CS for CS for SB 1150                            First Engrossed
       
       
       
       
       
       
       
       
       20131150e1
       
    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. 287.057, F.S.;
   47         providing that contracts awarded pursuant to an
   48         invitation to bid shall be awarded to the responsible
   49         and responsive vendor that submits the lowest
   50         responsive bid; revising exceptions to the requirement
   51         that the purchase of specified commodities or
   52         contractual services be made only as a result of
   53         receiving competitive sealed bids, competitive sealed
   54         proposals, or competitive sealed replies; revising
   55         contractual services and commodities that are not
   56         subject to competitive solicitation requirements by
   57         virtue of being available only from a single source;
   58         providing that a contract for commodities or
   59         contractual services may be awarded without
   60         competition if the recipient of funds is established
   61         during the appropriations process; revising provisions
   62         relating to extension of a contract for commodities or
   63         contractual services; authorizing an agency to
   64         negotiate better pricing upon renewal of a contract;
   65         providing training requirements for contract managers
   66         responsible for contracts in excess of a specified
   67         threshold amount; providing contract manager
   68         certification for contract managers responsible for
   69         contracts in excess of a specified threshold amount;
   70         providing that the department is responsible for
   71         establishing and disseminating the requirements for
   72         certification of a contract manager; providing that
   73         training will be conducted jointly by the Department
   74         of Management Services and the Department of Financial
   75         Services; providing training guidelines and
   76         requirements; requiring the department, in
   77         consultation with the Chief Financial Officer to
   78         maintain a program for online procurement of
   79         commodities and contractual services; amending s.
   80         287.0571, F.S.; revising nonapplicability of a
   81         business case to outsource; amending s. 287.058, F.S.;
   82         defining the term “performance measure”; revising
   83         references within provisions relating to purchase
   84         orders used in lieu of written agreements for classes
   85         of contractual services; revising terminology;
   86         authorizing the Chief Financial Officer to audit
   87         contracts before execution and providing requirements
   88         for such audits; creating s. 287.136, F.S.; requiring
   89         the Chief Financial Officer to perform audits of
   90         executed contract documents and to discuss such audits
   91         with the agency officials; requiring the agency head
   92         to respond to the audit; amending s. 287.076, F.S.;
   93         providing that Project Management Professionals
   94         training for personnel involved in managing
   95         outsourcings and negotiations is subject to annual
   96         appropriations; amending ss. 16.0155, 283.33, 394.457,
   97         402.7305, 409.9132, 427.0135, 445.024, 627.311,
   98         627.351, 765.5155, and 893.055, F.S.; conforming
   99         cross-references; providing effective dates.
  100  
  101  Be It Enacted by the Legislature of the State of Florida:
  102  
  103         Section 1. Section 119.0701, Florida Statutes, is created
  104  to read:
  105         119.0701Contracts; public records.—
  106         (1) For purposes of this section, the term:
  107         (a) “Contractor” means an individual, partnership,
  108  corporation, or business entity that enters into a contract for
  109  services with a public agency and is acting on behalf of the
  110  public agency as provided under s. 119.011(2).
  111         (b) “Public agency” means a state, county, district,
  112  authority, or municipal officer, or department, division, board,
  113  bureau, commission, or other separate unit of government created
  114  or established by law.
  115         (2) In addition to other contract requirements provided by
  116  law, each public agency contract for services must include a
  117  provision that requires the contractor and its subcontractors to
  118  comply with public records laws, specifically to:
  119         (a) Keep and maintain public records that ordinarily and
  120  necessarily would be required by the public agency in order to
  121  perform the service.
  122         (b) Provide the public with access to public records on the
  123  same terms and conditions that the public agency would provide
  124  the records and at a cost that does not exceed the cost provided
  125  in this chapter or as otherwise provided by law.
  126         (c) Ensure that public records that are exempt or
  127  confidential and exempt from public records disclosure
  128  requirements are not disclosed except as authorized by law.
  129         (d) Meet all requirements for retaining public records and
  130  transfer, at no cost, to the public agency all public records in
  131  possession of the contractor upon termination of the contract
  132  and destroy any duplicate public records that are exempt or
  133  confidential and exempt from public records disclosure
  134  requirements. All records stored electronically must be provided
  135  to the public agency in a format that is compatible with the
  136  information technology systems of the public agency.
  137         (3) If a contractor or its subcontractor does not comply
  138  with a public records request, the public agency shall enforce
  139  the contract provisions in accordance with the contract.
  140         Section 2. Section 119.12, Florida Statutes, is amended to
  141  read:
  142         119.12 Attorney Attorney’s fees.—If a civil action is filed
  143  against an agency to enforce the provisions of this chapter and
  144  if the court determines that such agency unlawfully refused to
  145  permit a public record to be inspected or copied, the court
  146  shall assess and award, against the agency responsible, the
  147  reasonable costs of enforcement. The reasonable costs of
  148  enforcement include, but are not limited to, including
  149  reasonable attorney attorneys’ fees, including those reasonable
  150  attorney fees incurred in litigating entitlement to and the
  151  determination or quantification of attorney fees for the
  152  underlying matter.
  153         Section 3. Section 215.971, Florida Statutes, is amended to
  154  read:
  155         215.971 Agreements funded with federal or and state
  156  assistance.—
  157         (1)For An agency agreement that provides state financial
  158  assistance to a recipient or subrecipient, as those terms are
  159  defined in s. 215.97, or that provides federal financial
  160  assistance to a subrecipient, as defined by applicable United
  161  States Office of Management and Budget circulars, must the
  162  agreement shall include all of the following:
  163         (a)(1) A provision specifying a scope of work that clearly
  164  establishes the tasks that the recipient or subrecipient is
  165  required to perform.; and
  166         (b)(2) A provision dividing the agreement into quantifiable
  167  units of deliverables that must be received and accepted in
  168  writing by the agency before payment. Each deliverable must be
  169  directly related to the scope of work and must specify the
  170  required minimum level of service to be performed and the
  171  criteria for evaluating the successful completion of each
  172  deliverable.
  173         (c)A provision specifying the financial consequences that
  174  apply if the recipient or subrecipient fails to perform the
  175  minimum level of service required by the agreement. The
  176  provision can be excluded from the agreement only if financial
  177  consequences are prohibited by the federal agency awarding the
  178  grant. Funds refunded to a state agency from a recipient or
  179  subrecipient for failure to perform as required under the
  180  agreement may be expended only in direct support of the program
  181  from which the agreement originated.
  182         (d)A provision specifying that a recipient or subrecipient
  183  of federal or state financial assistance may expend funds only
  184  for allowable costs resulting from obligations incurred during
  185  the specified agreement period.
  186         (e)A provision specifying that any balance of unobligated
  187  funds which has been advanced or paid must be refunded to the
  188  state agency.
  189         (f)A provision specifying that any funds paid in excess of
  190  the amount to which the recipient or subrecipient is entitled
  191  under the terms and conditions of the agreement must be refunded
  192  to the state agency.
  193         (g)Any additional information required pursuant to s.
  194  215.97.
  195         (2)The Chief Financial Officer may audit an agreement
  196  funded with state or federal assistance before the execution of
  197  such agreement in accordance with rules adopted by the
  198  Department of Financial Services. The audit must ensure that
  199  applicable laws have been met; that the agreement document
  200  contains a clear statement of work, quantifiable and measurable
  201  deliverables, performance measures, financial consequences for
  202  nonperformance, and clear terms and conditions that protect the
  203  interests of the state; and that the associated costs of the
  204  agreement are not unreasonable or inappropriate. The audit must
  205  ensure that all contracting laws have been met and that
  206  documentation is available to support the agreement. An
  207  agreement that does not comply with this section may be returned
  208  to the submitting agency for revision.
  209         (a)The Chief Financial Officer may establish dollar
  210  thresholds and other criteria for determining which agreements
  211  will be audited before execution. The Chief Financial Officer
  212  may revise such thresholds and other criteria for an agency or
  213  unit of an agency as he or she deems appropriate.
  214         (b)The Chief Financial Officer shall have up to 10
  215  business days after receipt of the proposed grant agreement to
  216  make a final determination of any deficiencies in the agreement
  217  and shall provide the agency with information regarding any
  218  deficiencies at the conclusion of the review. The Chief
  219  Financial Officer and the agency entering into the agreement may
  220  agree to a longer review period.
  221         (c) This subsection does not apply to the Board of
  222  Governors, a state university, or a facility engaged in research
  223  using state or federal funds until July 1, 2015.
  224         (3)For each agreement funded with federal or state
  225  financial assistance, the state agency shall designate an
  226  employee to function as a grant manager who shall be responsible
  227  for enforcing performance of the agreement’s terms and
  228  conditions and who shall serve as a liaison with the recipient
  229  or subrecipient.
  230         (a) Each grant manager responsible for agreements in excess
  231  of $100,000 annually must complete the training and become a
  232  certified contract manager as provided under s. 287.057(14).
  233         (b) The Chief Financial Officer shall establish and
  234  disseminate uniform procedures for grant management pursuant to
  235  s. 17.03(3) to ensure that services have been rendered in
  236  accordance with agreement terms before the agency processes an
  237  invoice for payment. The procedures must include, but need not
  238  be limited to, procedures for monitoring and documenting
  239  recipient or subrecipient performance, reviewing and documenting
  240  all deliverables for which payment is requested by the recipient
  241  or subrecipient, and providing written certification by the
  242  grant manager of the agency’s receipt of goods and services.
  243         (c)The grant manager shall reconcile and verify all funds
  244  received against all funds expended during the grant agreement
  245  period and produce a final reconciliation report. The final
  246  report must identify any funds paid in excess of the
  247  expenditures incurred by the recipient or subrecipient.
