Florida Senate - 2020                                    SB 1538
       
       
        
       By Senator Gruters
       
       
       
       
       
       23-01206B-20                                          20201538__
    1                        A bill to be entitled                      
    2         An act relating to government integrity; creating s.
    3         11.421, F.S.; creating the Florida Integrity Office
    4         under the Auditor General; specifying the purpose of
    5         the office; providing for the appointment of the
    6         Florida Integrity Officer; requiring the Auditor
    7         General to employ qualified individuals for the
    8         office; providing definitions; providing procedures
    9         for the submission and investigation of certain
   10         complaints; authorizing the Florida Integrity Officer
   11         to take certain action in response to complaints
   12         received; authorizing legislative committees to compel
   13         testimony or production of evidence under certain
   14         circumstances; providing for the enforcement of
   15         subpoenas; requiring the Florida Integrity Officer to
   16         receive copies of certain reports; providing
   17         procedures with respect to the review of
   18         appropriations projects and specified public entities;
   19         amending s. 11.45, F.S.; providing a definition;
   20         providing and revising Auditor General reporting
   21         requirements; amending s. 14.32, F.S.; providing
   22         definitions; providing investigative duties of the
   23         Chief Inspector General and agency inspectors general;
   24         requiring such inspectors general to provide a report
   25         to the Chief Financial Officer within a specified
   26         timeframe in certain circumstances; providing
   27         liability for certain officials, contractors, and
   28         persons in certain circumstances; amending s. 17.04,
   29         F.S.; authorizing the Chief Financial Officer to
   30         commence an investigation based on certain complaints
   31         or referrals; authorizing state agency employees and
   32         state contractors to report certain information to the
   33         Chief Financial Officer; amending s. 17.325, F.S.;
   34         requiring the Chief Financial Officer to transmit
   35         certain information received through the Government
   36         Efficiency Hotline to the Florida Integrity Officer
   37         within a specified timeframe; amending s. 20.055,
   38         F.S.; requiring agency inspectors general to make
   39         certain determinations and reports; amending s.
   40         110.1245, F.S.; providing requirements for awards
   41         given to employees who report under the Whistle
   42         blower’s Act; authorizing expenditures for such
   43         awards; amending s. 112.3187, F.S.; revising a
   44         definition; conforming provisions to changes made by
   45         the act; amending s. 287.057, F.S.; revising
   46         provisions relating to contractual services and
   47         commodities that are not subject to competitive
   48         solicitation requirements; requiring certain state
   49         contracts to include a good faith estimate of gross
   50         profit; requiring a determination of reasonableness;
   51         providing definitions; prohibiting certain state
   52         employees from participating in the negotiation or
   53         award of state contracts; creating s. 288.00001, F.S.;
   54         prohibiting tax incentives from being awarded or paid
   55         to a state contractor or subcontractor; amending s.
   56         1001.20, F.S.; requiring the Office of Inspector
   57         General of the Department of Education to conduct
   58         investigations relating to waste, fraud, abuse, or
   59         mismanagement against a district school board or
   60         Florida College System institution; authorizing the
   61         Office of the Auditor General to use carryforward
   62         funds to fund the Florida Integrity Office; amending
   63         ss. 112.3188, 112.3189, and 112.31895, F.S.;
   64         conforming provisions to changes made by the act;
   65         providing an effective date.
   66          
   67  Be It Enacted by the Legislature of the State of Florida:
   68  
   69         Section 1. Section 11.421, Florida Statutes, is created to
   70  read:
   71         11.421Florida Integrity Office.—
   72         (1)There is created under the Auditor General the Florida
   73  Integrity Office for the purpose of ensuring integrity in state
   74  and local government and facilitating the elimination of fraud,
   75  waste, abuse, mismanagement, and misconduct in government.
   76         (2)The Florida Integrity Officer shall be a legislative
   77  employee and be appointed by and serve at the pleasure of the
   78  Auditor General. The Florida Integrity Officer shall oversee the
   79  efficient operation of the office and report to and be under the
   80  general supervision of the Auditor General.
   81         (3)The Auditor General shall employ qualified individuals
   82  for the office pursuant to s. 11.42.
   83         (4)As used in this section, the term:
   84         (a)“Appropriations project” means a specific appropriation
   85  or proviso that provides funding for a specified entity that is
   86  a local government, private entity, or privately operated
   87  program. The term does not include an appropriation or proviso:
   88         1.Specifically authorized by statute;
   89         2.That is part of a statewide distribution to local
   90  governments;
   91         3.Recommended by a commission, council, or other similar
   92  entity created in statute to make annual funding
   93  recommendations, provided that such appropriation does not
   94  exceed the amount of funding recommended by the commission,
   95  council, or other similar entity;
   96         4.For a specific transportation facility that is part of
   97  the Department of Transportation’s 5-year work program submitted
   98  pursuant to s. 339.135;
   99         5.For an education fixed capital outlay project that is
  100  submitted pursuant to s. 1013.60 or s. 1013.64; or
  101         6.For a specified program, a research initiative, an
  102  institute, a center, or a similar entity at a specific state
  103  college or university recommended by the Board of Governors or
  104  the State Board of Education in its legislative budget request.
  105         (b)“Office” means the Florida Integrity Office.
  106         (5)The Florida Integrity Officer may receive and
  107  investigate a complaint alleging fraud, waste, abuse,
  108  mismanagement, or misconduct in connection with the expenditure
  109  of public funds.
  110         (6)A complaint may be submitted to the office by any of
  111  the following persons:
  112         (a)The President of the Senate.
  113         (b)The Speaker of the House of Representatives.
  114         (c)The chair of an appropriations committee of the Senate
  115  or the House of Representatives.
