House Bill 2167e1

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                                          HB 2167, First Engrossed



  1                      A bill to be entitled

  2         An act relating to the Department of Management

  3         Services; providing legislative intent;

  4         establishing the Small and Minority Business

  5         Surety Program; providing for a plan; providing

  6         eligibility; providing state responsibility;

  7         providing for an annual report; providing

  8         penalties for default; providing an

  9         appropriation; amending s. 255.25, F.S.,

10         providing an exception to competitive bidding

11         for those leases negotiated pursuant to the

12         department pilot project to be established;

13         providing for negotiation of a replacement

14         lease for currently occupied space under

15         certain conditions; allowing agencies to

16         negotiate leases in designated Front Porch

17         Communities without competitive bidding;

18         establishing a tenant broker pilot project in

19         certain designated Florida counties to assist

20         with property procurement and providing goals

21         for the project; providing for automatic repeal

22         of the pilot project; amending s. 255.2501,

23         F.S., extending the conditions of this section

24         to any lease that, during the term of the

25         lease, becomes financed with local government

26         obligations of any type; amending s. 272.161,

27         F.S., providing for the rental of "permit"

28         parking spaces in addition to "reserved"

29         parking spaces; amending s. 287.022, F.S.;

30         prohibiting the Department of Management

31         Services from limiting certain insurers and


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                                          HB 2167, First Engrossed



  1         others from competing for certain insurance

  2         products or plans on the basis of a

  3         compensation arrangement; amending s. 287.042,

  4         F.S., authorizing emergency medical services

  5         organizations to purchase under state term

  6         contracts; amending s. 365.171, F.S.;

  7         authorizing the Public Service Commission to

  8         enforce the remittance of the collected "911"

  9         fee to the county; providing the department

10         with rulemaking authority for establishing the

11         methods for collecting data and the "911" fee;

12         creating s. 110.1315, F.S.; requiring that the

13         Department of Management Services contract with

14         a private vendor for an alternative retirement

15         program for other personal services employees;

16         providing contract requirements; requiring the

17         private vendor to indemnify the state and

18         participating employees from certain adverse

19         tax consequences; providing for oversight of

20         the program; directing the Department of

21         Management Services to make a report; directing

22         the Executive Office of the Governor to

23         determine certain savings made; amending s.

24         110.123, F.S.; revising language with respect

25         to the state group insurance program; providing

26         that certain organizations may not be

27         prohibited or limited from competing for the

28         plan; amending s. 110.1521, F.S.; combining

29         current ss. 110.1522 and 110.1523, F.S., into

30         this section; repealing s. 110.1522, F.S.,

31         relating to model rule establishing family


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                                          HB 2167, First Engrossed



  1         support personnel policies; repealing s.

  2         110.1523, F.S., relating to adoption of model

  3         rule; amending s. 110.17, F.S.; changing

  4         "personal holiday" to "personal day" and

  5         replacing "entitled to" with "eligible for";

  6         amending s. 110.122, F.S.; providing that state

  7         employees who terminate employment for reasons

  8         of disability shall be eligible for payment of

  9         accumulated and unused sick leave; providing

10         for application of this section to each

11         employee upon termination of employment;

12         providing that former state officers and

13         employees who are vested in the Florida

14         Retirement System may participate in the state

15         group health insurance plan at the time of

16         receiving their state retirement benefits;

17         directing the Department of Management Services

18         and the Florida School for the Deaf and Blind

19         to develop a report and recommendation;

20         providing for its submission by January 1,

21         2001; amending s. 110.123, F.S.; requiring

22         solicitations or contracts or a state group

23         dental program to include a comprehensive

24         indemnity dental plan option providing

25         enrollees an unrestricted access to dentists;

26         repealing ss. 272.12 and 272.121, Florida

27         Statutes, relating to the Capitol Center

28         Planning Commission; providing an effective

29         date.

30

31  Be It Enacted by the Legislature of the State of Florida:


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                                          HB 2167, First Engrossed



  1         Section 1.  Legislative intent; Small and Minority

  2  Business Surety Program; eligibility; report; default.--

  3         (1)  It is the intent of the state to meaningfully

  4  assist socially and economically disadvantaged business

  5  enterprises through a program that will provide for

  6  contracting opportunities and financial assistance in the form

  7  of performance, labor, and material bond guarantees, to

  8  primarily remedy the effects of past economic disparity.

  9         (2)  There is established a Small and Minority Business

10  Surety Program. The program shall provide participants who are

11  licensed contractors who desire to compete for state

12  construction projects, with a bond guarantee.

13         (3)  The Minority Business Advocacy and Assistance

14  Office shall be responsible for developing a plan to implement

15  the Small and Minority Business Surety Program, which shall

16  include a market assistance plan, an education and application

17  assistance program, and any other elements designed to assist

18  small and minority businesses obtain surety bonding coverage

19  from the private volunteer market.

20         (4)  To be eligible for the bond guarantee provided

21  herein, the contractor must have met all of the following

22  conditions:

23         (a)  Be a certified small and/or minority business

24  enterprise in accordance with chapter 287, Florida Statutes.

25         (b)  Be prequalified pursuant to the rules of the

26  contracting agency.

27         (c)  Have applied for a surety bond through the private

28  sector.

29         (5)  The state will guarantee up to 65 percent of a

30  contract amount on contracts up to $1 million, to allow such

31  participants to meet bond requirements for state construction


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                                          HB 2167, First Engrossed



  1  projects, which bonds are provided by an approved surety and

  2  which bonds are issued pursuant to s. 255.05, Florida

  3  Statutes. The contracting department shall retain 5 percent of

  4  the total contract amount designated to the small or minority

  5  business until final acceptance of the project, in order to

  6  receive a bond guarantee.

