HB 7071

1	A bill to be entitled
2	An act relating to repealing budget provisions; amending
3	s. 216.023, F.S.; deleting certain budget summary
4	requirements; repealing s. 339.1371, F.S., relating to
5	Mobility 2000 funding; amending ss. 216.013, 287.0574, and
6	489.145, F.S.; conforming cross-references; providing an
7	effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1.  Subsection (4) of section 216.023, Florida
12	Statutes, is amended to read:
13	216.023  Legislative budget requests to be furnished to
14	Legislature by agencies.-
15	(4)(a)  The legislative budget request must contain for
16	each program:
17	(a)1.  The constitutional or statutory authority for a
18	program, a brief purpose statement, and approved program
19	components.
20	(b)2.  Information on expenditures for 3 fiscal years
21	(actual prior-year expenditures, current-year estimated
22	expenditures, and agency budget requested expenditures for the
23	next fiscal year) by appropriation category.
24	(c)3.  Details on trust funds and fees.
25	(d)4.  The total number of positions (authorized, fixed,
26	and requested).
27	(e)5.  An issue narrative describing and justifying changes
28	in amounts and positions requested for current and proposed
29	programs for the next fiscal year.
30	(f)6.  Information resource requests.
31	(g)7.  Supporting information, including applicable cost-
32	benefit analyses, business case analyses, performance
33	contracting procedures, service comparisons, and impacts on
34	performance standards for any request to outsource or privatize
35	agency functions. The cost-benefit and business case analyses
36	must include an assessment of the impact on each affected
37	activity from those identified in accordance with paragraph (b).
38	Performance standards must include standards for each affected
39	activity and be expressed in terms of the associated unit of
40	activity.
41	(h)8.  An evaluation of any major outsourcing and
42	privatization initiatives undertaken during the last 5 fiscal
43	years having aggregate expenditures exceeding $10 million during
44	the term of the contract. The evaluation shall include an
45	assessment of contractor performance, a comparison of
46	anticipated service levels to actual service levels, and a
47	comparison of estimated savings to actual savings achieved.
48	Consolidated reports issued by the Department of Management
49	Services may be used to satisfy this requirement.
50	(i)9.  Supporting information for any proposed consolidated
51	financing of deferred-payment commodity contracts including
52	guaranteed energy performance savings contracts. Supporting
53	information must also include narrative describing and
54	justifying the need, baseline for current costs, estimated cost
55	savings, projected equipment purchases, estimated contract
56	costs, and return on investment calculation.
57	(j)10.  For projects that exceed $10 million in total cost,
58	the statutory reference of the existing policy or the proposed
59	substantive policy that establishes and defines the project's
60	governance structure, planned scope, main business objectives
61	that must be achieved, and estimated completion timeframes.
62	Information technology budget requests for the continuance of
63	existing hardware and software maintenance agreements, renewal
64	of existing software licensing agreements, or the replacement of
65	desktop units with new technology that is similar to the
66	technology currently in use are exempt from this requirement.
67	(b)  It is the intent of the Legislature that total
68	accountability measures, including unit-cost data, serve not
69	only as a budgeting tool but also as a policymaking tool and an
70	accountability tool. Therefore, each state agency and the
71	judicial branch must submit a summary of information for the
72	preceding year in accordance with the legislative budget
73	instructions. Each summary must provide a one-page overview and
74	must contain:
75	1.  The final budget for the agency and the judicial
76	branch.
77	2.  Total funds from the General Appropriations Act.
78	3.  Adjustments to the General Appropriations Act.
79	4.  The line-item listings of all activities.
80	5.  The number of activity units performed or accomplished.
81	6.  Total expenditures for each activity, including amounts
82	paid to contractors and subordinate entities. Expenditures
83	related to administrative activities not aligned with output
84	measures must consistently be allocated to activities with
85	output measures prior to computing unit costs.
86	7.  The cost per unit for each activity, including the
87	costs allocated to contractors and subordinate entities.
88	8.  The total amount of reversions and pass-through
89	expenditures omitted from unit-cost calculations.
90
91	At the regular session immediately following the submission of
92	the agency unit cost summary, the Legislature shall reduce in
93	the General Appropriations Act for the ensuing fiscal year, by
94	an amount equal to at least 10 percent of the allocation for the
95	fiscal year preceding the current fiscal year, the funding of
96	each state agency that fails to submit the report required under
97	this paragraph.
98	Section 2.  Section 339.1371, Florida Statutes, is
99	repealed.
100	Section 3.  Paragraph (h) of subsection (1) of section
101	216.013, Florida Statutes, is amended to read:
102	216.013  Long-range program plan.-State agencies and the
103	judicial branch shall develop long-range program plans to
104	achieve state goals using an interagency planning process that
105	includes the development of integrated agency program service
106	outcomes. The plans shall be policy based, priority driven,
107	accountable, and developed through careful examination and
108	justification of all agency and judicial branch programs.
109	(1)  Long-range program plans shall provide the framework
110	for the development of budget requests and shall identify or
111	update:
112	(h)  Legislatively approved output and outcome performance
113	measures. Each performance measure must identify the associated
114	activity contributing to the measure from those identified in
115	accordance with s. 216.023(4)(b).