  116         (d)The Auditor General.
  117         (7)(a)Upon receipt of a complaint, the Florida Integrity
  118  Officer shall determine whether the complaint is supported by
  119  sufficient information indicating a reasonable probability of
  120  fraud, waste, abuse, mismanagement, or misconduct. If the
  121  Florida Integrity Officer determines that the complaint is not
  122  supported by sufficient information indicating a reasonable
  123  probability of fraud, waste, abuse, mismanagement, or
  124  misconduct, the Florida Integrity Officer shall notify the
  125  complainant in writing and the complaint shall be closed.
  126         (b)If the complaint is supported by sufficient information
  127  indicating a reasonable probability of fraud, waste, abuse,
  128  mismanagement, or misconduct, the Florida Integrity Officer
  129  shall determine whether an investigation into the matter has
  130  already been initiated by a law enforcement agency, the
  131  Commission on Ethics, the Chief Financial Officer, the Office of
  132  Chief Inspector General, or the applicable agency inspector
  133  general. If such an investigation has been initiated, the
  134  Florida Integrity Officer shall notify the complainant in
  135  writing and the complaint may be closed.
  136         (c)If the complaint is supported by sufficient information
  137  indicating a reasonable probability of fraud, waste, abuse,
  138  mismanagement, or misconduct, and an investigation into the
  139  matter has not already been initiated as described in paragraph
  140  (b), the Florida Integrity Officer shall, within available
  141  resources, conduct an investigation and issue a report of the
  142  investigative findings to the complainant and to the President
  143  of the Senate and the Speaker of the House of Representatives.
  144  The Florida Integrity Officer may refer the matter to the
  145  Auditor General, the appropriate law enforcement agency, the
  146  Commission on Ethics, the Chief Financial Officer, the Office of
  147  the Chief Inspector General, or the applicable agency inspector
  148  general. The Auditor General may provide staff and other
  149  resources to assist the Florida Integrity Officer.
  150         (8)(a)The Florida Integrity Officer, or his or her
  151  designee, may inspect and investigate the books, records,
  152  papers, documents, data, operation, and physical location of any
  153  public agency in this state, including any confidential
  154  information, and the public records of any entity that has
  155  received direct appropriations. The Florida Integrity Officer
  156  may agree to retain the confidentiality of confidential
  157  information pursuant to s. 11.0431(2)(a).
  158         (b)Upon the request of the Florida Integrity Officer, the
  159  Legislative Auditing Committee or any other committee of the
  160  Legislature may issue subpoenas and subpoenas duces tecum, as
  161  provided in s. 11.143, to compel testimony or the production of
  162  evidence when deemed necessary to an investigation authorized by
  163  this section. Consistent with s. 11.143, such subpoenas and
  164  subpoenas duces tecum may be issued as provided by applicable
  165  legislative rules or, in the absence of applicable legislative
  166  rules, by the chair of the Legislative Auditing Committee with
  167  the approval of the Legislative Auditing Committee and the
  168  President of the Senate and the Speaker of the House of
  169  Representatives, or with the approval of the President of the
  170  Senate or the Speaker of the House of Representatives if such
  171  officer alone designated the Legislative Auditing Committee as
  172  defined in s. 1.01.
  173         (c)If a witness fails or refuses to comply with a lawful
  174  subpoena or subpoena duces tecum issued pursuant to this
  175  subsection at a time when the Legislature is not in session, the
  176  subpoena or subpoena duces tecum may be enforced as provided in
  177  s. 11.143 and, in addition, the Auditor General, on behalf of
  178  the committee issuing the subpoena or subpoena duces tecum, may
  179  file a complaint before any circuit court of the state to
  180  enforce the subpoena or subpoena duces tecum. Upon the filing of
  181  such complaint, the court shall take jurisdiction of the witness
  182  and the subject matter of the complaint and shall direct the
  183  witness to respond to all lawful questions and to produce all
  184  documentary evidence in the possession of the witness which is
  185  lawfully demanded. The failure of a witness to comply with such
  186  order constitutes a direct and criminal contempt of court, and
  187  the court shall punish the witness accordingly.
  188         (d)When the Legislature is in session, upon the request of
  189  the Florida Integrity Officer directed to the committee issuing
  190  the subpoena or subpoena duces tecum, either house of the
  191  Legislature may seek compliance with the subpoena or subpoena
  192  duces tecum in accordance with the State Constitution, general
  193  law, the joint rules of the Legislature, or the rules of the
  194  house of the Legislature whose committee issued the subpoena or
  195  subpoena duces tecum.
  196         (9)The Florida Integrity Officer shall receive copies of
  197  all reports required by ss. 14.32, 17.325, and 20.055.
  198         (10)(a)Beginning with the 2021-2022 fiscal year, the
  199  Auditor General and the Florida Integrity Officer, within
  200  available resources, shall randomly select and review
  201  appropriations projects appropriated in the prior fiscal year
  202  and, if appropriate, investigate and recommend an audit of such
  203  projects. The review, investigation, or audit may be delayed on
  204  a selected project until a subsequent year if the timeline of
  205  the project warrants such delay. Each review, investigation, or
  206  audit must include, but is not limited to, evaluating whether
  207  the recipient of the appropriations project administered the
  208  project in an efficient and effective manner. When an audit is
  209  recommended by the Florida Integrity Officer under this
  210  subsection, the Auditor General shall determine whether the
  211  audit is appropriate.
