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  1                                 

  2         An act relating to procurement of contractual

  3         services by a state agency; amending s.

  4         287.057, F.S.; prohibiting a state agency from

  5         renewing or amending a contract for outsourcing

  6         under certain conditions; requiring certain

  7         qualifications for persons chosen to conduct

  8         negotiations during specified procurements;

  9         requiring the department to adopt rules

10         governing those qualifications; requiring that

11         a specified statement be included in

12         procurements of commodities and services which

13         prohibits contact between respondents and

14         specified employees of the executive and

15         legislative branches; creating s. 287.0571,

16         F.S.; creating the Florida Efficient Government

17         Act; providing legislative intent; providing

18         that procurements of specified commodities and

19         services are not subject to the act; creating

20         s. 287.05721, F.S.; providing definitions;

21         creating s. 287.0573, F.S.; creating the

22         Council on Efficient Government; providing the

23         purpose and membership of the council;

24         providing duties and responsibilities of the

25         council; requiring the council to review and

26         issue advisory reports on certain state agency

27         procurements; requiring the department to

28         employ adequate number of staff; requiring the

29         Secretary of Management Services to appoint an

30         executive director; requiring state agencies to

31         submit materials required by the council;


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 1         creating s. 287.0574, F.S.; providing

 2         requirements for certain business cases to

 3         outsource by a state agency; requiring a state

 4         agency to develop a business case that

 5         describes and analyzes a contractual services

 6         procurement under consideration; providing that

 7         the business case is not subject to challenge

 8         or protest under the Administrative Procedure

 9         Act; providing required components of a

10         business case; providing contract requirements

11         for an outsourcing procurement; amending s.

12         287.058, F.S.; providing that a contract may

13         not prohibit a contractor from lobbying the

14         executive or legislative branches concerning

15         specified contract issues, within specified

16         time lines; creating s. 287.074, F.S.;

17         requiring that only public officers or

18         employees perform certain functions;

19         prohibiting a contractor from participating in

20         the procurement of contractual services by a

21         state agency; repealing s. 14.203, F.S.,

22         relating to the State Council on Competitive

23         Government; providing appropriations; providing

24         that certain state agencies are subject to the

25         act; amending s. 119.071, F.S.; deleting a

26         cross-reference; defining the term "commerical

27         activity" for purposes of a provision

28         authorizing the release of social security

29         numbers; providing an effective date.

30  

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


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 1         Section 1.  Paragraph (a) of subsection (14) and

 2  paragraph (b) of subsection (17) of section 287.057, Florida

 3  Statutes, are amended, and subsection (26) is added to that

 4  section, to read:

 5         287.057  Procurement of commodities or contractual

 6  services.--

 7         (14)(a)  Contracts for commodities or contractual

 8  services may be renewed for a period that may not exceed 3

 9  years or the term of the original contract, whichever period

10  is longer. Renewal of a contract for commodities or

11  contractual services shall be in writing and shall be subject

12  to the same terms and conditions set forth in the initial

13  contract. If the commodity or contractual service is purchased

14  as a result of the solicitation of bids, proposals, or

15  replies, the price of the commodity or contractual service to

16  be renewed shall be specified in the bid, proposal, or reply.

17  A renewal contract may not include any compensation for costs

18  associated with the renewal. Renewals shall be contingent upon

19  satisfactory performance evaluations by the agency and subject

20  to the availability of funds. Exceptional purchase contracts

21  pursuant to paragraphs (5)(a) and (c) may not be renewed. With

22  the exception of s. 287.057(13), if a contract amendment

23  results in a longer contract term or increased payments, a

24  state agency may not renew or amend a contract for the

25  outsourcing of a service or activity that has an original term

26  value exceeding the sum of $10 million before submitting a

27  written report concerning contract performance to the

28  Governor, the President of the Senate, and the Speaker of the

29  House of Representatives at least 90 days before execution of

30  the renewal or amendment.

