HB 7185CS

CHAMBER ACTION



1The State Administration Appropriations Committee recommends the
2following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to procurement of contractual services by
8a state agency; amending s. 287.057, F.S.; prohibiting a
9state agency from renewing or amending a contract for
10outsourcing under certain conditions; requiring certain
11qualifications for persons chosen to conduct negotiations
12during specified procurements; requiring the Department of
13Management Services to adopt rules governing those
14qualifications; requiring that a specified statement be
15included in procurements of commodities and services which
16prohibits contact between respondents and specified
17employees of the executive and legislative branches;
18creating s. 287.0571, F.S.; creating the Florida Efficient
19Government Act; providing legislative intent; providing
20that procurements of specified commodities and services
21are not subject to the act; creating s. 287.05721, F.S.;
22providing definitions; creating s. 287.0573, F.S.;
23creating the Council on Efficient Government within the
24Department of Management Services; providing the purpose
25and membership of the council; providing duties and
26responsibilities of the council; requiring the council to
27review and issue advisory reports on certain state agency
28procurements; requiring the department to employ adequate
29number of staff; requiring the council to be headed by an
30executive director appointed by the Secretary of
31Management Services; requiring state agencies to submit
32materials required by the council; creating s. 287.0574,
33F.S.; providing requirements for certain business cases to
34outsource by a state agency; requiring a state agency to
35develop a business case that describes and analyzes a
36contractual services procurement under consideration;
37providing that the business case is not subject to
38challenge or protest under the Administrative Procedure
39Act; providing required components of a business case;
40providing contract requirements for a proposed
41outsourcing; requiring the posting of bond or other
42security by specified vendors; providing for payment of
43liquidated damages to the department for breach of
44contract; providing for nullification of executed
45contracts for procurement under specified circumstances;
46providing for legislative review of an agency's
47appropriations upon a determination that the agency has
48violated the provisions of the act; amending s. 287.058,
49F.S.; providing that a contract may not prohibit a
50contractor from lobbying the executive or legislative
51branches concerning specified contract issues, within
52specified time lines; creating s. 287.074, F.S.; requiring
53that only public officers or employees shall perform
54certain functions; prohibiting a contractor from
55participating in the procurement of contractual services
56by a state agency; repealing s. 14.203, F.S., which
57creates the State Council on Competitive Government and
58provides duties and authority of the council; providing
59appropriations; providing that certain state agencies are
60subject to the act; amending s. 119.071, F.S.; removing a
61cross-reference; clarifying the meaning of "commercial
62activity" to conform to the removal of the reference;
63providing an effective date.
64
65Be It Enacted by the Legislature of the State of Florida:
66
67     Section 1.  Paragraph (a) of subsection (14) and paragraph
68(b) of subsection (17) of section 287.057, Florida Statutes, are
69amended, and subsection (26) is added to that section, to read:
70     287.057  Procurement of commodities or contractual
71services.--
72     (14)(a)  Contracts for commodities or contractual services
73may be renewed for a period that may not exceed 3 years or the
74term of the original contract, whichever period is longer.
75Renewal of a contract for commodities or contractual services
76shall be in writing and shall be subject to the same terms and
77conditions set forth in the initial contract. If the commodity
78or contractual service is purchased as a result of the
79solicitation of bids, proposals, or replies, the price of the
80commodity or contractual service to be renewed shall be
81specified in the bid, proposal, or reply. A renewal contract may
82not include any compensation for costs associated with the
83renewal. Renewals shall be contingent upon satisfactory
84performance evaluations by the agency and subject to the
85availability of funds. Exceptional purchase contracts pursuant
86to paragraphs (5)(a) and (c) may not be renewed. With the
87exception of subsection (13), if a contract amendment results in
88a longer contract term or increased payments, a state agency may
89not renew or amend a contract for the outsourcing of a service
90or activity that has an original term value exceeding the sum of
91$10 million before submitting a written report concerning
92contract performance to the Governor, the President of the
93Senate, and the Speaker of the House of Representatives at least
9490 days before execution of the renewal or amendment.
95     (17)  For a contract in excess of the threshold amount
96provided in s. 287.017 for CATEGORY FOUR, the agency head shall
97appoint:
98     (b)  At least three persons to conduct negotiations during
99a competitive sealed reply procurement who collectively have
100experience and knowledge in negotiating contracts, contract
101procurement, and the program areas and service requirements for
102which commodities or contractual services are sought. When the
103value of a contract is in excess of $1 million in any fiscal
104year, at least one of the persons conducting negotiations must
105be certified as a contract negotiator based upon rules adopted
106by the Department of Management Services in order to ensure that
107certified contract negotiators are knowledgeable about effective
108negotiation strategies, capable of successfully implementing
109those strategies, and involved appropriately in the procurement
110process. At a minimum, the rules must address the qualifications
111required for certification, the method of certification, and the
112procedure for involving the certified negotiator. At a minimum,
113the qualifications for certification must include at least 3
114years of purchasing or contract negotiations experience, a
115bachelor's degree, successful completion of 48 hours of
116purchasing or contract negotiations classroom hours and
117successful completion of a written examination on contracting
118principles and practices. If the value of a contract is in
119excess of $10 million in any fiscal year, at least one of the
120persons conducting negotiations must be a Project Management
121Professional, as certified by the Project Management Institute.