  212         (b)Beginning with the 2021-2022 fiscal year, the Auditor
  213  General and the Florida Integrity Officer, within available
  214  resources, shall select and review, investigate, or audit the
  215  financial activities of any political subdivision, special
  216  district, public authority, public hospital, state or local
  217  council or commission, unit of local government, or public
  218  education entity in this state, as well as any authority,
  219  council, commission, direct-support organization, institution,
  220  foundation, or similar entity created by law or ordinance to
  221  pursue a public purpose, entitled by law or ordinance to any
  222  distribution of tax or fee revenues, or organized for the sole
  223  purpose of supporting one of the public entities listed in this
  224  paragraph.
  225         Section 2. Present paragraphs (i) through (m) of subsection
  226  (1) of section 11.45, Florida Statutes, are redesignated as
  227  paragraphs (j) through (n), respectively, a new paragraph (i) is
  228  added to that subsection, and paragraphs (a) and (e) of
  229  subsection (1), paragraph (f) of subsection (2), and paragraph
  230  (j) of subsection (7) of that section are amended, to read:
  231         11.45 Definitions; duties; authorities; reports; rules.—
  232         (1) DEFINITIONS.—As used in ss. 11.40-11.51, the term:
  233         (a) “Abuse” means behavior that is deficient or improper
  234  when compared with behavior that a prudent person would consider
  235  a reasonable and necessary operational practice given the facts
  236  and circumstances. The term includes the misuse of authority or
  237  position for personal gain or for the gain of an immediate or
  238  close family member or business associate.
  239         (e) “Fraud” means obtaining something of value through
  240  willful misrepresentation, including, but not limited to,
  241  intentional misstatements or intentional omissions of amounts or
  242  disclosures in financial statements to deceive users of
  243  financial statements, theft of an entity’s assets, bribery, or
  244  the use of one’s position for personal enrichment through the
  245  deliberate misuse or misapplication of an entity’s
  246  organization’s resources.
  247         (i)“Misconduct” means conduct which, though not illegal,
  248  is inappropriate for a person in his or her specified position.
  249         (2) DUTIES.—The Auditor General shall:
  250         (f) At least every 3 years, conduct operational audits of
  251  the accounts and records of state agencies, state universities,
  252  state colleges, district school boards, the Florida Clerks of
  253  Court Operations Corporation, water management districts, and
  254  the Florida School for the Deaf and the Blind. At the conclusion
  255  of each 3-year cycle, the Auditor General shall publish a report
  256  consolidating common operational audit findings for all state
  257  agencies, state universities, state colleges, and district
  258  school boards.
  259  
  260  The Auditor General shall perform his or her duties
  261  independently but under the general policies established by the
  262  Legislative Auditing Committee. This subsection does not limit
  263  the Auditor General’s discretionary authority to conduct other
  264  audits or engagements of governmental entities as authorized in
  265  subsection (3).
  266         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
  267         (j) The Auditor General shall notify the Legislative
  268  Auditing Committee of any financial or operational audit report
  269  prepared pursuant to this section which indicates that a
  270  district school board, state university, or Florida College
  271  System institution has failed to take full corrective action in
  272  response to a recommendation that was included in the two
  273  preceding financial or operational audit reports or a preceding
  274  operational audit report.
  275         1. The committee may direct the district school board or
  276  the governing body of the state university or Florida College
  277  System institution to provide a written statement to the
  278  committee explaining why full corrective action has not been
  279  taken or, if the governing body intends to take full corrective
  280  action, describing the corrective action to be taken and when it
  281  will occur.
  282         2. If the committee determines that the written statement
  283  is not sufficient, the committee may require the chair of the
  284  district school board or the chair of the governing body of the
  285  state university or Florida College System institution, or the
  286  chair’s designee, to appear before the committee.
  287         3. If the committee determines that the district school
  288  board, state university, or Florida College System institution
  289  has failed to take full corrective action for which there is no
  290  justifiable reason or has failed to comply with committee
  291  requests made pursuant to this section, the committee shall
  292  refer the matter to the State Board of Education or the Board of
  293  Governors, as appropriate, to proceed in accordance with s.
  294  1008.32 or s. 1008.322, respectively.
  295         Section 3. Present subsections (1) through (5) of section
  296  14.32, Florida Statutes, are renumbered as subsections (2)
  297  through (6), respectively, paragraph (g) of present subsection
  298  (2) is amended, and a new subsection (1) and subsection (7) are
  299  added to that section, to read:
  300         14.32 Office of Chief Inspector General.—
  301         (1)As used in this section, the term:
  302         (a)“Abuse” means behavior that is deficient or improper
  303  when compared with behavior that a prudent person would consider
  304  a reasonable and necessary operational practice given the facts
  305  and circumstances. The term includes the misuse of authority or
  306  position for personal gain or for the benefit of another.
  307         (b)“Fraud” means obtaining something of value through
  308  willful misrepresentation, including, but not limited to, the
  309  intentional misstatements or intentional omissions of amounts or
  310  disclosures in financial statements to deceive users of
  311  financial statements, theft of an entity’s assets, bribery, or
  312  the use of one’s position for personal enrichment through the
  313  deliberate misuse or misapplication of an entity’s resources.
  314         (c)“Independent contractor” has the same meaning as in s.
  315  112.3187(3)(d).
  316         (d)“Misconduct” means conduct which, though not illegal,
  317  is inappropriate for a person in his or her specified position.
  318         (e)“Waste” means the act of using or expending resources
  319  unreasonably, carelessly, extravagantly, or for no useful
  320  purpose.
  321         (3)(2) The Chief Inspector General shall:
  322         (g) Report expeditiously to and cooperate fully with the
  323  Commission on Ethics, the Department of Law Enforcement, the
  324  Department of Legal Affairs, and other law enforcement agencies
  325  when there are recognizable grounds to believe that there has
  326  been a violation of the Code of Ethics for Public Officers and
  327  Employees or criminal law or that a civil action should be
  328  initiated.