  248         (4)The Chief Financial Officer shall perform audits of the
  249  executed state and federal grant agreement documents and grant
  250  manager’s records in order to ensure that adequate internal
  251  controls are in place for complying with the terms and
  252  conditions of such agreements and for validation and receipt of
  253  goods and services.
  254         (a)At the conclusion of the audit, the Chief Financial
  255  Officer’s designee shall discuss the audit and potential
  256  findings with the official whose office is subject to audit. The
  257  final audit report shall be submitted to the agency head.
  258         (b) Within 30 days after the receipt of the final audit
  259  report, the agency head shall submit to the Chief Financial
  260  Officer or designee, his or her written statement of explanation
  261  or rebuttal concerning findings requiring corrective action,
  262  including corrective action to be taken to preclude a
  263  recurrence.
  264         Section 4. Subsection (2) of section 215.985, Florida
  265  Statutes, is reordered and amended and subsection (16) of that
  266  section is amended, to read:
  267         215.985 Transparency in government spending.—
  268         (2) As used in this section, the term:
  269         (c)(a) “Governmental entity” means any state, regional,
  270  county, municipal, special district, or other political
  271  subdivision whether executive, judicial, or legislative,
  272  including, but not limited to, any department, division, bureau,
  273  commission, authority, district, or agency thereof, or any
  274  public school, Florida College System institution, state
  275  university, or associated board.
  276         (d)(b) “Website” means a site on the Internet which is
  277  easily accessible to the public at no cost and does not require
  278  the user to provide any information.
  279         (a)(c) “Committee” means the Legislative Auditing Committee
  280  created in s. 11.40.
  281         (b) “Contract” means any written agreement or purchase
  282  order issued for the purchase of goods or services and any
  283  written agreements for the receipt of federal or state financial
  284  assistance.
  285         (16) The Chief Financial Officer shall establish and
  286  maintain a secure, shared state contract tracking provide public
  287  access to a state contract management system.
  288         (a) Within 30 calendar days after executing a contract,
  289  each state agency as defined in s. 216.011(1) shall post all of
  290  the following that provides information and documentation
  291  relating to that contract on the contract tracking system, as
  292  required by rule: contracts procured by governmental entities.
  293         1.The names of the contracting entities.
  294         2.The procurement method.
  295         3.The contract beginning and end dates.
  296         4.The nature or type of the commodities or services
  297  purchased.
  298         5.Applicable contract unit prices and deliverables.
  299         6.Total compensation to be paid or received under the
  300  contract.
  301         7.All payments made to the contractor to date.
  302         8.Applicable contract performance measures.
  303         9.The justification for not using competitive solicitation
  304  to procure the contract, including citation to any statutory
  305  exemption or exception from competitive solicitation, if
  306  applicable.
  307         10.Electronic copies of the contract and procurement
  308  documents that have been redacted to conceal exempt or
  309  confidential information.
  310         11.Any other information required by the Chief Financial
  311  Officer.
  312         (a) The data collected in the system must include, but need
  313  not be limited to, the contracting agency; the procurement
  314  method; the contract beginning and ending dates; the type of
  315  commodity or service; the purpose of the commodity or service;
  316  the compensation to be paid; compliance information, such as
  317  performance metrics for the service or commodity; contract
  318  violations; the number of extensions or renewals; and the
  319  statutory authority for providing the service.
  320         (b) The affected state governmental agency shall update the
  321  information described in paragraph (a) in the contract tracking
  322  system within 30 calendar days after a major modification or
  323  amendment change to an existing contract or the execution of a
  324  new contract, agency procurement staff of the affected state
  325  governmental entity shall update the necessary information in
  326  the state contract management system. A major modification or
  327  amendment change to a contract includes, but is not limited to,
  328  a renewal, termination, or extension of the contract, or an
  329  amendment to the contract as determined by the Chief Financial
  330  Officer.
  331         (c) Each state agency identified in paragraph (a) shall
  332  redact, as defined in s. 119.011, exempt or confidential
  333  information from the contract or procurement documents before
  334  posting an electronic copy on the contract tracking system.
  335         1. If a state agency becomes aware that an electronic copy
  336  of a contract or procurement document that it posted has not
  337  been properly redacted, the state agency must immediately notify
  338  the Chief Financial Officer so that the contract or procurement
  339  document may be removed. Within 7 business days, the state
  340  agency shall provide the Chief Financial Officer with a properly
  341  redacted copy for posting.
  342         2. If a party to a contract, or authorized representative,
  343  discovers that an electronic copy of a contract or procurement
  344  document on the system has not been properly redacted, the party
  345  or representative may request the state agency that posted the
  346  document to redact the exempt or confidential information. Upon
  347  receipt of a request in compliance with this subparagraph, the
  348  state agency that posted the document shall redact the exempt or
  349  confidential information.
  350         a. Such request must be in writing and delivered by mail,
  351  facsimile, or electronic transmission or in person to the state
  352  agency that posted the information. The request must identify
  353  the specific document, the page numbers that include the exempt
  354  or confidential information, the information that is exempt or
  355  confidential, and the relevant statutory exemption. A fee may
  356  not be charged for a redaction made pursuant to such request.
  357         b. If necessary, a party to the contract may petition the
  358  circuit court for an order directing compliance with this
  359  paragraph.
  360         3. The Chief Financial Officer, the Department of Financial
  361  Services, or any officer, employee, or contractor thereof, is
  362  not responsible for redacting exempt or confidential information
  363  from an electronic copy of a contract or procurement document
  364  posted by another state agency on the system and is not liable
  365  for the failure of the state agency to redact the exempt or
  366  confidential information. The Chief Financial Officer may notify
  367  the posting state agency if a document posted on the tracking
  368  system contains exempt or confidential information.
  369         (d) Pursuant to ss. 119.01 and 119.07, the Chief Financial
  370  Officer may make information posted on the contract tracking
  371  system available for viewing and download by the public through
  372  a secure website. Unless otherwise provided by law, information
  373  retrieved electronically pursuant to this paragraph is not
  374  admissible in court as an authenticated document.
  375         1. The Chief Financial Officer may regulate and prohibit
  376  the posting of records that could facilitate identity theft or
  377  fraud, such as signatures; compromise or reveal an agency
  378  investigation; reveal the identity of undercover personnel;
  379  reveal proprietary confidential business information or trade
  380  secrets; reveal an individual’s medical information; or reveal
  381  any other record or information that the Chief Financial Officer
  382  believes may jeopardize the health, safety, or welfare of the
  383  public. However, such prohibition does not supersede the duty of
  384  a state agency to provide a copy of a public record upon
  385  request. The Chief Financial Officer shall use appropriate
  386  Internet security measures to ensure that no person has the
  387  ability to alter or modify records available on the website.
  388         2. Records made available on the website, including
  389  electronic copies of contracts or procurement documents, may not
  390  reveal information made exempt or confidential by law. Notice of
  391  the right of an affected party to request redaction of exempt or
  392  confidential information pursuant to paragraph (c) must be
  393  displayed on the website.
  394         (e) The posting of information on the contract tracking
  395  system or the provision of contract information on a website for
  396  public viewing and downloading does not supersede the duty of a
  397  state agency to respond to a public record request for such
  398  information or to a subpoena for such information.
  399         1. A request for a copy of a contract or procurement
  400  document or a certified copy of a contract or procurement
  401  document must be made to the state agency that is party to the
  402  contract. Such request may not be made to the Chief Financial
  403  Officer or the Department of Financial Services or any officer,
  404  employee, or contractor thereof unless the Chief Financial
  405  Officer or department is a party to the contract.
  406         2. A subpoena for a copy of a contract or procurement
  407  document or certified copy of a contract or procurement document
  408  must be served on the state agency that is a party to the
  409  contract and that maintains the original documents. The Chief
  410  Financial Officer or the Department of Financial Services or any
  411  officer, employee, or contractor thereof may not be served a
  412  subpoena for those records unless the Chief Financial Officer or
  413  the department is a party to the contract.
  414         (f) The requirement under paragraphs (a) and (b) that each
  415  agency post information and documentation relating to contracts
  416  on the tracking system does not apply to any record that could
  417  reveal attorney work product or strategy.
  418         (g) The Chief Financial Officer may adopt rules to
  419  administer this subsection.
  420         Section 5. Section 216.0111, Florida Statutes, is repealed.
  421         Section 6. Subsections (4) through (28) of section 287.012,
  422  Florida Statutes, are amended to read:
  423         287.012 Definitions.—As used in this part, the term:
  424         (4) “Best value” means the highest overall value to the
  425  state based on objective factors that include, but are not
  426  limited to, price, quality, design, and workmanship.
  427         (5) “Commodity” means any of the various supplies,
  428  materials, goods, merchandise, food, equipment, information
  429  technology, and other personal property, including a mobile
  430  home, trailer, or other portable structure that has with floor
  431  space of less than 5,000 square feet of floor space, purchased,
  432  leased, or otherwise contracted for by the state and its
  433  agencies. The term “Commodity” also includes interest on
  434  deferred-payment commodity contracts approved pursuant to s.
  435  287.063 entered into by an agency for the purchase of other
  436  commodities. However, commodities purchased for resale are
  437  excluded from this definition. Printing of publications shall be
  438  considered a commodity if procured when let upon contract
  439  pursuant to s. 283.33, whether purchased for resale or not.
  440         (6) “Competitive solicitation” means the process of
  441  requesting and receiving two or more sealed bids, proposals, or
  442  replies submitted by responsive vendors in accordance with the
  443  terms of a competitive process, regardless of the method of
  444  procurement.
  445         (7) “Contractor” means a person who contracts to sell
  446  commodities or contractual services to an agency.