122     (26)  Each solicitation for the procurement of commodities
123or contractual services shall include the following provision:
124"Respondents to this solicitation or persons acting on their
125behalf may not contact, between the release of the solicitation
126and the execution of the resulting contract, any employee or
127officer of the executive or legislative branch concerning any
128aspect of this solicitation, except in writing to the
129procurement officer or as provided in the solicitation
130documents. Violation of this provision may be grounds for
131rejecting a response."
132     Section 2.  Section 287.0571, Florida Statutes, is created
133to read:
134     287.0571  Applicability of ss. 287.0571-287.0574.--
135     (1)  Sections 287.0571-287.0574 may be cited as the
136"Florida Efficient Government Act."
137     (2)  It is the intent of the Legislature that each state
138agency focus on its core mission and deliver services
139effectively and efficiently by leveraging resources and
140contracting with private-sector vendors whenever vendors can
141more effectively and efficiently provide services and reduce the
142cost of government.
143     (3)  It is further the intent of the Legislature that
144business cases to outsource be evaluated for feasibility, cost-
145effectiveness, and efficiency before a state agency proceeds
146with any outsourcing of services.
147     (4)  Sections 287.0571-287.0574 do not apply to:
148     (a)  A procurement of commodities and contractual services
149listed in s. 287.057(5)(e), (f), and (g) and (22).
150     (b)  A procurement of contractual services subject to s.
151287.055.
152     (c)  A contract in support of the planning, development,
153implementation, operation, or maintenance of the road, bridge,
154and public transportation construction program of the Department
155of Transportation.
156     (d)  A procurement of commodities or contractual services
157which does not constitute an outsourcing of services or
158activities.
159     Section 3.  Section 287.05721, Florida Statutes, is created
160to read:
161     287.05721  Definitions.--As used in ss. 287.0571-287.0574,
162the term:
163     (1)  "Council" means the Council on Efficient Government.
164     (2)  "Outsource" means the process of contracting with a
165vendor to provide a service as defined in s. 216.011(1)(f), in
166whole or in part, or an activity as defined in s.
167216.011(1)(rr), while a state agency retains the responsibility
168and accountability for the service or activity and there is a
169transfer of management responsibility for the delivery of
170resources and the performance of those resources.
171     Section 4.  Section 287.0573, Florida Statutes, is created
172to read:
173     287.0573  Council on Efficient Government; membership;
174duties.--
175     (1)  There is created a Council on Efficient Government
176within the Department of Management Services to review,
177evaluate, and issue advisory reports on business cases submitted
178to the council as specified in this section.
179     (2)  The council shall consist of seven members appointed
180by the Governor pursuant to s. 20.052 and confirmed by the
181Senate:
182     (a)  The Secretary of Management Services, who shall serve
183as chair.
184     (b)  A Cabinet member other than the Governor, or his or
185her senior management or executive staff designee.
186     (c)  Two heads of executive branch agencies.
187     (d)  Three members from the private sector who,
188collectively, have experience with procurement, successfully
189increasing operational efficiency, and implementing complex
190projects in the private-sector business environment. A private-
191sector member of the council may not at any time during his or
192her appointment to the council be registered to lobby the
193executive or legislative branch.
194     (3)  Within 45 days after the effective date of this
195section, the Governor shall appoint two private-sector members
196and two state agency heads for terms of 1 year and one private-
197sector member and two agency heads for terms of 2 years.
198Thereafter, each member shall be appointed for a term of 2
199years. The private-sector members shall serve without
200compensation, but are entitled to reimbursement for per diem and
201travel expenses pursuant to s. 112.061.
202     (4)  A state agency member of the council may not
203participate in a council review of a business case to outsource
204if his or her state agency is conducting the proposed
205outsourcing. A private-sector member of the council may not
206participate in a council review of a business case to outsource
207if he or she has a business relationship with an entity that is
208involved or could potentially be involved in the proposed
209outsourcing.
210     (5)  A member of the council, except the Cabinet member,
211may not delegate his or her membership to a designee.
212     (6)  A quorum shall consist of at least four members,
213including at least two private-sector members.