  329         (7)(a)Within 6 months after the initiation of an
  330  investigation of fraud, waste, abuse, mismanagement, or
  331  misconduct in government, the Chief Inspector General or an
  332  agency inspector general must determine whether there is
  333  reasonable probability that fraud, waste, abuse, mismanagement,
  334  or misconduct in government has occurred. If there has not been
  335  a determination of such reasonable probability and the
  336  investigation continues, a new determination must be made every
  337  3 months until the investigation is closed or such reasonable
  338  probability is found to exist.
  339         (b)If the Chief Inspector General or an agency inspector
  340  general determines that there is reasonable probability that a
  341  public official, an independent contractor, or an agency has
  342  committed fraud, waste, abuse, mismanagement, or misconduct in
  343  government, the inspector general shall report such
  344  determination to the Florida Integrity Officer.
  345         (c)If the findings of an investigation conducted pursuant
  346  to this subsection conclude that a public official, an
  347  independent contractor, or an agency has committed fraud, waste,
  348  abuse, mismanagement, or misconduct in government, the Chief
  349  Inspector General or agency inspector general shall report such
  350  findings to the Chief Financial Officer within 30 days after the
  351  investigation is closed. Such public official, independent
  352  contractor, or person responsible within the agency is
  353  personally liable for repayment of the funds that were diverted
  354  or lost as a result of the fraud, waste, abuse, mismanagement,
  355  or misconduct in government. If the person liable fails to repay
  356  such funds voluntarily and the state does not agree to a
  357  settlement, the Chief Financial Officer shall bring a civil
  358  action to recover the funds within 60 days after receipt of such
  359  findings.
  360         Section 4. Section 17.04, Florida Statutes, is amended to
  361  read:
  362         17.04 To audit and adjust accounts of officers and those
  363  indebted to the state.—The Chief Financial Officer, using
  364  generally accepted auditing procedures for testing or sampling,
  365  shall examine, audit, adjust, and settle the accounts of all the
  366  officers of this state, and any other person in anywise
  367  entrusted with, or who may have received any property, funds, or
  368  moneys of this state, or who may be in anywise indebted or
  369  accountable to this state for any property, funds, or moneys,
  370  and require such officer or persons to render full accounts
  371  thereof, and to yield up such property or funds according to
  372  law, or pay such moneys into the treasury of this state, or to
  373  such officer or agent of the state as may be appointed to
  374  receive the same, and on failure so to do, to cause to be
  375  instituted and prosecuted proceedings, criminal or civil, at law
  376  or in equity, against such persons, according to law. The Chief
  377  Financial Officer may conduct investigations within or outside
  378  of this state as it deems necessary to aid in the enforcement of
  379  this section. The Chief Financial Officer may commence an
  380  investigation pursuant to this section based on a complaint or
  381  referral from any source. An employee of a state agency or a
  382  state contractor having knowledge of suspected misuse of state
  383  funds may report such information to the Chief Financial
  384  Officer. If during an investigation the Chief Financial Officer
  385  has reason to believe that any criminal statute of this state
  386  has or may have been violated, the Chief Financial Officer shall
  387  refer any records tending to show such violation to state or
  388  federal law enforcement or prosecutorial agencies and shall
  389  provide investigative assistance to those agencies as required.
  390         Section 5. Present subsections (4) and (5) of section
  391  17.325, Florida Statutes, are renumbered as subsections (5) and
  392  (6), respectively, and a new subsection (4) is added to that
  393  section, to read:
  394         17.325 Governmental efficiency hotline; duties of Chief
  395  Financial Officer.—
  396         (4)A copy of each suggestion or item of information
  397  received through the hotline or website that is logged pursuant
  398  to this section must be reported to the Florida Integrity
  399  Officer by the 15th of the month following receipt of the
  400  suggestion or item of information.
  401         Section 6. Paragraph (c) of subsection (7) of section
  402  20.055, Florida Statutes, is amended, and paragraph (g) is added
  403  to that subsection, to read:
  404         20.055 Agency inspectors general.—
  405         (7) In carrying out the investigative duties and
  406  responsibilities specified in this section, each inspector
  407  general shall initiate, conduct, supervise, and coordinate
  408  investigations designed to detect, deter, prevent, and eradicate
  409  fraud, waste, mismanagement, misconduct, and other abuses in
  410  state government. For these purposes, each inspector general
  411  shall:
  412         (c) Report expeditiously to and cooperate fully with the
  413  Commission on Ethics, the Department of Law Enforcement, or
  414  other law enforcement agencies, as appropriate, whenever the
  415  inspector general has reasonable grounds to believe there has
  416  been a violation of the code of ethics or criminal law.
  417         (g)Make determinations and reports as required by s.
  418  14.32(7).
  419         Section 7. Paragraphs (a) and (b) of subsection (1) and
  420  subsection (2) of section 110.1245, Florida Statutes, are
  421  amended, and subsections (6) and (7) are added to that section,
  422  to read:
  423         110.1245 Savings sharing program; bonus payments; other
  424  awards.—
  425         (1)(a) The Department of Management Services shall adopt
  426  rules that prescribe procedures and promote a savings sharing
  427  program for an individual or group of employees who propose
  428  procedures or ideas that are adopted and that result in
  429  eliminating or reducing state expenditures, including employees
  430  reporting under the Whistle-blower’s Act, if such proposals are
  431  placed in effect and may be implemented under current statutory
  432  authority.
