonmaterial costs for this purpose include, but are not limited
 1605  to, the costs of mailing and personnel assigned to research or
 1606  apply for a grant. Notwithstanding the exemptions to
 1607  competitive-solicitation requirements under s. 287.057(3)(e)
 1608  287.057(3)(f), the department shall comply with the competitive
 1609  solicitation requirements under s. 287.057 for the procurement
 1610  of any goods or services required by this section. Funds
 1611  provided, directly or indirectly, by prescription drug
 1612  manufacturers may not be used to implement the program.
 1613         Section 26. Except as otherwise expressly provided in this
 1614  act, this act shall take effect July 1, 2013.