214     (7)  Any vacancy on the council shall be filled in the same
215manner as the original appointment, and any member appointed to
216fill a vacancy occurring for a reason other than the expiration
217of a term shall serve only for the unexpired term of the
218member's predecessor.
219     (8)  The council shall:
220     (a)  Employ a standard process for reviewing business cases
221to outsource.
222     (b)  Review and evaluate business cases to outsource as
223requested by the Governor or the state agency head whose agency
224is proposing to outsource or as required by ss. 287.0571-
225287.0574 or by law.
226     (c)  No later than 30 days before a state agency's issuance
227of a solicitation of $10 million or more, provide to the agency
228conducting the procurement, the Governor, the President of the
229Senate, and the Speaker of the House of Representatives an
230advisory report for each business case reviewed and evaluated by
231the council. The report must contain all versions of the
232business case, an evaluation of the business case, any relevant
233recommendations, and sufficient information to assist the state
234agency proposing to outsource in determining whether the
235business case to outsource should be included with the
236legislative budget request.
237     (d)  Recommend and implement standard processes for state
238agency and council review, including the development of
239templates for use by state agencies in submitting business cases
240to the council, and evaluate state agency business cases to
241outsource.
242     (e)  Develop standards and best-practice procedures for use
243by state agencies in evaluating business cases to outsource.
244     (f)  Recommend standards, processes, and guidelines for use
245by state agencies in developing business cases to outsource.
246     (g)  Incorporate any lessons learned from outsourcing
247services and activities into council standards, procedures, and
248guidelines, as appropriate, and identify and disseminate to
249agencies information regarding best practices in outsourcing
250efforts.
251     (h)  Develop, in consultation with the Agency for Workforce
252Innovation, guidelines for assisting state employees whose jobs
253are eliminated as a result of outsourcing.
254     (i)  Identify and report yearly to the Legislature on
255innovative methods of delivering government services which would
256improve the efficiency, effectiveness, or competition in the
257delivery of government services, including, but not limited to,
258enterprise-wide proposals.
259     (j)  Report to the Legislature, yearly, on the outsourcing
260efforts of each state agency. Such reporting shall include, but
261need not be limited to, the number of outsourcing business cases
262and solicitations generated by each state agency, the number and
263dollar value of outsourcing contracts by each state agency, the
264status of outsourcing contracts and agreements, including
265performance results and program effectiveness, and, as
266applicable, contract violations, project slippage, contract
267extensions, renewals, and amendments.
268     (9)  The council shall make available to the Governor and
269the Legislature minutes of all meetings, a summary report on
270each proposal that describes funding options, including the need
271for any budget amendments or new appropriations, and an annual
272report of the activities and recommendations of the council.
273     (10)  The department shall employ an adequate number of
274staff who collectively possess significant expertise and
275experience as required to carry out the responsibilities of this
276act.
277     (11)  The secretary of the Department of Management
278Services shall appoint an executive director.
279     (12)  Each state agency shall submit to the council all
280information, documents, or other materials required by the
281council or this chapter.
282     Section 5.  Section 287.0574, Florida Statutes, is created
283to read:
284     287.0574  Business cases to outsource; review and analysis;
285requirements.--
286     (1)  A business case to outsource having a projected cost
287exceeding $10 million in any fiscal year shall require:
288     (a)  An initial business case analysis conducted by the
289state agency and submitted to the council, the Governor, the
290President of the Senate, and the Speaker of the House of
291Representatives at least 60 days before a solicitation is
292issued. The council shall evaluate the business case analysis
293and submit the evaluation to the state agency, the Governor, the
294President of the Senate, and the Speaker of the House of
295Representatives when the business case evaluation is completed,
296but at least 30 days before issuing a solicitation.
297     (b)  A final business case analysis conducted by the state
298agency and submitted after the conclusion of any negotiations,
299at least 30 days before execution of a contract, to the council,
300the Governor, the President of the Senate, and the Speaker of
301the House of Representatives.
302     (2)  A proposal to outsource having a projected cost that
303ranges from $1 million to $10 million in any fiscal year shall
304require:
305     (a)  An initial business case analysis conducted by the
306state agency and submission of the business case at least 30
307days before issuing a solicitation to the council, the Governor,
308the President of the Senate, and the Speaker of the House of
309Representatives.
310     (b)  A final business case analysis conducted by the state
311agency and submitted after the conclusion of any negotiations,
312at least 30 days before execution of a contract, to the council,
313the Governor, the President of the Senate, and the Speaker of
314the House of Representatives.
315     (3)  A business case to outsource having a projected cost
316that is less than $1 million in any fiscal year shall require a
317final business case analysis conducted by the state agency after
318the conclusion of any negotiations and provided at least 30 days
319before execution of a contract to the council. The council shall
320provide such business cases in its annual report to the
321Legislature.