  433         (b) Each agency head shall recommend employees individually
  434  or by group to be awarded an amount of money, which amount shall
  435  be directly related to the cost savings realized. Each proposed
  436  award and amount of money must be approved by the Legislative
  437  Budget Commission, except an award issued under subsection (6).
  438         (2) In June of each year, bonuses shall be paid to
  439  employees from funds authorized by the Legislature in an
  440  appropriation specifically for bonuses. For purposes of this
  441  subsection, awards issued under subsection (6) are not
  442  considered bonuses. Each agency shall develop a plan for
  443  awarding lump-sum bonuses, which plan shall be submitted no
  444  later than September 15 of each year and approved by the Office
  445  of Policy and Budget in the Executive Office of the Governor.
  446  Such plan shall include, at a minimum, but is not limited to:
  447         (a) A statement that bonuses are subject to specific
  448  appropriation by the Legislature.
  449         (b) Eligibility criteria as follows:
  450         1. The employee must have been employed before prior to
  451  July 1 of that fiscal year and have been continuously employed
  452  through the date of distribution.
  453         2. The employee must not have been on leave without pay
  454  consecutively for more than 6 months during the fiscal year.
  455         3. The employee must have had no sustained disciplinary
  456  action during the period beginning July 1 through the date the
  457  bonus checks are distributed. Disciplinary actions include
  458  written reprimands, suspensions, dismissals, and involuntary or
  459  voluntary demotions that were associated with a disciplinary
  460  action.
  461         4. The employee must have demonstrated a commitment to the
  462  agency mission by reducing the burden on those served,
  463  continually improving the way business is conducted, producing
  464  results in the form of increased outputs, and working to improve
  465  processes.
  466         5. The employee must have demonstrated initiative in work
  467  and have exceeded normal job expectations.
  468         6. The employee must have modeled the way for others by
  469  displaying agency values of fairness, cooperation, respect,
  470  commitment, honesty, excellence, and teamwork.
  471         (c) A periodic evaluation process of the employee’s
  472  performance.
  473         (d) A process for peer input that is fair, respectful of
  474  employees, and affects the outcome of the bonus distribution.
  475         (e) A division of the agency by work unit for purposes of
  476  peer input and bonus distribution.
  477         (f) A limitation on bonus distributions equal to 35 percent
  478  of the agency’s total authorized positions. This requirement may
  479  be waived by the Office of Policy and Budget in the Executive
  480  Office of the Governor upon a showing of exceptional
  481  circumstances.
  482         (6)Each agency inspector general shall report employees
  483  whose reports under the Whistle-blower’s Act resulted in savings
  484  or recovery of public funds in excess of $1,000. Awards shall be
  485  awarded by each agency to the employee, or his or her designee,
  486  whose report led to the savings or recovery, and each agency
  487  head is authorized to incur expenditures to provide such awards.
  488  The award shall be paid from the specific appropriation or trust
  489  fund from which the savings or recovery resulted. The agency
  490  inspector general to whom the report was made or referred shall
  491  certify the savings or recovery resulting from the
  492  investigation. If more than one employee makes a relevant
  493  report, the award shall be shared in proportion to each
  494  employee’s contribution to the investigation as certified by the
  495  agency inspector general. Awards shall be made in the following
  496  amounts:
  497         (a)A career service employee shall receive 10 percent of
  498  the savings or recovery certified, but not less than $500 and
  499  not more than a total of $50,000 for whistle-blower reports in
  500  any 1 year. If the employee had any fault for the misspending or
  501  attempted misspending of public funds identified in the
  502  investigation that resulted in the savings or recovery, the
  503  award may be denied at the discretion of the agency head. If the
  504  award is not denied by the agency head, the award may not exceed
  505  $500. The agency inspector general shall certify any fault on
  506  the part of the employee.
  507         (b)A Senior Management Service employee or an employee in
  508  a select exempt position shall receive 5 percent of the savings
  509  or recovery certified, but not more than a total of $1,000 for
  510  whistle-blower reports in any 1 year. An employee may not
  511  receive an award under this paragraph if he or she had any fault
  512  for the misspending or attempted misspending of public funds
  513  identified in the investigation that resulted in the savings or
  514  recovery. The agency inspector general shall certify any fault
  515  on the part of the employee.
  516         (7)Notwithstanding any other provision of law, an employee
  517  whose name or identity is confidential or exempt from disclosure
  518  under state or federal law may participate in the savings
  519  sharing program authorized in this section. To maintain
  520  confidentiality, upon notice of eligibility for an award, such
  521  employee may designate an authorized agent, trustee, or
  522  custodian to accept an award for which the employee is eligible
  523  on behalf of the employee.
  524         Section 8. Subsection (2), paragraph (e) of subsection (3),
  525  and paragraph (b) of subsection (5) of section 112.3187, Florida
  526  Statutes, are amended to read:
  527         112.3187 Adverse action against employee for disclosing
  528  information of specified nature prohibited; employee remedy and
  529  relief.—
  530         (2) LEGISLATIVE INTENT.—It is the intent of the Legislature
  531  to prevent agencies or independent contractors from taking
  532  retaliatory action against an employee who reports to an
  533  appropriate agency violations of law on the part of a public
  534  employer or independent contractor that create a substantial and
  535  specific danger to the public’s health, safety, or welfare. It
  536  is further the intent of the Legislature to prevent agencies or
  537  independent contractors from taking retaliatory action against
  538  any person who discloses information to an appropriate agency
  539  alleging improper use of governmental office, gross waste of
  540  funds, or any other abuse or gross neglect of duty on the part
  541  of an agency, public officer, or employee.
