Florida Senate - 2012                                     SB 656
       
       
       
       By Senator Hays
       
       
       
       
       20-00551-12                                            2012656__
    1                        A bill to be entitled                      
    2         An act relating to repealing budget provisions;
    3         amending s. 216.023, F.S.; deleting certain budget
    4         summary requirements; amending ss. 216.013 and
    5         489.145, F.S.; conforming cross-references; providing
    6         an effective date.
    7  
    8  Be It Enacted by the Legislature of the State of Florida:
    9  
   10         Section 1. Subsection (4) of section 216.023, Florida
   11  Statutes, is amended to read:
   12         216.023 Legislative budget requests to be furnished to
   13  Legislature by agencies.—
   14         (4)(a) The legislative budget request must contain for each
   15  program:
   16         (a)1. The constitutional or statutory authority for a
   17  program, a brief purpose statement, and approved program
   18  components.
   19         (b)2. Information on expenditures for 3 fiscal years
   20  (actual prior-year expenditures, current-year estimated
   21  expenditures, and agency budget requested expenditures for the
   22  next fiscal year) by appropriation category.
   23         (c)3. Details on trust funds and fees.
   24         (d)4. The total number of positions (authorized, fixed, and
   25  requested).
   26         (e)5. An issue narrative describing and justifying changes
   27  in amounts and positions requested for current and proposed
   28  programs for the next fiscal year.
   29         (f)6. Information resource requests.
   30         (g)7. Supporting information, including applicable cost
   31  benefit analyses, business case analyses, performance
   32  contracting procedures, service comparisons, and impacts on
   33  performance standards for any request to outsource or privatize
   34  agency functions. The cost-benefit and business case analyses
   35  must include an assessment of the impact on each affected
   36  activity from those identified in accordance with paragraph (b).
   37  Performance standards must include standards for each affected
   38  activity and be expressed in terms of the associated unit of
   39  activity.
   40         (h)8. An evaluation of any major outsourcing and
   41  privatization initiatives undertaken during the last 5 fiscal
   42  years having aggregate expenditures exceeding $10 million during
   43  the term of the contract. The evaluation shall include an
   44  assessment of contractor performance, a comparison of
   45  anticipated service levels to actual service levels, and a
   46  comparison of estimated savings to actual savings achieved.
   47  Consolidated reports issued by the Department of Management
   48  Services may be used to satisfy this requirement.
   49         (i)9. Supporting information for any proposed consolidated
   50  financing of deferred-payment commodity contracts including
   51  guaranteed energy performance savings contracts. Supporting
   52  information must also include narrative describing and
   53  justifying the need, baseline for current costs, estimated cost
   54  savings, projected equipment purchases, estimated contract
   55  costs, and return on investment calculation.
   56         (j)10. For projects that exceed $10 million in total cost,
   57  the statutory reference of the existing policy or the proposed
   58  substantive policy that establishes and defines the project’s
   59  governance structure, planned scope, main business objectives
   60  that must be achieved, and estimated completion timeframes.
   61  Information technology budget requests for the continuance of
   62  existing hardware and software maintenance agreements, renewal
   63  of existing software licensing agreements, or the replacement of
   64  desktop units with new technology that is similar to the
   65  technology currently in use are exempt from this requirement.
   66         (b) It is the intent of the Legislature that total
   67  accountability measures, including unit-cost data, serve not
   68  only as a budgeting tool but also as a policymaking tool and an
   69  accountability tool. Therefore, each state agency and the
   70  judicial branch must submit a summary of information for the
   71  preceding year in accordance with the legislative budget
   72  instructions. Each summary must provide a one-page overview and
   73  must contain:
   74         1. The final budget for the agency and the judicial branch.
   75         2. Total funds from the General Appropriations Act.
   76         3. Adjustments to the General Appropriations Act.
   77         4. The line-item listings of all activities.
   78         5. The number of activity units performed or accomplished.
   79         6. Total expenditures for each activity, including amounts
   80  paid to contractors and subordinate entities. Expenditures
   81  related to administrative activities not aligned with output
   82  measures must consistently be allocated to activities with
   83  output measures prior to computing unit costs.
   84         7. The cost per unit for each activity, including the costs
   85  allocated to contractors and subordinate entities.
   86         8. The total amount of reversions and pass-through
   87  expenditures omitted from unit-cost calculations.
   88  
   89  At the regular session immediately following the submission of
   90  the agency unit cost summary, the Legislature shall reduce in
   91  the General Appropriations Act for the ensuing fiscal year, by
   92  an amount equal to at least 10 percent of the allocation for the
   93  fiscal year preceding the current fiscal year, the funding of
   94  each state agency that fails to submit the report required under
   95  this paragraph.
   96         Section 2. Paragraph (h) of subsection (1) of section
   97  216.013, Florida Statutes, is amended to read:
   98         216.013 Long-range program plan.—State agencies and the
   99  judicial branch shall develop long-range program plans to
  100  achieve state goals using an interagency planning process that
  101  includes the development of integrated agency program service
  102  outcomes. The plans shall be policy based, priority driven,
  103  accountable, and developed through careful examination and
  104  justification of all agency and judicial branch programs.
  105         (1) Long-range program plans shall provide the framework
  106  for the development of budget requests and shall identify or
  107  update:
  108         (h) Legislatively approved output and outcome performance
  109  measures. Each performance measure must identify the associated
  110  activity contributing to the measure from those identified in
  111  accordance with s. 216.023(4)(b).
  112         Section 3. Paragraph (a) of subsection (6) of section
  113  489.145, Florida Statutes, is amended to read:
  114         489.145 Guaranteed energy, water, and wastewater
  115  performance savings contracting.—
  116         (6) PROGRAM ADMINISTRATION AND CONTRACT REVIEW.—The
  117  Department of Management Services, with the assistance of the
  118  Office of the Chief Financial Officer, shall, within available
  119  resources, provide technical content assistance to state
  120  agencies contracting for energy, water, and wastewater
  121  efficiency and conservation measures and engage in other
  122  activities considered appropriate by the department for
  123  promoting and facilitating guaranteed energy, water, and
  124  wastewater performance contracting by state agencies. The
  125  Department of Management Services shall review the investment
  126  grade audit for each proposed project and certify that the cost
  127  savings are appropriate and sufficient for the term of the
  128  contract. The Office of the Chief Financial Officer, with the
  129  assistance of the Department of Management Services, shall,
  130  within available resources, develop model contractual and
  131  related documents for use by state agencies. Prior to entering
  132  into a guaranteed energy, water, and wastewater performance
  133  savings contract, any contract or lease for third-party
  134  financing, or any combination of such contracts, a state agency
  135  shall submit such proposed contract or lease to the Office of
  136  the Chief Financial Officer for review and approval. A proposed
  137  contract or lease shall include:
  138         (a) Supporting information required by s. 216.023(4)(i) s.
  139  216.023(4)(a)9. in ss. 287.063(5) and 287.064(11). For contracts
  140  approved under this section, the criteria may, at a minimum,
  141  include the specification of a benchmark cost of capital and
  142  minimum real rate of return on energy, water, or wastewater
  143  savings against which proposals shall be evaluated.
  144  
  145  The Office of the Chief Financial Officer shall not approve any
  146  contract submitted under this section from a state agency that
  147  does not meet the requirements of this section.
  148         Section 4. This act shall take effect July 1, 2012.