31  


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 1         (17)  For a contract in excess of the threshold amount

 2  provided in s. 287.017 for CATEGORY FOUR, the agency head

 3  shall appoint:

 4         (b)  At least three persons to conduct negotiations

 5  during a competitive sealed reply procurement who collectively

 6  have experience and knowledge in negotiating contracts,

 7  contract procurement, and the program areas and service

 8  requirements for which commodities or contractual services are

 9  sought. When the value of a contract is in excess of $1

10  million in any fiscal year, at least one of the persons

11  conducting negotiations must be certified as a contract

12  negotiator based upon rules adopted by the Department of

13  Management Services in order to ensure that certified contract

14  negotiators are knowledgeable about effective negotiation

15  strategies, capable of successfully implementing those

16  strategies, and involved appropriately in the procurement

17  process. At a minimum, the rules must address the

18  qualifications required for certification, the method of

19  certification, and the procedure for involving the certified

20  negotiator. If the value of a contract is in excess of $10

21  million in any fiscal year, at least one of the persons

22  conducting negotiations must be a Project Management

23  Professional, as certified by the Project Management

24  Institute.

25         (26)  Each solicitation for the procurement of

26  commodities or contractual services shall include the

27  following provision: "Respondents to this solicitation or

28  persons acting on their behalf may not contact, between the

29  release of the solicitation and the end of the 72-hour period

30  following the agency posting the notice of intended award,

31  excluding Saturdays, Sundays, and state holidays, any employee


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 1  or officer of the executive or legislative branch concerning

 2  any aspect of this solicitation, except in writing to the

 3  procurement officer or as provided in the solicitation

 4  documents. Violation of this provision may be grounds for

 5  rejecting a response."

 6         Section 2.  Section 287.0571, Florida Statutes, is

 7  created to read:

 8         287.0571  Applicability of ss. 287.0571-287.0574.--

 9         (1)  Sections 287.0571-287.0574 may be cited as the

10  "Florida Efficient Government Act."

11         (2)  It is the intent of the Legislature that each

12  state agency focus on its core mission and deliver services

13  effectively and efficiently by leveraging resources and

14  contracting with private-sector vendors whenever vendors can

15  more effectively and efficiently provide services and reduce

16  the cost of government.

17         (3)  It is further the intent of the Legislature that

18  business cases to outsource be evaluated for feasibility,

19  cost-effectiveness, and efficiency before a state agency

20  proceeds with any outsourcing of services.

21         (4)  Sections 287.0571-287.0574 do not apply to:

22         (a)  A procurement of commodities and contractual

23  services listed in s. 287.057(5)(e), (f), and (g) and (22).

24         (b)  A procurement of contractual services subject to

25  s. 287.055.

26         (c)  A contract in support of the planning,

27  development, implementation, operation, or maintenance of the

28  road, bridge, and public transportation construction program

29  of the Department of Transportation.

30  

31  


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 1         (d)  A procurement of commodities or contractual

 2  services which does not constitute an outsourcing of services

 3  or activities.

 4         Section 3.  Section 287.05721, Florida Statutes, is

 5  created to read:

 6         287.05721  Definitions.--As used in ss.

 7  287.0571-287.0574, the term:

 8         (1)  "Council" means the Council on Efficient

 9  Government.

10         (2)  "Outsource" means the process of contracting with

11  a vendor to provide a service as defined in s. 216.011(1)(f),

12  in whole or in part, or an activity as defined in s.

13  216.011(1)(rr), while a state agency retains the

14  responsibility and accountability for the service or activity

15  and there is a transfer of management responsibility for the

16  delivery of resources and the performance of those resources.

17         Section 4.  Section 287.0573, Florida Statutes, is

18  created to read:

19         287.0573  Council on Efficient Government; membership;

20  duties.--

21         (1)  There is created a Council on Efficient Government

22  within the Department of Management Services to review,

23  evaluate, and issue advisory reports on business cases

24  submitted to the council as specified in this section.

25         (2)  The council shall consist of seven members

26  appointed by the Governor pursuant to s. 20.052:

27         (a)  The Secretary of Management Services, who shall

28  serve as chair.

29         (b)  A cabinet member other than the Governor, or his

30  or her senior management or executive staff designee.

31         (c)  Two heads of executive branch agencies.


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 1         (d)  Three members from the private sector who are

 2  subject to confirmation by the Senate and who, collectively,

 3  have experience with procurement, successfully increasing

 4  operational efficiency, and implementing complex projects in

 5  the private-sector business environment. A private-sector

 6  member of the council may not at any time during his or her

 7  appointment to the council be registered to lobby the

 8  executive or legislative branch.

 9         (3)  Within 45 days after the effective date of this

10  section, the Governor shall appoint two private-sector members

11  and one state agency head for terms of 1 year and one

12  private-sector member and one agency head for terms of 2

13  years. Thereafter, each member shall be appointed for a term

14  of 2 years. The private-sector members shall serve without

15  compensation, but are entitled to reimbursement for per diem

16  and travel expenses pursuant to s. 112.061.