  447         (8) “Contractual service” means the rendering by a
  448  contractor of its time and effort rather than the furnishing of
  449  specific commodities. The term applies only to those services
  450  rendered by individuals and firms who are independent
  451  contractors, and such services may include, but are not limited
  452  to, evaluations; consultations; maintenance; accounting;
  453  security; management systems; management consulting; educational
  454  training programs; research and development studies or reports
  455  on the findings of consultants engaged thereunder; and
  456  professional, technical, and social services. The term
  457  “Contractual service” does not include a any contract for the
  458  furnishing of labor or materials for the construction,
  459  renovation, repair, modification, or demolition of a any
  460  facility, building, portion of building, utility, park, parking
  461  lot, or structure or other improvement to real property entered
  462  into pursuant to chapter 255 and rules adopted thereunder.
  463         (9) “Department” means the Department of Management
  464  Services.
  465         (10) “Electronic posting” or “electronically post” means
  466  the noticing of solicitations, agency decisions or intended
  467  decisions, or other matters relating to procurement on a
  468  centralized Internet website designated by the department for
  469  this purpose, and in the manner and form required under s.
  470  120.57(3)(a).
  471         (11) “Eligible user” means any person or entity authorized
  472  by the department pursuant to rule to purchase from state term
  473  contracts or to use the online procurement system.
  474         (12) “Exceptional purchase” means any purchase of
  475  commodities or contractual services excepted by law or rule from
  476  the requirements for competitive solicitation, including, but
  477  not limited to, purchases from a single source; purchases upon
  478  receipt of less than two responsive bids, proposals, or replies;
  479  purchases made by an agency, after receiving approval from the
  480  department, from a contract procured, pursuant to s. 287.057(1),
  481  or by another agency; and purchases made without advertisement
  482  in the manner required under by s. 287.042(3)(b).
  483         (13) “Extension” means an increase in the time allowed for
  484  the contract period due to circumstances which, without fault of
  485  either party, make performance impracticable or impossible, or
  486  which prevent a new contract from being executed, with or
  487  without a proportional increase in the total dollar amount, with
  488  any increase to be based on the method and rate previously
  489  established in the contract.
  490         (14) “Governmental entity” means a political subdivision or
  491  agency of this state or of any state of the United States,
  492  including, but not limited to, state government, county,
  493  municipality, school district, nonprofit public university or
  494  college, single-purpose or multipurpose special district,
  495  single-purpose or multipurpose public authority, metropolitan or
  496  consolidated government, separate legal entity or administrative
  497  entity, or any agency of the Federal Government.
  498         (15)(14) “Information technology” has the same meaning as
  499  provided ascribed in s. 282.0041.
  500         (16)(15) “Invitation to bid” means a written or
  501  electronically posted solicitation for competitive sealed bids.
  502         (17)(16) “Invitation to negotiate” means a written or
  503  electronically posted solicitation for competitive sealed
  504  replies to select one or more vendors with which to commence
  505  negotiations for the procurement of commodities or contractual
  506  services.
  507         (18)(17) “Minority business enterprise” has the same
  508  meaning as provided ascribed in s. 288.703.
  509         (19)(18) “Office” means the Office of Supplier Diversity of
  510  the Department of Management Services.
  511         (20)(19) “Outsource” means the process of contracting with
  512  a vendor to provide a service as defined in s. 216.011(1)(f), in
  513  whole or in part, or an activity as defined in s.
  514  216.011(1)(rr), while a state agency retains the responsibility
  515  and accountability for the service or activity and there is a
  516  transfer of management responsibility for the delivery of
  517  resources and the performance of those resources.
  518         (21)(20) “Renewal” means contracting with the same
  519  contractor for an additional contract period after the initial
  520  contract period, only if pursuant to contract terms specifically
  521  providing for such renewal.
  522         (22)(21) “Request for information” means a written or
  523  electronically posted request made by an agency to vendors for
  524  information concerning commodities or contractual services.
  525  Responses to these requests are not offers and may not be
  526  accepted by the agency to form a binding contract.
  527         (23)(22) “Request for proposals” means a written or
  528  electronically posted solicitation for competitive sealed
  529  proposals.
  530         (24)(23) “Request for a quote” means an oral, electronic,
  531  or written request for written pricing or services information
  532  from a state term contract vendor for commodities or contractual
  533  services available on a state term contract from that vendor.
  534         (25)(24) “Responsible vendor” means a vendor who has the
  535  capability in all respects to fully perform the contract
  536  requirements and the integrity and reliability that will assure
  537  good faith performance.
  538         (26)(25) “Responsive bid,” “responsive proposal,” or
  539  “responsive reply” means a bid, or proposal, or reply submitted
  540  by a responsive and responsible vendor which that conforms in
  541  all material respects to the solicitation.
  542         (27)(26) “Responsive vendor” means a vendor that has
  543  submitted a bid, proposal, or reply that conforms in all
  544  material respects to the solicitation.
  545         (28)(27) “State term contract” means a term contract that
  546  is competitively procured by the department pursuant to s.
  547  287.057 and that is used by agencies and eligible users pursuant
  548  to s. 287.056.
  549         (29)(28) “Term contract” means an indefinite quantity
  550  contract to furnish commodities or contractual services during a
  551  defined period.
  552         Section 7. Paragraph (a) of subsection (1), paragraph (b)
  553  of subsection (2), and subsections (8) and (15) of section
  554  287.042, Florida Statutes, are amended to read:
  555         287.042 Powers, duties, and functions.—The department shall
  556  have the following powers, duties, and functions:
  557         (1)(a) To canvass all sources of supply, establish and
  558  maintain a vendor list, and contract for the purchase, lease, or
  559  acquisition, including purchase by installment sales or lease
  560  purchase contracts which may provide for the payment of interest
  561  on unpaid portions of the purchase price, of all commodities and
  562  contractual services required by any agency under this chapter.
  563  Any contract providing for deferred payments and the payment of
  564  interest is shall be subject to specific rules adopted by the
  565  department.
  566         (2)
  567         (b) As an alternative to any provision in s. 120.57(3)(c),
  568  the department may proceed with the competitive solicitation or
  569  contract award process of a term contract when the Secretary of
  570  Management Services the department or his or her designee sets
  571  forth in writing particular facts and circumstances that which
  572  demonstrate that the delay incident to staying the solicitation
  573  or contract award process would be detrimental to the interests
  574  of the state. After the award of a contract resulting from a
  575  competitive solicitation in which a timely protest was received
  576  and in which the state did not prevail, the contract may be
  577  canceled and reawarded.
  578         (8) To provide any commodity and contractual service
  579  purchasing rules to the Chief Financial Officer and all agencies
  580  electronically or through an electronic medium or other means.
  581  Agencies may not approve an any account or request any payment
  582  of an any account for the purchase of any commodity or the
  583  procurement of any contractual service covered by a purchasing
  584  or contractual service rule except as authorized therein. The
  585  department shall furnish copies of rules adopted by the
  586  department to any county, municipality, or other local public
  587  agency requesting them.
  588         (15) To lead or enter into joint agreements with
  589  governmental entities agencies, as defined in s. 163.3164, for
  590  the purpose of pooling funds for the purchase of commodities or
  591  contractual services information technology that can be used by
  592  multiple agencies.
  593         (a) Each agency that has been appropriated or has existing
  594  funds for such purchase, shall, upon contract award by the
  595  department, transfer its their portion of the funds into the
  596  department’s Operating Trust Fund for payment by the department.
  597  The funds shall be transferred by the Executive Office of the
  598  Governor pursuant to the agency budget amendment request
  599  provisions under in chapter 216.
  600         (b) Agencies that sign the joint agreements are financially
  601  obligated for their portion of the agreed-upon funds. If an
  602  agency becomes more than 90 days delinquent in paying the funds,
  603  the department shall certify to the Chief Financial Officer the
  604  amount due, and the Chief Financial Officer shall transfer the
  605  amount due to the Operating Trust Fund of the department from
  606  any of the agency’s available funds. The Chief Financial Officer
  607  shall report these transfers and the reasons for the transfers
  608  to the Executive Office of the Governor and the legislative
  609  appropriations committees.
  610         Section 8. Paragraph (a) of subsection (1) and subsections
  611  (3), (10), (12), (13), (16), and (22) of section 287.057,
  612  Florida Statutes, are amended to read:
  613         287.057 Procurement of commodities or contractual
  614  services.—
  615         (1) The competitive solicitation processes authorized in
  616  this section shall be used for procurement of commodities or
  617  contractual services in excess of the threshold amount provided
  618  for CATEGORY TWO in s. 287.017. Any competitive solicitation
  619  shall be made available simultaneously to all vendors, must
  620  include the time and date for the receipt of bids, proposals, or
  621  replies and of the public opening, and must include all
  622  contractual terms and conditions applicable to the procurement,
  623  including the criteria to be used in determining acceptability
  624  and relative merit of the bid, proposal, or reply.
  625         (a) Invitation to bid.—The invitation to bid shall be used
  626  when the agency is capable of specifically defining the scope of
  627  work for which a contractual service is required or when the
  628  agency is capable of establishing precise specifications
  629  defining the actual commodity or group of commodities required.
  630         1. All invitations to bid must include:
  631         a. A detailed description of the commodities or contractual
  632  services sought; and
  633         b. If the agency contemplates renewal of the contract, a
  634  statement to that effect.
  635         2. Bids submitted in response to an invitation to bid in
  636  which the agency contemplates renewal of the contract must
  637  include the price for each year for which the contract may be
  638  renewed.
  639         3. Evaluation of bids must shall include consideration of
  640  the total cost for each year of the contract, including renewal
  641  years, as submitted by the vendor.
  642         4. The contract shall be awarded to the responsible and
  643  responsive vendor who submits the lowest responsive bid.
  644         (3) If When the purchase price of commodities or
  645  contractual services exceeds the threshold amount provided in s.