322     (4)  For any proposed outsourcing, the state agency shall
323develop a business case that justifies the proposal to
324outsource. In order to reduce any administrative burden, the
325council may allow a state agency to submit the business case in
326the form required by the budget instructions issued pursuant to
327s. 216.023, augmented with additional information if necessary,
328to ensure that the requirements of this section are met. The
329business case is not subject to challenge or protest pursuant to
330chapter 120. The business case must include, but need not be
331limited to:
332     (a)  A detailed description of the service or activity for
333which the outsourcing is proposed.
334     (b)  A description and analysis of the state agency's
335current performance, based on existing performance metrics if
336the state agency is currently performing the service or
337activity.
338     (c)  The goals desired to be achieved through the proposed
339outsourcing and the rationale for such goals.
340     (d)  A citation to the existing or proposed legal authority
341for outsourcing the service or activity.
342     (e)  A description of available options for achieving the
343goals.
344     (f)  An analysis of the advantages and disadvantages of
345each option, including, at a minimum, potential performance
346improvements and risks.
347     (g)  A description of the current market for the
348contractual services that are under consideration for
349outsourcing.
350     (h)  A cost-benefit analysis documenting the direct and
351indirect specific baseline costs, savings, and qualitative and
352quantitative benefits involved in or resulting from the
353implementation of the recommended option or options. Such
354analysis must specify the schedule that, at a minimum, must be
355adhered to in order to achieve the estimated savings. All
356elements of cost must be clearly identified in the cost-benefit
357analysis, described in the business case, and supported by
358applicable records and reports. The state agency head shall
359attest that, based on the data and information underlying the
360business case, to the best of his or her knowledge, all
361projected costs, savings, and benefits are valid and achievable.
362As used in this section, the term "cost" means the reasonable,
363relevant, and verifiable cost, which may include, but is not
364limited to, elements such as personnel, materials and supplies,
365services, equipment, capital depreciation, rent, maintenance and
366repairs, utilities, insurance, personnel travel, overhead, and
367interim and final payments. The appropriate elements shall
368depend on the nature of the specific initiative. As used in this
369section, the term "savings" means the difference between the
370direct and indirect actual annual baseline costs compared to the
371projected annual cost for the contracted functions or
372responsibilities in any succeeding state fiscal year during the
373term of the contract.
374     (i)  A description of differences among current state
375agency policies and processes and, as appropriate, a discussion
376of options for or a plan to standardize, consolidate, or revise
377current policies and processes, if any, to reduce the
378customization of any proposed solution that would otherwise be
379required.
380     (j)  A description of the specific performance standards
381that must, at a minimum, be met to ensure adequate performance.
382     (k)  The projected timeframe for key events from the
383beginning of the procurement process through the expiration of a
384contract.
385     (l)  A plan to ensure compliance with the public records
386law.
387     (m)  A specific and feasible contingency plan addressing
388contractor nonperformance and a description of the tasks
389involved in and costs required for its implementation.
390     (n)  A state agency's transition plan for addressing
391changes in the number of agency personnel, affected business
392processes, employee transition issues, and communication with
393affected stakeholders, such as agency clients and the public.
394The transition plan must contain a reemployment and retraining
395assistance plan for employees who are not retained by the state
396agency or employed by the contractor.
397     (o)  A plan for ensuring access by persons with
398disabilities in compliance with applicable state and federal
399law.
400     (p)  A description of legislative and budgetary actions
401necessary to accomplish the proposed outsourcing.
402     (5)  In addition to the contract requirements provided in
403s. 287.058, each contract for a proposed outsourcing must
404include, but need not be limited to, the following contractual
405provisions:
406     (a)  A scope-of-work provision that clearly specifies each
407service or deliverable to be provided, including a description
408of each deliverable or activity that is quantifiable,
409measurable, and verifiable. This provision must include a clause
410that states that if a particular service or deliverable is
411inadvertently omitted or not clearly specified but determined to
412be operationally necessary and verified to have been performed
413by the agency within the 12 months before the execution of the
414contract, such service or deliverable will be provided by the
415contractor through the identified contract amendment process.
416     (b)  A service-level agreement provision describing all
417services to be provided under the terms of the agreement, the
418state agency's service requirements and performance objectives,
419specific responsibilities of the state agency and the
420contractor, and the process for amending any portion of the
421service-level agreement. Each service-level agreement must
422contain an exclusivity clause that allows the state agency to
423retain the right to perform the service or activity, directly or
424with another contractor, if service levels are not being
425achieved.
426     (c)  A provision that identifies all associated costs,
427specific payment terms, and payment schedules, including
428provisions governing incentives and financial disincentives and
429criteria governing payment.
430     (d)  A provision that identifies a clear and specific
431transition plan that will be implemented in order to complete
432all required activities needed to transfer the service or
433activity from the state agency to the contractor and operate the
434service or activity successfully.