  7         (6)  Annually, the head of the department is required

  8  to report the progress of this program to the President of the

  9  Senate, the Speaker of the House of Representatives, and the

10  Governor. The report shall include, at a minimum, the number

11  of users of the bond guarantee plan along with the number of

12  defaults and dollars loss to the state.

13         (7)  Any participant of the Small and Minority Business

14  Surety Program who defaults on a construction contract shall

15  not participate in the program for at last 3 consecutive years

16  following the default.

17         Section 2.  The sum of $1,000,000 is hereby

18  appropriated from the Insurance Commissioner's Regulatory

19  Trust Fund for the purpose of providing a bond guarantee to

20  contractors that meet the eligibility criteria provided

21  herein.

22         Section 3.  Paragraphs (a) and (b) of subsection (3) of

23  section 255.25, Florida Statutes, are amended, paragraph (c)

24  of said subsection is redesignated as paragraph (d), and a new

25  paragraph (c) is added to said subsection, and subsection (12)

26  is added to said section, to read:

27         255.25  Approval required prior to construction or

28  lease of buildings.--

29         (3)(a)  Except as provided in subsection (10) and

30  except for those leases negotiated pursuant to the pilot

31  project established by the Department of Management Services


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                                          HB 2167, First Engrossed



  1  herein, no state agency shall enter into a lease as lessee for

  2  the use of 5,000 square feet or more of space in a privately

  3  owned building except upon advertisement for and receipt of

  4  competitive bids and award to the lowest and best bidder.  The

  5  Department of Management Services shall have the authority to

  6  approve a lease for 5,000 square feet or more of space that

  7  covers more than 1 fiscal year, subject to the provisions of

  8  ss. 216.311, 255.2501, 255.2502, and 255.2503, if such lease

  9  is, in the judgment of the department, in the best interests

10  of the state. This paragraph does not apply to buildings or

11  facilities of any size leased for the purpose of providing

12  care and living space for persons.

13         (b)  The Department of Management Services may approve

14  extensions of an existing lease of 5,000 square feet or more

15  of space if such extensions are determined to be in the best

16  interests of the state, but in no case shall the total of such

17  extensions exceed 11 months.  If at the end of the 11th month

18  an agency still needs such space, it shall be procured by

19  competitive bid in accordance with s. 255.249(2)(b) or if an

20  agency determines that it is in its best interest to remain in

21  the space it currently occupies, the agency may negotiate a

22  replacement lease with the lessor if an independent market

23  analysis demonstrates that the rates offered are within market

24  rates for the space offered, and if the cost of the new lease

25  does not exceed the cost of a comparable lease plus documented

26  moving costs.  A present value analysis and the consumer price

27  index shall be used in the calculation of lease costs.  The

28  term of the replacement lease shall not exceed the base term

29  of the expiring lease.

30         (c)  Any agency proposing to enter into a lease for

31  office space in an area designated as part of the Front Porch


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                                          HB 2167, First Engrossed



  1  Florida Initiative, or Community Redevelopment Agency (CRA)

  2  may, with the prior approval of the Department of Management

  3  Services, directly negotiate with a building owner for leased

  4  space within such area without the competitive bid requirement

  5  of subsection (3)(a).

  6         (12)(a)  The Department of Management Services shall

  7  undertake a pilot project in Hillsborough, Leon, Broward,

  8  Orange, and Seminole Counties for a contracted tenant broker

  9  to assist state agencies in locating suitable private sector

10  leases.  The department shall solicit qualified candidates

11  through the request for proposals process and conduct

12  interviews of finalists.  The tenant broker shall be under

13  contract to the department, but all fees or commissions to be

14  paid to the tenant broker shall be paid by the ultimate

15  private sector lessor.  The department shall select a tenant

16  broker in each county in the pilot project.  Agencies may

17  employ the services of the broker in any such county for a

18  specified period of time for a given property procurement.

19  Except for the exemption from competitive bidding described in

20  subsection (3)(a) current leasing procedures would remain in

21  effect, including the zone rate guidelines.  Brokers shall be

22  required to disclose any conflict of interest and all

23  compensation received from transactions.  Brokers'

24  compensation shall be no more than what is customarily found

25  in the marketplace.  Contracts between the department and the

26  broker shall be for a term of 1 year, renewable for an

27  additional year based on a satisfactory performance review.

28  The Department of Management Services is authorized to adopt

29  such rules as may be necessary to carry out the intent of this

30  section.

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                                          HB 2167, First Engrossed



  1         (b)  In designing the pilot project, the department

  2  shall endeavor to accomplish the following goals:

  3         1.  Provide for a faster, more efficient, and

  4  cost-effective lease procurement process.

  5         2.  Provide access for agencies to experienced brokers

  6  with knowledge of the local marketplace.

  7         3.  Provide a documented, professional cost-benefit

  8  analysis of all choices.

  9         4.  Provide for the ability to negotiate the best deal.

10         5.  Provide the ability to reject any proposal which

11  does not meet the needs of the agency.

12         6.  Provide that the Department of Management Services

13  shall have the final review and approval of all leases to

14  ensure quality control.

15         (c)  On or before July 1, 2002, the Department of

16  Management Services shall report to the Legislature on the

17  effectiveness of the pilot project and shall make

18  recommendations, in the form of legislation, if necessary, for

19  the implementation of the project on a statewide basis.