  646  287.017 for CATEGORY TWO, no purchase of commodities or
  647  contractual services may not be made without receiving
  648  competitive sealed bids, competitive sealed proposals, or
  649  competitive sealed replies unless:
  650         (a) The agency head determines in writing that an immediate
  651  danger to the public health, safety, or welfare or other
  652  substantial loss to the state requires emergency action. After
  653  the agency head signs makes such a written determination, the
  654  agency may proceed with the procurement of commodities or
  655  contractual services necessitated by the immediate danger,
  656  without receiving competitive sealed bids, competitive sealed
  657  proposals, or competitive sealed replies. However, the such
  658  emergency procurement shall be made by obtaining pricing
  659  information from at least two prospective vendors, which must be
  660  retained in the contract file, unless the agency determines in
  661  writing that the time required to obtain pricing information
  662  will increase the immediate danger to the public health, safety,
  663  or welfare or other substantial loss to the state. The agency
  664  shall furnish copies of all written determinations certified
  665  under oath and any other documents relating to the emergency
  666  action to the department. A copy of the written statement shall
  667  be furnished to the Chief Financial Officer with the voucher
  668  authorizing payment. The individual purchase of personal
  669  clothing, shelter, or supplies which are needed on an emergency
  670  basis to avoid institutionalization or placement in a more
  671  restrictive setting is an emergency for the purposes of this
  672  paragraph, and the filing with the department of such statement
  673  is not required in such circumstances. In the case of the
  674  emergency purchase of insurance, the period of coverage of such
  675  insurance may shall not exceed a period of 30 days, and all such
  676  emergency purchases shall be reported to the department.
  677         (b) The purchase is made by an agency from a state term
  678  contract procured, pursuant to this section, by the department
  679  or by an agency, after receiving approval from the department,
  680  from a contract procured, pursuant to subsection (1), by another
  681  agency.
  682         (c) Commodities or contractual services available only from
  683  a single source may be excepted from the competitive
  684  solicitation requirements. If When an agency believes that
  685  commodities or contractual services are available only from a
  686  single source, the agency shall electronically post a
  687  description of the commodities or contractual services sought
  688  for a period of at least 7 business days. The description must
  689  include a request that prospective vendors provide information
  690  regarding their ability to supply the commodities or contractual
  691  services described. If it is determined in writing by the
  692  agency, after reviewing any information received from
  693  prospective vendors, that the commodities or contractual
  694  services are available only from a single source, the agency
  695  shall:
  696         1. provide notice of its intended decision to enter a
  697  single-source purchase contract in the manner specified in s.
  698  120.57(3), if the amount of the contract does not exceed the
  699  threshold amount provided in s. 287.017 for CATEGORY FOUR.
  700         2. Request approval from the department for the single
  701  source purchase, if the amount of the contract exceeds the
  702  threshold amount provided in s. 287.017 for CATEGORY FOUR. The
  703  agency shall initiate its request for approval in a form
  704  prescribed by the department, which request may be
  705  electronically transmitted. The failure of the department to
  706  approve or disapprove the agency’s request for approval within
  707  21 days after receiving such request shall constitute prior
  708  approval of the department. If the department approves the
  709  agency’s request, the agency shall provide notice of its
  710  intended decision to enter a single-source contract in the
  711  manner specified in s. 120.57(3).
  712         (d) When it is in the best interest of the state, the
  713  secretary of the department or his or her designee may authorize
  714  the Support Program to purchase insurance by negotiation, but
  715  such purchase shall be made only under conditions most favorable
  716  to the public interest.
  717         (d)(e) Prescriptive assistive devices for the purpose of
  718  medical, developmental, or vocational rehabilitation of clients
  719  are excepted from competitive-solicitation requirements and
  720  shall be procured pursuant to an established fee schedule or by
  721  any other method that which ensures the best price for the
  722  state, taking into consideration the needs of the client.
  723  Prescriptive assistive devices include, but are not limited to,
  724  prosthetics, orthotics, and wheelchairs. For purchases made
  725  pursuant to this paragraph, state agencies shall annually file
  726  with the department a description of the purchases and methods
  727  of procurement.
  728         (e)(f) The following contractual services and commodities
  729  are not subject to the competitive-solicitation requirements of
  730  this section:
  731         1. Artistic services. As used in For the purposes of this
  732  subsection, the term “artistic services” does not include
  733  advertising or typesetting. As used in this subparagraph, the
  734  term “advertising” means the making of a representation in any
  735  form in connection with a trade, business, craft, or profession
  736  in order to promote the supply of commodities or services by the
  737  person promoting the commodities or contractual services.
  738         2. Academic program reviews if the fee for such services
  739  does not exceed $50,000.
  740         3. Lectures by individuals.
  741         4. Legal services, including attorney, paralegal, expert
  742  witness, appraisal, or mediator services.
  743         5.a. Health services involving examination, diagnosis,
  744  treatment, prevention, medical consultation, or administration.
  745  The term also includes,
  746         b. Beginning January 1, 2011, health services, including,
  747  but is not limited to, substance abuse and mental health
  748  services, involving examination, diagnosis, treatment,
  749  prevention, or medical consultation if, when such services are
  750  offered to eligible individuals participating in a specific
  751  program that qualifies multiple providers and uses a standard
  752  payment methodology. Reimbursement of administrative costs for
  753  providers of services purchased in this manner are shall also be
  754  exempt. For purposes of this subparagraph sub-subparagraph, the
  755  term “providers” means health professionals and, health
  756  facilities, or organizations that deliver or arrange for the
  757  delivery of health services.
  758         6. Services provided to persons with mental or physical
  759  disabilities by not-for-profit corporations that which have
  760  obtained exemptions under the provisions of s. 501(c)(3) of the
  761  United States Internal Revenue Code or when such services are
  762  governed by the provisions of Office of Management and Budget
  763  Circular A-122. However, in acquiring such services, the agency
  764  shall consider the ability of the vendor, past performance,
  765  willingness to meet time requirements, and price.
  766         7. Medicaid services delivered to an eligible Medicaid
  767  recipient unless the agency is directed otherwise in law.
  768         8. Family placement services.
  769         9. Prevention services related to mental health, including
  770  drug abuse prevention programs, child abuse prevention programs,
  771  and shelters for runaways, operated by not-for-profit
  772  corporations. However, in acquiring such services, the agency
  773  shall consider the ability of the vendor, past performance,
  774  willingness to meet time requirements, and price.
  775         10. Training and education services provided to injured
  776  employees pursuant to s. 440.491(6).
  777         11. Contracts entered into pursuant to s. 337.11.
  778         12. Services or commodities provided by governmental
  779  entities agencies.
  780         13. Statewide public service announcement programs provided
  781  by a Florida statewide nonprofit corporation under s. 501(c)(6)
  782  of the Internal Revenue Code which have, with a guaranteed
  783  documented match of at least $3 to $1.
  784         (f)(g) Continuing education events or programs that are
  785  offered to the general public and for which fees have been
  786  collected which that pay all expenses associated with the event
  787  or program are exempt from requirements for competitive
  788  solicitation.
  789         (10) A contract for commodities or contractual services may
  790  be awarded without competition if state or federal law
  791  prescribes with whom the agency must contract or if the rate of
  792  payment or the recipient of the funds is established during the
  793  appropriations process.
  794         (12) Extension of a contract for commodities or contractual
  795  services must shall be in writing for a period not to exceed 6
  796  months and is shall be subject to the same terms and conditions
  797  set forth in the initial contract and any written amendments
  798  signed by the parties. There may shall be only one extension of
  799  a contract unless the failure to meet the criteria set forth in
  800  the contract for completion of the contract is due to events
  801  beyond the control of the contractor.
  802         (13) Contracts for commodities or contractual services may
  803  be renewed for a period that may not exceed 3 years or the term
  804  of the original contract, whichever period is longer. Renewal of
  805  a contract for commodities or contractual services must shall be
  806  in writing and is shall be subject to the same terms and
  807  conditions set forth in the initial contract and any written
  808  amendments signed by the parties. If the commodity or
  809  contractual service is purchased as a result of the solicitation
  810  of bids, proposals, or replies, the price of the commodity or
  811  contractual service to be renewed must shall be specified in the
  812  bid, proposal, or reply, except that an agency may negotiate
  813  lower pricing. A renewal contract may not include any
  814  compensation for costs associated with the renewal. Renewals are
  815  shall be contingent upon satisfactory performance evaluations by
  816  the agency and subject to the availability of funds. Exceptional
  817  purchase contracts pursuant to paragraphs (3)(a) and (c) may not
  818  be renewed. With the exception of subsection (10) (12), if a
  819  contract amendment results in a longer contract term or
  820  increased payments, a state agency may not renew or amend a
  821  contract for the outsourcing of a service or activity that has
  822  an original term value exceeding the sum of $10 million before
  823  submitting a written report concerning contract performance to
  824  the Governor, the President of the Senate, and the Speaker of
  825  the House of Representatives at least 90 days before execution
  826  of the renewal or amendment.
  827         (16)(a) For a contract in excess of the threshold amount
  828  provided in s. 287.017 for CATEGORY FOUR, the agency head shall
  829  appoint:
  830         1.(a) At least three persons to evaluate proposals and
  831  replies who collectively have experience and knowledge in the
  832  program areas and service requirements for which commodities or
  833  contractual services are sought.
  834         2.(b) At least three persons to conduct negotiations during
  835  a competitive sealed reply procurement who collectively have
  836  experience and knowledge in negotiating contracts, contract
  837  procurement, and the program areas and service requirements for
  838  which commodities or contractual services are sought.