17         (4)  A member of the council may not participate in a

18  council review of a business case to outsource if his or her

19  state agency is conducting the proposed outsourcing or, in the

20  case of a private-sector member, if he or she has a business

21  relationship with an entity that is involved or could

22  potentially be involved in the proposed outsourcing.

23         (5)  A member of the council, except the cabinet

24  member, may not delegate his or her membership to a designee.

25         (6)  A quorum shall consist of at least four members,

26  including at least two private-sector members.

27         (7)  Any vacancy on the council shall be filled in the

28  same manner as the original appointment, and any member

29  appointed to fill a vacancy occurring for a reason other than

30  the expiration of a term shall serve only for the unexpired

31  term of the member's predecessor.


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 1         (8)  The council shall:

 2         (a)  Employ a standard process for reviewing business

 3  cases to outsource.

 4         (b)  Review and evaluate business cases to outsource as

 5  requested by the Governor or the state agency head whose

 6  agency is proposing to outsource or as required by ss.

 7  287.0571-287.0574 or by law.

 8         (c)  No later than 30 days before a state agency's

 9  issuance of a solicitation of $10 million or more, provide to

10  the agency conducting the procurement, the Governor, the

11  President of the Senate, and the Speaker of the House of

12  Representatives an advisory report for each business case

13  reviewed and evaluated by the council. The report must contain

14  all versions of the business case, an evaluation of the

15  business case, any relevant recommendations, and sufficient

16  information to assist the state agency proposing to outsource

17  in determining whether the business case to outsource should

18  be included with the legislative budget request.

19         (d)  Recommend and implement standard processes for

20  state agency and council review and evaluate state agency

21  business cases to outsource, including templates for use by

22  state agencies in submitting business cases to the council.

23         (e)  Develop standards and best-practice procedures for

24  use by state agencies in evaluating business cases to

25  outsource.

26         (f)  Recommend standards, processes, and guidelines for

27  use by state agencies in developing business cases to

28  outsource.

29         (g)  Incorporate any lessons learned from outsourcing

30  services and activities into council standards, procedures,

31  and guidelines, as appropriate, and identify and disseminate


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 1  to agencies information regarding best practices in

 2  outsourcing efforts.

 3         (h)  Develop, in consultation with the Agency for

 4  Workforce Innovation, guidelines for assisting state employees

 5  whose jobs are eliminated as a result of outsourcing.

 6         (9)  The council shall identify and report yearly to

 7  the Legislature on:

 8         (a)  Innovative methods of delivering government

 9  services which would improve the efficiency, effectiveness, or

10  competition in the delivery of government services, including,

11  but not limited to, enterprise-wide proposals.

12         (b)  Outsourcing efforts of each state agency which

13  shall include, but not be limited to, the number of

14  outsourcing business cases and solicitations, the number and

15  dollar value of outsourcing contracts, an explanation of

16  agency progress on achieving the cost-benefit analysis

17  schedule as required by s. 287.0574(4)(h), descriptions of

18  performance results as applicable, any contract violations or

19  project slippages, and the status of extensions, renewals, and

20  amendments of outsourcing contracts.

21         (10)  The department shall employ an adequate number of

22  staff who collectively possess significant expertise and

23  experience as required to carry out the responsibilities of

24  this act.

25         (11)  The Secretary of Management Services shall

26  appoint an executive director.

27         (12)  Each state agency shall submit to the council all

28  information, documents, or other materials required by the

29  council or this chapter.

30         Section 5.  Section 287.0574, Florida Statutes, is

31  created to read:


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 1         287.0574  Business cases to outsource; review and

 2  analysis; requirements.--

 3         (1)  A business case to outsource having a projected

 4  cost exceeding $10 million in any fiscal year shall require:

 5         (a)  An initial business case analysis conducted by the

 6  state agency and submitted to the council, the Governor, the

 7  President of the Senate, and the Speaker of the House of

 8  Representatives at least 60 days before a solicitation is

 9  issued. The council shall evaluate the business case analysis

10  and submit an advisory report to the state agency, the

11  Governor, the President of the Senate, and the Speaker of the

12  House of Representatives when the advisory report is

13  completed, but at least 30 days before the agency issues the

14  solicitation.

15         (b)  A final business case analysis conducted by the

16  state agency and submitted after the conclusion of any

17  negotiations, at least 30 days before execution of a contract,

18  to the council, the Governor, the President of the Senate, and

19  the Speaker of the House of Representatives.

