HB 5611

1	A bill to be entitled
2	An act relating to the Department of Management Services;
3	amending ss. 17.11, 255.102, and 287.012, F.S.; conforming
4	provisions to the elimination of the Office of Supplier
5	Diversity and the transfer of its duties to the Division
6	of State Purchasing; amending s. 287.042, F.S.; providing
7	that fees collected by the department for the use of its
8	electronic information services in excess of the
9	obligations and encumbrances to cover the department's
10	costs of providing the services shall be calculated
11	annually and transferred to the General Revenue Fund;
12	conforming provisions to the elimination of the Office of
13	Supplier Diversity and the transfer of its duties to the
14	Division of State Purchasing; amending s. 287.057, F.S.;
15	conforming provisions to the elimination of the Office of
16	Supplier Diversity and the transfer of its duties to the
17	Division of State Purchasing; conforming cross-references;
18	providing that fees collected by the department for the
19	use of the services of its online procurement systems in
20	excess of the obligations and encumbrances to cover the
21	department's costs of providing the services shall be
22	calculated annually and transferred to the General Revenue
23	Fund; amending s. 287.094, F.S.; conforming provisions to
24	the elimination of the Office of Supplier Diversity and
25	the transfer of its duties to the Division of State
26	Purchasing; providing that certain complaints formerly
27	filed with the office may be filed with agency inspectors
28	general; providing that a business certified by the office
29	as a minority business enterprise under s. 287.0943, F.S.,
30	as of a specified date shall continue to be recognized as
31	a certified minority business enterprise for purposes of
32	doing business with state government for a specified
33	period; amending s. 287.0943, F.S.; providing for
34	certification of minority businesses by other specified
35	governments if certification criteria meet, at a minimum,
36	the state's criteria; providing duties of the Division of
37	State Purchasing; eliminating provisions relating to the
38	certification of minority business enterprises by the
39	Office of Supplier Diversity; deleting provisions relating
40	to the Minority Business Certification Task Force;
41	deleting provisions relating to review and evaluation of
42	certification programs and procedures of statewide and
43	interlocal minority business certification agreements;
44	amending s. 287.09431, F.S.; conforming provisions to the
45	elimination of the Office of Supplier Diversity and the
46	transfer of its duties to the Division of State
47	Purchasing; conforming cross-references; amending s.
48	287.09451, F.S.; deleting provisions creating the Office
49	of Supplier Diversity within the department; providing for
50	assumption of specified powers and duties by the Division
51	of State Purchasing; eliminating provisions relating to
52	the certification of minority business enterprises by the
53	office; deleting provisions relating to specified
54	communication and advocacy duties of the office; deleting
55	obsolete provisions; amending ss. 288.703, 288.712, and
56	288.955, F.S.; conforming provisions to the elimination of
57	the Office of Supplier Diversity and the transfer of its
58	duties to the Division of State Purchasing; amending s.
59	287.05721, F.S.; repealing the definition of "council" as
60	it relates to the Council on Efficient Government;
61	repealing s. 287.0573, F.S., creating the Council on
62	Efficient Government within the department; amending s.
63	287.0574, F.S.; conforming provisions to the elimination
64	of the Council on Efficient Government; requiring that a
65	business case be submitted in the form and manner required
66	by the budget instructions; providing an effective date.
67
68	Be It Enacted by the Legislature of the State of Florida:
69
70	Section 1.  Subsection (2) of section 17.11, Florida
71	Statutes, is amended to read:
72	17.11  To report disbursements made.-
73	(2)  The Chief Financial Officer shall also cause to have
74	reported from the Florida Accounting Information Resource
75	Subsystem no less than quarterly the disbursements which
76	agencies made to small businesses, as defined in the Florida
77	Small and Minority Business Assistance Act; to certified
78	minority business enterprises in the aggregate; and to certified
79	minority business enterprises broken down into categories of
80	minority persons, as well as gender and nationality subgroups.
81	This information shall be made available to the agencies, the
82	Division of State Purchasing Office of Supplier Diversity, the
83	Governor, the President of the Senate, and the Speaker of the
84	House of Representatives. Each agency shall be responsible for
85	the accuracy of information entered into the Florida Accounting
86	Information Resource Subsystem for use in this reporting.
87	Section 2.  Section 255.102, Florida Statutes, is amended
88	to read:
89	255.102  Contractor utilization of minority business
90	enterprises.-
91	(1)  Agencies shall consider the use of price preferences,
92	weighted preference formulas, or other preferences for
93	construction contracts, as determined appropriate by the
94	Division of State Purchasing Office of Supplier Diversity to
95	increase minority participation.
96	(2)  The Division of State Purchasing Office of Supplier
97	Diversity, in collaboration with the Board of Governors of the
98	State University System, shall adopt rules to determine what is
99	a "good faith effort" for purposes of contractor compliance with
100	minority participation goals established for competitively
101	awarded building and construction projects. Pro forma efforts
102	shall not be considered good faith. Factors which shall be
103	considered by the state agency in determining whether a
104	contractor has made good faith efforts shall include, but not be
105	limited to:
106	(a)  Whether the contractor attended any presolicitation or
107	prebid meetings that were scheduled by the agency to inform
108	minority business enterprises of contracting and subcontracting
109	opportunities.
110	(b)  Whether the contractor advertised in general
111	circulation, trade association, or minority-focus media
112	concerning the subcontracting opportunities.
113	(c)  Whether the contractor provided written notice to all
114	relevant subcontractors listed on the minority vendor list for
115	that locality and statewide as provided by the agency as of the
116	date of issuance of the invitation to bid, that their interest
117	in the contract was being solicited in sufficient time to allow
118	the minority business enterprises to participate effectively.
119	(d)  Whether the contractor followed up initial
120	solicitations of interest by contacting minority business
121	enterprises, the Division of State Purchasing Office of Supplier
122	Diversity, or minority persons who responded and provided
123	detailed information about prebid meetings, access to plans,
124	specifications, contractor's project manager, subcontractor
125	bonding, if any, payment schedule, bid addenda, and other
126	assistance provided by the contractor to enhance minority
127	business enterprise participation.
128	(e)  Whether the contractor selected portions of the work
129	to be performed by minority business enterprises in order to
130	increase the likelihood of meeting the minority business
131	enterprise procurement goals, including, where appropriate,
132	breaking down contracts into economically feasible units to
133	facilitate minority business enterprise participation under
134	reasonable and economical conditions of performance.
135	(f)  Whether the contractor provided the Division of State
136	Purchasing Office of Supplier Diversity as well as interested
137	minority business enterprises or minority persons with adequate
138	information about the plans, specifications, and requirements of
139	the contract or the availability of jobs at a time no later than
140	when such information was provided to other subcontractors.
141	(g)  Whether the contractor negotiated in good faith with
142	interested minority business enterprises or minority persons,
143	not rejecting minority business enterprises or minority persons
144	as unqualified without sound reasons based on a thorough
145	investigation of their capabilities or imposing implausible
146	conditions of performance on the contract.
147	(h)  Whether the contractor diligently seeks to replace a
148	minority business enterprise subcontractor that is unable to
149	perform successfully with another minority business enterprise.
150	(i)  Whether the contractor effectively used the services
151	of available minority community organizations; minority
152	contractors' groups; local, state, and federal minority business
153	assistance offices; and other organizations that provide
154	assistance in the recruitment and placement of minority business
155	enterprises or minority persons.
156	(3)  If an agency considers any other criteria in
157	determining whether a contractor has made a good faith effort,
158	the agency shall adopt such criteria in accordance with s.
159	120.54, and, where required by that section, by rule, after May
160	31, 1994. In adopting such criteria, the agency shall identify
161	the specific factors in as objective a manner as possible to be
162	used to assess a contractor's performance against said criteria.
163	(4)  Notwithstanding the provisions of s. 287.09451 to the
164	contrary, agencies shall monitor good faith efforts of
165	contractors in competitively awarded building and construction
166	projects, in accordance with rules established pursuant to this
167	section. It is the responsibility of the contractor to exercise
168	good faith efforts in accordance with rules established pursuant
169	to this section, and to provide documentation necessary to
170	assess efforts to include minority business participation.
171	Section 3.  Subsections (11) through (18) of section
172	287.012, Florida Statutes, are redesignated as subsections (12)
173	through (19), respectively, and present subsection (19) of that
174	section is amended to read:
175	287.012  Definitions.-As used in this part, the term:
176	(11)(19)  "Division" "Office" means the Division of State
177	Purchasing Office of Supplier Diversity of the Department of
178	Management Services.
179	Section 4.  Paragraph (h) of subsection (1), paragraphs (a)
180	and (c) of subsection (2), paragraphs (b) and (c) of subsection
181	(3), and subsection (10) of section 287.042, Florida Statutes,
182	are amended to read:
183	287.042  Powers, duties, and functions.-The department
184	shall have the following powers, duties, and functions:
185	(1)
186	(h)1.  The department may collect fees for the use of its
187	electronic information services. The fees may be imposed on an
188	individual transaction basis or as a fixed subscription for a
189	designated period of time. At a minimum, the fees shall be
190	determined in an amount sufficient to cover the department's
191	projected costs of the services, including overhead in
192	accordance with the policies of the Department of Management
193	Services for computing its administrative assessment. All fees
194	collected under this paragraph shall be deposited in the
195	Operating Trust Fund for disbursement as provided by law.
196	2.  Effective July 1, 2010, any fees collected pursuant to
197	subparagraph 1. and remaining in the Operating Trust Fund in
198	excess of the obligations and encumbrances to cover the
199	department's costs of providing services pursuant to
200	subparagraph 1. shall be calculated as of June 5 each year and
201	transferred to the General Revenue Fund before June 30 of each
202	year.
