Florida Senate - 2021                      CS for CS for SB 1570
       
       
        
       By the Committees on Appropriations; and Governmental Oversight
       and Accountability; and Senator Rodriguez
       
       
       
       
       576-04204-21                                          20211570c2
    1                        A bill to be entitled                      
    2         An act relating to quasi-public entities; creating s.
    3         20.059, F.S.; defining terms; requiring the Governor
    4         to specify affiliated departments for certain quasi
    5         public entities by a certain date; providing
    6         requirements for the affiliated departments; providing
    7         requirements for a law creating a quasi-public entity;
    8         requiring a quasi-public entity to submit an annual
    9         report that includes certain information to the
   10         Governor, the Legislature, and its affiliated
   11         department by a certain date; requiring a quasi-public
   12         entity to maintain a website that includes certain
   13         information; prohibiting a quasi-public entity from
   14         using public funds to retain a lobbyist; authorizing
   15         certain employees of a quasi-public entity to register
   16         as a lobbyist and represent the quasi-public entity;
   17         prohibiting a quasi-public entity from creating an
   18         entity separate from itself, unless specifically
   19         authorized by law; requiring that meetings of the
   20         quasi-public entity’s governing body be video
   21         recorded; prohibiting an executive director or similar
   22         officer of a quasi-public entity from certain
   23         involvement with the entity’s governing body;
   24         requiring the Auditor General to compile a list of
   25         quasi-public entities and submit the list to the
   26         Governor, the Legislature, and the Legislative
   27         Auditing Committee by a specified date; requiring the
   28         Legislative Auditing Committee to establish a process
   29         for random selection of quasi-public entities to
   30         undergo operational audits; providing exceptions to
   31         the audit process for certain entities; amending s.
   32         215.985, F.S.; defining the term “quasi-public
   33         entity”; requiring the Department of Management
   34         Services to provide certain information relating to
   35         quasi-public entity employees or officers on a
   36         website; requiring such information to be searchable
   37         in a certain manner; requiring a quasi-public entity
   38         to post and update certain information on the secure
   39         contract tracking system established and maintained by
   40         the Chief Financial Officer; requiring a quasi-public
   41         entity to redact certain information; providing that
   42         the Chief Financial Officer, the Department of
   43         Financial Services, and officers, employees, and
   44         contractors thereof are not responsible for redacting,
   45         and are not liable for the failure to redact, certain
   46         information posted on the secure contract tracking
   47         system by a quasi-public entity; providing that the
   48         posting of certain information does not supersede the
   49         duty of a quasi-public entity to respond to certain
   50         requests or subpoenas; providing that certain actions
   51         by the Chief Financial Officer do not supersede the
   52         duty of a quasi-public entity to provide certain
   53         records upon request; revising and providing
   54         definitions; providing an effective date.
   55          
   56  Be It Enacted by the Legislature of the State of Florida:
   57  
   58         Section 1. Section 20.059, Florida Statutes, is created to
   59  read:
   60         20.059Quasi-public entities.—
   61         (1)As used in this section, the term:
   62         (a)“Governmental entity” means a state, regional, county,
   63  municipal, or special district entity or any other political
   64  subdivision, whether executive, judicial, or legislative,
   65  including, but not limited to, a department, a division, a
   66  bureau, a commission, an authority, a district, or an agency
   67  thereof, or a public school, a Florida College System
   68  institution, a state university, or an associated board.
   69         (b)“Operational audit” has the same meaning as in s.
   70  11.45.
   71         (c)“Quasi-public entity” means an entity with statewide
   72  application, other than a governmental entity, established by
   73  general law, regardless of form, for a public purpose or to
   74  effectuate a government program, which is not under the direct
   75  control of a governmental entity. The term does not include a
   76  citizen support organization; a direct-support organization; a
   77  joint underwriting association, a risk apportionment plan, or
   78  any other entity created under s. 627.311 or s. 627.351; a
   79  research institute of the state university system; or an entity
   80  licensed as a health care facility under chapter 395. For
   81  purposes of this paragraph, the term “direct control” means the
   82  ability to plan, direct, coordinate, and execute the powers,
   83  duties, functions, and responsibilities of a quasi-public
   84  entity, including the ability to control, supervise, and manage
   85  the quasi-public entity’s daily operations. The term does not
   86  include the appointment of public officials or private persons
   87  to the governing body, regardless of appointment method, and
   88  does not include the approval of a plan of operations by a
   89  governmental entity.