20         (2)  A proposal to outsource having a projected cost

21  that ranges from $1 million to $10 million in any fiscal year

22  shall require:

23         (a)  An initial business case analysis conducted by the

24  state agency and submission of the business case, at least 30

25  days before issuing a solicitation, to the council, the

26  Governor, the President of the Senate, and the Speaker of the

27  House of Representatives.

28         (b)  A final business case analysis conducted by the

29  state agency and submitted after the conclusion of any

30  negotiations, at least 30 days before execution of a contract,

31  


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 1  to the council, the Governor, the President of the Senate, and

 2  the Speaker of the House of Representatives.

 3         (3)  A business case to outsource having a projected

 4  cost that is less than $1 million in any fiscal year shall

 5  require a final business case analysis conducted by the state

 6  agency after the conclusion of any negotiations and provided

 7  at least 30 days before execution of a contract to the

 8  council. The council shall provide such business cases in its

 9  annual report to the Legislature.

10         (4)  For any proposed outsourcing, the state agency

11  shall develop a business case that justifies the proposal to

12  outsource. In order to reduce any administrative burden, the

13  council may allow a state agency to submit the business case

14  in the form required by the budget instructions issued

15  pursuant to s. 216.023(4)(a)11., augmented with additional

16  information if necessary, to ensure that the requirements of

17  this section are met. The business case is not subject to

18  challenge or protest pursuant to chapter 120. The business

19  case must include, but need not be limited to:

20         (a)  A detailed description of the service or activity

21  for which the outsourcing is proposed.

22         (b)  A description and analysis of the state agency's

23  current performance, based on existing performance metrics if

24  the state agency is currently performing the service or

25  activity.

26         (c)  The goals desired to be achieved through the

27  proposed outsourcing and the rationale for such goals.

28         (d)  A citation to the existing or proposed legal

29  authority for outsourcing the service or activity.

30         (e)  A description of available options for achieving

31  the goals. If state employees are currently performing the


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 1  service or activity, at least one option involving maintaining

 2  state provision of the service or activity shall be included.

 3         (f)  An analysis of the advantages and disadvantages of

 4  each option, including, at a minimum, potential performance

 5  improvements and risks.

 6         (g)  A description of the current market for the

 7  contractual services that are under consideration for

 8  outsourcing.

 9         (h)  A cost-benefit analysis documenting the direct and

10  indirect specific baseline costs, savings, and qualitative and

11  quantitative benefits involved in or resulting from the

12  implementation of the recommended option or options. Such

13  analysis must specify the schedule that, at a minimum, must be

14  adhered to in order to achieve the estimated savings. All

15  elements of cost must be clearly identified in the

16  cost-benefit analysis, described in the business case, and

17  supported by applicable records and reports. The state agency

18  head shall attest that, based on the data and information

19  underlying the business case, to the best of his or her

20  knowledge, all projected costs, savings, and benefits are

21  valid and achievable. As used in this section, the term "cost"

22  means the reasonable, relevant, and verifiable cost, which may

23  include, but is not limited to, elements such as personnel,

24  materials and supplies, services, equipment, capital

25  depreciation, rent, maintenance and repairs, utilities,

26  insurance, personnel travel, overhead, and interim and final

27  payments. The appropriate elements shall depend on the nature

28  of the specific initiative. As used in this section, the term

29  "savings" means the difference between the direct and indirect

30  actual annual baseline costs compared to the projected annual

31  


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 1  cost for the contracted functions or responsibilities in any

 2  succeeding state fiscal year during the term of the contract.

 3         (i)  A description of differences among current state

 4  agency policies and processes and, as appropriate, a

 5  discussion of options for or a plan to standardize,

 6  consolidate, or revise current policies and processes, if any,

 7  to reduce the customization of any proposed solution that

 8  would otherwise be required.

 9         (j)  A description of the specific performance

10  standards that must, at a minimum, be met to ensure adequate

11  performance.

12         (k)  The projected timeframe for key events from the

13  beginning of the procurement process through the expiration of

14  a contract.

15         (l)  A plan to ensure compliance with the

16  public-records law.

17         (m)  A specific and feasible contingency plan

18  addressing contractor nonperformance and a description of the

19  tasks involved in and costs required for its implementation.

20         (n)  A state agency's transition plan for addressing

21  changes in the number of agency personnel, affected business

22  processes, employee transition issues, and communication with

23  affected stakeholders, such as agency clients and the public.

24  The transition plan must contain a reemployment and retraining

25  assistance plan for employees who are not retained by the

26  state agency or employed by the contractor.

27         (o)  A plan for ensuring access by persons with

28  disabilities in compliance with applicable state and federal

29  law.

30         (p)  A description of legislative and budgetary actions

31  necessary to accomplish the proposed outsourcing.