20         (d)  The pilot project shall stand repealed effective

21  July 1, 2002.

22         Section 4.  Subsection (1) of section 255.2501, Florida

23  Statutes, is amended to read:

24         255.2501  Lease of space financed with local government

25  obligations.--

26         (1)  Except when specifically authorized by the

27  Appropriations Act, no executive agency, department, public

28  officer or employee shall enter any contract on behalf of the

29  state, the term of which contract is more than 5 years,

30  including any and all renewal periods and including any and

31  all leases which constitute a series of leases, for the lease,


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                                          HB 2167, First Engrossed



  1  lease-purchase, sale-leaseback, purchase, or rental of any

  2  office space, building, real property and improvements

  3  thereto, or any other fixed capital outlay project, any of

  4  which is, or is to be, or during the term of any lease entered

  5  into pursuant to s. 255.25, becomes financed with local

  6  government obligations of any type.

  7         Section 5.  Section 272.161, Florida Statutes, is

  8  amended to read:

  9         272.161  Rental of reserved parking spaces.--

10         (1)(a)  The Department of Management Services may

11  assign a reserved or permit parking space to any state

12  employee, qualified state employee car pool, provider of

13  essential services to the state, or state agency for

14  reassignment to its employees.  Any state agency assigned a

15  reserved or permit parking space shall charge the user of such

16  space, except a qualified state employee car pool, a fee in

17  accordance with guidelines established by the department.

18         (b)  Any state agency assigned a reserved or permit

19  parking space which is not rented for a period of 30 7

20  consecutive days shall return such space to the department for

21  reassignment.  All state agencies assigned reserved or permit

22  parking spaces shall assure the timely payment of assessed

23  rent to the department.

24         (c)  Assignments of reserved or permit parking spaces

25  shall be limited to the amount of available parking under the

26  supervision of the department. Preference in the assignment of

27  reserved parking spaces shall be given qualified state

28  employee car pools.  A state agency, employee, state employee

29  car pool, or provider of essential services may request a

30  reserved or permit parking space in a manner prescribed by the

31  department.


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                                          HB 2167, First Engrossed



  1         (d)  The Auditor General shall conduct an audit of

  2  state employee parking in non-state-owned parking lots and

  3  shall make a recommendation to the Legislature before the 1986

  4  session, for an equitable ratesetting mechanism to ensure that

  5  state employees, who, by job description, are required to own

  6  an automobile as a condition of employment, are not subjected

  7  to higher parking rates than the average rate for employees in

  8  state-owned parking facilities.

  9         (2)  All employee parking fees shall be payable by the

10  payroll deduction plan, periodically according to the

11  employee's pay schedule, to the Department of Management

12  Services or to the contracting agency.

13         (3)  All fees collected by the Department of Management

14  Services under the provisions of this section shall be

15  deposited in the Supervision Trust Fund. The department shall

16  account for the revenues and expenditures related to the paid

17  parking program in compliance with the provisions of s.

18  215.32(2)(b). The revenues collected from parking fees shall

19  be used for the maintenance, minor construction, enforcement,

20  security, and administration of parking facilities and

21  programs.

22         (4)  The Department of Management Services shall adopt

23  such rules as are necessary to carry out the purposes of this

24  section.  The department shall establish guidelines for

25  qualifying as a state employee car pool and for the

26  preferential assignment of reserved spaces to car pools.

27         (5)  The Department of Management Services shall

28  establish fees on all state-owned reserved parking facilities

29  under the jurisdiction of the department spaces, except those

30  assigned to qualified state employee car pools, under the

31  jurisdiction of the department.  The department shall also


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                                          HB 2167, First Engrossed



  1  issue loading zone permits and scramble parking permits for a

  2  fee sufficient to cover the cost of administering the permits

  3  and maintaining the parking areas.

  4         (6)  The Department of Management Services shall have

  5  the authority to remove or tow away, or cause to be ticketed,

  6  removed, or towed away, any wrongfully parked vehicle in any

  7  assigned, or reserved, or permit parking space or area under

  8  the control of the Department of Management Services

  9  throughout the state at the expense of the owner of the

10  wrongfully parked vehicle.

11         Section 6.  Subsection (3) is added to section 287.022,

12  Florida Statutes, to read:

13         287.022  Purchase of insurance.--

14         (3)  The department shall not prohibit or limit any

15  properly licensed insurer, health maintenance organization,

16  prepaid limited health services organization, or insurance

17  agent from competing for any insurance product or plan

18  purchased, provided, or endorsed by the department, on the

19  basis of the compensation arrangement utilized by the insurer

20  or organization for its agents.

21         Section 7.  Paragraph (a) of subsection (2) of section

22  287.042, Florida Statutes, is amended to read:

23         287.042  Powers, duties, and functions.--The department

24  shall have the following powers, duties, and functions:

25         (2)(a)  To plan and coordinate purchases in volume and

26  to negotiate and execute purchasing agreements and contracts

27  for commodities and contractual services under which state

28  agencies shall make purchases pursuant to s. 287.056, and

29  under which a federal, county, municipality, institutions

30  qualified pursuant to s. 240.605, private nonprofit community

31  transportation coordinator designated pursuant to chapter 427,


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                                          HB 2167, First Engrossed