  839         (b) If When the value of a contract is in excess of $1
  840  million in any fiscal year, at least one of the persons
  841  conducting negotiations must be certified as a contract
  842  negotiator based upon department rules adopted by the Department
  843  of Management Services in order to ensure that certified
  844  contract negotiators are knowledgeable about effective
  845  negotiation strategies, capable of successfully implementing
  846  those strategies, and involved appropriately in the procurement
  847  process. At a minimum, the rules must address the qualifications
  848  required for certification, the method of certification, and the
  849  procedure for involving the certified negotiator. If the value
  850  of a contract is in excess of $10 million in any fiscal year, at
  851  least one of the persons conducting negotiations must be a
  852  Project Management Professional, as certified by the Project
  853  Management Institute.
  854         (22) The department, in consultation with the Chief
  855  Financial Officer Agency for Enterprise Information Technology
  856  and the Comptroller, shall maintain develop a program for online
  857  procurement of commodities and contractual services. To enable
  858  the state to promote open competition and to leverage its buying
  859  power, agencies shall participate in the online procurement
  860  program, and eligible users may participate in the program. Only
  861  vendors prequalified as meeting mandatory requirements and
  862  qualifications criteria may participate in online procurement.
  863         (a) The department, in consultation with the agency, may
  864  contract for equipment and services necessary to develop and
  865  implement online procurement.
  866         (b) The department, in consultation with the agency, shall
  867  adopt rules, pursuant to ss. 120.536(1) and 120.54, to
  868  administer the program for online procurement. The rules must
  869  shall include, but not be limited to:
  870         1. Determining the requirements and qualification criteria
  871  for prequalifying vendors.
  872         2. Establishing the procedures for conducting online
  873  procurement.
  874         3. Establishing the criteria for eligible commodities and
  875  contractual services.
  876         4. Establishing the procedures for providing access to
  877  online procurement.
  878         5. Determining the criteria warranting any exceptions to
  879  participation in the online procurement program.
  880         (c) The department may impose and shall collect all fees
  881  for the use of the online procurement systems.
  882         1. The fees may be imposed on an individual transaction
  883  basis or as a fixed percentage of the cost savings generated. At
  884  a minimum, the fees must be set in an amount sufficient to cover
  885  the projected costs of the services, including administrative
  886  and project service costs in accordance with the policies of the
  887  department.
  888         2. If the department contracts with a provider for online
  889  procurement, the department, pursuant to appropriation, shall
  890  compensate the provider from the fees after the department has
  891  satisfied all ongoing costs. The provider shall report
  892  transaction data to the department each month so that the
  893  department may determine the amount due and payable to the
  894  department from each vendor.
  895         3. All fees that are due and payable to the state on a
  896  transactional basis or as a fixed percentage of the cost savings
  897  generated are subject to s. 215.31 and must be remitted within
  898  40 days after receipt of payment for which the fees are due. For
  899  fees that are not remitted within 40 days, the vendor shall pay
  900  interest at the rate established under s. 55.03(1) on the unpaid
  901  balance from the expiration of the 40-day period until the fees
  902  are remitted.
  903         4. All fees and surcharges collected under this paragraph
  904  shall be deposited in the Operating Trust Fund as provided by
  905  law.
  906         Section 9. Effective December 1, 2014, subsection (14) of
  907  section 287.057, Florida Statutes, is amended to read:
  908         287.057 Procurement of commodities or contractual
  909  services.—
  910         (14) For each contractual services contract, the agency
  911  shall designate an employee to function as contract manager who
  912  is shall be responsible for enforcing performance of the
  913  contract terms and conditions and serve as a liaison with the
  914  contractor.
  915         (a) Each contract manager who is responsible for contracts
  916  in excess of the threshold amount for CATEGORY TWO must, at a
  917  minimum, complete attend training conducted by the Chief
  918  Financial Officer for accountability in contracts and grant
  919  management. The Chief Financial Officer shall establish and
  920  disseminate uniform procedures pursuant to s. 17.03(3) to ensure
  921  that contractual services have been rendered in accordance with
  922  the contract terms before the agency processes the invoice for
  923  payment. The procedures must shall include, but need not be
  924  limited to, procedures for monitoring and documenting contractor
  925  performance, reviewing and documenting all deliverables for
  926  which payment is requested by vendors, and providing written
  927  certification by contract managers of the agency’s receipt of
  928  goods and services.
  929         (b) Each contract manager who is responsible for contracts
  930  in excess of $100,000 annually must complete training in
  931  contract management and become a certified contract manager. The
  932  department is responsible for establishing and disseminating the
  933  requirements for certification which include completing the
  934  training conducted by the Chief Financial Officer for
  935  accountability in contracts and grant management. Training and
  936  certification must be coordinated by the department, and the
  937  training must be conducted jointly by the department and the
  938  Department of Financial Services. Training must promote best
  939  practices and procedures related to negotiating, managing, and
  940  ensuring accountability in agency contracts and grant
  941  agreements, which must include the use of case studies based
  942  upon previous audits, contracts, and grant agreements. All
  943  agency contract managers must become certified within 24 months
  944  after establishment of the training and certification
  945  requirements by the department and the Department of Financial
  946  Services.
  947         Section 10. Paragraph (a) of subsection (3) of section
  948  287.0571, Florida Statutes, is amended to read:
  949         287.0571 Business case to outsource; applicability.—
  950         (3) This section does not apply to:
  951         (a) A procurement of commodities and contractual services
  952  listed in s. 287.057(3)(d) and (e) 287.057(3)(e), (f), and (g)
  953  and (21).
  954         Section 11. Subsections (1), (2), and (5) of section
  955  287.058, Florida Statutes, are amended, and subsection (7) is
  956  added to that section, to read:
  957         287.058 Contract document.—
  958         (1) Every procurement of contractual services in excess of
  959  the threshold amount provided in s. 287.017 for CATEGORY TWO,
  960  except for the providing of health and mental health services or
  961  drugs in the examination, diagnosis, or treatment of sick or
  962  injured state employees or the providing of other benefits as
  963  required by the provisions of chapter 440, shall be evidenced by
  964  a written agreement embodying all provisions and conditions of
  965  the procurement of such services, which shall, where applicable,
  966  include, but not be limited to, a provision:
  967         (a) That bills for fees or other compensation for services
  968  or expenses be submitted in detail sufficient for a proper
  969  preaudit and postaudit thereof.
  970         (b) That bills for any travel expenses be submitted in
  971  accordance with s. 112.061. A state agency may establish rates
  972  lower than the maximum provided in s. 112.061.
  973         (c) Allowing unilateral cancellation by the agency for
  974  refusal by the contractor to allow public access to all
  975  documents, papers, letters, or other material made or received
  976  by the contractor in conjunction with the contract, unless the
  977  records are exempt from s. 24(a) of Art. I of the State
  978  Constitution and s. 119.07(1).
  979         (d) Specifying a scope of work that clearly establishes all
  980  tasks the contractor is required to perform.
  981         (e) Dividing the contract into quantifiable, measurable,
  982  and verifiable units of deliverables that must be received and
  983  accepted in writing by the contract manager before payment. Each
  984  deliverable must be directly related to the scope of work and
  985  specify a performance measure. As used in this paragraph, the
  986  term “performance measure” means the required minimum acceptable
  987  level of service to be performed and criteria for evaluating the
  988  successful completion of each deliverable.
  989         (f) Specifying the criteria and the final date by which
  990  such criteria must be met for completion of the contract.
  991         (g) Specifying that the contract may be renewed for a
  992  period that may not exceed 3 years or the term of the original
  993  contract, whichever period is longer, specifying the renewal
  994  price for the contractual service as set forth in the bid,
  995  proposal, or reply, specifying that costs for the renewal may
  996  not be charged, and specifying that renewals are shall be
  997  contingent upon satisfactory performance evaluations by the
  998  agency and subject to the availability of funds. Exceptional
  999  purchase contracts pursuant to s. 287.057(3)(a) and (c) may not
 1000  be renewed.
 1001         (h) Specifying the financial consequences that the agency
 1002  must apply if the contractor fails to perform in accordance with
 1003  the contract.
 1004         (i) Addressing the property rights of any intellectual
 1005  property related to the contract and the specific rights of the
 1006  state regarding the intellectual property if the contractor
 1007  fails to provide the services or is no longer providing
 1008  services.
 1009  
 1010  In lieu of a written agreement, the agency department may
 1011  authorize the use of a purchase order for classes of contractual
 1012  services, if the provisions of paragraphs (a)-(i) are included
 1013  in the purchase order or solicitation. The purchase order must
 1014  include, but need not be limited to, an adequate description of
 1015  the services, the contract period, and the method of payment. In
 1016  lieu of printing the provisions of paragraphs (a)-(c) and (g)
 1017  (a)-(i) in the contract document or purchase order, agencies may
 1018  incorporate the requirements of paragraphs (a)-(c) and (g) (a)
 1019  (i) by reference.
 1020         (2) The written agreement shall be signed by the agency
 1021  head or designee and the contractor before prior to the
 1022  rendering of any contractual service the value of which is in
 1023  excess of the threshold amount provided in s. 287.017 for
 1024  CATEGORY TWO, except in the case of a valid emergency as
 1025  certified by the agency head. The written statement
 1026  certification of an emergency must shall be prepared within 30
 1027  days after the contractor begins rendering the service and must
 1028  shall state the particular facts and circumstances which
 1029  precluded the execution of the written agreement before prior to
 1030  the rendering of the service. If the agency fails to have the
 1031  contract signed by the agency head or designee and the
 1032  contractor before prior to rendering the contractual service,
 1033  and if an emergency does not exist, the agency head shall,
 1034  within no later than 30 days after the contractor begins
 1035  rendering the service, certify the specific conditions and
 1036  circumstances to the department as well as describe actions
 1037  taken to prevent recurrence of such noncompliance. The agency
 1038  head may delegate the written statement certification only to
 1039  other senior management agency personnel. A copy of the written
 1040  statement certification shall be furnished to the Chief
 1041  Financial Officer with the voucher authorizing payment. The
 1042  department shall report repeated instances of noncompliance by
 1043  an agency to the Auditor General. Nothing in This subsection
 1044  does not shall be deemed to authorize additional compensation
 1045  prohibited under by s. 215.425. The procurement of contractual
 1046  services may shall not be divided so as to avoid the provisions
 1047  of this section.