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 1         (5)  In addition to the contract requirements provided

 2  in s. 287.058, each contract for a proposed outsourcing,

 3  pursuant to s. 287.0574, must include, but need not be limited

 4  to, the following contractual provisions:

 5         (a)  A scope-of-work provision that clearly specifies

 6  each service or deliverable to be provided, including a

 7  description of each deliverable or activity that is

 8  quantifiable, measurable, and verifiable. This provision must

 9  include a clause that states if a particular service or

10  deliverable is inadvertently omitted or not clearly specified

11  but determined to be operationally necessary and verified to

12  have been performed by the agency within the 12 months before

13  the execution of the contract, such service or deliverable

14  will be provided by the contractor through the identified

15  contract-amendment process.

16         (b)  A service-level-agreement provision describing all

17  services to be provided under the terms of the agreement, the

18  state agency's service requirements and performance

19  objectives, specific responsibilities of the state agency and

20  the contractor, and the process for amending any portion of

21  the service-level agreement. Each service-level agreement must

22  contain an exclusivity clause that allows the state agency to

23  retain the right to perform the service or activity, directly

24  or with another contractor, if service levels are not being

25  achieved.

26         (c)  A provision that identifies all associated costs,

27  specific payment terms, and payment schedules, including

28  provisions governing incentives and financial disincentives

29  and criteria governing payment.

30         (d)  A provision that identifies a clear and specific

31  transition plan that will be implemented in order to complete


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 1  all required activities needed to transfer the service or

 2  activity from the state agency to the contractor and operate

 3  the service or activity successfully.

 4         (e)  A performance-standards provision that identifies

 5  all required performance standards, which must include, at a

 6  minimum:

 7         1.  Detailed and measurable acceptance criteria for

 8  each deliverable and service to be provided to the state

 9  agency under the terms of the contract which document the

10  required performance level.

11         2.  A method for monitoring and reporting progress in

12  achieving specified performance standards and levels.

13         3.  The sanctions or disincentives that shall be

14  imposed for nonperformance by the contractor or state agency.

15         (f)  A provision that requires the contractor and its

16  subcontractors to maintain adequate accounting records that

17  comply with all applicable federal and state laws and

18  generally accepted accounting principles.

19         (g)  A provision that authorizes the state agency to

20  have access to and to audit all records related to the

21  contract and subcontracts, or any responsibilities or

22  functions under the contract and subcontracts, for purposes of

23  legislative oversight, and a requirement for audits by a

24  service organization in accordance with professional auditing

25  standards, if appropriate.

26         (h)  A provision that requires the contractor to

27  interview and consider for employment with the contractor each

28  displaced state employee who is interested in such employment.

29         (i)  A contingency-plan provision that describes the

30  mechanism for continuing the operation of the service or

31  activity, including transferring the service or activity back


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 1  to the state agency or successor contractor if the contractor

 2  fails to perform and comply with the performance standards and

 3  levels of the contract and the contract is terminated.

 4         (j)  A provision that requires the contractor and its

 5  subcontractors to comply with public-records laws,

 6  specifically to:

 7         1.  Keep and maintain the public records that

 8  ordinarily and necessarily would be required by the state

 9  agency in order to perform the service or activity.

10         2.  Provide the public with access to such public

11  records on the same terms and conditions that the state agency

12  would provide the records and at a cost that does not exceed

13  that provided in chapter 119 or as otherwise provided by law.

14         3.  Ensure that records that are exempt or records that

15  are confidential and exempt are not disclosed except as

16  authorized by law.

17         4.  Meet all requirements for retaining records and

18  transfer to the state agency, at no cost, all public records

19  in possession of the contractor upon termination of the

20  contract and destroy any duplicate public records that are

21  exempt or confidential and exempt. All records stored

22  electronically must be provided to the state agency in a

23  format that is compatible with the information technology

24  systems of the state agency.

25         (k)  A provision that addresses ownership of

26  intellectual property. This paragraph does not provide the

27  specific authority needed by an agency to obtain a copyright

28  or trademark.

29         (l)  If applicable, a provision that allows the agency

30  to purchase from the contractor, at its depreciated value,

31  assets used by the contractor in the performance of the


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 1  contract. If assets have not depreciated, the agency shall

 2  retain the right to negotiate to purchase at an agreed-upon

 3  cost.