  1  while conducting business related solely to the Commission for

  2  the Transportation Disadvantaged, emergency medical services

  3  organizations approved to purchase pursuant to s. 401.024, or

  4  other local public agency may make purchases. The department

  5  may restrict purchases from some term contracts to state

  6  agencies only for those term contracts where the inclusion of

  7  other governmental entities will have an adverse effect on

  8  competition or to those federal facilities located in this

  9  state. In such planning or purchasing the Minority Business

10  Advocacy and Assistance Office may monitor to ensure that

11  opportunities are afforded for contracting with minority

12  business enterprises. The department, for state term

13  contracts, and all agencies, for multiyear contractual

14  services or term contracts, shall explore reasonable and

15  economical means to utilize certified minority business

16  enterprises. Purchases by any county, municipality, private

17  nonprofit community transportation coordinator designated

18  pursuant to chapter 427, while conducting business related

19  solely to the Commission for the Transportation Disadvantaged,

20  emergency medical services organizations approved to purchase

21  pursuant to s. 401.024, or other local public agency under the

22  provisions in the state purchasing contracts, and purchases,

23  from the corporation operating the correctional work programs,

24  of products or services that are subject to paragraph (1)(f),

25  are exempt from the competitive sealed bid requirements

26  otherwise applying to their purchases.

27         Section 8.  Paragraph (a) of subsection (13) of section

28  365.171, Florida Statutes, is amended to read:

29         365.171  Emergency telephone number "911."--

30         (13)  "911" FEE.--

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                                          HB 2167, First Engrossed



  1         (a)  Following approval by referendum as set forth in

  2  paragraph (b), or following approval by a majority vote of its

  3  board of county commissioners, a county may impose a "911" fee

  4  to be paid by the local exchange subscribers within its

  5  boundaries served by the "911" service.  Proceeds from the

  6  "911" fee shall be used only for "911" expenditures as set

  7  forth in subparagraph 6.  The manner of imposing and

  8  collecting said payment shall be as follows:

  9         1.  At the request of the county subscribing to "911"

10  service, the telephone company shall, insofar as is

11  practicable, bill the "911" fee to the local exchange

12  subscribers served by the "911" service, on an individual

13  access line basis, at a rate not to exceed 50 cents per month

14  per line (up to a maximum of 25 access lines per account bill

15  rendered).  However, the fee may not be assessed on any pay

16  telephone in this state.  A county collecting the fee for the

17  first time may collect the fee for no longer than 36 months

18  without initiating the acquisition of its "911" equipment.

19         2.  Fees collected by the telephone company pursuant to

20  subparagraph 1. shall be returned to the county, less the

21  costs of administration retained pursuant to paragraph (c).

22  The Public Service Commission is authorized to enforce the

23  remittance of the collected "911" fee to the county. The

24  county shall provide a minimum of 90 days' written notice to

25  the telephone company prior to the collection of any "911"

26  fees.

27         3.  Any county that currently has an operational "911"

28  system or that is actively pursuing the implementation of a

29  "911" system shall establish a fund to be used exclusively for

30  receipt and expenditure of "911" fee revenues collected

31  pursuant to this section.  All fees placed in said fund, and


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                                          HB 2167, First Engrossed



  1  any interest accrued thereupon, shall be used solely for "911"

  2  costs described in subparagraph 6.  The money collected and

  3  interest earned in this fund shall be appropriated for "911"

  4  purposes by the county commissioners and incorporated into the

  5  annual county budget.  The county shall annually have a

  6  financial audit performed on this fund, in accordance with s.

  7  11.45.  A report of the audit shall be forwarded to the

  8  department within 60 days of its completion.  A county may

  9  carry forward on an annual basis unspent moneys in the fund

10  for expenditures allowed by this section, or it may reduce its

11  fee. However, in no event shall a county carry forward more

12  than 10 percent of the "911" fee billed for the prior year.

13  The amount of moneys carried forward each year may be

14  accumulated in order to allow for capital improvements

15  described in this subsection.  The carryover shall be

16  documented by resolution of the board of county commissioners

17  expressing the purpose of the carryover or by an adopted

18  capital improvement program identifying projected expansion or

19  replacement expenditures for "911" equipment and service

20  features, or both.  In no event shall the "911" fee carryover

21  surplus moneys be used for any purpose other than for the

22  "911" equipment, service features, and installation charges

23  authorized in subparagraph 6. Nothing in this section shall

24  prohibit a county from using other sources of revenue for

25  improvements, replacements, or expansions of its "911" system.

26  A county may increase its fee for purposes authorized in this

27  section. However, in no case shall the fee exceed 50 cents per

28  month per line.  All current "911" fees shall be reported to

29  the department within 30 days of the start of each county's

30  fiscal period. Any fee adjustment made by a county shall be

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                                          HB 2167, First Engrossed



  1  reported to the department.  A county shall give the telephone

  2  company a 90-day written notice of such fee adjustment.

  3         4.  The telephone company shall have no obligation to

  4  take any legal action to enforce collection of the "911" fee.

  5  The telephone company shall provide quarterly to the county a

  6  list of the names, addresses, and telephone numbers of any and

  7  all subscribers who have identified to the telephone company

  8  their refusal to pay the "911" fee.

  9         5.  The county subscribing to "911" service shall

10  remain liable to the telephone company for any "911" service,

11  equipment, operation, or maintenance charge owed by the county

12  to the telephone company.

13

14  As used in this paragraph, "telephone company" means an

15  exchange telephone service provider of "911" service or

16  equipment to any county within its certificated area.