203	(2)(a)  To establish purchasing agreements and procure
204	state term contracts for commodities and contractual services,
205	pursuant to s. 287.057, under which state agencies shall, and
206	eligible users may, make purchases pursuant to s. 287.056. The
207	department may restrict purchases from some term contracts to
208	state agencies only for those term contracts where the inclusion
209	of other governmental entities will have an adverse effect on
210	competition or to those federal facilities located in this
211	state. In such planning or purchasing the department Office of
212	Supplier Diversity may monitor to ensure that opportunities are
213	afforded for contracting with minority business enterprises. The
214	department, for state term contracts, and all agencies, for
215	multiyear contractual services or term contracts, shall explore
216	reasonable and economical means to utilize certified minority
217	business enterprises. Purchases by any county, municipality,
218	private nonprofit community transportation coordinator
219	designated pursuant to chapter 427, while conducting business
220	related solely to the Commission for the Transportation
221	Disadvantaged, or other local public agency under the provisions
222	in the state purchasing contracts, and purchases, from the
223	corporation operating the correctional work programs, of
224	products or services that are subject to paragraph (1)(f), are
225	exempt from the competitive solicitation requirements otherwise
226	applying to their purchases.
227	(c)  Any person who files an action protesting a decision
228	or intended decision pertaining to contracts administered by the
229	department, a water management district, or an agency pursuant
230	to s. 120.57(3)(b) shall post with the department, the water
231	management district, or the agency at the time of filing the
232	formal written protest a bond payable to the department, the
233	water management district, or agency in an amount equal to 1
234	percent of the estimated contract amount. For protests of
235	decisions or intended decisions pertaining to exceptional
236	purchases, the bond shall be in an amount equal to 1 percent of
237	the estimated contract amount for the exceptional purchase. The
238	estimated contract amount shall be based upon the contract price
239	submitted by the protestor or, if no contract price was
240	submitted, the department, water management district, or agency
241	shall estimate the contract amount based on factors including,
242	but not limited to, the price of previous or existing contracts
243	for similar commodities or contractual services, the amount
244	appropriated by the Legislature for the contract, or the fair
245	market value of similar commodities or contractual services. The
246	agency shall provide the estimated contract amount to the vendor
247	within 72 hours, excluding Saturdays, Sundays, and state
248	holidays, after the filing of the notice of protest by the
249	vendor. The estimated contract amount is not subject to protest
250	pursuant to s. 120.57(3). The bond shall be conditioned upon the
251	payment of all costs and charges that are adjudged against the
252	protestor in the administrative hearing in which the action is
253	brought and in any subsequent appellate court proceeding. In
254	lieu of a bond, the department, the water management district,
255	or agency may, in either case, accept a cashier's check,
256	official bank check, or money order in the amount of the bond.
257	If, after completion of the administrative hearing process and
258	any appellate court proceedings, the department, water
259	management district, or agency prevails, it shall recover all
260	costs and charges which shall be included in the final order or
261	judgment, excluding attorney's fees. This section shall not
262	apply to protests filed by the Office of Supplier Diversity.
263	Upon payment of such costs and charges by the protestor, the
264	bond, cashier's check, official bank check, or money order shall
265	be returned to the protestor. If, after the completion of the
266	administrative hearing process and any appellate court
267	proceedings, the protestor prevails, the protestor shall recover
268	from the department, water management district, or agency all
269	costs and charges which shall be included in the final order or
270	judgment, excluding attorney's fees.
271	(3)  To establish a system of coordinated, uniform
272	procurement policies, procedures, and practices to be used by
273	agencies in acquiring commodities and contractual services,
274	which shall include, but not be limited to:
275	(b)1.  Development of procedures for advertising
276	solicitations. These procedures must provide for electronic
277	posting of solicitations for at least 10 days before the date
278	set for receipt of bids, proposals, or replies, unless the
279	department or other agency determines in writing that a shorter
280	period of time is necessary to avoid harming the interests of
281	the state. The Office of Supplier Diversity may consult with the
282	department may develop regarding the development of solicitation
283	distribution procedures to ensure that maximum distribution is
284	afforded to certified minority business enterprises as defined
285	in s. 288.703.
286	2.  Development of procedures for electronic posting. The
287	department shall designate a centralized website on the Internet
288	for the department and other agencies to electronically post
289	solicitations, decisions or intended decisions, and other
290	matters relating to procurement.
291	(c)  Development of procedures for the receipt and opening
292	of bids, proposals, or replies by an agency. Such procedures
293	shall provide the department Office of Supplier Diversity an
294	opportunity to monitor and ensure that the contract award is
295	consistent with the requirements of s. 287.09451.
296	(10)  To prepare statistical data concerning the method of
297	procurement, terms, usage, and disposition of commodities and
298	contractual services by agencies. All agencies shall furnish
299	such information for this purpose to the division office and to
300	the department, as the department or division office may call
301	for, but no less frequently than annually, on such forms or in
302	such manner as the department may prescribe.
303	Section 5.  Subsection (7), paragraphs (a), (b), and (c) of
304	subsection (8), and paragraph (c) of subsection (23) of section
305	287.057, Florida Statutes, are amended to read:
306	287.057  Procurement of commodities or contractual
307	services.-
308	(7)  Upon issuance of any solicitation, an agency shall,
309	upon request by the department, forward to the department one
310	copy of each solicitation for all commodity and contractual
311	services purchases in excess of the threshold amount provided in
312	s. 287.017 for CATEGORY TWO. An agency shall also, upon request,
313	furnish a copy of all competitive-solicitation tabulations. The
314	Office of Supplier Diversity may also request from the agencies
315	any information submitted to the department pursuant to this
316	subsection.
317	(8)(a)  In order to strive to meet the minority business
318	enterprise procurement goals set forth in s. 287.09451, an
319	agency may reserve any contract for competitive solicitation
320	only among certified minority business enterprises. Agencies
321	shall review all their contracts each fiscal year and shall
322	determine which contracts may be reserved for solicitation only
323	among certified minority business enterprises. This reservation
324	may only be used when it is determined, by reasonable and
325	objective means, before the solicitation that there are capable,
326	qualified certified minority business enterprises available to
327	submit a bid, proposal, or reply on a contract to provide for
328	effective competition. The department may Office of Supplier
329	Diversity shall consult with any agency in reaching such
330	determination when deemed appropriate.
331	(b)  Before a contract may be reserved for solicitation
332	only among certified minority business enterprises, the agency
333	head must find that such a reservation is in the best interests
334	of the state. All determinations shall be subject to s.
335	287.09451(3)(5). Once a decision has been made to reserve a
336	contract, but before sealed bids, proposals, or replies are
337	requested, the agency shall estimate what it expects the amount
338	of the contract to be, based on the nature of the services or
339	commodities involved and their value under prevailing market
340	conditions. If all the sealed bids, proposals, or replies
341	received are over this estimate, the agency may reject the bids,
342	proposals, or replies and request new ones from certified
343	minority business enterprises, or the agency may reject the
344	bids, proposals, or replies and reopen the bidding to all
345	eligible vendors.
346	(c)  All agencies shall consider the use of price
347	preferences of up to 10 percent, weighted preference formulas,
348	or other preferences for vendors as determined appropriate
349	pursuant to guidelines established in accordance with s.
350	287.09451(2)(4) to increase the participation of minority
351	business enterprises.
352	(23)  The department, in consultation with the Agency for
353	Enterprise Information Technology and the Comptroller, shall
354	develop a program for online procurement of commodities and
355	contractual services. To enable the state to promote open
356	competition and to leverage its buying power, agencies shall
357	participate in the online procurement program, and eligible
358	users may participate in the program. Only vendors prequalified
359	as meeting mandatory requirements and qualifications criteria
360	may participate in online procurement.
361	(c)  The department may impose and shall collect all fees
362	for the use of the online procurement systems.
363	1.  The fees may be imposed on an individual transaction
364	basis or as a fixed percentage of the cost savings generated. At
365	a minimum, the fees must be set in an amount sufficient to cover
366	the projected costs of the services, including administrative
367	and project service costs in accordance with the policies of the
368	department.
369	2.  If the department contracts with a provider for online
370	procurement, the department, pursuant to appropriation, shall
371	compensate the provider from the fees after the department has
372	satisfied all ongoing costs. The provider shall report
373	transaction data to the department each month so that the
374	department may determine the amount due and payable to the
375	department from each vendor.
376	3.  All fees that are due and payable to the state on a
377	transactional basis or as a fixed percentage of the cost savings
378	generated are subject to s. 215.31 and must be remitted within
379	40 days after receipt of payment for which the fees are due. For
380	fees that are not remitted within 40 days, the vendor shall pay
381	interest at the rate established under s. 55.03(1) on the unpaid
382	balance from the expiration of the 40-day period until the fees
383	are remitted.
384	4.  All fees and surcharges collected under this paragraph
385	shall be deposited in the Operating Trust Fund for disbursement
386	as provided by law.