  542         (3) DEFINITIONS.—As used in this act, unless otherwise
  543  specified, the following words or terms shall have the meanings
  544  indicated:
  545         (e) “Gross Mismanagement” means a continuous pattern of
  546  managerial abuses, wrongful or arbitrary and capricious actions,
  547  or fraudulent or criminal conduct which may have a substantial
  548  adverse economic impact.
  549         (5) NATURE OF INFORMATION DISCLOSED.—The information
  550  disclosed under this section must include:
  551         (b) Any act or suspected act of gross mismanagement,
  552  malfeasance, misfeasance, gross waste of public funds, suspected
  553  or actual Medicaid fraud or abuse, or gross neglect of duty
  554  committed by an employee or agent of an agency or independent
  555  contractor.
  556         Section 9. Paragraph (e) of subsection (3) and subsection
  557  (9) of section 287.057, Florida Statutes, are amended, and
  558  subsections (24) and (25) are added to that section, to read:
  559         287.057 Procurement of commodities or contractual
  560  services.—
  561         (3) If the purchase price of commodities or contractual
  562  services exceeds the threshold amount provided in s. 287.017 for
  563  CATEGORY TWO, purchase of commodities or contractual services
  564  may not be made without receiving competitive sealed bids,
  565  competitive sealed proposals, or competitive sealed replies
  566  unless:
  567         (e) The following contractual services and commodities are
  568  not subject to the competitive-solicitation requirements of this
  569  section:
  570         1. Artistic services. As used in this subsection, the term
  571  “artistic services” does not include advertising or typesetting.
  572  As used in this subparagraph, the term “advertising” means the
  573  making of a representation in any form in connection with a
  574  trade, business, craft, or profession in order to promote the
  575  supply of commodities or services by the person promoting the
  576  commodities or contractual services.
  577         2. Academic program reviews if the fee for such services
  578  does not exceed $50,000.
  579         3. Lectures by individuals.
  580         4. Legal services, including attorney, paralegal, expert
  581  witness, appraisal, or mediator services.
  582         5. Health services involving examination, diagnosis,
  583  treatment, prevention, medical consultation, or administration.
  584  The term also includes, but is not limited to, substance abuse
  585  and mental health services involving examination, diagnosis,
  586  treatment, prevention, or medical consultation if such services
  587  are offered to eligible individuals participating in a specific
  588  program that qualifies multiple providers and uses a standard
  589  payment methodology. Reimbursement of administrative costs for
  590  providers of services purchased in this manner are also exempt.
  591  For purposes of this subparagraph, the term “providers” means
  592  health professionals and health facilities, or organizations
  593  that deliver or arrange for the delivery of health services.
  594         6. Services provided to persons with mental or physical
  595  disabilities by not-for-profit corporations that have obtained
  596  exemptions under s. 501(c)(3) of the United States Internal
  597  Revenue Code or when such services are governed by Office of
  598  Management and Budget Circular A-122. However, in acquiring such
  599  services, the agency shall consider the ability of the vendor,
  600  past performance, willingness to meet time requirements, and
  601  price.
  602         7. Medicaid services delivered to an eligible Medicaid
  603  recipient unless the agency is directed otherwise in law.
  604         8. Family placement services.
  605         9. Prevention services related to mental health, including
  606  drug abuse prevention programs, child abuse prevention programs,
  607  and shelters for runaways, operated by not-for-profit
  608  corporations. However, in acquiring such services, the agency
  609  shall consider the ability of the vendor, past performance,
  610  willingness to meet time requirements, and price.
  611         10. Training and education services provided to injured
  612  employees pursuant to s. 440.491(6).
  613         11. Contracts entered into pursuant to s. 337.11.
  614         12. Services or commodities provided by governmental
  615  entities.
  616         13. Statewide Public service announcement programs that
  617  provided by a Florida statewide nonprofit corporation under s.
  618  501(c)(6) of the Internal Revenue Code which have a guaranteed
  619  documented match of at least $3 to $1.
  620         (9) An agency shall not divide the solicitation of
  621  commodities or contractual services so as to avoid the
  622  requirements of subsections (1)-(3) or subsection (24).
  623         (24)(a)For any contract in excess of $50,000 that is
  624  awarded through an invitation to negotiate or awarded without
  625  competitive solicitation under paragraph (3)(c), paragraph
  626  (3)(e), or subsection (10), the proposal, offer, or response of
  627  the contractor must include a good faith estimate of gross
  628  profit for each year and renewal year of the proposed contract.
  629  If, in determining the good faith estimate of gross profit, the
  630  contractor includes the cost of products or services expected to
  631  be provided by a participant closely associated with the
  632  contractor, the contractor must also identify such participant,
  633  describe the association, and provide a good faith estimate of
  634  gross profit for such participant for each year and renewal year
  635  of the proposed contract, which must be attested to by an
  636  authorized representative of the participant. The agency must,
  637  before awarding the contract, make a written determination that
  638  the estimated gross profit is not excessive and specify the
  639  reasons for such determination. Notwithstanding any provision of
  640  the contract, a contractor is liable to the agency for three
  641  times the amount or value of any misrepresentation of estimated
  642  gross profit as liquidated damages for such misrepresentation.
  643         (b)For purposes of this subsection, the term:
  644         1.“Closely associated with the contractor” means the
  645  contractor, a principal of the contractor, or a family member or
  646  business associate of a principal of the contractor is a
  647  principal of the participant. As used in this subparagraph, the
  648  term “principal” means a person who owns at least 5 percent
  649  interest in the business or entity or is a manager of the
  650  business or entity. As used in this subparagraph, the term
  651  “business associate” means a person or entity with whom a
  652  principal of the contractor has substantial investment,
  653  employment, or partnership interests.