17         6.  It is the intent of the Legislature that the "911"

18  fee authorized by this section to be imposed by counties will

19  not necessarily provide the total funding required for

20  establishing or providing the "911" service.  For purposes of

21  this section, "911" service includes the functions of database

22  management, call taking, location verification, and call

23  transfer.  The following costs directly attributable to the

24  establishment and/or provision of "911" service are eligible

25  for expenditure of moneys derived from imposition of the "911"

26  fee authorized by this section:  the acquisition,

27  implementation, and maintenance of Public Safety Answering

28  Point (PSAP) equipment and "911" service features, as defined

29  in the Florida Public Service Commission's lawfully approved

30  "911" and related tariffs and/or the acquisition,

31  installation, and maintenance of other "911" equipment,


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                                          HB 2167, First Engrossed



  1  including call answering equipment, call transfer equipment,

  2  ANI controllers, ALI controllers, ANI displays, ALI displays,

  3  station instruments, "911" telecommunications systems,

  4  teleprinters, logging recorders, instant playback recorders,

  5  telephone devices for the deaf (TDD) used in the "911" system,

  6  PSAP backup power systems, consoles, automatic call

  7  distributors, and interfaces (hardware and software) for

  8  computer-aided dispatch (CAD) systems; salary and associated

  9  expenses for "911" call takers for that portion of their time

10  spent taking and transferring "911" calls; salary and

11  associated expenses for a county to employ a full-time

12  equivalent "911" coordinator position and a full-time

13  equivalent staff assistant position per county for the portion

14  of their time spent administrating the "911" system; training

15  costs for PSAP call takers in the proper methods and

16  techniques used in taking and transferring "911" calls; and

17  expenses required to develop and maintain all information (ALI

18  and ANI databases and other information source repositories)

19  necessary to properly inform call takers as to location

20  address, type of emergency, and other information directly

21  relevant to the "911" call-taking and transferring function.

22  The "911" fee revenues shall not be used to pay for any item

23  not listed, including, but not limited to, any capital or

24  operational costs for emergency responses which occur after

25  the call transfer to the responding public safety entity and

26  the costs for constructing buildings, leasing buildings,

27  maintaining buildings, or renovating buildings, except for

28  those building modifications necessary to maintain the

29  security and environmental integrity of the PSAP and "911"

30  equipment rooms.

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                                          HB 2167, First Engrossed



  1         7.  It is the goal of the Legislature that enhanced

  2  "911" service be available throughout the state.  Expenditure

  3  by counties of the "911" fees authorized by this section

  4  should support this goal to the greatest extent feasible

  5  within the context of local service needs and fiscal

  6  capability. Nothing in this section shall be construed to

  7  prohibit two or more counties from establishing a combined

  8  emergency "911" telephone service by interlocal agreement and

  9  utilizing the "911" fees authorized by this section for such

10  combined "911" service.

11         8.  The Department may establish by rule, in

12  conjunction with applicable public agencies, the methods for

13  collecting data and the "911" fee.

14         Section 9.  Section 110.1315, Florida Statutes, is

15  created to read:

16         110.1315  Alternative benefits; other personal services

17  employees.--

18         (1)  The Department of Management Services shall

19  contract for the implementation of an alternative retirement

20  income security program for eligible employees paid from other

21  personal services or special category appropriations who pay

22  the social security portion of FICA withholding tax. The term

23  "other personal services" means the compensation for services

24  rendered by a person who is not a regular or full-time

25  employee filling an established position. An employee is

26  ineligible if he or she is concurrently employed in another

27  position as a member of the Florida Retirement System. The

28  contract must provide for a private vendor to administer the

29  program, and the program must provide retirement benefits as

30  required under s. 3121(b)(7)(F) of the Internal Revenue Code.

31  The department shall develop a request for proposals and


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                                          HB 2167, First Engrossed



  1  solicit qualified vendors to compete for the award of the

  2  contract. The proposal must have received all necessary

  3  federal and state approval as required by law and must comply

  4  with s. 112.65.

  5         (2)  The vendor shall provide and administer this

  6  defined-contribution program under the provisions of s.

  7  3121(b)(7)(F) of the Internal Revenue Code. The program must

  8  provide that there will be no risk of the principal to the

  9  participants, that there will be a reasonable rate of interest

10  as defined in the Treasury Regulations for s. 3121(b)(7)(F) of

11  the Internal Revenue Code, that there will be no withdrawal or

12  surrender penalties or fees of any nature charged to the

13  participants, that there will be no administrative charges to

14  either the participants or the state, and that there will be

15  immediate 100-percent vesting to the participants. The

16  department may stipulate that when the employee terminates his

17  or her position, invested funds must remain in the program

18  until the employee reaches age 59 1/2, except that such funds

19  may be transferred to a 457 Plan if the employee obtains a

20  regular or full-time established position. The program must be

21  a qualified plan under s. 457 of the Internal Revenue Code

22  which is separate from any other plan under that section. The

23  vendor must indemnify the state, its agencies, and

24  participating employees for any damages resulting from a

25  finding by the Internal Revenue Service that the plan is in

26  violation of s. 3121(b)(7)(F) of the Internal Revenue Code.

27         Section 10.  The Department of Management Services

28  shall assure that any provider company maintains an internal

29  system of quality assurance, employs a proven functional

30  system that is fully date-calculation compliant, and is

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                                          HB 2167, First Engrossed



  1  subject to due-diligence inquiry concerning its ability to

  2  undertake its service responsibilities.

  3         Section 11.  By September 1, 2000, the Department of

  4  Management Services shall report to the Governor and

  5  Legislature the amount of funds paid to other personal

  6  services employees by each budget entity for fiscal year

  7  1999-2000. In addition, the department shall report the number

  8  of OPS employees employed by the state agencies, and the

  9  amount, by fund source, of salaries, income taxes, Medicare

10  taxes, and FICA taxes paid by the state on behalf of OPS

11  employees.