387	5.  Effective July 1, 2010, any fees collected pursuant to
388	subparagraph 1. and remaining in the Operating Trust Fund in
389	excess of the obligations and encumbrances to cover the
390	department's costs of providing services pursuant to
391	subparagraph 1. shall be calculated as of June 5 each year and
392	transferred to the General Revenue Fund before June 30 of each
393	year.
394	Section 6.  Subsections (3) and (4) of section 287.094,
395	Florida Statutes, are amended to read:
396	287.094  Minority business enterprise programs; penalty for
397	discrimination and false representation.-
398	(3)  Any contractor, firm, or individual shall be barred
399	from doing business with state government for a period of 36
400	months, and shall be permanently disqualified from doing
401	business with state government as a certified minority business
402	enterprise, if the division office has determined that the
403	contractor, firm, or individual has not acted in good faith to
404	fulfill the terms of a contract calling for it to use the
405	services or commodities of a certified minority business
406	enterprise. If the Department of Legal Affairs, agency final
407	order, or a court of law determines that a person was involved
408	in a violation of this section, knew about such violation, or
409	collaborated with a contractor or firm in such violation, the
410	person, or any contractor or firm the person is employed by or
411	affiliated with, shall be barred from doing business with state
412	government for a period of at least 36 months.
413	(4)  No agency shall deny any contractor, firm, or
414	individual a fair opportunity to compete in the public
415	procurement of commodities and services based on race, national
416	origin, gender, religion, or physical disability, which for
417	purposes of this subsection constitutes prohibited
418	discrimination. Complaints alleging prohibited discrimination by
419	an agency in its public procurement may be filed with the
420	Inspector General for the agency that is the subject of the
421	complaint Office of Supplier Diversity within 60 days after the
422	facts giving rise to the complaint are known or reasonably
423	should have been discovered. Any complaint shall be filed in
424	writing and must set forth the specific facts giving rise to the
425	claim of prohibited discrimination. The Office of Supplier
426	Diversity shall, within 10 days, refer the complaint to the
427	Inspector General for the agency that is the subject of the
428	complaint, who shall coordinate a prompt investigation and issue
429	written findings of fact. These findings shall be reviewed by
430	the Chief Inspector General or his or her designee, who is
431	authorized to conduct any further investigation deemed necessary
432	or appropriate. Upon a final determination that an agency has
433	abused its discretion by engaging in prohibited discrimination,
434	the Chief Inspector General shall refer any state employee
435	determined to have participated in the prohibited discrimination
436	for disciplinary action in accordance with chapter 60K(9),
437	Florida Administrative Code, and subsequently enacted rules, up
438	to and including termination.
439	Section 7.  A business certified by the Office of Supplier
440	Diversity as a minority business enterprise under s. 287.0943,
441	Florida Statutes, as of June 30, 2010, shall continue to be
442	recognized as a certified minority business enterprise for
443	purposes of doing business with state government for 2 years
444	from the effective date of certification, but not later than
445	June 30, 2012.
446	Section 8.  Section 287.0943, Florida Statutes, is amended
447	to read:
448	287.0943  Certification of minority business enterprises.-
449	(1)  A business certified by a department of the Federal
450	Government or any local governmental jurisdiction or
451	organization shall be accepted by the Department of Management
452	Services, Office of Supplier Diversity, as a certified minority
453	business enterprise for purposes of doing business with state
454	government when the minority business enterprise has obtained
455	certification or recertification within the past 2 years and the
456	Office of Supplier Diversity determines that the state's
457	minority business enterprise certification criteria used in the
458	certification process met, at a minimum, the criteria adopted by
459	the Department of Management Services are applied in the local
460	certification process.
461	(2)(a)  The office is hereby directed to convene a
462	"Minority Business Certification Task Force." The task force
463	shall meet as often as necessary, but no less frequently than
464	annually.
465	(b)  The task force shall be regionally balanced and
466	comprised of officials representing the department, counties,
467	municipalities, school boards, special districts, and other
468	political subdivisions of the state who administer programs to
469	assist minority businesses in procurement or development in
470	government-sponsored programs. The following organizations may
471	appoint two members each of the task force who fit the
472	description above:
473	1.  The Florida League of Cities, Inc.
474	2.  The Florida Association of Counties.
475	3.  The Florida School Boards Association, Inc.
476	4.  The Association of Special Districts.
477	5.  The Florida Association of Minority Business Enterprise
478	Officials.
479	6.  The Florida Association of Government Purchasing
480	Officials.
481
482	In addition, the Office of Supplier Diversity shall appoint
483	seven members consisting of three representatives of minority
484	business enterprises, one of whom should be a woman business
485	owner, two officials of the office, and two at-large members to
486	ensure balance. The chairperson of the Legislative Committee on
487	Intergovernmental Relations or a designee shall be a member of
488	the task force, ex officio. A quorum shall consist of one-third
489	of the current members, and the task force may take action by
490	majority vote. Any vacancy may only be filled by the
491	organization or agency originally authorized to appoint the
492	position.
493	(c)  The purpose of the task force will be to propose
494	uniform criteria and procedures by which participating entities
495	and organizations can qualify businesses to participate in
496	procurement or contracting programs as certified minority
497	business enterprises in accordance with the certification
498	criteria established by law.
499	(d)  A final list of the criteria and procedures proposed
500	by the task force shall be considered by the secretary. The task
501	force may seek technical assistance from qualified providers of
502	technical, business, and managerial expertise to ensure the
503	reliability of the certification criteria developed.
504	(a)(e)  In assessing the status of ownership and control,
505	certification criteria shall, at a minimum:
506	1.  Link ownership by a minority person, as defined in s.
507	288.703(3), or as dictated by the legal obligations of a
508	certifying organization, to day-to-day control and financial
509	risk by the qualifying minority owner, and to demonstrated
510	expertise or licensure of a minority owner in any trade or
511	profession that the minority business enterprise will offer to
512	the state when certified. Businesses must comply with all state
513	licensing requirements prior to becoming certified as a minority
514	business enterprise.
515	2.  If present ownership was obtained by transfer, require
516	the minority person on whom eligibility is based to have owned
517	at least 51 percent of the applicant firm for a minimum of 2
518	years, when any previous majority ownership interest in the firm
519	was by a nonminority who is or was a relative, former employer,
520	or current employer of the minority person on whom eligibility
521	is based. This requirement shall not apply to minority persons
522	who are otherwise eligible who take a 51-percent-or-greater
523	interest in a firm that requires professional licensure to
524	operate and who will be the qualifying licenseholder for the
525	firm when certified. A transfer made within a related immediate
526	family group from a nonminority person to a minority person in
527	order to establish ownership by a minority person shall be
528	deemed to have been made solely for purposes of satisfying
529	certification criteria and shall render such ownership invalid
530	for purposes of qualifying for such certification if the
531	combined total net asset value of all members of such family
532	group exceeds $1 million. For purposes of this subparagraph, the
533	term "related immediate family group" means one or more children
534	under 16 years of age and a parent of such children or the
535	spouse of such parent residing in the same house or living unit.
536	3.  Require that prospective certified minority business
537	enterprises be currently performing or seeking to perform a
538	useful business function. A "useful business function" is
539	defined as a business function which results in the provision of
540	materials, supplies, equipment, or services to customers. Acting
541	as a conduit to transfer funds to a nonminority business does
542	not constitute a useful business function unless it is done so
543	in a normal industry practice. As used in this section, the term
544	"acting as a conduit" means, in part, not acting as a regular
545	dealer by making sales of material, goods, or supplies from
546	items bought, kept in stock, and regularly sold to the public in
547	the usual course of business. Brokers, manufacturer's
548	representatives, sales representatives, and nonstocking
549	distributors are considered as conduits that do not perform a
550	useful business function, unless normal industry practice
551	dictates.
552	(b)(f)  When a business receives payments or awards
553	exceeding $100,000 in one fiscal year, a review of its
554	certification status or an audit will be conducted within 2
555	years. In addition, random reviews or audits will be conducted
556	as deemed appropriate by the Office of Supplier Diversity.
557	(c)(g)  The certification criteria approved by the task
558	force and adopted by the Department of Management Services shall
559	be included in a statewide and interlocal agreement as defined
560	in s. 287.09431 and, in accordance with s. 163.01, shall be
561	executed according to the terms included therein.
562	(d)(h)  The certification procedures should allow an
563	applicant seeking certification to designate on the application
564	form the information the applicant considers to be proprietary,
565	confidential business information. As used in this paragraph,
566	"proprietary, confidential business information" includes, but
567	is not limited to, any information that would be exempt from
568	public inspection pursuant to the provisions of chapter 119;
569	trade secrets; internal auditing controls and reports; contract
570	costs; or other information the disclosure of which would injure
571	the affected party in the marketplace or otherwise violate s.
572	286.041. The executor in receipt of the application shall issue
573	written and final notice of any information for which
574	noninspection is requested but not provided for by law.
575	(e)(i)  A business that is certified under the provisions
576	of the statewide and interlocal agreement shall be deemed a
577	certified minority enterprise in all jurisdictions or
578	organizations where the agreement is in effect, and that
579	business is deemed available to do business as such within any
580	such jurisdiction or with any such organization statewide. All
581	state agencies must accept minority business enterprises
582	certified in accordance with the statewide and interlocal
583	agreement of s. 287.09431, and that business shall also be
584	deemed a "certified minority business enterprise" as defined in
585	s. 288.703. However, any governmental jurisdiction or
586	organization that administers a minority business purchasing
587	program may reserve the right to establish further certification
588	procedures necessary to comply with federal law.