 1048         (5) Unless otherwise provided in the General Appropriations
 1049  Act or the substantive bill implementing the General
 1050  Appropriations Act, the Chief Financial Officer may waive the
 1051  requirements of this section for services which are included in
 1052  s. 287.057(3)(e) 287.057(3)(f).
 1053         (7) The Chief Financial Officer may audit a contract
 1054  subject to this chapter before the execution of such contract in
 1055  accordance with rules adopted by the Department of Financial
 1056  Services. The audit must ensure that applicable laws have been
 1057  met; that the contract document contains a clear statement of
 1058  work, quantifiable and measurable deliverables, performance
 1059  measures, financial consequences for nonperformance, and clear
 1060  terms and conditions that protect the interests of the state;
 1061  and that the associated costs of the contract are not
 1062  unreasonable or inappropriate. The audit must ensure that all
 1063  contracting laws have been met and that documentation is
 1064  available to support the contract. A contract that does not
 1065  comply with this section may be returned to the submitting
 1066  agency for revision.
 1067         (a) The Chief Financial Officer may establish dollar
 1068  thresholds and other criteria for sampling the contracts that
 1069  are to be audited before execution. The Chief Financial Officer
 1070  may revise such thresholds and other criteria for an agency or
 1071  unit of an agency as deemed appropriate.
 1072         (b) The Chief Financial Officer shall make a final
 1073  determination of any deficiencies in the contract within 10
 1074  business days after receipt of the proposed contract and shall
 1075  include information regarding the deficiencies in the audit
 1076  report provided to the agency entering into the contract. The
 1077  Chief Financial Officer and the agency entering into the
 1078  contract may agree to a longer review period.
 1079         Section 12. Section 287.136, Florida Statutes, is created
 1080  to read:
 1081         287.136Audit of executed contract documents.—The Chief
 1082  Financial Officer shall perform audits of an executed contract
 1083  documents and contract manager’s records to ensure that adequate
 1084  internal controls are in place for complying with the terms and
 1085  conditions of the contract and for the validation and receipt of
 1086  goods and services.
 1087         (1) At the conclusion of the audit, the Chief Financial
 1088  Officer’s designee shall discuss the audit and potential
 1089  findings with the official whose office is subject to audit. The
 1090  final audit report shall be submitted to the agency head.
 1091         (2) Within 30 days after the receipt of the final audit
 1092  report, the agency head shall submit to the Chief Financial
 1093  Officer or designee, his or her written statement of explanation
 1094  or rebuttal concerning findings requiring corrective action,
 1095  including corrective action to be taken to preclude a
 1096  recurrence.
 1097         Section 13. Section 287.076, Florida Statutes, is amended
 1098  to read:
 1099         287.076 Project Management Professionals training for
 1100  personnel involved in managing outsourcings and negotiations;
 1101  funding.—The department of Management Services may implement a
 1102  program to train state agency employees who are involved in
 1103  managing outsourcings as Project Management Professionals, as
 1104  certified by the Project Management Institute. For the 2006-2007
 1105  fiscal year, the sum of $500,000 in recurring funds from the
 1106  General Revenue Fund is appropriated to the Department of
 1107  Management Services to implement this program. Subject to annual
 1108  appropriations, the department of Management Services, in
 1109  consultation with entities subject to this part act, shall
 1110  identify personnel to participate in this training based on
 1111  requested need and ensure that each agency is represented. The
 1112  department of Management Services may remit payment for this
 1113  training on behalf of all participating personnel.
 1114         Section 14. Subsection (3) of section 16.0155, Florida
 1115  Statutes, is amended to read:
 1116         16.0155 Contingency fee agreements.—
 1117         (3) Notwithstanding the exemption provided in s.
 1118  287.057(3)(e), if the Attorney General makes the determination
 1119  described in subsection (2), he or she notwithstanding the
 1120  exemption provided in s. 287.057(3)(f), the Attorney General
 1121  shall request proposals from private attorneys to represent the
 1122  department on a contingency-fee basis, unless the Attorney
 1123  General determines in writing that requesting proposals is not
 1124  feasible under the circumstances. The written determination does
 1125  not constitute a final agency action subject to review pursuant
 1126  to ss. 120.569 and 120.57. For purposes of this subsection only,
 1127  the department is exempt from the requirements of s. 120.57(3),
 1128  and neither the request for proposals nor the contract award is
 1129  subject to challenge pursuant to ss. 120.569 and 120.57.
 1130         Section 15. Subsection (1) of section 283.33, Florida
 1131  Statutes, is amended to read:
 1132         283.33 Printing of publications; lowest bidder awards.—
 1133         (1) Publications may be printed and prepared in-house, by
 1134  another agency or the Legislature, or purchased on bid,
 1135  whichever is more economical and practicable as determined by
 1136  the agency. An agency may contract for binding separately when
 1137  more economical or practicable, whether or not the remainder of
 1138  the printing is done in-house. A vendor may subcontract for
 1139  binding and still be considered a responsible vendor as defined
 1140  in s. 287.012, notwithstanding s. 287.012(24).
 1141         Section 16. Subsection (3) of section 394.457, Florida
 1142  Statutes, is amended to read:
 1143         394.457 Operation and administration.—
 1144         (3) POWER TO CONTRACT.—The department may contract to
 1145  provide, and be provided with, services and facilities in order
 1146  to carry out its responsibilities under this part with the
 1147  following agencies: public and private hospitals; receiving and
 1148  treatment facilities; clinics; laboratories; departments,
 1149  divisions, and other units of state government; the state
 1150  colleges and universities; the community colleges; private
 1151  colleges and universities; counties, municipalities, and any
 1152  other governmental unit, including facilities of the United
 1153  States Government; and any other public or private entity which
 1154  provides or needs facilities or services. Baker Act funds for
 1155  community inpatient, crisis stabilization, short-term
 1156  residential treatment, and screening services must be allocated
 1157  to each county pursuant to the department’s funding allocation
 1158  methodology. Notwithstanding s. 287.057(3)(e) the provisions of
 1159  s. 287.057(3)(f), contracts for community-based Baker Act
 1160  services for inpatient, crisis stabilization, short-term
 1161  residential treatment, and screening provided under this part,
 1162  other than those with other units of government, to be provided
 1163  for the department must be awarded using competitive sealed bids
 1164  if when the county commission of the county receiving the
 1165  services makes a request to the department’s district office by
 1166  January 15 of the contracting year. The district may shall not
 1167  enter into a competitively bid contract under this provision if
 1168  such action will result in increases of state or local
 1169  expenditures for Baker Act services within the district.
 1170  Contracts for these Baker Act services using competitive sealed
 1171  bids are will be effective for 3 years. The department shall
 1172  adopt rules establishing minimum standards for such contracted
 1173  services and facilities and shall make periodic audits and
 1174  inspections to assure that the contracted services are provided
 1175  and meet the standards of the department.
 1176         Section 17. Paragraph (a) of subsection (2) of section
 1177  402.7305, Florida Statutes, is amended to read:
 1178         402.7305 Department of Children and Family Services;
 1179  procurement of contractual services; contract management.—
 1180         (2) PROCUREMENT OF COMMODITIES AND CONTRACTUAL SERVICES.—
 1181         (a) Notwithstanding s. 287.057(3)(e)12. 287.057(3)(f)12.,
 1182  if whenever the department intends to contract with a public
 1183  postsecondary institution to provide a service, the department
 1184  must allow all public postsecondary institutions in this state
 1185  that are accredited by the Southern Association of Colleges and
 1186  Schools to bid on the contract. Thereafter, notwithstanding any
 1187  other provision of law to the contrary, if a public
 1188  postsecondary institution intends to subcontract for any service
 1189  awarded in the contract, the subcontracted service must be
 1190  procured by competitive procedures.
 1191         Section 18. Section 409.9132, Florida Statutes, is amended
 1192  to read:
 1193         409.9132 Pilot project to monitor home health services.—The
 1194  Agency for Health Care Administration shall expand the home
 1195  health agency monitoring pilot project in Miami-Dade County on a
 1196  statewide basis effective July 1, 2012, except in counties in
 1197  which the program is will not be cost-effective, as determined
 1198  by the agency. The agency shall contract with a vendor to verify
 1199  the utilization and delivery of home health services and provide
 1200  an electronic billing interface for home health services. The
 1201  contract must require the creation of a program to submit claims
 1202  electronically for the delivery of home health services. The
 1203  program must verify telephonically visits for the delivery of
 1204  home health services using voice biometrics. The agency may seek
 1205  amendments to the Medicaid state plan and waivers of federal
 1206  laws, as necessary, to implement or expand the pilot project.
 1207  Notwithstanding s. 287.057(3)(e) 287.057(3)(f), the agency must
 1208  award the contract through the competitive solicitation process
 1209  and may use the current contract to expand the home health
 1210  agency monitoring pilot project to include additional counties
 1211  as authorized under this section.
 1212         Section 19. Subsection (3) of section 427.0135, Florida
 1213  Statutes, is amended to read:
 1214         427.0135 Purchasing agencies; duties and responsibilities.