12         Section 12.  Upon implementation of the alternative

13  retirement income security program, the Executive Office of

14  the Governor shall determine the amount of budget savings

15  associated with plan implementation and process a budget

16  amendment in accordance with s. 216.177, Florida Statutes, to

17  place the corresponding budget authority in Executive Office

18  of the Governor reserve. The annualized savings identified

19  shall then be available for reduction during the fiscal year

20  2001-2002 budget development process.

21         Section 13.  This act shall take effect July 1, 2000.

22         Section 14.  Paragraph (i) is added to subsection (3)

23  of section 110.123, Florida Statutes, to read:

24         110.123  State group insurance program.--

25         (3)  STATE GROUP INSURANCE PROGRAM.--

26         (i)  The department shall not prohibit or limit any

27  properly licensed insurer, health maintenance organization,

28  prepaid limited health services organization, or insurance

29  agent from competing for any insurance product or plan

30  purchased, provided, or endorsed by the department, on the

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                                          HB 2167, First Engrossed



  1  basis of the compensation arrangement utilized by the insurer

  2  or organization for its agents.

  3         Section 15.  Section 110.1521, Florida Statutes, is

  4  amended to read:

  5         110.1521  Short title.--This section Sections

  6  110.1521-110.1523 may be cited as the "Family Support

  7  Personnel Policies Act."

  8         (1)  The Department of Management Services shall

  9  develop a model rule establishing family support personnel

10  policies for all executive branch agencies, excluding the

11  State University System.  "Family support personnel policies,"

12  for purposes of this section means personnel policies

13  affecting employees' ability to both work and devote care and

14  attention to their families and includes policies on flexible

15  hour work schedules, compressed time, job sharing, part-time

16  employment, maternity or paternity leave for employees with a

17  newborn or newly adopted child, and paid and unpaid family or

18  administrative leave for family responsibilities.

19         (2)  The model rule shall be effective 20 days after

20  having been filed with the Department of State and shall

21  become part of the personnel rules of all applicable state

22  agencies 150 days after the effective date of the rule to the

23  extent that each agency does not, subsequent to such effective

24  date, adopt a rule that sets forth the intent to specifically

25  amend all or part of such model rule.  Any employee or

26  organization representing employees shall be considered a

27  party for purposes of any rule required by this section,

28  notwithstanding any provision of chapter 120 to the contrary.

29         Section 16.  Section 110.1522, Florida Statutes, is

30  repealed.

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                                          HB 2167, First Engrossed



  1         Section 17.  Section 110.1523, Florida Statutes, is

  2  repealed.

  3         Section 18.  Subsection (3) of section 110.117, Florida

  4  Statutes, is amended to read:

  5         110.117  Paid holidays.--

  6         (3)  Each full-time employee is eligible for entitled

  7  to one personal day holiday each year. Each part-time employee

  8  is eligible for entitled to a personal day holiday each year

  9  which shall be calculated proportionately to the personal day

10  holiday allowed to a full-time employee. Such personal day

11  holiday shall be credited to eligible employees on July 1 of

12  each year to be taken prior to June 30 of the following year.

13  Members of the teaching and research faculty of the State

14  University System and administrative and professional

15  positions exempted under s. 110.205(2)(d) are not eligible for

16  this benefit.

17         Section 19.  Section 110.122, Florida Statutes, is

18  amended to read:

19         110.122  Terminal payment for accumulated sick leave.--

20         (1)  All state branches, departments, and agencies

21  which have the authority to establish or approve personnel

22  policies for employees and to employ personnel and establish

23  the conditions of their employment shall establish policies to

24  provide terminal "incentive" pay for accumulated and unused

25  sick leave to each employee upon normal or regular retirement

26  for reason other than disability or upon termination of

27  employment, or to the employee's beneficiary if service is

28  terminated by death, provided such retirement, termination, or

29  death occurs after 10 years of creditable state employment.

30         (2)  The employing entity shall establish and publish

31  rules governing the accumulation and use of sick leave and


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                                          HB 2167, First Engrossed



  1  maintain accurate and reliable records showing the amount of

  2  sick leave which has accumulated and is unused by the employee

  3  at the time of retirement, death, or termination.

  4         (3)  The payments authorized by this section shall be

  5  determined by using the rate of pay received by the employee

  6  at the time of retirement, termination, or death, applied to

  7  the sick leave time for which the employee is qualified to

  8  receive terminal "incentive" pay under the rules adopted by

  9  the department pursuant to the provisions of this section.

10  Rules and policies adopted pursuant to this section shall

11  permit terminal pay for sick leave equal to one-eighth of all

12  unused sick leave credit accumulated prior to October 1, 1973,

13  plus one-fourth of all unused sick leave accumulated on or

14  after October 1, 1973. However, terminal pay allowable for

15  unused sick leave accumulated on or after October 1, 1973,

16  shall not exceed a maximum of 480 hours of actual payment.

17  Employees shall be required to use all sick leave accumulated

18  prior to October 1, 1973, before using sick leave accumulated

19  on or after October 1, 1973.

20         (4)  The payments made pursuant to this section shall

21  not be considered in any state-administered retirement system

22  as salary payments and shall not be used in determining the

23  average final compensation of an employee in any

24  state-administered retirement system.