 4         Section 6.  Subsection (6) is added to section 287.058,

 5  Florida Statutes, to read:

 6         287.058  Contract document.--

 7         (6)  A contract may not prohibit a contractor from

 8  lobbying the executive or legislative branch concerning the

 9  scope of services, performance, term, or compensation

10  regarding any contract to which the contractor and a state

11  agency are parties, after contract execution and during the

12  contract term. The provisions of this subsection are

13  supplemental to the provisions of ss. 11.062 and 216.347 and

14  any other law prohibiting the use of state funds for lobbying

15  purposes.

16         Section 7.  Section 287.074, Florida Statutes, is

17  created to read:

18         287.074  Prohibited actions by contractor personnel.--

19         (1)  Only a public officer or a public employee upon

20  whom the public officer has delegated authority shall,

21  consistent with law, take actions, including, but not limited

22  to:

23         (a)  Selecting state employees;

24         (b)  Approving position descriptions, performance

25  standards, or salary adjustments for state employees; and

26         (c)  Hiring, promoting, disciplining, demoting, and

27  dismissing a state employee.

28         (2)  Only a public officer shall, consistent with law,

29  commission and appoint state officers.

30         Section 8.  A contractor, as defined in chapter 287,

31  Florida Statutes, or its employees, agents, or subcontractors,


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 1  may not knowingly participate, through decision, approval,

 2  disapproval, or preparation of any part of a purchase request,

 3  investigation, or audit, in the procurement of commodities or

 4  contractual services by a state agency from an entity in which

 5  the contractor, or its employees, agents, or subcontractors,

 6  has a material interest.

 7         Section 9.  Section 14.203, Florida Statutes, is

 8  repealed.

 9         Section 10.  For the 2006-2007 fiscal year, the sum of

10  $1.25 million in recurring funds from the General Revenue Fund

11  in a qualified expenditure category is appropriated and 10

12  full-time equivalent positions are authorized to the

13  Department of Management Services to carry out the activities

14  of the Council on Efficient Government as provided in this

15  act.

16         Section 11.  The Department of Management Services may

17  implement a program to train state agency employees who are

18  involved in managing outsourcings as Project Management

19  Professionals, as certified by the Project Management

20  Institute. For the 2006-2007 fiscal year, the sum of $500,000

21  in recurring funds from the General Revenue Fund is

22  appropriated to the Department of Management Services to

23  implement this program. The Department of Management Services,

24  in consultation with entities subject to this act, shall

25  identify personnel to participate in this training based on

26  requested need and ensure that each agency is represented. The

27  Department of Management Services may remit payment for this

28  training on behalf of all participating personnel.

29         Section 12.  Notwithstanding any law to the contrary, a

30  state agency under the individual control of the Attorney

31  


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 1  General, the Chief Financial Officer, or the Commissioner of

 2  Agriculture is subject to this act.

 3         Section 13.  Paragraph (a) of subsection (5) of section

 4  119.071, Florida Statutes, is amended to read:

 5         119.071  General exemptions from inspection or copying

 6  of public records.--

 7         (5)  OTHER PERSONAL INFORMATION.--

 8         (a)1.  The Legislature acknowledges that the social

 9  security number was never intended to be used for business

10  purposes but was intended to be used solely for the

11  administration of the federal Social Security System. The

12  Legislature is further aware that over time this unique

13  numeric identifier has been used extensively for identity

14  verification purposes and other legitimate consensual

15  purposes. The Legislature is also cognizant of the fact that

16  the social security number can be used as a tool to perpetuate

17  fraud against a person and to acquire sensitive personal,

18  financial, medical, and familial information, the release of

19  which could cause great financial or personal harm to an

20  individual. The Legislature intends to monitor the commercial

21  use of social security numbers held by state agencies in order

22  to maintain a balanced public policy.

23         2.  An agency shall not collect an individual's social

24  security number unless authorized by law to do so or unless

25  the collection of the social security number is otherwise

26  imperative for the performance of that agency's duties and

27  responsibilities as prescribed by law. Social security numbers

28  collected by an agency must be relevant to the purpose for

29  which collected and shall not be collected until and unless

30  the need for social security numbers has been clearly

31  documented. An agency that collects social security numbers


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 1  shall also segregate that number on a separate page from the

 2  rest of the record, or as otherwise appropriate, in order that

 3  the social security number be more easily redacted, if

 4  required, pursuant to a public records request. An agency

 5  collecting a person's social security number shall, upon that

 6  person's request, at the time of or prior to the actual

 7  collection of the social security number by that agency,

 8  provide that person with a statement of the purpose or

 9  purposes for which the social security number is being

10  collected and used. Social security numbers collected by an

11  agency shall not be used by that agency for any purpose other

12  than the purpose stated. Social security numbers collected by

13  an agency prior to May 13, 2002, shall be reviewed for

14  compliance with this subparagraph. If the collection of a

15  social security number prior to May 13, 2002, is found to be

16  unwarranted, the agency shall immediately discontinue the

17  collection of social security numbers for that purpose.