  654         2.“Good faith estimate of gross profit” means a good faith
  655  estimate of the total receipts expected under the contract less
  656  the cost of providing contracted commodities and services under
  657  the contract and excluding overhead costs. As used in this
  658  subparagraph, the term “overhead costs” means all costs that are
  659  not directly related to contract performance, including, but not
  660  limited to, marketing and administrative expenses.
  661         3.“Participant” means a person or entity with whom the
  662  contractor expects to subcontract for services or commodities in
  663  carrying out a contract with an agency.
  664         (25)Notwithstanding any other provision of law, a state
  665  employee who is registered to lobby the Legislature, other than
  666  an agency head, may not participate in the negotiation or award
  667  of any contract required or expressly funded under a specific
  668  legislative appropriation or proviso in an appropriation act.
  669  This subsection does not apply to a state employee who is:
  670         (a)Registered to lobby the Legislature, but whose primary
  671  job responsibilities do not involve lobbying.
  672         (b)Employed by the Executive Office of the Governor.
  673         (c)Employed by the Office of Policy and Budget.
  674         Section 10. Section 288.00001, Florida Statutes, is created
  675  to read:
  676         288.00001Use of state or local incentive funds to pay for
  677  services.—Notwithstanding any other provision of law, a tax
  678  incentive may not be awarded or paid to a state contractor or
  679  any subcontractor for services provided or expenditures incurred
  680  pursuant to a state contract.
  681         Section 11. Paragraph (e) of subsection (4) of section
  682  1001.20, Florida Statutes, is amended to read:
  683         1001.20 Department under direction of state board.—
  684         (4) The Department of Education shall establish the
  685  following offices within the Office of the Commissioner of
  686  Education which shall coordinate their activities with all other
  687  divisions and offices:
  688         (e) Office of Inspector General.—Organized using existing
  689  resources and funds and responsible for promoting
  690  accountability, efficiency, and effectiveness and detecting
  691  fraud and abuse within school districts, the Florida School for
  692  the Deaf and the Blind, and Florida College System institutions
  693  in Florida. If the Commissioner of Education determines that a
  694  district school board, the Board of Trustees for the Florida
  695  School for the Deaf and the Blind, or a Florida College System
  696  institution board of trustees is unwilling or unable to address
  697  substantiated allegations made by any person relating to waste,
  698  fraud, abuse, or financial mismanagement within the school
  699  district, the Florida School for the Deaf and the Blind, or the
  700  Florida College System institution, the office shall conduct,
  701  coordinate, or request investigations into such substantiated
  702  allegations. The office shall investigate allegations or reports
  703  of possible waste, fraud, or abuse, or mismanagement against a
  704  district school board or Florida College System institution made
  705  by any member of the Cabinet,; the presiding officer of either
  706  house of the Legislature,; a chair of a substantive or
  707  appropriations legislative committee with jurisdiction,; or a
  708  member of the board for which an investigation is sought. The
  709  office shall have access to all information and personnel
  710  necessary to perform its duties and shall have all of its
  711  current powers, duties, and responsibilities authorized in s.
  712  20.055.
  713         Section 12. The Office of the Auditor General is authorized
  714  to use carryforward funds to fund the establishment and
  715  operations of the Florida Integrity Office as created by this
  716  act.
  717         Section 13. Subsection (1) of section 112.3188, Florida
  718  Statutes, is amended to read:
  719         112.3188 Confidentiality of information given to the Chief
  720  Inspector General, internal auditors, inspectors general, local
  721  chief executive officers, or other appropriate local officials.—
  722         (1) The name or identity of any individual who discloses in
  723  good faith to the Chief Inspector General or an agency inspector
  724  general, a local chief executive officer, or other appropriate
  725  local official information that alleges that an employee or
  726  agent of an agency or independent contractor:
  727         (a) Has violated or is suspected of having violated any
  728  federal, state, or local law, rule, or regulation, thereby
  729  creating and presenting a substantial and specific danger to the
  730  public’s health, safety, or welfare; or
  731         (b) Has committed an act of gross mismanagement,
  732  malfeasance, misfeasance, gross waste of public funds, or gross
  733  neglect of duty
  734  
  735  may not be disclosed to anyone other than a member of the Chief
  736  Inspector General’s, agency inspector general’s, internal
  737  auditor’s, local chief executive officer’s, or other appropriate
  738  local official’s staff without the written consent of the
  739  individual, unless the Chief Inspector General, internal
  740  auditor, agency inspector general, local chief executive
  741  officer, or other appropriate local official determines that:
  742  the disclosure of the individual’s identity is necessary to
  743  prevent a substantial and specific danger to the public’s
  744  health, safety, or welfare or to prevent the imminent commission
  745  of a crime; or the disclosure is unavoidable and absolutely
  746  necessary during the course of the audit, evaluation, or
  747  investigation.
  748         Section 14. Paragraph (c) of subsection (3), subsection
  749  (4), and paragraph (a) of subsection (5) of section 112.3189,
  750  Florida Statutes, are amended to read:
  751         112.3189 Investigative procedures upon receipt of whistle
  752  blower information from certain state employees.—
  753         (3) When a person alleges information described in s.
  754  112.3187(5), the Chief Inspector General or agency inspector
  755  general actually receiving such information shall within 20 days
  756  of receiving such information determine:
  757         (c) Whether the information actually disclosed demonstrates
  758  reasonable cause to suspect that an employee or agent of an
  759  agency or independent contractor has violated any federal,
  760  state, or local law, rule, or regulation, thereby creating and
  761  presenting a substantial and specific danger to the public’s
  762  health, safety, or welfare, or has committed an act of gross
  763  mismanagement, malfeasance, misfeasance, gross waste of public
  764  funds, or gross neglect of duty.