   90         (2)(a)For a quasi-public entity created in law before July
   91  1, 2021, the Governor must specify a department with which the
   92  quasi-public entity will be affiliated, unless a department is
   93  already specified in law, no later than December 31, 2021. The
   94  affiliated department, whether specified by the Governor or in
   95  law, shall serve in an advisory capacity to the governing body
   96  of the affiliated quasi-public entity. The head of the
   97  affiliated department shall review the activities of the
   98  affiliated quasi-public entity at least annually and shall
   99  recommend appropriate statutory changes to the Legislature, as
  100  necessary, to ensure the most efficient and cost-effective
  101  operation.
  102         (b)For a quasi-public entity created in law on or after
  103  July 1, 2021, the law creating the quasi-public entity shall
  104  specify a department with which the quasi-public entity will be
  105  affiliated. The affiliated department shall serve in an advisory
  106  capacity to the governing body of the affiliated quasi-public
  107  entity. The head of the affiliated department shall review the
  108  activities of the affiliated quasi-public entity at least
  109  annually and shall recommend appropriate statutory changes to
  110  the Legislature, as necessary, to ensure the most efficient and
  111  cost-effective operation.
  112         (3)By September 15 of each year, each quasi-public entity
  113  shall submit a report to the Governor, the President of the
  114  Senate, the Speaker of the House of Representatives, and its
  115  affiliated department which includes all of the following
  116  information:
  117         (a)The name, mailing address, physical address, telephone
  118  number, and website address of the quasi-public entity.
  119         (b)The statutory authority creating the quasi-public
  120  entity.
  121         (c)A description of the quasi-public entity’s mission.
  122         (d)A description of the quasi-public entity’s plans for
  123  the next 3 fiscal years.
  124         (e)A copy of the quasi-public entity’s code of ethics.
  125         (f)If the quasi-public entity is a corporation not for
  126  profit, a copy of the entity’s most recent federal Internal
  127  Revenue Service Return of Organization Exempt from Income Tax
  128  Form (Form 990).
  129         (g)If the quasi-public entity is organized as a
  130  corporation, a copy of all of the following:
  131         1.Corporate governance framework and structure.
  132         2.Policies and practices of the corporation’s significant
  133  committees, including any compensation committee.
  134         3.Policies and practices for directing senior management.
  135         4.Processes by which the board, its committees, and senior
  136  management ensure an appropriate amount of oversight over the
  137  corporation’s activities.
  138         (h)If the quasi-public entity has created an entity of any
  139  type with which it is affiliated, the following information must
  140  be included for each such affiliated entity:
  141         1.The name, mailing address, physical address, telephone
  142  number, and website address of the affiliated entity.
  143         2.The statutory authority creating or authorizing the
  144  creation of the affiliated entity, if any.
  145         3.A description of the affiliated entity’s mission.
  146         4.If the affiliated entity is a corporation, a copy of all
  147  of the information described in paragraph (g).
  148         5.If the affiliated entity is a corporation not for
  149  profit, a copy of the entity’s most recent federal Internal
  150  Revenue Service Return of Organization Exempt from Income Tax
  151  Form (Form 990).
  152         (4)Each quasi-public entity shall maintain a publicly
  153  accessible website. The website must include the following:
  154         (a)The report required pursuant to subsection (3).
  155         (b)The most recently approved operating budget, which must
  156  be maintained on the website for 2 years.
  157         (c)The position title and annual salary or rate of pay for
  158  each regularly established position.
  159         (d)A link to any state audit or report of the entity’s
  160  operations.
  161         (e)A link to any program or activity descriptions for
  162  which funds may be expended.
  163         (f)All meeting notices for meetings of the entity’s
  164  governing body, which must be maintained on the website for 2
  165  years.
  166         (g)The official minutes of each meeting of the entity’s
  167  governing body, which must be posted no later than 7 days after
  168  the date of the meeting in which the minutes are approved.
  169         (5)A quasi-public entity may not use public funds to
  170  retain a lobbyist to represent the entity before the legislative
  171  or executive branch. However, a full-time employee of the quasi
  172  public entity may register as a lobbyist and represent the
  173  entity before the legislative or executive branch. Except as a
  174  full-time employee, a person may not accept public funds from a
  175  quasi-public entity for lobbying.
  176         (6)Unless specifically authorized by law, a quasi-public
  177  entity may not create an entity separate from itself, including
  178  a citizen support organization or a direct-support organization.
  179         (7)Any meeting of a quasi-public entity’s governing body
  180  must be video recorded.
  181         (8)The executive director of a quasi-public entity, or an
  182  officer with responsibilities similar to that of an executive
  183  director, may not recommend or otherwise be involved in the
  184  selection, appointment, or retention of any member of the
  185  entity’s governing body.