18         3.  Effective October 1, 2002, all social security

19  numbers held by an agency are confidential and exempt from s.

20  119.07(1) and s. 24(a), Art. I of the State Constitution. This

21  exemption applies to all social security numbers held by an

22  agency before, on, or after the effective date of this

23  exemption.

24         4.  Social security numbers may be disclosed to another

25  governmental entity or its agents, employees, or contractors

26  if disclosure is necessary for the receiving entity to perform

27  its duties and responsibilities. The receiving governmental

28  entity and its agents, employees, and contractors shall

29  maintain the confidential and exempt status of such numbers.

30         5.  An agency shall not deny a commercial entity

31  engaged in the performance of a commercial activity, which,


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 1  for purposes of this paragraph, means an activity that

 2  provides a product or service that is available from a private

 3  source, as defined in s. 14.203 or its agents, employees, or

 4  contractors access to social security numbers, provided the

 5  social security numbers will be used only in the normal course

 6  of business for legitimate business purposes, and provided the

 7  commercial entity makes a written request for social security

 8  numbers, verified as provided in s. 92.525, legibly signed by

 9  an authorized officer, employee, or agent of the commercial

10  entity. The verified written request must contain the

11  commercial entity's name, business mailing and location

12  addresses, business telephone number, and a statement of the

13  specific purposes for which it needs the social security

14  numbers and how the social security numbers will be used in

15  the normal course of business for legitimate business

16  purposes. The aggregate of these requests shall serve as the

17  basis for the agency report required in subparagraph 8. An

18  agency may request any other information reasonably necessary

19  to verify the identity of the entity requesting the social

20  security numbers and the specific purposes for which such

21  numbers will be used; however, an agency has no duty to

22  inquire beyond the information contained in the verified

23  written request. A legitimate business purpose includes

24  verification of the accuracy of personal information received

25  by a commercial entity in the normal course of its business;

26  use in a civil, criminal, or administrative proceeding; use

27  for insurance purposes; use in law enforcement and

28  investigation of crimes; use in identifying and preventing

29  fraud; use in matching, verifying, or retrieving information;

30  and use in research activities. A legitimate business purpose

31  does not include the display or bulk sale of social security


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 1  numbers to the general public or the distribution of such

 2  numbers to any customer that is not identifiable by the

 3  distributor.

 4         6.  Any person who makes a false representation in

 5  order to obtain a social security number pursuant to this

 6  paragraph, or any person who willfully and knowingly violates

 7  this paragraph, commits a felony of the third degree,

 8  punishable as provided in s. 775.082 or s. 775.083. Any public

 9  officer who violates this paragraph is guilty of a noncriminal

10  infraction, punishable by a fine not exceeding $500. A

11  commercial entity that provides access to public records

12  containing social security numbers in accordance with this

13  paragraph is not subject to the penalty provisions of this

14  subparagraph.

15         7.a.  On or after October 1, 2002, a person preparing

16  or filing a document to be recorded in the official records by

17  the county recorder as provided for in chapter 28 may not

18  include any person's social security number in that document,

19  unless otherwise expressly required by law. If a social

20  security number is or has been included in a document

21  presented to the county recorder for recording in the official

22  records of the county before, on, or after October 1, 2002, it

23  may be made available as part of the official record available

24  for public inspection and copying.

25         b.  Any person, or his or her attorney or legal

26  guardian, has the right to request that a county recorder

27  remove, from an image or copy of an official record placed on

28  a county recorder's publicly available Internet website or a

29  publicly available Internet website used by a county recorder

30  to display public records or otherwise made electronically

31  available to the general public by such recorder, his or her


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 1  social security number contained in that official record. Such

 2  request must be made in writing, legibly signed by the

 3  requester and delivered by mail, facsimile, or electronic

 4  transmission, or delivered in person, to the county recorder.

 5  The request must specify the identification page number that

 6  contains the social security number to be redacted. The county

 7  recorder has no duty to inquire beyond the written request to

 8  verify the identity of a person requesting redaction. A fee

 9  shall not be charged for the redaction of a social security

10  number pursuant to such request.