 1215  Each purchasing agency, in carrying out the policies and
 1216  procedures of the commission, shall:
 1217         (3) Not procure transportation disadvantaged services
 1218  without initially negotiating with the commission, as provided
 1219  in s. 287.057(3)(e)12. 287.057(3)(f)12., or unless otherwise
 1220  authorized by statute. If the purchasing agency, after
 1221  consultation with the commission, determines that it cannot
 1222  reach mutually acceptable contract terms with the commission,
 1223  the purchasing agency may contract for the same transportation
 1224  services provided in a more cost-effective manner and of
 1225  comparable or higher quality and standards. The Medicaid agency
 1226  shall implement this subsection in a manner consistent with s.
 1227  409.908(18) and as otherwise limited or directed by the General
 1228  Appropriations Act.
 1229         Section 20. Paragraph (c) of subsection (5) of section
 1230  445.024, Florida Statutes, is amended to read:
 1231         445.024 Work requirements.—
 1232         (5) USE OF CONTRACTS.—Regional workforce boards shall
 1233  provide work activities, training, and other services, as
 1234  appropriate, through contracts. In contracting for work
 1235  activities, training, or services, the following applies:
 1236         (c) Notwithstanding the exemption from the competitive
 1237  sealed bid requirements provided in s. 287.057(3)(e)
 1238  287.057(3)(f) for certain contractual services, each contract
 1239  awarded under this chapter must be awarded on the basis of a
 1240  competitive sealed bid, except for a contract with a
 1241  governmental entity as determined by the regional workforce
 1242  board.
 1243         Section 21. Paragraph (c) of subsection (5) of section
 1244  627.311, Florida Statutes, is amended to read:
 1245         627.311 Joint underwriters and joint reinsurers; public
 1246  records and public meetings exemptions.—
 1247         (5)
 1248         (c) The operation of the plan shall be governed by a plan
 1249  of operation that is prepared at the direction of the board of
 1250  governors and approved by order of the office. The plan is
 1251  subject to continuous review by the office. The office may, by
 1252  order, withdraw approval of all or part of a plan if the office
 1253  determines that conditions have changed since approval was
 1254  granted and that the purposes of the plan require changes in the
 1255  plan. The plan of operation must shall:
 1256         1. Authorize the board to engage in the activities
 1257  necessary to implement this subsection, including, but not
 1258  limited to, borrowing money.
 1259         2. Develop criteria for eligibility for coverage by the
 1260  plan, including, but not limited to, documented rejection by at
 1261  least two insurers which reasonably assures that insureds
 1262  covered under the plan are unable to acquire coverage in the
 1263  voluntary market.
 1264         3. Require notice from the agent to the insured at the time
 1265  of the application for coverage that the application is for
 1266  coverage with the plan and that coverage may be available
 1267  through an insurer, group self-insurers’ fund, commercial self
 1268  insurance fund, or assessable mutual insurer through another
 1269  agent at a lower cost.
 1270         4. Establish programs to encourage insurers to provide
 1271  coverage to applicants of the plan in the voluntary market and
 1272  to insureds of the plan, including, but not limited to:
 1273         a. Establishing procedures for an insurer to use in
 1274  notifying the plan of the insurer’s desire to provide coverage
 1275  to applicants to the plan or existing insureds of the plan and
 1276  in describing the types of risks in which the insurer is
 1277  interested. The description of the desired risks must be on a
 1278  form developed by the plan.
 1279         b. Developing forms and procedures that provide an insurer
 1280  with the information necessary to determine whether the insurer
 1281  wants to write particular applicants to the plan or insureds of
 1282  the plan.
 1283         c. Developing procedures for notice to the plan and the
 1284  applicant to the plan or insured of the plan that an insurer
 1285  will insure the applicant or the insured of the plan, and notice
 1286  of the cost of the coverage offered; and developing procedures
 1287  for the selection of an insuring entity by the applicant or
 1288  insured of the plan.
 1289         d. Provide for a market-assistance plan to assist in the
 1290  placement of employers. All applications for coverage in the
 1291  plan received 45 days before the effective date for coverage
 1292  shall be processed through the market-assistance plan. A market
 1293  assistance plan specifically designed to serve the needs of
 1294  small, good policyholders as defined by the board must be
 1295  reviewed and updated periodically.
 1296         5. Provide for policy and claims services to the insureds
 1297  of the plan of the nature and quality provided for insureds in
 1298  the voluntary market.
 1299         6. Provide for the review of applications for coverage with
 1300  the plan for reasonableness and accuracy, using any available
 1301  historic information regarding the insured.
 1302         7. Provide for procedures for auditing insureds of the plan
 1303  which are based on reasonable business judgment and are designed
 1304  to maximize the likelihood that the plan will collect the
 1305  appropriate premiums.
 1306         8. Authorize the plan to terminate the coverage of and
 1307  refuse future coverage for any insured that submits a fraudulent
 1308  application to the plan or provides fraudulent or grossly
 1309  erroneous records to the plan or to any service provider of the
 1310  plan in conjunction with the activities of the plan.
 1311         9. Establish service standards for agents who submit
 1312  business to the plan.
 1313         10. Establish criteria and procedures to prohibit any agent
 1314  who does not adhere to the established service standards from
 1315  placing business with the plan or receiving, directly or
 1316  indirectly, any commissions for business placed with the plan.
 1317         11. Provide for the establishment of reasonable safety
 1318  programs for all insureds in the plan. All insureds of the plan
 1319  must participate in the safety program.
 1320         12. Authorize the plan to terminate the coverage of and
 1321  refuse future coverage to any insured who fails to pay premiums
 1322  or surcharges when due; who, at the time of application, is
 1323  delinquent in payments of workers’ compensation or employer’s
 1324  liability insurance premiums or surcharges owed to an insurer,
 1325  group self-insurers’ fund, commercial self-insurance fund, or
 1326  assessable mutual insurer licensed to write such coverage in
 1327  this state; or who refuses to substantially comply with any
 1328  safety programs recommended by the plan.
 1329         13. Authorize the board of governors to provide the goods
 1330  and services required by the plan through staff employed by the
 1331  plan, through reasonably compensated service providers who
 1332  contract with the plan to provide services as specified by the
 1333  board of governors, or through a combination of employees and
 1334  service providers.
 1335         a. Purchases that equal or exceed $2,500 but are less than
 1336  or equal to $25,000, shall be made by receipt of written quotes,
 1337  telephone quotes, or informal bids, if whenever practical. The
 1338  procurement of goods or services valued over $25,000 is subject
 1339  to competitive solicitation, except in situations in which the
 1340  goods or services are provided by a sole source or are deemed an
 1341  emergency purchase, or the services are exempted from
 1342  competitive-solicitation requirements under s. 287.057(3)(e)
 1343  287.057(3)(f). Justification for the sole-sourcing or emergency
 1344  procurement must be documented. Contracts for goods or services
 1345  valued at or over $100,000 are subject to board approval.
 1346         b. The board shall determine whether it is more cost
 1347  effective and in the best interests of the plan to use legal
 1348  services provided by in-house attorneys employed by the plan
 1349  rather than contracting with outside counsel. In making such
 1350  determination, the board shall document its findings and shall
 1351  consider the expertise needed; whether time commitments exceed
 1352  in-house staff resources; whether local representation is
 1353  needed; the travel, lodging, and other costs associated with in
 1354  house representation; and such other factors that the board
 1355  determines are relevant.
 1356         14. Provide for service standards for service providers,
 1357  methods of determining adherence to those service standards,
 1358  incentives and disincentives for service, and procedures for
 1359  terminating contracts for service providers that fail to adhere
 1360  to service standards.
 1361         15. Provide procedures for selecting service providers and
 1362  standards for qualification as a service provider that
 1363  reasonably assure that any service provider selected will
 1364  continue to operate as an ongoing concern and is capable of
 1365  providing the specified services in the manner required.
 1366         16. Provide for reasonable accounting and data-reporting
 1367  practices.
 1368         17. Provide for annual review of costs associated with the
 1369  administration and servicing of the policies issued by the plan
 1370  to determine alternatives by which costs can be reduced.
 1371         18. Authorize the acquisition of such excess insurance or
 1372  reinsurance as is consistent with the purposes of the plan.
 1373         19. Provide for an annual report to the office on a date
 1374  specified by the office and containing such information as the
 1375  office reasonably requires.
 1376         20. Establish multiple rating plans for various
 1377  classifications of risk which reflect risk of loss, hazard
 1378  grade, actual losses, size of premium, and compliance with loss
 1379  control. At least one of such plans must be a preferred-rating
 1380  plan to accommodate small-premium policyholders with good
 1381  experience as defined in sub-subparagraph 22.a.
 1382         21. Establish agent commission schedules.
 1383         22. For employers otherwise eligible for coverage under the
 1384  plan, establish three tiers of employers meeting the criteria
 1385  and subject to the rate limitations specified in this
 1386  subparagraph.
 1387         a. Tier One.—
 1388         (I) Criteria; rated employers.—An employer that has an
 1389  experience modification rating shall be included in Tier One if
 1390  the employer meets all of the following:
 1391         (A) The experience modification is below 1.00.
 1392         (B) The employer had no lost-time claims subsequent to the
 1393  applicable experience modification rating period.
 1394         (C) The total of the employer’s medical-only claims
 1395  subsequent to the applicable experience modification rating
 1396  period did not exceed 20 percent of premium.
 1397         (II) Criteria; non-rated employers.—An employer that does
 1398  not have an experience modification rating shall be included in
 1399  Tier One if the employer meets all of the following:
 1400         (A) The employer had no lost-time claims for the 3-year
 1401  period immediately preceding the inception date or renewal date
 1402  of the employer’s coverage under the plan.
 1403         (B) The total of the employer’s medical-only claims for the
 1404  3-year period immediately preceding the inception date or
 1405  renewal date of the employer’s coverage under the plan did not
 1406  exceed 20 percent of premium.
 1407         (C) The employer has secured workers’ compensation coverage
 1408  for the entire 3-year period immediately preceding the inception
 1409  date or renewal date of the employer’s coverage under the plan.