25         (5)  Any otherwise eligible employee:

26         (a)  Who is found guilty in a court of competent

27  jurisdiction of committing, aiding, or abetting any

28  embezzlement or theft from the employee's employer or bribery

29  in connection with the employment, committed prior to

30  retirement or 10-year normal creditable termination;

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                                          HB 2167, First Engrossed



  1         (b)  Whose employment is terminated by reason of the

  2  employee having admitted committing, aiding, or abetting an

  3  embezzlement or theft from his or her employer or by reason of

  4  bribery;

  5         (c)  Who, prior to 10-year normal creditable

  6  termination or retirement is adjudged by a court of competent

  7  jurisdiction to have violated any state law against strikes by

  8  public employees; or

  9         (d)  Who has been found guilty by a court of competent

10  jurisdiction of violating any state law prohibiting strikes by

11  public employees,

12

13  shall forfeit all rights and benefits under this section. An

14  employee whose employment terminates as a result of an act

15  committed subject to this subsection shall not be given credit

16  for unused sick leave accumulated prior to termination should

17  the employee be reemployed at a later date.

18         Section 20.  Notwithstanding the provisions of s.

19  110.123(2)(g), Florida Statutes, former state officers and

20  employees who are vested in the Florida Retirement System, and

21  who have deferred receiving their state retirement benefits

22  until age 62 to avoid early retirement penalties, may

23  participate in the state group health insurance plan at the

24  time of receiving their state retirement benefits on the same

25  basis as a retiree defined in s. 110.123(2)(g), Florida

26  Statutes.

27         Section 21.  The Department of Management Services, in

28  cooperation with the Florida School for the Deaf and Blind,

29  shall review the classification and pay grade assignments for

30  career service, nonteaching employees who deal with visually

31  impaired and hearing impaired students. The department and the


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                                          HB 2167, First Engrossed



  1  school shall provide a report and a recommendation by January

  2  1, 2001.

  3         Section 22.  Paragraph (g) of subsection (3) of section

  4  110.123, Florida Statutes, is amended to read:

  5         110.123  State group insurance program.--

  6         (3)  STATE GROUP INSURANCE PROGRAM.--

  7         (g)1.  A person eligible to participate in the state

  8  group insurance program may be authorized by rules adopted by

  9  the department, in lieu of participating in the state group

10  health insurance plan, to exercise an option to elect

11  membership in a health maintenance organization plan which is

12  under contract with the state in accordance with criteria

13  established by this section and by said rules.  The offer of

14  optional membership in a health maintenance organization plan

15  permitted by this paragraph may be limited or conditioned by

16  rule as may be necessary to meet the requirements of state and

17  federal laws.

18         2.  The department shall contract with health

19  maintenance organizations seeking to participate in the state

20  group insurance program through a request for proposal or

21  other procurement process, as developed by the Department of

22  Management Services and determined to be appropriate.

23         a.  The department shall establish a schedule of

24  minimum benefits for health maintenance organization coverage,

25  and that schedule shall include: physician services; inpatient

26  and outpatient hospital services; emergency medical services,

27  including out-of-area emergency coverage; diagnostic

28  laboratory and diagnostic and therapeutic radiologic services;

29  mental health, alcohol, and chemical dependency treatment

30  services meeting the minimum requirements of state and federal

31  law; skilled nursing facilities and services; prescription


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                                          HB 2167, First Engrossed



  1  drugs; and other benefits as may be required by the

  2  department.  Additional services may be provided subject to

  3  the contract between the department and the HMO.

  4         b.  The department may establish uniform deductibles,

  5  copayments, or coinsurance schedules for all participating HMO

  6  plans.

  7         c.  The department may require detailed information

  8  from each health maintenance organization participating in the

  9  procurement process, including information pertaining to

10  organizational status, experience in providing prepaid health

11  benefits, accessibility of services, financial stability of

12  the plan, quality of management services, accreditation

13  status, quality of medical services, network access and

14  adequacy, performance measurement, ability to meet the

15  department's reporting requirements, and the actuarial basis

16  of the proposed rates and other data determined by the

17  director to be necessary for the evaluation and selection of

18  health maintenance organization plans and negotiation of

19  appropriate rates for these plans.  Upon receipt of proposals

20  by health maintenance organization plans and the evaluation of

21  those proposals, the department may enter into negotiations

22  with all of the plans or a subset of the plans, as the

23  department determines appropriate. Nothing shall preclude the

24  department from negotiating regional or statewide contracts

25  with health maintenance organization plans when this is

26  cost-effective and when the department determines that the

27  plan offers high value to enrollees.

28         d.  The department may limit the number of HMOs that it

29  contracts with in each service area based on the nature of the

30  bids the department receives, the number of state employees in

31  the service area, or any unique geographical characteristics


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                                          HB 2167, First Engrossed



  1  of the service area. The department shall establish by rule

  2  service areas throughout the state.

  3         e.  All persons participating in the state group

  4  insurance program who are required to contribute towards a

  5  total state group health premium shall be subject to the same

  6  dollar contribution regardless of whether the enrollee enrolls

  7  in the state group health insurance plan or in an HMO plan.

  8         3.  The division is authorized to negotiate and to

  9  contract with specialty psychiatric hospitals for mental

10  health benefits, on a regional basis, for alcohol, drug abuse,

11  and mental and nervous disorders. The division may establish,

12  subject to the approval of the Legislature pursuant to

13  subsection (5), any such regional plan upon completion of an

14  actuarial study to determine any impact on plan benefits and

15  premiums.