589	(j)  The statewide and interlocal agreement shall be guided
590	by the terms and conditions found therein and may be amended at
591	any meeting of the task force and subsequently adopted by the
592	secretary of the Department of Management Services. The amended
593	agreement must be enacted, initialed, and legally executed by at
594	least two-thirds of the certifying entities party to the
595	existing agreement and adopted by the state as originally
596	executed in order to bind the certifying entity.
597	(k)  The task force shall meet for the first time no later
598	than 45 days after the effective date of this act.
599	(3)(a)  The office shall review and evaluate the
600	certification programs and procedures of all prospective
601	executors of the statewide and interlocal agreement to determine
602	if their programs exhibit the capacity to meet the standards of
603	the agreement.
604	(b)  The evaluations shall, at a minimum, consider: the
605	certifying entity's capacity to conduct investigations of
606	applicants seeking certification under the designated criteria;
607	the ability of the certifying entity to collect the requisite
608	data and to establish adequate protocol to store and exchange
609	said information among the executors of the agreement and to
610	provide adequate security to prevent unauthorized access to
611	information gathered during the certification process; and the
612	degree to which any legal obligations or supplemental
613	requirements unique to the certifying entity exceed the capacity
614	of that entity to conduct certifications.
615	(3)(c)  Any firms certified by organizations or
616	governmental entities determined not to meet the state
617	certification criteria shall not be eligible to participate as
618	certified minority business enterprises in the minority business
619	assistance programs of the state. For a period of 1 year from
620	the effective date of this legislation, the executor of the
621	statewide and interlocal agreement may elect to accept only
622	minority business enterprises certified pursuant to criteria in
623	place at the time the agreement was signed. After the 1-year
624	period, Either party to the statewide and interlocal agreement
625	may elect to withdraw from the agreement without further notice.
626	(d)  Any organizations or governmental entities determined
627	by the office not to meet the standards of the agreement shall
628	not be eligible to execute the statewide and interlocal
629	agreement as a participating organization until approved by the
630	office.
631	(e)  Any participating program receiving three or more
632	challenges to its certification decisions pursuant to subsection
633	(4) from other organizations that are executors to the statewide
634	and interlocal agreement, shall be subject to a review by the
635	office, as provided in paragraphs (a) and (b), of the
636	organization's capacity to perform under such agreement and in
637	accordance with the core criteria established by the task force.
638	The office shall submit a report to the secretary of the
639	Department of Management Services regarding the results of the
640	review.
641	(f)  The office shall maintain a directory of all executors
642	of the statewide and interlocal agreement. The directory should
643	be communicated to the general public.
644	(4)  A certification may be challenged by any executor to
645	the statewide and interlocal agreement upon the grounds of
646	failure by the certifying organization to adhere to the adopted
647	criteria or to the certifying organization's rules and
648	procedures, or on the grounds of a misrepresentation or fraud by
649	the certified minority business enterprise. The challenge shall
650	proceed according to procedures specified in the agreement.
651	(5)(a)  The secretary of the Department of Management
652	Services shall execute the statewide and interlocal agreement
653	established under s. 287.09431 on behalf of the state. The
654	office shall certify minority business enterprises in accordance
655	with the laws of this state and, by affidavit, shall recertify
656	such minority business enterprises not less than once each year.
657	(b)  The office shall contract with parties to the
658	statewide and interlocal agreement to perform onsite visits
659	associated with state certifications.
660	(6)(a)  The office shall maintain up-to-date records of all
661	certified minority business enterprises, as defined in s.
662	288.703, and of applications for certification that were denied
663	and shall make this list available to all agencies. The division
664	office shall, for statistical purposes, collect and track
665	subgroupings of gender and nationality status for each certified
666	minority business enterprise. Agency spending shall also be
667	tracked for these subgroups. The records may include information
668	about minority business enterprises that provide legal services,
669	auditing services, and health services. Agencies shall use this
670	list in efforts to meet the minority business enterprise
671	procurement goals set forth in s. 287.09451.
672	(b)  The office shall establish and administer a
673	computerized data bank to carry out the requirements of
674	paragraph (a), to be available to all executors of the statewide
675	and interlocal agreement. Data maintained in the data bank shall
676	be sufficient to allow each executor to reasonably monitor
677	certifications it has issued.
678	(7)  The office shall identify minority business
679	enterprises eligible for certification in all areas of state
680	services and commodities purchasing. The office may contract
681	with a private firm or other agency, if necessary, in seeking to
682	identify minority business enterprises for certification.
683	Agencies may request the office to identify certifiable minority
684	business enterprises that are in the business of providing a
685	given service or commodity; the office shall respond to such
686	requests and seek out such certifiable minority business
687	enterprises.
688	(8)  The office shall adopt rules necessary to implement
689	this section.
690	(7)(9)  State agencies shall comply with this act except to
691	the extent that the requirements of this act are in conflict
692	with federal law.
693	(8)(10)  Any transfer of ownership or permanent change in
694	the management and daily operations of a certified minority
695	business enterprise which may affect certification must be
696	reported to the original certifying jurisdiction or entity and
697	to the office within 14 days of the transfer or change taking
698	place. In the event of a transfer of ownership, the transferee
699	seeking to do business with the state as a certified minority
700	business enterprise is responsible for such reporting. In the
701	event of a permanent change in the management and daily
702	operations, owners seeking to do business with the state as a
703	certified minority business enterprise are responsible for
704	reporting such change to the office. Any person violating the
705	provisions of this subsection commits shall be guilty of a
706	misdemeanor of the first degree, punishable as provided in s.
707	775.082 or s. 775.083.
708	(9)(11)  To deter fraud in the program, the Auditor General
709	may review the criteria by which a business became certified as
710	a certified minority business enterprise.
711	(10)(12)  Any executor of the statewide and interlocal
712	agreement may revoke the certification or recertification of a
713	firm doing business as a certified minority business enterprise
714	if the minority business enterprise does not meet the
715	requirements of the jurisdiction or certifying entity that
716	certified or recertified the firm as a certified minority
717	business enterprise, or the requirements of subsection (2), s.
718	288.703, and any rule of the division office or the Department
719	of Management Services or if the business acquired certification
720	or recertification by means of falsely representing any entity
721	as a minority business enterprise for purposes of qualifying for
722	certification or recertification.
723	(11)(13)  Unless permanently revoked, a certified minority
724	business enterprise for which certification or recertification
725	has been revoked may not apply or reapply for certification or
726	recertification for a minimum of 36 months after the date of the
727	notice of revocation.
728	(12)(14)(a)  Except for certification decisions issued by
729	the Office of Supplier Diversity, An executor to the statewide
730	and interlocal agreement shall, in accordance with its rules and
731	procedures:
732	1.  Give reasonable notice to affected persons or parties
733	of its decision to deny certification based on failure to meet
734	eligibility requirements of the statewide and interlocal
735	agreement of s. 287.09431, together with a summary of the
736	grounds therefor.
737	2.  Give affected persons or parties an opportunity, at a
738	convenient time and place, to present to the agency written or
739	oral evidence in opposition to the action or of the executor's
740	refusal to act.
741	3.  Give a written explanation of any subsequent decision
742	of the executor overruling the objections.
743	(b)  An applicant that is denied minority business
744	enterprise certification based on failure to meet eligibility
745	requirements of the statewide and interlocal agreement pursuant
746	to s. 287.09431 may not reapply for certification or
747	recertification until at least 6 months after the date of the
748	notice of the denial of certification or recertification.
749	(13)(15)  The division office shall adopt rules in
750	compliance with this part.
751	Section 9.  Section 287.09431, Florida Statutes, is amended
752	to read:
753	287.09431  Statewide and interlocal agreement on
754	certification of business concerns for the status of minority
755	business enterprise.-The statewide and interlocal agreement on
756	certification of business concerns for the status of minority
757	business enterprise is hereby enacted and entered into with all
758	jurisdictions or organizations legally joining therein. If,
759	within 2 years from the date that the certification core
760	criteria are approved by the Department of Labor and Employment
761	Security, the agreement included herein is not executed by a
762	majority of county and municipal governing bodies that
763	administer a minority business assistance program on the
764	effective date of this act, then the Legislature shall review
765	this agreement. It is the intent of the Legislature that if the
766	agreement is not executed by a majority of the requisite
767	governing bodies, then a statewide uniform certification process
768	should be adopted, and that said agreement should be repealed
769	and replaced by a mandatory state government certification
770	process.
771	ARTICLE I
772	PURPOSE, FINDINGS, AND POLICY.-
773	(1)  The parties to this agreement, desiring by common
774	action to establish a uniform certification process in order to
775	reduce the multiplicity of applications by business concerns to
776	state and local governmental programs for minority business
777	assistance, declare that it is the policy of each of them, on
778	the basis of cooperation with one another, to remedy social and
779	economic disadvantage suffered by certain groups, resulting in
780	their being historically underutilized in ownership and control
781	of commercial enterprises. Thus, the parties seek to address
782	this history by increasing the participation of the identified
783	groups in opportunities afforded by government procurement.