116	Section 4.  Subsection (4) of section 287.0574, Florida
117	Statutes, is amended to read:
118	287.0574  Business cases to outsource; review and analysis;
119	requirements.-
120	(4)  For any proposed outsourcing, the state agency shall
121	develop a business case that justifies the proposal to
122	outsource. In order to reduce any administrative burden, the
123	council may allow a state agency to submit the business case in
124	the form required by the budget instructions issued pursuant to
125	s. 216.023(4)(g) s. 216.023(4)(a)7., augmented with additional
126	information if necessary, to ensure that the requirements of
127	this section are met. The business case is not subject to
128	challenge or protest pursuant to chapter 120. The business case
129	must include, but need not be limited to:
130	(a)  A detailed description of the service or activity for
131	which the outsourcing is proposed.
132	(b)  A description and analysis of the state agency's
133	current performance, based on existing performance metrics if
134	the state agency is currently performing the service or
135	activity.
136	(c)  The goals desired to be achieved through the proposed
137	outsourcing and the rationale for such goals.
138	(d)  A citation to the existing or proposed legal authority
139	for outsourcing the service or activity.
140	(e)  A description of available options for achieving the
141	goals. If state employees are currently performing the service
142	or activity, at least one option involving maintaining state
143	provision of the service or activity shall be included.
144	(f)  An analysis of the advantages and disadvantages of
145	each option, including, at a minimum, potential performance
146	improvements and risks.
147	(g)  A description of the current market for the
148	contractual services that are under consideration for
149	outsourcing.
150	(h)  A cost-benefit analysis documenting the direct and
151	indirect specific baseline costs, savings, and qualitative and
152	quantitative benefits involved in or resulting from the
153	implementation of the recommended option or options. Such
154	analysis must specify the schedule that, at a minimum, must be
155	adhered to in order to achieve the estimated savings. All
156	elements of cost must be clearly identified in the cost-benefit
157	analysis, described in the business case, and supported by
158	applicable records and reports. The state agency head shall
159	attest that, based on the data and information underlying the
160	business case, to the best of his or her knowledge, all
161	projected costs, savings, and benefits are valid and achievable.
162	As used in this section, the term "cost" means the reasonable,
163	relevant, and verifiable cost, which may include, but is not
164	limited to, elements such as personnel, materials and supplies,
165	services, equipment, capital depreciation, rent, maintenance and
166	repairs, utilities, insurance, personnel travel, overhead, and
167	interim and final payments. The appropriate elements shall
168	depend on the nature of the specific initiative. As used in this
169	section, the term "savings" means the difference between the
170	direct and indirect actual annual baseline costs compared to the
171	projected annual cost for the contracted functions or
172	responsibilities in any succeeding state fiscal year during the
173	term of the contract.
174	(i)  A description of differences among current state
175	agency policies and processes and, as appropriate, a discussion
176	of options for or a plan to standardize, consolidate, or revise
177	current policies and processes, if any, to reduce the
178	customization of any proposed solution that would otherwise be
179	required.
180	(j)  A description of the specific performance standards
181	that must, at a minimum, be met to ensure adequate performance.
182	(k)  The projected timeframe for key events from the
183	beginning of the procurement process through the expiration of a
184	contract.
185	(l)  A plan to ensure compliance with the public records
186	law.
187	(m)  A specific and feasible contingency plan addressing
188	contractor nonperformance and a description of the tasks
189	involved in and costs required for its implementation.
190	(n)  A state agency's transition plan for addressing
191	changes in the number of agency personnel, affected business
192	processes, employee transition issues, and communication with
193	affected stakeholders, such as agency clients and the public.
194	The transition plan must contain a reemployment and retraining
195	assistance plan for employees who are not retained by the state
196	agency or employed by the contractor.
197	(o)  A plan for ensuring access by persons with
198	disabilities in compliance with applicable state and federal
199	law.
200	(p)  A description of legislative and budgetary actions
201	necessary to accomplish the proposed outsourcing.
202	Section 5.  Paragraph (a) of subsection (6) of section
203	489.145, Florida Statutes, is amended to read:
204	489.145  Guaranteed energy, water, and wastewater
205	performance savings contracting.-
206	(6)  PROGRAM ADMINISTRATION AND CONTRACT REVIEW.-The
207	Department of Management Services, with the assistance of the
208	Office of the Chief Financial Officer, shall, within available
209	resources, provide technical content assistance to state
210	agencies contracting for energy, water, and wastewater
211	efficiency and conservation measures and engage in other
212	activities considered appropriate by the department for
213	promoting and facilitating guaranteed energy, water, and
214	wastewater performance contracting by state agencies. The
215	Department of Management Services shall review the investment-
216	grade audit for each proposed project and certify that the cost
217	savings are appropriate and sufficient for the term of the
218	contract. The Office of the Chief Financial Officer, with the
219	assistance of the Department of Management Services, shall,
220	within available resources, develop model contractual and
221	related documents for use by state agencies. Prior to entering
222	into a guaranteed energy, water, and wastewater performance
223	savings contract, any contract or lease for third-party
224	financing, or any combination of such contracts, a state agency
225	shall submit such proposed contract or lease to the Office of
226	the Chief Financial Officer for review and approval. A proposed
227	contract or lease shall include:
228	(a)  Supporting information required by s. 216.023(4)(i) s.
229	216.023(4)(a)9. in ss. 287.063(5) and 287.064(11). For contracts
230	approved under this section, the criteria may, at a minimum,
231	include the specification of a benchmark cost of capital and
232	minimum real rate of return on energy, water, or wastewater
233	savings against which proposals shall be evaluated.
234
235	The Office of the Chief Financial Officer shall not approve any
236	contract submitted under this section from a state agency that
237	does not meet the requirements of this section.
238	Section 6.  This act shall take effect July 1, 2010.

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