  765         (4) If the Chief Inspector General or agency inspector
  766  general under subsection (3) determines that the information
  767  disclosed is not the type of information described in s.
  768  112.3187(5), or that the source of the information is not a
  769  person who is an employee or former employee of, or an applicant
  770  for employment with, a state agency, as defined in s. 216.011,
  771  or that the information disclosed does not demonstrate
  772  reasonable cause to suspect that an employee or agent of an
  773  agency or independent contractor has violated any federal,
  774  state, or local law, rule, or regulation, thereby creating and
  775  presenting a substantial and specific danger to the public’s
  776  health, safety, or welfare, or has committed an act of gross
  777  mismanagement, malfeasance, misfeasance, gross waste of public
  778  funds, or gross neglect of duty, the Chief Inspector General or
  779  agency inspector general shall notify the complainant of such
  780  fact and copy and return, upon request of the complainant, any
  781  documents and other materials that were provided by the
  782  complainant.
  783         (5)(a) If the Chief Inspector General or agency inspector
  784  general under subsection (3) determines that the information
  785  disclosed is the type of information described in s.
  786  112.3187(5), that the source of the information is from a person
  787  who is an employee or former employee of, or an applicant for
  788  employment with, a state agency, as defined in s. 216.011, and
  789  that the information disclosed demonstrates reasonable cause to
  790  suspect that an employee or agent of an agency or independent
  791  contractor has violated any federal, state, or local law, rule,
  792  or regulation, thereby creating a substantial and specific
  793  danger to the public’s health, safety, or welfare, or has
  794  committed an act of gross mismanagement, malfeasance,
  795  misfeasance, gross waste of public funds, or gross neglect of
  796  duty, the Chief Inspector General or agency inspector general
  797  making such determination shall then conduct an investigation,
  798  unless the Chief Inspector General or the agency inspector
  799  general determines, within 30 days after receiving the
  800  allegations from the complainant, that such investigation is
  801  unnecessary. For purposes of this subsection, the Chief
  802  Inspector General or the agency inspector general shall consider
  803  the following factors, but is not limited to only the following
  804  factors, when deciding whether the investigation is not
  805  necessary:
  806         1. The gravity of the disclosed information compared to the
  807  time and expense of an investigation.
  808         2. The potential for an investigation to yield
  809  recommendations that will make state government more efficient
  810  and effective.
  811         3. The benefit to state government to have a final report
  812  on the disclosed information.
  813         4. Whether the alleged whistle-blower information primarily
  814  concerns personnel practices that may be investigated under
  815  chapter 110.
  816         5. Whether another agency may be conducting an
  817  investigation and whether any investigation under this section
  818  could be duplicative.
  819         6. The time that has elapsed between the alleged event and
  820  the disclosure of the information.
  821         Section 15. Paragraph (a) of subsection (3) of section
  822  112.31895, Florida Statutes, is amended to read:
  823         112.31895 Investigative procedures in response to
  824  prohibited personnel actions.—
  825         (3) CORRECTIVE ACTION AND TERMINATION OF INVESTIGATION.—
  826         (a) The Florida Commission on Human Relations, in
  827  accordance with this act and for the sole purpose of this act,
  828  is empowered to:
  829         1. Receive and investigate complaints from employees
  830  alleging retaliation by state agencies, as the term “state
  831  agency” is defined in s. 216.011.
  832         2. Protect employees and applicants for employment with
  833  such agencies from prohibited personnel practices under s.
  834  112.3187.
  835         3. Petition for stays and petition for corrective actions,
  836  including, but not limited to, temporary reinstatement.
  837         4. Recommend disciplinary proceedings pursuant to
  838  investigation and appropriate agency rules and procedures.
  839         5. Coordinate with the Chief Inspector General in the
  840  Executive Office of the Governor and the Florida Commission on
  841  Human Relations to receive, review, and forward to appropriate
  842  agencies, legislative entities, or the Department of Law
  843  Enforcement disclosures of a violation of any law, rule, or
  844  regulation, or disclosures of gross mismanagement, malfeasance,
  845  misfeasance, nonfeasance, neglect of duty, or gross waste of
  846  public funds.
  847         6. Review rules pertaining to personnel matters issued or
  848  proposed by the Department of Management Services, the Public
  849  Employees Relations Commission, and other agencies, and, if the
  850  Florida Commission on Human Relations finds that any rule or
  851  proposed rule, on its face or as implemented, requires the
  852  commission of a prohibited personnel practice, provide a written
  853  comment to the appropriate agency.
  854         7. Investigate, request assistance from other governmental
  855  entities, and, if appropriate, bring actions concerning,
  856  allegations of retaliation by state agencies under subparagraph
  857  1.
  858         8. Administer oaths, examine witnesses, take statements,
  859  issue subpoenas, order the taking of depositions, order
  860  responses to written interrogatories, and make appropriate
  861  motions to limit discovery, pursuant to investigations under
  862  subparagraph 1.
  863         9. Intervene or otherwise participate, as a matter of
  864  right, in any appeal or other proceeding arising under this
  865  section before the Public Employees Relations Commission or any
  866  other appropriate agency, except that the Florida Commission on
  867  Human Relations must comply with the rules of the commission or
  868  other agency and may not seek corrective action or intervene in
  869  an appeal or other proceeding without the consent of the person
  870  protected under ss. 112.3187-112.31895.
  871         10. Conduct an investigation, in the absence of an
  872  allegation, to determine whether reasonable grounds exist to
  873  believe that a prohibited action or a pattern of prohibited
  874  action has occurred, is occurring, or is to be taken.
  875         Section 16. This act shall take effect July 1, 2020.