784	(2)  The parties find that the State of Florida presently
785	certifies firms for participation in the minority business
786	assistance programs of the state. The parties find further that
787	some counties, municipalities, school boards, special districts,
788	and other divisions of local government require a separate, yet
789	similar, and in most cases redundant certification in order for
790	businesses to participate in the programs sponsored by each
791	government entity.
792	(3)  The parties find further that this redundant
793	certification has proven to be unduly burdensome to the
794	minority-owned firms intended to benefit from the underlying
795	purchasing incentives.
796	(4)  The parties agree that:
797	(a)  They will facilitate integrity, stability, and
798	cooperation in the statewide and interlocal certification
799	process, and in other elements of programs established to assist
800	minority-owned businesses.
801	(b)  They shall cooperate with agencies, organizations, and
802	associations interested in certification and other elements of
803	minority business assistance.
804	(c)  It is the purpose of this agreement to provide for a
805	uniform process whereby the status of a business concern may be
806	determined in a singular review of the business information for
807	these purposes, in order to eliminate any undue expense, delay,
808	or confusion to the minority-owned businesses in seeking to
809	participate in the minority business assistance programs of
810	state and local jurisdictions.
811	ARTICLE II
812	DEFINITIONS.-As used in this agreement and contracts made
813	pursuant to it, unless the context clearly requires otherwise:
814	(1)  "Awarding organization" means any political
815	subdivision or organization authorized by law, ordinance, or
816	agreement to enter into contracts and for which the governing
817	body has entered into this agreement.
818	(2)  "Department" means the Department of Labor and
819	Employment Security.
820	(3)  "Minority" means a person who is a lawful, permanent
821	resident of the state, having origins in one of the minority
822	groups as described and adopted by the Department of Labor and
823	Employment Security, hereby incorporated by reference.
824	(4)  "Minority business enterprise" means any small
825	business concern as defined in subsection (6) that meets all of
826	the criteria described and adopted by the Department of Labor
827	and Employment Security, hereby incorporated by reference.
828	(5)  "Participating state or local organization" means any
829	political subdivision of the state or organization designated by
830	such that elects to participate in the certification process
831	pursuant to this agreement, which has been approved according to
832	s. 287.0943(3) and has legally entered into this agreement.
833	(6)  "Small business concern" means an independently owned
834	and operated business concern which is of a size and type as
835	described and adopted by vote related to this agreement of the
836	commission, hereby incorporated by reference.
837	ARTICLE III
838	STATEWIDE AND INTERLOCAL CERTIFICATIONS.-
839	(1)  All awarding organizations shall accept a
840	certification granted by any participating organization which
841	has been approved according to s. 287.0943(3) and has entered
842	into this agreement, as valid status of minority business
843	enterprise.
844	(2)  A participating organization shall certify a business
845	concern that meets the definition of minority business
846	enterprise in this agreement, in accordance with the duly
847	adopted eligibility criteria.
848	(3)  All participating organizations shall issue notice of
849	certification decisions granting or denying certification to all
850	other participating organizations within 14 days of the
851	decision. Such notice may be made through electronic media.
852	(4)  No certification will be granted without an onsite
853	visit to verify ownership and control of the prospective
854	minority business enterprise, unless verification can be
855	accomplished by other methods of adequate verification or
856	assessment of ownership and control.
857	(5)  The certification of a minority business enterprise
858	pursuant to the terms of this agreement shall not be suspended,
859	revoked, or otherwise impaired except on any grounds which would
860	be sufficient for revocation or suspension of a certification in
861	the jurisdiction of the participating organization.
862	(6)  The certification determination of a party may be
863	challenged by any other participating organization by the
864	issuance of a timely written notice by the challenging
865	organization to the certifying organization's determination
866	within 10 days of receiving notice of the certification
867	decision, stating the grounds therefor.
868	(7)  The sole accepted grounds for challenge shall be the
869	failure of the certifying organization to adhere to the adopted
870	criteria or the certifying organization's rules or procedures,
871	or the perpetuation of a misrepresentation or fraud by the firm.
872	(8)  The certifying organization shall reexamine its
873	certification determination and submit written notice to the
874	applicant and the challenging organization of its findings
875	within 30 days after the receipt of the notice of challenge.
876	(9)  If the certification determination is affirmed, the
877	challenging agency may subsequently submit timely written notice
878	to the firm of its intent to revoke certification of the firm.
879	ARTICLE IV
880	APPROVED AND ACCEPTED PROGRAMS.-Nothing in this agreement
881	shall be construed to repeal or otherwise modify any ordinance,
882	law, or regulation of a party relating to the existing minority
883	business assistance provisions and procedures by which minority
884	business enterprises participate therein.
885	ARTICLE V
886	TERM.-The term of the agreement shall be 5 years, after
887	which it may be reexecuted by the parties.
888	ARTICLE VI
889	AGREEMENT EVALUATION.-The designated state and local
890	officials may meet from time to time as a group to evaluate
891	progress under the agreement, to formulate recommendations for
892	changes, or to propose a new agreement.
893	ARTICLE VII
894	OTHER ARRANGEMENTS.-Nothing in this agreement shall be
895	construed to prevent or inhibit other arrangements or practices
896	of any party in order to comply with federal law.
897	ARTICLE VIII
898	EFFECT AND WITHDRAWAL.-
899	(1)  This agreement shall become effective when properly
900	executed by a legal representative of the participating
901	organization, when enacted into the law of the state and after
902	an ordinance or other legislation is enacted into law by the
903	governing body of each participating organization. Thereafter it
904	shall become effective as to any participating organization upon
905	the enactment of this agreement by the governing body of that
906	organization.
907	(2)  Any party may withdraw from this agreement by enacting
908	legislation repealing the same, but no such withdrawal shall
909	take effect until one year after the governing body of the
910	withdrawing party has given notice in writing of the withdrawal
911	to the other parties.
912	(3)  No withdrawal shall relieve the withdrawing party of
913	any obligations imposed upon it by law.
914	ARTICLE IX
915	FINANCIAL RESPONSIBILITY.-
916	(1)  A participating organization shall not be financially
917	responsible or liable for the obligations of any other
918	participating organization related to this agreement.
919	(2)  The provisions of this agreement shall constitute
920	neither a waiver of any governmental immunity under Florida law
921	nor a waiver of any defenses of the parties under Florida law.
922	The provisions of this agreement are solely for the benefit of
923	its executors and not intended to create or grant any rights,
924	contractual or otherwise, to any person or entity.
925	ARTICLE X
926	VENUE AND GOVERNING LAW.-The obligations of the parties to
927	this agreement are performable only within the county where the
928	participating organization is located, and statewide for the
929	Office of Supplier Diversity, and venue for any legal action in
930	connection with this agreement shall lie, for any participating
931	organization except the Office of Supplier Diversity,
932	exclusively in the county where the participating organization
933	is located. This agreement shall be governed by and construed in
934	accordance with the laws and court decisions of the state.
935	ARTICLE XI
936	CONSTRUCTION AND SEVERABILITY.-This agreement shall be
937	liberally construed so as to effectuate the purposes thereof.
938	The provisions of this agreement shall be severable and if any
939	phrase, clause, sentence, or provision of this agreement is
940	declared to be contrary to the State Constitution or the United
941	States Constitution, or the application thereof to any
942	government, agency, person, or circumstance is held invalid, the
943	validity of the remainder of this agreement and the
944	applicability thereof to any government, agency, person, or
945	circumstance shall not be affected thereby. If this agreement
946	shall be held contrary to the State Constitution, the agreement
947	shall remain in full force and effect as to all severable
948	matters.
949	Section 10.  Section 287.09451, Florida Statutes, is
950	amended to read:
951	287.09451  Division Office of Supplier Diversity; powers,
952	duties, and functions.-
953	(1)  The Legislature finds that there is evidence of a
954	systematic pattern of past and continuing racial discrimination
955	against minority business enterprises and a disparity in the
956	availability and use of minority business enterprises in the
957	state procurement system. It is determined to be a compelling
958	state interest to rectify such discrimination and disparity.
959	Based upon statistical data profiling this discrimination, the
960	Legislature has enacted race-conscious and gender-conscious
961	remedial programs to ensure minority participation in the
962	economic life of the state, in state contracts for the purchase
963	of commodities and services, and in construction contracts. The
964	purpose and intent of this section is to increase participation
965	by minority business enterprises accomplished by encouraging the
966	use of minority business enterprises and the entry of new and
967	diversified minority business enterprises into the marketplace.
968	(2)  The Office of Supplier Diversity is established within
969	the Department of Management Services to assist minority
970	business enterprises in becoming suppliers of commodities,
971	services, and construction to state government.
972	(3)  The secretary shall appoint an executive director for
973	the Office of Supplier Diversity, who shall serve at the
974	pleasure of the secretary.
975	(2)(4)  The division Office of Supplier Diversity shall
976	have the following powers, duties, and functions:
977	(a)  To adopt rules to determine what constitutes a "good
978	faith effort" for purposes of state agency compliance with the
979	minority business enterprise procurement goals set forth in s.
980	287.042. Factors which shall be considered by the Minority
981	Business Enterprise Assistance Office in determining good faith
982	effort shall include, but not be limited to:
983	1.  Whether the agency scheduled presolicitation or prebid
984	meetings for the purpose of informing minority business
985	enterprises of contracting and subcontracting opportunities.