  186         (9)(a)By October 1, 2021, the Auditor General shall
  187  compile a list of the quasi-public entities subject to this
  188  section and provide such list to the Governor, the President of
  189  the Senate, the Speaker of the House of Representatives, and the
  190  Legislative Auditing Committee. The list must be available on
  191  the Auditor General’s website for review by the public.
  192         (b)The Legislative Auditing Committee shall establish
  193  procedures for the annual selection of a random sample of five
  194  of the quasi-public entities identified in paragraph (a) to
  195  undergo an operational audit by the Auditor General. A quasi
  196  public entity that has had an operational audit completed by the
  197  Auditor General within the preceding 4 years or that is
  198  otherwise subject to a statutorily required operational audit by
  199  the Auditor General may not be included in the random sample.
  200         Section 2. Present paragraph (d) of subsection (2) of
  201  section 215.985, Florida Statutes, is redesignated as paragraph
  202  (e), a new paragraph (d) is added to that subsection, and
  203  subsections (6) and (14) of that section are amended, to read:
  204         215.985 Transparency in government spending.—
  205         (2) As used in this section, the term:
  206         (d)“Quasi-public entity” has the same meaning as provided
  207  in s. 20.059.
  208         (6) The Department of Management Services shall establish
  209  and maintain a website that provides current information
  210  relating to each employee or officer of a state agency, a state
  211  university, a Florida College System institution, a quasi-public
  212  entity, or the State Board of Administration, regardless of the
  213  appropriation category from which the person is paid.
  214         (a) For each employee or officer, the information must
  215  include, at a minimum, his or her:
  216         1. Name and salary or hourly rate of pay.
  217         2. Position number, class code, and class title.
  218         3. Employing agency or quasi-public entity and budget
  219  entity.
  220         (b) The information must be searchable by state agency,
  221  state university, Florida College System institution, quasi
  222  public entity, and the State Board of Administration, and by
  223  employee name, salary range, or class code and must be
  224  downloadable in a format that allows offline analysis.
  225         (14) The Chief Financial Officer shall establish and
  226  maintain a secure contract tracking system available for viewing
  227  and downloading by the public through a secure website. The
  228  Chief Financial Officer shall use appropriate Internet security
  229  measures to ensure that no person has the ability to alter or
  230  modify records available on the website.
  231         (a) Within 30 calendar days after executing a contract,
  232  each state and quasi-public entity shall post the following
  233  information relating to the contract on the contract tracking
  234  system:
  235         1. The names of the contracting entities.
  236         2. The procurement method.
  237         3. The contract beginning and ending dates.
  238         4. The nature or type of the commodities or services
  239  purchased.
  240         5. Applicable contract unit prices and deliverables.
  241         6. Total compensation to be paid or received under the
  242  contract.
  243         7. All payments made to the contractor to date.
  244         8. Applicable contract performance measures.
  245         9. If a competitive solicitation was not used to procure
  246  the goods or services, the justification of such action,
  247  including citation to a statutory exemption or exception from
  248  competitive solicitation, if any.
  249         10. Electronic copies of the contract and procurement
  250  documents that have been redacted to exclude confidential or
  251  exempt information.
  252         (b) Within 30 calendar days after an amendment to an
  253  existing contract, the state entity or quasi-public entity that
  254  is a party to the contract must update the information described
  255  in paragraph (a) in the contract tracking system. An amendment
  256  to a contract includes, but is not limited to, a renewal,
  257  termination, or extension of the contract or a modification of
  258  the terms of the contract.
  259         (c) By January 1, 2014, each state and quasi-public entity
  260  shall post to the contract tracking system the information
  261  required in paragraph (a) for each existing contract that was
  262  executed before July 1, 2013, with payment from state funds made
  263  after June 30, 2013.
  264         (d)1. Records made available on the contract tracking
  265  system may not reveal information made confidential or exempt by
  266  law.
  267         2. Each state and quasi-public entity that is a party to a
  268  contract must redact confidential or exempt information from the
  269  contract and procurement documents before posting an electronic
  270  copy on the contract tracking system. If a state entity or
  271  quasi-public entity that is a party to the contract becomes
  272  aware that an electronic copy of a contract or a procurement
  273  document has been posted but has not been properly redacted, the
  274  state entity or quasi-public entity must immediately notify the
  275  Chief Financial Officer and must immediately remove the contract
  276  or procurement document from the contract tracking system.
  277  Within 7 business days, the state entity or quasi-public entity
  278  must post a properly redacted copy of the contract or
  279  procurement document on the contract tracking system.
  280         3.a. If a party to a contract, or an authorized
  281  representative of a party to a contract, discovers that an
  282  electronic copy of a contract or procurement document has been
  283  posted to the contract tracking system but has not been properly
  284  redacted, the party or representative may request the state
  285  entity or quasi-public entity that is a party to the contract to
  286  redact the confidential or exempt information. Upon receipt of
  287  the request, the state entity or quasi-public entity shall
  288  redact the confidential or exempt information.