435     (e)  A performance standards provision that identifies all
436required performance standards, which must include, at a
437minimum:
438     1.  Detailed and measurable acceptance criteria for each
439deliverable and service to be provided to the state agency under
440the terms of the contract which document the required
441performance level.
442     2.  A method for monitoring and reporting progress in
443achieving specified performance standards and levels.
444     3.  The sanctions or disincentives that shall be imposed
445for nonperformance by the contractor or state agency.
446     (f)  A provision that requires the contractor and its
447subcontractors to maintain adequate accounting records that
448comply with all applicable federal and state laws and generally
449accepted accounting principles.
450     (g)  A requirement authorizing state access to and audit of
451all records related to the contract or any responsibilities or
452functions under the contract for state audit and legislative
453oversight purposes.
454     (h)  A requirement for service organization audits in
455accordance with professional auditing standards, if appropriate.
456     (i)  A provision that requires the contractor to interview
457and consider for employment with the contractor each displaced
458state employee who is interested in such employment.
459     (j)  A contingency plan provision that describes the
460mechanism for continuing the operation of the service or
461activity, including transferring the service or activity back to
462the state agency or successor contractor if the contractor fails
463to perform and comply with the performance standards and levels
464of the contract and the contract is terminated.
465     (k)  A provision that requires the contractor and its
466subcontractors to comply with public records laws, specifically
467to:
468     1.  Keep and maintain the public records that ordinarily
469and necessarily would be required by the state agency in order
470to perform the service or activity.
471     2.  Provide the public with access to such public records
472on the same terms and conditions under which the state agency
473would provide the records and at a cost that does not exceed
474that provided in chapter 119 or as otherwise provided by law.
475     3.  Ensure that records that are exempt or confidential and
476exempt are not disclosed except as authorized by law.
477     4.  Meet all requirements for retaining records and
478transfer to the state agency, at no cost, all public records in
479possession of the contractor upon termination of the contract
480and destroy any duplicate public records that are exempt or
481confidential and exempt. All records stored electronically must
482be provided to the state agency in a format that is compatible
483with the information technology systems of the state agency.
484     (l)  A provision that specifies the ownership of
485intellectual property and any rights of the state agency to use,
486modify, reproduce, or disseminate the intellectual property if
487the contract involves the development or creation of such
488intellectual property. This paragraph does not provide the
489specific authority needed by an agency to obtain a copyright or
490trademark.
491     (m)  A provision that states that the agency retains the
492right, in its sole discretion, to co-negotiate any third-party
493or subcontractor contracts, excluding any terms relating to
494financial compensation.
495     (n)  If applicable, a provision that allows the agency to
496purchase from the contractor, at its depreciated value, assets
497used by the contractor in the performance of the contract. If
498assets have not depreciated, the agency shall retain the right
499to negotiate to purchase at an agreed-upon cost.
500     (o)  Each vendor in a major procurement in excess of
501$25,000, and any other vendor if the department deems it
502necessary to protect the state's financial interest, shall, at
503the time of executing the contract with the department, post an
504appropriate bond with the department in an amount determined by
505the department to be adequate to protect the state's interests,
506but not higher than the full amount estimated to be paid
507annually to the vendor under the contract. In lieu of the bond,
508a vendor may, to assure the faithful performance of its
509obligations, file with the department an irrevocable letter of
510credit acceptable to the department in an amount determined by
511the department to be adequate to protect the state's interests
512or deposit and maintain with the Chief Financial Officer
513securities that are interest bearing or accruing and that, with
514the exception of those specified in subparagraphs 1. and 2., are
515rated in one of the four highest classifications by an
516established nationally recognized investment rating service.
517Securities eligible under this subsection shall be limited to:
518     1.  Certificates of deposit issued by solvent banks or
519savings associations organized and existing under the laws of
520this state or under the laws of the United States and having
521their principal place of business in this state.
522     2.  United States bonds, notes, and bills for which the
523full faith and credit of the government of the United States is
524pledged for the payment of principal and interest.
525     3.  General obligation bonds and notes of any political
526subdivision of the state.
527     4.  Corporate bonds of any corporation that is not an
528affiliate or subsidiary of the depositor.
529
530Such securities shall be held in trust and shall have at all
531times a market value at least equal to an amount determined by
532the department to be adequate to protect the state's interests,
533which amount shall not be set higher than the full amount
534estimated to be paid annually to the vendor under contract.
535     (p)  Every contract in excess of $25,000 entered into by
536the department pursuant to this section shall contain a
537provision for payment of liquidated damages to the department
538for any breach of contract by the vendor. The department may
539require a liquidated damages provision in any contract if the
540department deems it necessary to protect the state's financial
541interest.