986	2.  Whether the contractor advertised in general
987	circulation, trade association, or minority-focus media
988	concerning the subcontracting opportunities.
989	3.  Whether the agency effectively used services and
990	resources of available minority community organizations;
991	minority contractors' groups; local, state, and federal minority
992	business assistance offices; and other organizations that
993	provide assistance in the recruitment and placement of minority
994	business enterprises or minority persons.
995	4.  Whether the agency provided written notice to a
996	reasonable number of minority business enterprises that their
997	interest in contracting with the agency was being solicited in
998	sufficient time to allow the minority business enterprises to
999	participate effectively.
1000	(b)  To adopt rules to determine what constitutes a "good
1001	faith effort" for purposes of contractor compliance with
1002	contractual requirements relating to the use of services or
1003	commodities of a minority business enterprise under s.
1004	287.094(2). Factors which shall be considered by the division
1005	Office of Supplier Diversity in determining whether a contractor
1006	has made good faith efforts shall include, but not be limited
1007	to:
1008	1.  Whether the contractor attended any presolicitation or
1009	prebid meetings that were scheduled by the agency to inform
1010	minority business enterprises of contracting and subcontracting
1011	opportunities.
1012	2.  Whether the contractor advertised in general
1013	circulation, trade association, or minority-focus media
1014	concerning the subcontracting opportunities.
1015	3.  Whether the contractor provided written notice to a
1016	reasonable number of specific minority business enterprises that
1017	their interest in the contract was being solicited in sufficient
1018	time to allow the minority business enterprises to participate
1019	effectively.
1020	4.  Whether the contractor followed up initial
1021	solicitations of interest by contacting minority business
1022	enterprises or minority persons to determine with certainty
1023	whether the minority business enterprises or minority persons
1024	were interested.
1025	5.  Whether the contractor selected portions of the work to
1026	be performed by minority business enterprises in order to
1027	increase the likelihood of meeting the minority business
1028	enterprise procurement goals, including, where appropriate,
1029	breaking down contracts into economically feasible units to
1030	facilitate minority business enterprise participation.
1031	6.  Whether the contractor provided interested minority
1032	business enterprises or minority persons with adequate
1033	information about the plans, specifications, and requirements of
1034	the contract or the availability of jobs.
1035	7.  Whether the contractor negotiated in good faith with
1036	interested minority business enterprises or minority persons,
1037	not rejecting minority business enterprises or minority persons
1038	as unqualified without sound reasons based on a thorough
1039	investigation of their capabilities.
1040	8.  Whether the contractor effectively used the services of
1041	available minority community organizations; minority
1042	contractors' groups; local, state, and federal minority business
1043	assistance offices; and other organizations that provide
1044	assistance in the recruitment and placement of minority business
1045	enterprises or minority persons.
1046	(c)  To adopt rules and do all things necessary or
1047	convenient to guide all state agencies toward making
1048	expenditures for commodities, contractual services,
1049	construction, and architectural and engineering services with
1050	certified minority business enterprises in accordance with the
1051	minority business enterprise procurement goals set forth in s.
1052	287.042.
1053	(d)  To monitor the degree to which agencies procure
1054	services, commodities, and construction from minority business
1055	enterprises in conjunction with the Department of Financial
1056	Services as specified in s. 17.11.
1057	(e)  To receive and disseminate information relative to
1058	procurement opportunities, availability of minority business
1059	enterprises, and technical assistance.
1060	(f)  To advise agencies on methods and techniques for
1061	achieving procurement objectives.
1062	(g)  To provide a central minority business enterprise
1063	certification process which includes independent verification of
1064	status as a minority business enterprise.
1065	(h)  To develop procedures to investigate complaints
1066	against minority business enterprises or contractors alleged to
1067	violate any provision related to this section or s. 287.0943,
1068	that may include visits to worksites or business premises, and
1069	to refer all information on businesses suspected of
1070	misrepresenting minority status to the Department of Management
1071	Services for investigation. When an investigation is completed
1072	and there is reason to believe that a violation has occurred,
1073	the Department of Labor and Employment Security shall refer the
1074	matter to the office of the Attorney General, Department of
1075	Legal Affairs, for prosecution.
1076	(i)  To maintain a directory of all minority business
1077	enterprises which have been certified and provide this
1078	information to any agency or business requesting it.
1079	(j)  To encourage all firms which do more than $1 million
1080	in business with the state within a 12-month period to develop,
1081	implement, and submit to this office a minority business
1082	development plan.
1083	(k)  To communicate on a monthly basis with the Small and
1084	Minority Business Advisory Council to keep the council informed
1085	on issues relating to minority enterprise procurement.
1086	(l)  To serve as an advocate for minority business
1087	enterprises, and coordinate with the small and minority business
1088	ombudsman, as defined in s. 288.703, which duties shall include:
1089	1.  Ensuring that agencies supported by state funding
1090	effectively target the delivery of services and resources, as
1091	related to minority business enterprises.
1092	2.  Establishing standards within each industry with which
1093	the state government contracts on how agencies and contractors
1094	may provide the maximum practicable opportunity for minority
1095	business enterprises.
1096	3.  Assisting agencies and contractors by providing
1097	outreach to minority businesses, by specifying and monitoring
1098	technical and managerial competence for minority business
1099	enterprises, and by consulting in planning of agency procurement
1100	to determine how best to provide opportunities for minority
1101	business enterprises.
1102	4.  Integrating technical and managerial assistance for
1103	minority business enterprises with government contracting
1104	opportunities.
1105	(m)  To certify minority business enterprises, as defined
1106	in s. 288.703, and as specified in ss. 287.0943 and 287.09431,
1107	and shall recertify such minority businesses at least once every
1108	2 years. Minority business enterprises must be recertified at
1109	least once every 2 years by affidavit.
1110	(g)(n)1.  To develop procedures to be used by an agency in
1111	identifying commodities, contractual services, architectural and
1112	engineering services, and construction contracts, except those
1113	architectural, engineering, construction, or other related
1114	services or contracts subject to the provisions of chapter 339,
1115	that could be provided by minority business enterprises. Each
1116	agency is encouraged to spend 21 percent of the moneys actually
1117	expended for construction contracts, 25 percent of the moneys
1118	actually expended for architectural and engineering contracts,
1119	24 percent of the moneys actually expended for commodities, and
1120	50.5 percent of the moneys actually expended for contractual
1121	services during the previous fiscal year, except for the state
1122	university construction program which shall be based upon public
1123	education capital outlay projections for the subsequent fiscal
1124	year, and reported to the Legislature pursuant to s. 216.023,
1125	for the purpose of entering into contracts with certified
1126	minority business enterprises as defined in s. 288.703(2), or
1127	approved joint ventures. However, in the event of budget
1128	reductions pursuant to s. 216.221, the base amounts may be
1129	adjusted to reflect such reductions. The overall spending goal
1130	for each industry category shall be subdivided as follows:
1131	a.  For construction contracts: 4 percent for black
1132	Americans, 6 percent for Hispanic-Americans, and 11 percent for
1133	American women.
1134	b.  For architectural and engineering contracts: 9 percent
1135	for Hispanic-Americans, 1 percent for Asian-Americans, and 15
1136	percent for American women.
1137	c.  For commodities: 2 percent for black Americans, 4
1138	percent for Hispanic-Americans, 0.5 percent for Asian-Americans,
1139	0.5 percent for Native Americans, and 17 percent for American
1140	women.
1141	d.  For contractual services: 6 percent for black
1142	Americans, 7 percent for Hispanic-Americans, 1 percent for
1143	Asian-Americans, 0.5 percent for Native Americans, and 36
1144	percent for American women.
1145	2.  For the purposes of commodities contracts for the
1146	purchase of equipment to be used in the construction and
1147	maintenance of state transportation facilities involving the
1148	Department of Transportation, "minority business enterprise" has
1149	the same meaning as provided in s. 288.703. "Minority person"
1150	has the same meaning as in s. 288.703(3). In order to ensure
1151	that the goals established under this paragraph for contracting
1152	with certified minority business enterprises are met, the
1153	department, with the assistance of the Office of Supplier
1154	Diversity, shall make recommendations to the Legislature on
1155	revisions to the goals, based on an updated statistical
1156	analysis, at least once every 5 years. Such recommendations
1157	shall be based on statistical data indicating the availability
1158	of and disparity in the use of minority businesses contracting
1159	with the state. The results of the first updated disparity study
1160	must be presented to the Legislature no later than December 1,
1161	1996.
1162	3.  In determining the base amounts for assessing
1163	compliance with this paragraph, the division Office of Supplier
1164	Diversity may develop, by rule, guidelines for all agencies to
1165	use in establishing such base amounts. These rules must include,
1166	but are not limited to, guidelines for calculation of base
1167	amounts, a deadline for the agencies to submit base amounts, a
1168	deadline for approval of the base amounts by the division Office
1169	of Supplier Diversity, and procedures for adjusting the base
1170	amounts as a result of budget reductions made pursuant to s.
1171	216.221.
1172	4.  To determine guidelines for the use of price
1173	preferences, weighted preference formulas, or other preferences,
1174	as appropriate to the particular industry or trade, to increase
1175	the participation of minority businesses in state contracting.
1176	These guidelines shall include consideration of:
1177	a.  Size and complexity of the project.
1178	b.  The concentration of transactions with minority
1179	business enterprises for the commodity or contractual services
1180	in question in prior agency contracting.