16         4.  In addition to contracting pursuant to subparagraph

17  2., the department shall enter into contract with any HMO to

18  participate in the state group insurance program which:

19         a.  Serves greater than 5,000 recipients on a prepaid

20  basis under the Medicaid program;

21         b.  Does not currently meet the 25 percent

22  non-Medicare/non-Medicaid enrollment composition requirement

23  established by the Department of Health excluding participants

24  enrolled in the state group insurance program;

25         c.  Meets the minimum benefit package and copayments

26  and deductibles contained in sub-subparagraphs 2.a. and b.;

27         d.  Is willing to participate in the state group

28  insurance program at a cost of premiums that is not greater

29  than 95 percent of the cost of HMO premiums accepted by the

30  department in each service area; and

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                                          HB 2167, First Engrossed



  1         e.  Meets the minimum surplus requirements of s.

  2  641.225.

  3

  4  The department is authorized to contract with HMOs that meet

  5  the requirements of sub-subparagraphs a. through d. prior to

  6  the open enrollment period for state employees.  The

  7  department is not required to renew the contract with the HMOs

  8  as set forth in this paragraph more than twice. Thereafter,

  9  the HMOs shall be eligible to participate in the state group

10  insurance program only through the request for proposal

11  process described in subparagraph 2.

12         5.  All enrollees in the state group health insurance

13  plan or any health maintenance organization plan shall have

14  the option of changing to any other health plan which is

15  offered by the state within any open enrollment period

16  designated by the department. Open enrollment shall be held at

17  least once each calendar year.

18         6.  When a contract between a treating provider and the

19  state-contracted health maintenance organization is terminated

20  for any reason other than for cause, each party shall allow

21  any enrollee for whom treatment was active to continue

22  coverage and care when medically necessary, through completion

23  of treatment of a condition for which the enrollee was

24  receiving care at the time of the termination, until the

25  enrollee selects another treating provider, or until the next

26  open enrollment period offered, whichever is longer, but no

27  longer than 6 months after termination of the contract. Each

28  party to the terminated contract shall allow an enrollee who

29  has initiated a course of prenatal care, regardless of the

30  trimester in which care was initiated, to continue care and

31  coverage until completion of postpartum care. This does not


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                                          HB 2167, First Engrossed



  1  prevent a provider from refusing to continue to provide care

  2  to an enrollee who is abusive, noncompliant, or in arrears in

  3  payments for services provided. For care continued under this

  4  subparagraph, the program and the provider shall continue to

  5  be bound by the terms of the terminated contract. Changes made

  6  within 30 days before termination of a contract are effective

  7  only if agreed to by both parties.

  8         7.  Any HMO participating in the state group insurance

  9  program shall submit health care utilization and cost data to

10  the department, in such form and in such manner as the

11  division shall require, as a condition of participating in the

12  program.  The department shall enter into negotiations with

13  its contracting HMOs to determine the nature and scope of the

14  data submission and the final requirements, format, penalties

15  associated with noncompliance, and timetables for submission.

16  These determinations shall be adopted by rule.

17         8.  The department may establish and direct, with

18  respect to collective bargaining issues, a comprehensive

19  package of insurance benefits that may include supplemental

20  health and life coverage, dental care, long-term care, vision

21  care, and other benefits it determines necessary to enable

22  state employees to select from among benefit options that best

23  suit their individual and family needs.

24         a.  Based upon a desired benefit package, the

25  department shall issue a request for proposal for health

26  insurance providers interested in participating in the state

27  group insurance program, and the division shall issue a

28  request for proposal for insurance providers interested in

29  participating in the non-health-related components of the

30  state group insurance program. Upon receipt of all proposals,

31  the department may enter into contract negotiations with


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                                          HB 2167, First Engrossed



  1  insurance providers submitting bids or negotiate a specially

  2  designed benefit package. Insurance providers offering or

  3  providing supplemental coverage as of May 30, 1991, which

  4  qualify for pretax benefit treatment pursuant to s. 125 of the

  5  Internal Revenue Code of 1986, with 5,500 or more state

  6  employees currently enrolled may be included by the department

  7  in the supplemental insurance benefit plan established by the

  8  department without participating in a request for proposal,

  9  submitting bids, negotiating contracts, or negotiating a

10  specially designed benefit package. These contracts shall

11  provide state employees with the most cost-effective and

12  comprehensive coverage available; however, no state or agency

13  funds shall be contributed toward the cost of any part of the

14  premium of such supplemental benefit plans. With respect to

15  dental coverage, the division shall include in any

16  solicitation or contract for any state group dental program

17  made after July 1, 2001, a comprehensive indemnity dental plan

18  option which offers enrollees a completely unrestricted choice

19  of dentists. If a dental plan is endorsed, or in some manner

20  recognized as the preferred product, such plan shall include a

21  comprehensive indemnity dental plan option which provides

22  enrollees with a completely unrestricted choice of dentists.

23         b.  Pursuant to the applicable provisions of s.

24  110.161, and s. 125 of the Internal Revenue Code of 1986, the

25  department shall enroll in the pretax benefit program those

26  state employees who voluntarily elect coverage in any of the

27  supplemental insurance benefit plans as provided by

28  sub-subparagraph a.

29         c.  Nothing herein contained shall be construed to

30  prohibit insurance providers from continuing to provide or

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                                          HB 2167, First Engrossed



  1  offer supplemental benefit coverage to state employees as

  2  provided under existing agency plans.

  3         Section 23.  This act shall take effect July 1, 2001.

  4         Section 24.  Sections 272.12 and 272.121, Florida

  5  Statutes, are hereby repealed.

  6         Section 25.  This act shall take effect July 1, 2000.

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