542     (q)  Every contract entered into by the department pursuant
543to this section shall have as one of the department's
544signatories to the contract an attorney licensed by the Florida
545Bar Association.
546     (6)  Any contract resulting from an outsourcing which does
547not include the requirements set forth in subsection (5) shall
548be null and void.
549     (7)  Unless otherwise exempted from the provisions of this
550act, no agency shall proceed with the solicitation of a
551procurement for outsourcing if the Governor, the President of
552the Senate, or the Speaker of the House of Representatives
553objects, for any reason, to the initial business case analysis
554provided by the agency for the outsourcing initiative.
555     (8)  Unless otherwise exempted from the provisions of this
556act, no agency shall proceed with the execution of a contract
557for outsourcing if the Governor, the President of the Senate or
558the Speaker of the House of Representatives objects, for any
559reason, to the final business case analysis provided by the
560agency for the outsourcing initiative.
561     (9)  Unless otherwise exempted from the provisions of this
562act, any agency that violates the provisions of this act shall
563be subject to a review by the Auditor General of actions taken
564by the agency. The Auditor General shall provide a report of
565findings to the Governor, the President of the Senate, and the
566Speaker of the House of Representatives. If the Auditor General
567finds that the agency has violated the provisions of this act,
568the Legislature shall conduct an immediate review of the
569agency's appropriations to determine the appropriate actions to
570be taken for placing the agency's funds in mandatory reserve.
571     Section 6.  Subsection (6) is added to section 287.058,
572Florida Statutes, to read:
573     287.058  Contract document.--
574     (6)  A contract may not prohibit a contractor from lobbying
575the executive or legislative branch concerning the scope of
576services, performance, term, or compensation regarding any
577contract to which the contractor and a state agency are parties,
578after contract execution and during the contract term. The
579provisions of this subsection are supplemental to the provisions
580of ss. 11.062 and 216.347 and any other law prohibiting the use
581of state funds for lobbying purposes.
582     Section 7.  Section 287.074, Florida Statutes, is created
583to read:
584     287.074  Prohibited actions by contractor personnel.--
585     (1)  Only a public officer or a public employee upon whom
586the public officer has delegated authority shall, consistent
587with law, take actions, including, but not limited to:
588     (a)  Selecting state employees;
589     (b)  Approving position descriptions, performance
590standards, or salary adjustments for state employees; and
591     (c)  Hiring, promoting, disciplining, demoting, and
592dismissing a state employee.
593     (2)  Only a public officer shall, consistent with law,
594commission and appoint state officers.
595     Section 8.  A contractor, as defined in chapter 287,
596Florida Statutes, or its employees, agents, or subcontractors,
597may not knowingly participate, through decision, approval,
598disapproval, or preparation of any part of a purchase request,
599investigation, or audit, in the procurement of commodities or
600contractual services by a state agency from an entity in which
601the contractor, or its employees, agents, or subcontractors, has
602a material interest.
603     Section 9.  Section 14.203, Florida Statutes, is repealed.
604     Section 10.  For the 2006-2007 fiscal year, the sum of
605$750,000 in recurring funds from the General Revenue Fund in a
606qualified expenditure category is appropriated and eight full-
607time equivalent positions are authorized to the Department of
608Management Services to carry out the activities of the Council
609on Efficient Government as provided in this act.
610     Section 11.  The Department of Management Services may
611implement a program to train state agency employees who are
612involved in managing outsourcings as Project Management
613Professionals, as certified by the Project Management Institute.
614For the 2006-2007 fiscal year, the sum of $250,000 in recurring
615funds from the General Revenue Fund in a qualified expenditure
616category is appropriated to the Department of Management
617Services to implement this program. The Department of Management
618Services, in consultation with agencies subject to this act,
619shall identify personnel to participate in this training based
620on requested need and shall ensure that each agency requesting
621training is represented. The Department of Management Services
622may remit payment for this training on behalf of all
623participating personnel.
624     Section 12.  Notwithstanding any law to the contrary, a
625state agency under the individual control of the Attorney
626General, the Chief Financial Officer, or the Commissioner of
627Agriculture are subject to this act.
628     Section 13.  Paragraph (a) of subsection (5) of section
629119.071, Florida Statutes, is amended to read:
630     119.071  General exemptions from inspection or copying of
631public records.--
632     (5)  OTHER PERSONAL INFORMATION.--
633     (a)1.  The Legislature acknowledges that the social
634security number was never intended to be used for business
635purposes but was intended to be used solely for the
636administration of the federal Social Security System. The
637Legislature is further aware that over time this unique numeric
638identifier has been used extensively for identity verification
639purposes and other legitimate consensual purposes. The
640Legislature is also cognizant of the fact that the social
641security number can be used as a tool to perpetuate fraud
642against a person and to acquire sensitive personal, financial,
643medical, and familial information, the release of which could
644cause great financial or personal harm to an individual. The
645Legislature intends to monitor the commercial use of social
646security numbers held by state agencies in order to maintain a
647balanced public policy.