1181	c.  The specificity and definition of work allocated to
1182	participating minority business enterprises.
1183	d.  The capacity of participating minority business
1184	enterprises to complete the tasks identified in the project.
1185	e.  The available pool of minority business enterprises as
1186	prime contractors, either alone or as partners in an approved
1187	joint venture that serves as the prime contractor.
1188	5.  To determine guidelines for use of joint ventures to
1189	meet minority business enterprises spending goals. For purposes
1190	of this section, "joint venture" means any association of two or
1191	more business concerns to carry out a single business enterprise
1192	for profit, for which purpose they combine their property,
1193	capital, efforts, skills, and knowledge. The guidelines shall
1194	allow transactions with joint ventures to be eligible for credit
1195	against the minority business enterprise goals of an agency when
1196	the contracting joint venture demonstrates that at least one
1197	partner to the joint venture is a certified minority business
1198	enterprise as defined in s. 288.703, and that such partner is
1199	responsible for a clearly defined portion of the work to be
1200	performed, and shares in the ownership, control, management,
1201	responsibilities, risks, and profits of the joint venture. Such
1202	demonstration shall be by verifiable documents and sworn
1203	statements and may be reviewed by the division Office of
1204	Supplier Diversity at or before the time a contract
1205	proposal, or reply is submitted. An agency may count toward its
1206	minority business enterprise goals a portion of the total dollar
1207	amount of a contract equal to the percentage of the ownership
1208	and control held by the qualifying certified minority business
1209	partners in the contracting joint venture, so long as the joint
1210	venture meets the guidelines adopted by the division office.
1211	(h)(o)1.  To establish a system to record and measure the
1212	use of certified minority business enterprises in state
1213	contracting. This system shall maintain information and
1214	statistics on certified minority business enterprise
1215	participation, awards, dollar volume of expenditures and agency
1216	goals, and other appropriate types of information to analyze
1217	progress in the access of certified minority business
1218	enterprises to state contracts and to monitor agency compliance
1219	with this section. Such reporting must include, but is not
1220	limited to, the identification of all subcontracts in state
1221	contracting by dollar amount and by number of subcontracts and
1222	the identification of the utilization of certified minority
1223	business enterprises as prime contractors and subcontractors by
1224	dollar amounts of contracts and subcontracts, number of
1225	contracts and subcontracts, minority status, industry, and any
1226	conditions or circumstances that significantly affected the
1227	performance of subcontractors. Agencies shall report their
1228	compliance with the requirements of this reporting system at
1229	least annually and at the request of the division office. All
1230	agencies shall cooperate with the division office in
1231	establishing this reporting system. Except in construction
1232	contracting, all agencies shall review contracts costing in
1233	excess of CATEGORY FOUR as defined in s. 287.017 to determine if
1234	such contracts could be divided into smaller contracts to be
1235	separately solicited and awarded, and shall, when economical,
1236	offer such smaller contracts to encourage minority
1237	participation.
1238	2.  To report agency compliance with the provisions of
1239	subparagraph 1. for the preceding fiscal year to the Governor
1240	and Cabinet, the President of the Senate, and the Speaker of the
1241	House of Representatives, and the secretary of the Department of
1242	Labor and Employment Security on or before February 1 of each
1243	year. The report must contain, at a minimum, the following:
1244	a.  Total expenditures of each agency by industry.
1245	b.  The dollar amount and percentage of contracts awarded
1246	to certified minority business enterprises by each state agency.
1247	c.  The dollar amount and percentage of contracts awarded
1248	indirectly to certified minority business enterprises as
1249	subcontractors by each state agency.
1250	d.  The total dollar amount and percentage of contracts
1251	awarded to certified minority business enterprises, whether
1252	directly or indirectly, as subcontractors.
1253	e.  A statement and assessment of good faith efforts taken
1254	by each state agency.
1255	f.  A status report of agency compliance with subsection
1256	(4)(6), as determined by the Minority Business Enterprise
1257	Office.
1258	(3)(5)(a)  Each agency shall, at the time the
1259	specifications or designs are developed or contract sizing is
1260	determined for any proposed procurement costing in excess of
1261	CATEGORY FOUR, as defined in s. 287.017, forward a notice to the
1262	division Office of Supplier Diversity of the proposed
1263	procurement and any determination on the designs of
1264	specifications of the proposed procurement that impose
1265	requirements on prospective vendors, no later than 30 days prior
1266	to the issuance of a solicitation, except that this provision
1267	shall not apply to emergency acquisitions. The 30-day notice
1268	period shall not toll the time for any other procedural
1269	requirements.
1270	(b)  If the division Office of Supplier Diversity
1271	determines that the proposed procurement will not likely allow
1272	opportunities for minority business enterprises, the division
1273	office may, within 20 days after it receives the information
1274	specified in paragraph (a), propose the implementation of
1275	minority business enterprise utilization provisions or submit
1276	alternative procurement methods that would significantly
1277	increase minority business enterprise contracting opportunities.
1278	(c)  Whenever the agency and the division Office of
1279	Supplier Diversity disagree, the matter shall be submitted for
1280	determination to the head of the agency or the senior-level
1281	official designated pursuant to this section as liaison for
1282	minority business enterprise issues.
1283	(d)  If the proposed procurement proceeds to competitive
1284	solicitation, the division office is hereby granted standing to
1285	protest, pursuant to this section, in a timely manner, any
1286	contract award during competitive solicitation for contractual
1287	services and construction contracts that fail to include
1288	minority business enterprise participation, if any responsible
1289	and responsive vendor has demonstrated the ability to achieve
1290	any level of participation, or, any contract award for
1291	commodities where, a reasonable and economical opportunity to
1292	reserve a contract, statewide or district level, for minority
1293	participation was not executed or, an agency failed to adopt an
1294	applicable preference for minority participation. The bond
1295	requirement shall be waived for the division office purposes of
1296	this subsection.
1297	(e)  An agency may presume that a vendor offering no
1298	minority participation has not made a good faith effort when
1299	other vendors offer minority participation of firms listed as
1300	relevant to the agency's purchasing needs in the pertinent
1301	locality or statewide to complete the project.
1302	(f)  Paragraph (a) will not apply when the division Office
1303	of Supplier Diversity determines that an agency has established
1304	a work plan to allow advance consultation and planning with
1305	minority business enterprises and where such plan clearly
1306	demonstrates:
1307	1.  A high level of advance planning by the agency with
1308	minority business enterprises.
1309	2.  A high level of accessibility, knowledge, and
1310	experience by minority business enterprises in the agency's
1311	contract decisionmaking process.
1312	3.  A high quality of agency monitoring and enforcement of
1313	internal implementation of minority business utilization
1314	provisions.
1315	4.  A high quality of agency monitoring and enforcement of
1316	contractor utilization of minority business enterprises,
1317	especially tracking subcontractor data, and ensuring the
1318	integrity of subcontractor reporting.
1319	5.  A high quality of agency outreach, agency networking of
1320	major vendors with minority vendors, and innovation in
1321	techniques to improve utilization of minority business
1322	enterprises.
1323	6.  Substantial commitment, sensitivity, and proactive
1324	attitude by the agency head and among the agency minority
1325	business staff.
1326	(4)(6)  Each state agency shall coordinate its minority
1327	business enterprise procurement activities with the division
1328	Office of Supplier Diversity. At a minimum, each agency shall:
1329	(a)  Adopt a minority business enterprise utilization plan
1330	for review and approval by the division Office of Supplier
1331	Diversity which should require meaningful and useful methods to
1332	attain the legislative intent in assisting minority business
1333	enterprises.
1334	(b)  Designate a senior-level employee in the agency as a
1335	minority enterprise assistance officer, responsible for
1336	overseeing the agency's minority business utilization
1337	activities, and who is not also charged with purchasing
1338	responsibility. A senior-level agency employee and agency
1339	purchasing officials shall be accountable to the agency head for
1340	the agency's minority business utilization performance. The
1341	division Office of Supplier Diversity shall advise each agency
1342	on compliance performance.
1343	(c)  If an agency deviates significantly from its
1344	utilization plan in 2 consecutive or 3 out of 5 total fiscal
1345	years, the division Office of Supplier Diversity may review any
1346	and all solicitations and contract awards of the agency as
1347	deemed necessary until such time as the agency meets its
1348	utilization plan.
1349	Section 11.  Subsections (4) and (6) of section 288.703,
1350	Florida Statutes, are amended to read:
1351	288.703  Definitions.-As used in this act, the following
1352	words and terms shall have the following meanings unless the
1353	content shall indicate another meaning or intent:
1354	(4)  "Certified minority business enterprise" means a
1355	business which has been certified by the certifying organization
1356	or jurisdiction in accordance with s. 287.0943(1) and (2).
1357	(6)  "Ombudsman" means an office or individual whose
1358	responsibilities include coordinating with the Division of State
1359	Purchasing Office of Supplier Diversity for the interests of and
1360	providing assistance to small and minority business enterprises
1361	in dealing with governmental agencies and in developing
1362	proposals for changes in state agency rules.
1363	Section 12.  Subsection (5) of section 288.712, Florida
1364	Statutes, is amended to read:
1365	288.712  Guarantor funds.-
1366	(5)  The board shall do all of the following to implement
1367	the black contractors bonding program:
1368	(a)  Conduct outreach, marketing, and recruitment of black
1369	contractors.