 1410         (D) The employer is able to provide the plan with a loss
 1411  history generated by the employer’s prior workers’ compensation
 1412  insurer, except if the employer is not able to produce a loss
 1413  history due to the insolvency of an insurer, the receiver shall
 1414  provide to the plan, upon the request of the employer or the
 1415  employer’s agent, a copy of the employer’s loss history from the
 1416  records of the insolvent insurer if the loss history is
 1417  contained in records of the insurer which are in the possession
 1418  of the receiver. If the receiver is unable to produce the loss
 1419  history, the employer may, in lieu of the loss history, submit
 1420  an affidavit from the employer and the employer’s insurance
 1421  agent setting forth the loss history.
 1422         (E) The employer is not a new business.
 1423         (III) Premiums.—The premiums for Tier One insureds shall be
 1424  set at a premium level 25 percent above the comparable voluntary
 1425  market premiums until the plan has sufficient experience as
 1426  determined by the board to establish an actuarially sound rate
 1427  for Tier One, at which point the board shall, subject to
 1428  paragraph (e), adjust the rates, if necessary, to produce
 1429  actuarially sound rates, provided such rate adjustment shall not
 1430  take effect prior to January 1, 2007.
 1431         b. Tier Two.—
 1432         (I) Criteria; rated employers.—An employer that has an
 1433  experience modification rating shall be included in Tier Two if
 1434  the employer meets all of the following:
 1435         (A) The experience modification is equal to or greater than
 1436  1.00 but not greater than 1.10.
 1437         (B) The employer had no lost-time claims subsequent to the
 1438  applicable experience modification rating period.
 1439         (C) The total of the employer’s medical-only claims
 1440  subsequent to the applicable experience modification rating
 1441  period did not exceed 20 percent of premium.
 1442         (II) Criteria; non-rated employers.—An employer that does
 1443  not have any experience modification rating shall be included in
 1444  Tier Two if the employer is a new business. An employer shall be
 1445  included in Tier Two if the employer has less than 3 years of
 1446  loss experience in the 3-year period immediately preceding the
 1447  inception date or renewal date of the employer’s coverage under
 1448  the plan and the employer meets all of the following:
 1449         (A) The employer had no lost-time claims for the 3-year
 1450  period immediately preceding the inception date or renewal date
 1451  of the employer’s coverage under the plan.
 1452         (B) The total of the employer’s medical-only claims for the
 1453  3-year period immediately preceding the inception date or
 1454  renewal date of the employer’s coverage under the plan did not
 1455  exceed 20 percent of premium.
 1456         (C) The employer is able to provide the plan with a loss
 1457  history generated by the workers’ compensation insurer that
 1458  provided coverage for the portion or portions of such period
 1459  during which the employer had secured workers’ compensation
 1460  coverage, except if the employer is not able to produce a loss
 1461  history due to the insolvency of an insurer, the receiver shall
 1462  provide to the plan, upon the request of the employer or the
 1463  employer’s agent, a copy of the employer’s loss history from the
 1464  records of the insolvent insurer if the loss history is
 1465  contained in records of the insurer which are in the possession
 1466  of the receiver. If the receiver is unable to produce the loss
 1467  history, the employer may, in lieu of the loss history, submit
 1468  an affidavit from the employer and the employer’s insurance
 1469  agent setting forth the loss history.
 1470         (III) Premiums.—The premiums for Tier Two insureds shall be
 1471  set at a rate level 50 percent above the comparable voluntary
 1472  market premiums until the plan has sufficient experience as
 1473  determined by the board to establish an actuarially sound rate
 1474  for Tier Two, at which point the board shall, subject to
 1475  paragraph (e), adjust the rates, if necessary, to produce
 1476  actuarially sound rates, provided such rate adjustment shall not
 1477  take effect prior to January 1, 2007.
 1478         c. Tier Three.—
 1479         (I) Eligibility.—An employer shall be included in Tier
 1480  Three if the employer does not meet the criteria for Tier One or
 1481  Tier Two.
 1482         (II) Rates.—The board shall establish, subject to paragraph
 1483  (e), and the plan shall charge, actuarially sound rates for Tier
 1484  Three insureds.
 1485         23. For Tier One or Tier Two employers which employ no
 1486  nonexempt employees or which report payroll which is less than
 1487  the minimum wage hourly rate for one full-time employee for 1
 1488  year at 40 hours per week, the plan shall establish actuarially
 1489  sound premiums, provided, however, that the premiums may not
 1490  exceed $2,500. These premiums shall be in addition to the fee
 1491  specified in subparagraph 26. When the plan establishes
 1492  actuarially sound rates for all employers in Tier One and Tier
 1493  Two, the premiums for employers referred to in this paragraph
 1494  are no longer subject to the $2,500 cap.
 1495         24. Provide for a depopulation program to reduce the number
 1496  of insureds in the plan. If an employer insured through the plan
 1497  is offered coverage from a voluntary market carrier:
 1498         a. During the first 30 days of coverage under the plan;
 1499         b. Before a policy is issued under the plan;
 1500         c. By issuance of a policy upon expiration or cancellation
 1501  of the policy under the plan; or
 1502         d. By assumption of the plan’s obligation with respect to
 1503  an in-force policy,
 1504  
 1505  that employer is no longer eligible for coverage through the
 1506  plan. The premium for risks assumed by the voluntary market
 1507  carrier must be no greater than the premium the insured would
 1508  have paid under the plan, and shall be adjusted upon renewal to
 1509  reflect changes in the plan rates and the tier for which the
 1510  insured would qualify as of the time of renewal. The insured may
 1511  be charged such premiums only for the first 3 years of coverage
 1512  in the voluntary market. A premium under this subparagraph is
 1513  deemed approved and is not an excess premium for purposes of s.
 1514  627.171.
 1515         25. Require that policies issued and applications must
 1516  include a notice that the policy could be replaced by a policy
 1517  issued from a voluntary market carrier and that, if an offer of
 1518  coverage is obtained from a voluntary market carrier, the
 1519  policyholder is no longer eligible for coverage through the
 1520  plan. The notice must also specify that acceptance of coverage
 1521  under the plan creates a conclusive presumption that the
 1522  applicant or policyholder is aware of this potential.
 1523         26. Require that each application for coverage and each
 1524  renewal premium be accompanied by a nonrefundable fee of $475 to
 1525  cover costs of administration and fraud prevention. The board
 1526  may, with the prior approval of the office, increase the amount
 1527  of the fee pursuant to a rate filing to reflect increased costs
 1528  of administration and fraud prevention. The fee is not subject
 1529  to commission and is fully earned upon commencement of coverage.
 1530         Section 22. Paragraph (e) of subsection (6) of section
 1531  627.351, Florida Statutes, is amended to read:
 1532         627.351 Insurance risk apportionment plans.—
 1533         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 1534         (e) Purchases that equal or exceed $2,500, but are less
 1535  than $25,000, shall be made by receipt of written quotes,
 1536  written record of telephone quotes, or informal bids, if
 1537  whenever practical. The procurement of goods or services valued
 1538  at or over $25,000 is shall be subject to competitive
 1539  solicitation, except in situations where the goods or services
 1540  are provided by a sole source or are deemed an emergency
 1541  purchase; the services are exempted from competitive
 1542  solicitation requirements under s. 287.057(3)(e) 287.057(3)(f);
 1543  or the procurement of services is subject to s. 627.3513.
 1544  Justification for the sole-sourcing or emergency procurement
 1545  must be documented. Contracts for goods or services valued at or
 1546  over $100,000 are subject to approval by the board.
 1547         Section 23. Subsection (2) of section 765.5155, Florida
 1548  Statutes, is amended to read:
 1549         765.5155 Donor registry; education program.—
 1550         (2) The agency and the department shall jointly contract
 1551  for the operation of a donor registry and education program. The
 1552  contractor shall be procured by competitive solicitation
 1553  pursuant to chapter 287, notwithstanding an any exemption under
 1554  in s. 287.057(3)(e) 287.057(3)(f). When awarding the contract,
 1555  priority shall be given to existing nonprofit groups that are
 1556  based within the state, have expertise working with procurement
 1557  organizations, have expertise in conducting statewide organ and
 1558  tissue donor public education campaigns, and represent the needs
 1559  of the organ and tissue donation community in the state.
 1560         Section 24. Subsection (10) of section 893.055, Florida
 1561  Statutes, is amended to read:
 1562         893.055 Prescription drug monitoring program.—
 1563         (10) All costs incurred by the department in administering
 1564  the prescription drug monitoring program shall be funded through
 1565  federal grants or private funding applied for or received by the
 1566  state. The department may not commit funds for the monitoring
 1567  program without ensuring funding is available. The prescription
 1568  drug monitoring program and the implementation thereof are
 1569  contingent upon receipt of the nonstate funding. The department
 1570  and state government shall cooperate with the direct-support
 1571  organization established pursuant to subsection (11) in seeking
 1572  federal grant funds, other nonstate grant funds, gifts,
 1573  donations, or other private moneys for the department if so long
 1574  as the costs of doing so are not considered material.
 1575  Nonmaterial costs for this purpose include, but are not limited
 1576  to, the costs of mailing and personnel assigned to research or
 1577  apply for a grant. Notwithstanding the exemptions to
 1578  competitive-solicitation requirements under s. 287.057(3)(e)
 1579  287.057(3)(f), the department shall comply with the competitive
 1580  solicitation requirements under s. 287.057 for the procurement
 1581  of any goods or services required by this section. Funds
 1582  provided, directly or indirectly, by prescription drug
 1583  manufacturers may not be used to implement the program.
 1584         Section 25. Except as otherwise expressly provided in this
 1585  act, this act shall take effect July 1, 2013.