11         c.  A county recorder shall immediately and

12  conspicuously post signs throughout his or her offices for

13  public viewing and shall immediately and conspicuously post,

14  on any Internet website or remote electronic site made

15  available by the county recorder and used for the ordering or

16  display of official records or images or copies of official

17  records, a notice stating, in substantially similar form, the

18  following:

19         (I)  On or after October 1, 2002, any person preparing

20  or filing a document for recordation in the official records

21  may not include a social security number in such document,

22  unless required by law.

23         (II)  Any person has a right to request a county

24  recorder to remove, from an image or copy of an official

25  record placed on a county recorder's publicly available

26  Internet website or on a publicly available Internet website

27  used by a county recorder to display public records or

28  otherwise made electronically available to the general public,

29  any social security number contained in an official record.

30  Such request must be made in writing and delivered by mail,

31  facsimile, or electronic transmission, or delivered in person,


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 1  to the county recorder. The request must specify the

 2  identification page number that contains the social security

 3  number to be redacted. No fee will be charged for the

 4  redaction of a social security number pursuant to such a

 5  request.

 6         d.  Until January 1, 2007, if a social security number,

 7  made confidential and exempt pursuant to this paragraph, or a

 8  complete bank account, debit, charge, or credit card number

 9  made exempt pursuant to paragraph (b) is or has been included

10  in a court file, such number may be included as part of the

11  court record available for public inspection and copying

12  unless redaction is requested by the holder of such number, or

13  by the holder's attorney or legal guardian, in a signed,

14  legibly written request specifying the case name, case number,

15  document heading, and page number. The request must be

16  delivered by mail, facsimile, electronic transmission, or in

17  person to the clerk of the circuit court. The clerk of the

18  circuit court does not have a duty to inquire beyond the

19  written request to verify the identity of a person requesting

20  redaction. A fee may not be charged for the redaction of a

21  social security number or a bank account, debit, charge, or

22  credit card number pursuant to such request.

23         e.  Any person who prepares or files a document to be

24  recorded in the official records by the county recorder as

25  provided in chapter 28 may not include a person's social

26  security number or complete bank account, debit, charge, or

27  credit card number in that document unless otherwise expressly

28  required by law. Until January 1, 2007, if a social security

29  number or a complete bank account, debit, charge, or credit

30  card number is or has been included in a document presented to

31  the county recorder for recording in the official records of


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 1  the county, such number may be made available as part of the

 2  official record available for public inspection and copying.

 3  Any person, or his or her attorney or legal guardian, may

 4  request that a county recorder remove from an image or copy of

 5  an official record placed on a county recorder's publicly

 6  available Internet website, or a publicly available Internet

 7  website used by a county recorder to display public records

 8  outside the office or otherwise made electronically available

 9  outside the county recorder's office to the general public,

10  his or her social security number or complete account, debit,

11  charge, or credit card number contained in that official

12  record. Such request must be legibly written, signed by the

13  requester, and delivered by mail, facsimile, electronic

14  transmission, or in person to the county recorder. The request

15  must specify the identification page number of the document

16  that contains the number to be redacted. The county recorder

17  does not have a duty to inquire beyond the written request to

18  verify the identity of a person requesting redaction. A fee

19  may not be charged for redacting such numbers.

20         f.  Subparagraphs 2. and 3. do not apply to the clerks

21  of the court or the county recorder with respect to circuit

22  court records and official records.

23         g.  On January 1, 2007, and thereafter, the clerk of

24  the circuit court and the county recorder must keep complete

25  bank account, debit, charge, and credit card numbers exempt as

26  provided for in paragraph (b), and must keep social security

27  numbers confidential and exempt as provided for in

28  subparagraph 3., without any person having to request

29  redaction.

30         8.  Beginning January 31, 2004, and each January 31

31  thereafter, every agency must file a report with the Secretary


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 1  of State, the President of the Senate, and the Speaker of the

 2  House of Representatives listing the identity of all

 3  commercial entities that have requested social security

 4  numbers during the preceding calendar year and the specific

 5  purpose or purposes stated by each commercial entity regarding

 6  its need for social security numbers. If no disclosure

 7  requests were made, the agency shall so indicate.

 8         9.  Any affected person may petition the circuit court

 9  for an order directing compliance with this paragraph.

10         10.  This paragraph does not supersede any other

11  applicable public records exemptions existing prior to May 13,

12  2002, or created thereafter.

13         11.  This paragraph is subject to the Open Government

14  Sunset Review Act in accordance with s. 119.15 and shall stand

15  repealed October 2, 2007, unless reviewed and saved from

16  repeal through reenactment by the Legislature.

17         Section 14.  This act shall take effect upon becoming a

18  law.

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  


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