648     2.  An agency shall not collect an individual's social
649security number unless authorized by law to do so or unless the
650collection of the social security number is otherwise imperative
651for the performance of that agency's duties and responsibilities
652as prescribed by law. Social security numbers collected by an
653agency must be relevant to the purpose for which collected and
654shall not be collected until and unless the need for social
655security numbers has been clearly documented. An agency that
656collects social security numbers shall also segregate that
657number on a separate page from the rest of the record, or as
658otherwise appropriate, in order that the social security number
659be more easily redacted, if required, pursuant to a public
660records request. An agency collecting a person's social security
661number shall, upon that person's request, at the time of or
662prior to the actual collection of the social security number by
663that agency, provide that person with a statement of the purpose
664or purposes for which the social security number is being
665collected and used. Social security numbers collected by an
666agency shall not be used by that agency for any purpose other
667than the purpose stated. Social security numbers collected by an
668agency prior to May 13, 2002, shall be reviewed for compliance
669with this subparagraph. If the collection of a social security
670number prior to May 13, 2002, is found to be unwarranted, the
671agency shall immediately discontinue the collection of social
672security numbers for that purpose.
673     3.  Effective October 1, 2002, all social security numbers
674held by an agency are confidential and exempt from s. 119.07(1)
675and s. 24(a), Art. I of the State Constitution. This exemption
676applies to all social security numbers held by an agency before,
677on, or after the effective date of this exemption.
678     4.  Social security numbers may be disclosed to another
679governmental entity or its agents, employees, or contractors if
680disclosure is necessary for the receiving entity to perform its
681duties and responsibilities. The receiving governmental entity
682and its agents, employees, and contractors shall maintain the
683confidential and exempt status of such numbers.
684     5.  An agency shall not deny a commercial entity engaged in
685the performance of a commercial activity, which, for purposes of
686this section, means an activity that provides a product or
687service that is available from a private source, as defined in
688s. 14.203 or its agents, employees, or contractors access to
689social security numbers, provided the social security numbers
690will be used only in the normal course of business for
691legitimate business purposes, and provided the commercial entity
692makes a written request for social security numbers, verified as
693provided in s. 92.525, legibly signed by an authorized officer,
694employee, or agent of the commercial entity. The verified
695written request must contain the commercial entity's name,
696business mailing and location addresses, business telephone
697number, and a statement of the specific purposes for which it
698needs the social security numbers and how the social security
699numbers will be used in the normal course of business for
700legitimate business purposes. The aggregate of these requests
701shall serve as the basis for the agency report required in
702subparagraph 8. An agency may request any other information
703reasonably necessary to verify the identity of the entity
704requesting the social security numbers and the specific purposes
705for which such numbers will be used; however, an agency has no
706duty to inquire beyond the information contained in the verified
707written request. A legitimate business purpose includes
708verification of the accuracy of personal information received by
709a commercial entity in the normal course of its business; use in
710a civil, criminal, or administrative proceeding; use for
711insurance purposes; use in law enforcement and investigation of
712crimes; use in identifying and preventing fraud; use in
713matching, verifying, or retrieving information; and use in
714research activities. A legitimate business purpose does not
715include the display or bulk sale of social security numbers to
716the general public or the distribution of such numbers to any
717customer that is not identifiable by the distributor.
718     6.  Any person who makes a false representation in order to
719obtain a social security number pursuant to this paragraph, or
720any person who willfully and knowingly violates this paragraph,
721commits a felony of the third degree, punishable as provided in
722s. 775.082 or s. 775.083. Any public officer who violates this
723paragraph is guilty of a noncriminal infraction, punishable by a
724fine not exceeding $500. A commercial entity that provides
725access to public records containing social security numbers in
726accordance with this paragraph is not subject to the penalty
727provisions of this subparagraph.
728     7.a.  On or after October 1, 2002, a person preparing or
729filing a document to be recorded in the official records by the
730county recorder as provided for in chapter 28 may not include
731any person's social security number in that document, unless
732otherwise expressly required by law. If a social security number
733is or has been included in a document presented to the county
734recorder for recording in the official records of the county
735before, on, or after October 1, 2002, it may be made available
736as part of the official record available for public inspection
737and copying.
738     b.  Any person, or his or her attorney or legal guardian,
739has the right to request that a county recorder remove, from an
740image or copy of an official record placed on a county
741recorder's publicly available Internet website or a publicly
742available Internet website used by a county recorder to display
743public records or otherwise made electronically available to the
744general public by such recorder, his or her social security
745number contained in that official record. Such request must be
746made in writing, legibly signed by the requester and delivered
747by mail, facsimile, or electronic transmission, or delivered in
748person, to the county recorder. The request must specify the
749identification page number that contains the social security
750number to be redacted. The county recorder has no duty to
751inquire beyond the written request to verify the identity of a
752person requesting redaction. A fee shall not be charged for the
753redaction of a social security number pursuant to such request.