  289         b. A request to redact confidential or exempt information
  290  must be made in writing and delivered by mail, facsimile,
  291  electronic transmission, or in person to the state entity or
  292  quasi-public entity that is a party to the contract. The request
  293  must identify the specific document, the page numbers that
  294  include the confidential or exempt information, the information
  295  that is confidential or exempt, and the applicable statutory
  296  exemption. A fee may not be charged for a redaction made
  297  pursuant to the request.
  298         c. A party to a contract may petition the circuit court for
  299  an order directing compliance with this paragraph.
  300         4. The contract tracking system shall display a notice of
  301  the right of an affected party to request redaction of
  302  confidential or exempt information contained on the system.
  303         5.a. The Chief Financial Officer, the Department of
  304  Financial Services, or an officer, employee, or contractor
  305  thereof, is not responsible for redacting confidential or exempt
  306  information from an electronic copy of a contract or procurement
  307  document posted by another state entity or quasi-public entity
  308  on the system.
  309         b. The Chief Financial Officer, the Department of Financial
  310  Services, or an officer, employee, or contractor thereof, is not
  311  liable for the failure of a state entity or quasi-public entity
  312  to redact the confidential or exempt information.
  313         (e)1. The posting of information on the contract tracking
  314  system or the provision of contract information on a website for
  315  public viewing and downloading does not supersede the duty of a
  316  state entity or quasi-public entity to respond to a public
  317  records request or subpoena for the information.
  318         2. A request for a copy of a contract or procurement
  319  document or certified copy of a contract or procurement document
  320  shall be made to the state entity or quasi-public entity that is
  321  party to the contract. The request may not be made to the Chief
  322  Financial Officer, the Department of Financial Services, or an
  323  officer, employee, or contractor thereof, unless the Chief
  324  Financial Officer or the department is a party to the contract.
  325         3. A subpoena for a copy of a contract or procurement
  326  document or certified copy of a contract or procurement document
  327  must be served on the state entity or quasi-public entity that
  328  is a party to the contract and that maintains the original
  329  documents. The Chief Financial Officer, the Department of
  330  Financial Services, or an officer, employee, or contractor
  331  thereof, may not be served a subpoena for those records unless
  332  the Chief Financial Officer or the department is a party to the
  333  contract.
  334         (f) The Chief Financial Officer may regulate and prohibit
  335  the posting of records that could facilitate identity theft or
  336  fraud, such as signatures; compromise or reveal an agency
  337  investigation; reveal the identity of undercover personnel;
  338  reveal proprietary business information or trade secrets; reveal
  339  an individual’s medical information; or reveal another record or
  340  information that the Chief Financial Officer believes may
  341  jeopardize the health, safety, or welfare of the public.
  342  However, such action by the Chief Financial Officer does not
  343  supersede the duty of a state entity or quasi-public entity to
  344  provide a copy of a public record upon request.
  345         (g) The Chief Financial Officer may adopt rules to
  346  administer this subsection.
  347         (h) For purposes of this subsection, the term:
  348         1. “Procurement document” means any document or material
  349  provided to the public or any vendor as part of a formal
  350  competitive solicitation of goods or services undertaken by a
  351  state entity or quasi-public entity, and a document or material
  352  submitted in response to a formal competitive solicitation by
  353  any vendor who is awarded the resulting contract.
  354         2.“Quasi-public entity” means an entity established by
  355  law, regardless of form, for a public purpose or to effectuate a
  356  government program and which is not directly controlled by a
  357  governmental entity. This term does not include a citizen
  358  support organization or a direct-support organization.
  359         3.2. “State entity” means an official, officer, commission,
  360  board, authority, council, committee, or department of the
  361  executive branch of state government; a state attorney, public
  362  defender, criminal conflict and civil regional counsel, capital
  363  collateral regional counsel, and the Justice Administrative
  364  Commission; the Public Service Commission; and any part of the
  365  judicial branch of state government.
  366         (i) In lieu of posting in the contract tracking system
  367  administered by the Chief Financial Officer, the Department of
  368  Legal Affairs and the Department of Agriculture and Consumer
  369  Services may post the information described in paragraphs (a)
  370  through (c) to its own agency-managed website. The data posted
  371  on the agency-managed website must be downloadable in a format
  372  that allows offline analysis.
  373         (j) The requirement under paragraphs (a) through (c) that
  374  each agency post information and documentation relating to
  375  contracts on the tracking system does not apply to any record
  376  that could reveal attorney work product or strategy.
  377         Section 3. This act shall take effect July 1, 2021.