1370	(b)  Provide assistance to the Office of Supplier Diversity
1371	within the Department of Management Services, as needed, to
1372	certify new black business enterprises and to train appropriate
1373	department staff.
1374	(b)(c)  Provide business development services to black
1375	business enterprises in the developmental and transitional
1376	stages of the program, including financing and bonding
1377	assistance and management and technical assistance.
1378	(c)(d)  Develop a mentor program to bring businesses into a
1379	working relationship with black contractors in a way that
1380	commercially benefits both entities and serves the purpose of
1381	the program.
1382	(d)(e)  No later than December 31, 2007, prepare and submit
1383	to the Governor a detailed report outlining and evaluating the
1384	progress made in implementing the black contractors bonding
1385	program.
1386	(e)(f)  Establish a process by which black contractors may
1387	apply for contract assistance, financial and bonding assistance,
1388	management and technical assistance, and mentoring
1389	opportunities.
1390	Section 13.  Paragraphs (k), (l), and (m) of subsection (9)
1391	of section 288.955, Florida Statutes, are amended to read:
1392	288.955  Scripps Florida Funding Corporation.-
1393	(9)  PERFORMANCE EXPECTATIONS.-In addition to the
1394	provisions prescribed in subsection (8), the contract between
1395	the corporation and the grantee shall include a provision that
1396	the grantee, in cooperation with the Office of Tourism, Trade,
1397	and Economic Development, shall report to the corporation on
1398	performance expectations that reflect the aspirations of the
1399	Governor and the Legislature for the benefits accruing to this
1400	state as a result of the funds appropriated pursuant to this
1401	section. These shall include, but are not limited to,
1402	performance expectations addressing:
1403	(k)  The establishment and implementation of policies to
1404	promote supplier diversity by complying using the guidelines
1405	developed by the Office of Supplier Diversity under s. 287.09451
1406	and to comply with the ordinances, including any small business
1407	ordinances, enacted by the county and which are applicable to
1408	the biomedical research institution and campus located in this
1409	state.
1410	(l)  The designation by the grantee of a representative to
1411	coordinate with the Office of Supplier Diversity.
1412	(l)(m)  The establishment and implementation of a program
1413	to conduct workforce recruitment activities at public and
1414	private colleges and universities and community colleges in this
1415	state which request the participation of the grantee.
1416
1417	The contract shall require the grantee to provide information to
1418	the corporation on the progress in meeting these performance
1419	expectations on an annual basis. It is the intent of the
1420	Legislature that, in fulfilling its obligation to work with
1421	Florida's public and private colleges and universities, Scripps
1422	Florida work with such colleges and universities regardless of
1423	size.
1424	Section 14.  Section 287.05721, Florida Statutes, is
1425	amended to read:
1426	287.05721  Definitions.-As used in ss. 287.0571-287.0574,
1427	the term:
1428	(1)  "Council" means the Council on Efficient Government.
1429	(2)  "outsource" means the process of contracting with a
1430	vendor to provide a service as defined in s. 216.011(1)(f), in
1431	whole or in part, or an activity as defined in s.
1432	216.011(1)(rr), while a state agency retains the responsibility
1433	and accountability for the service or activity and there is a
1434	transfer of management responsibility for the delivery of
1435	resources and the performance of those resources.
1436	Section 15.  Section 287.0573, Florida Statutes, is
1437	repealed.
1438	Section 16.  Subsections (1) through (4) of section
1439	287.0574, Florida Statutes, are amended to read:
1440	287.0574  Business cases to outsource; review and analysis;
1441	requirements.-
1442	(1)  A business case to outsource having a projected cost
1443	exceeding $10 million in any fiscal year shall require:
1444	(a)  An initial business case analysis conducted by the
1445	state agency and submitted to the council, the Governor, the
1446	President of the Senate, and the Speaker of the House of
1447	Representatives at least 60 days before a solicitation is
1448	issued. The council shall evaluate the business case analysis
1449	and submit an advisory report to the state agency, the Governor,
1450	the President of the Senate, and the Speaker of the House of
1451	Representatives when the advisory report is completed, but at
1452	least 30 days before the agency issues the solicitation.
1453	(b)  A final business case analysis conducted by the state
1454	agency and submitted after the conclusion of any negotiations,
1455	at least 30 days before execution of a contract, to the council,
1456	the Governor, the President of the Senate, and the Speaker of
1457	the House of Representatives.
1458	(2)  A proposal to outsource having a projected cost that
1459	ranges from $1 million to $10 million in any fiscal year shall
1460	require:
1461	(a)  An initial business case analysis conducted by the
1462	state agency and submission of the business case, at least 30
1463	days before issuing a solicitation, to the council, the
1464	Governor, the President of the Senate, and the Speaker of the
1465	House of Representatives.
1466	(b)  A final business case analysis conducted by the state
1467	agency and submitted after the conclusion of any negotiations,
1468	at least 30 days before execution of a contract, to the council,
1469	the Governor, the President of the Senate, and the Speaker of
1470	the House of Representatives.
1471	(3)  A business case to outsource having a projected cost
1472	that is less than $1 million in any fiscal year shall require a
1473	final business case analysis conducted by the state agency after
1474	the conclusion of any negotiations and provided at least 30 days
1475	before execution of a contract to the council. The council shall
1476	provide such business cases in its annual report to the
1477	Legislature.
1478	(4)  For any proposed outsourcing, the state agency shall
1479	develop a business case that justifies the proposal to
1480	outsource. In order to reduce any administrative burden, the
1481	council may allow a state agency shall to submit the business
1482	case in the form and manner required by the budget instructions
1483	issued pursuant to s. 216.023(1), (2), and (4)(a)7., augmented
1484	with additional information if necessary, to ensure that the
1485	requirements of this section are met. The business case is not
1486	subject to challenge or protest pursuant to chapter 120. The
1487	business case must include, but need not be limited to:
1488	(a)  A detailed description of the service or activity for
1489	which the outsourcing is proposed.
1490	(b)  A description and analysis of the state agency's
1491	current performance, based on existing performance metrics if
1492	the state agency is currently performing the service or
1493	activity.
1494	(c)  The goals desired to be achieved through the proposed
1495	outsourcing and the rationale for such goals.
1496	(d)  A citation to the existing or proposed legal authority
1497	for outsourcing the service or activity.
1498	(e)  A description of available options for achieving the
1499	goals. If state employees are currently performing the service
1500	or activity, at least one option involving maintaining state
1501	provision of the service or activity shall be included.
1502	(f)  An analysis of the advantages and disadvantages of
1503	each option, including, at a minimum, potential performance
1504	improvements and risks.
1505	(g)  A description of the current market for the
1506	contractual services that are under consideration for
1507	outsourcing.
1508	(h)  A cost-benefit analysis documenting the direct and
1509	indirect specific baseline costs, savings, and qualitative and
1510	quantitative benefits involved in or resulting from the
1511	implementation of the recommended option or options. Such
1512	analysis must specify the schedule that, at a minimum, must be
1513	adhered to in order to achieve the estimated savings. All
1514	elements of cost must be clearly identified in the cost-benefit
1515	analysis, described in the business case, and supported by
1516	applicable records and reports. The state agency head shall
1517	attest that, based on the data and information underlying the
1518	business case, to the best of his or her knowledge, all
1519	projected costs, savings, and benefits are valid and achievable.
1520	As used in this section, the term "cost" means the reasonable,
1521	relevant, and verifiable cost, which may include, but is not
1522	limited to, elements such as personnel, materials and supplies,
1523	services, equipment, capital depreciation, rent, maintenance and
1524	repairs, utilities, insurance, personnel travel, overhead, and
1525	interim and final payments. The appropriate elements shall
1526	depend on the nature of the specific initiative. As used in this
1527	section, the term "savings" means the difference between the
1528	direct and indirect actual annual baseline costs compared to the
1529	projected annual cost for the contracted functions or
1530	responsibilities in any succeeding state fiscal year during the
1531	term of the contract.
1532	(i)  A description of differences among current state
1533	agency policies and processes and, as appropriate, a discussion
1534	of options for or a plan to standardize, consolidate, or revise
1535	current policies and processes, if any, to reduce the
1536	customization of any proposed solution that would otherwise be
1537	required.
1538	(j)  A description of the specific performance standards
1539	that must, at a minimum, be met to ensure adequate performance.
1540	(k)  The projected timeframe for key events from the
1541	beginning of the procurement process through the expiration of a
1542	contract.
1543	(l)  A plan to ensure compliance with the public records
1544	law.
1545	(m)  A specific and feasible contingency plan addressing
1546	contractor nonperformance and a description of the tasks
1547	involved in and costs required for its implementation.
1548	(n)  A state agency's transition plan for addressing
1549	changes in the number of agency personnel, affected business
1550	processes, employee transition issues, and communication with
1551	affected stakeholders, such as agency clients and the public.
1552	The transition plan must contain a reemployment and retraining
1553	assistance plan for employees who are not retained by the state
1554	agency or employed by the contractor.
1555	(o)  A plan for ensuring access by persons with
1556	disabilities in compliance with applicable state and federal
1557	law.
1558	(p)  A description of legislative and budgetary actions
1559	necessary to accomplish the proposed outsourcing.
1560	Section 17.  This act shall take effect July 1, 2010.

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