754     c.  A county recorder shall immediately and conspicuously
755post signs throughout his or her offices for public viewing and
756shall immediately and conspicuously post, on any Internet
757website or remote electronic site made available by the county
758recorder and used for the ordering or display of official
759records or images or copies of official records, a notice
760stating, in substantially similar form, the following:
761     (I)  On or after October 1, 2002, any person preparing or
762filing a document for recordation in the official records may
763not include a social security number in such document, unless
764required by law.
765     (II)  Any person has a right to request a county recorder
766to remove, from an image or copy of an official record placed on
767a county recorder's publicly available Internet website or on a
768publicly available Internet website used by a county recorder to
769display public records or otherwise made electronically
770available to the general public, any social security number
771contained in an official record. Such request must be made in
772writing and delivered by mail, facsimile, or electronic
773transmission, or delivered in person, to the county recorder.
774The request must specify the identification page number that
775contains the social security number to be redacted. No fee will
776be charged for the redaction of a social security number
777pursuant to such a request.
778     d.  Until January 1, 2007, if a social security number,
779made confidential and exempt pursuant to this paragraph, or a
780complete bank account, debit, charge, or credit card number made
781exempt pursuant to paragraph (b) is or has been included in a
782court file, such number may be included as part of the court
783record available for public inspection and copying unless
784redaction is requested by the holder of such number, or by the
785holder's attorney or legal guardian, in a signed, legibly
786written request specifying the case name, case number, document
787heading, and page number. The request must be delivered by mail,
788facsimile, electronic transmission, or in person to the clerk of
789the circuit court. The clerk of the circuit court does not have
790a duty to inquire beyond the written request to verify the
791identity of a person requesting redaction. A fee may not be
792charged for the redaction of a social security number or a bank
793account, debit, charge, or credit card number pursuant to such
794request.
795     e.  Any person who prepares or files a document to be
796recorded in the official records by the county recorder as
797provided in chapter 28 may not include a person's social
798security number or complete bank account, debit, charge, or
799credit card number in that document unless otherwise expressly
800required by law. Until January 1, 2007, if a social security
801number or a complete bank account, debit, charge, or credit card
802number is or has been included in a document presented to the
803county recorder for recording in the official records of the
804county, such number may be made available as part of the
805official record available for public inspection and copying. Any
806person, or his or her attorney or legal guardian, may request
807that a county recorder remove from an image or copy of an
808official record placed on a county recorder's publicly available
809Internet website, or a publicly available Internet website used
810by a county recorder to display public records outside the
811office or otherwise made electronically available outside the
812county recorder's office to the general public, his or her
813social security number or complete account, debit, charge, or
814credit card number contained in that official record. Such
815request must be legibly written, signed by the requester, and
816delivered by mail, facsimile, electronic transmission, or in
817person to the county recorder. The request must specify the
818identification page number of the document that contains the
819number to be redacted. The county recorder does not have a duty
820to inquire beyond the written request to verify the identity of
821a person requesting redaction. A fee may not be charged for
822redacting such numbers.
823     f.  Subparagraphs 2. and 3. do not apply to the clerks of
824the court or the county recorder with respect to circuit court
825records and official records.
826     g.  On January 1, 2007, and thereafter, the clerk of the
827circuit court and the county recorder must keep complete bank
828account, debit, charge, and credit card numbers exempt as
829provided for in paragraph (b), and must keep social security
830numbers confidential and exempt as provided for in subparagraph
8313., without any person having to request redaction.
832     8.  Beginning January 31, 2004, and each January 31
833thereafter, every agency must file a report with the Secretary
834of State, the President of the Senate, and the Speaker of the
835House of Representatives listing the identity of all commercial
836entities that have requested social security numbers during the
837preceding calendar year and the specific purpose or purposes
838stated by each commercial entity regarding its need for social
839security numbers. If no disclosure requests were made, the
840agency shall so indicate.
841     9.  Any affected person may petition the circuit court for
842an order directing compliance with this paragraph.
843     10.  This paragraph does not supersede any other applicable
844public records exemptions existing prior to May 13, 2002, or
845created thereafter.
846     11.  This paragraph is subject to the Open Government
847Sunset Review Act in accordance with s. 119.15 and shall stand
848repealed October 2, 2007, unless reviewed and saved from repeal
849through reenactment by the Legislature.
850     Section 14.  This act shall take effect upon becoming a
851law.


CODING: Words stricken are deletions; words underlined are additions.