HB 939

1	A bill to be entitled
2	An act relating to state financial matters; amending s.
3	216.011, F.S.; defining the term "lease or lease-purchase
4	of equipment"; amending s. 216.023, F.S.; requiring that
5	specified information relating to certain contracts be
6	included in an agency's legislative budget request;
7	amending s. 216.311, F.S.; defining the terms "contract"
8	and "agreement"; prohibiting an agency or branch of state
9	government, without legislative authority, from
10	contracting to pay liquidated damages or early termination
11	fees resulting from the breach or early termination of a
12	contract or agreement, from paying interest because of
13	insufficient budget authority to pay an obligation in the
14	current year, from obligating the state to make future
15	payments to cover unpaid payments, or from granting a
16	party the right to collect fees or other revenues from
17	nonparties; providing certain exemptions; prohibiting an
18	agency from entering into certain leases without
19	authorization by the Legislature or the Legislative Budget
20	Commission; creating s. 216.312, F.S.; requiring the
21	executive and judicial branch to notify the Governor and
22	Legislature before entering into contracts containing
23	certain provisions relating to expenditures; transferring,
24	renumbering, and amending s. 287.0582, F.S.; requiring a
25	state contract to identify the appropriation that funds a
26	contract; expanding the statement that must be included in
27	state contracts to include grounds for terminating the
28	contract based on budget deficits; requiring the judicial
29	branch to include the statement in its contracts;
30	requiring the agency head, executive director, or chief
31	judge, as appropriate, or a designated senior management
32	employee, to sign contracts that exceed a specified
33	amount; requiring the agency head, executive director, or
34	chief judge to review certain contracts and certify
35	compliance with ch. 216, F.S.; requiring contracts
36	exceeding a specified amount to require written acceptance
37	or rejection of contract deliverables; providing that
38	contracts in violation of these provisions are null and
39	void; providing penalties; amending s. 287.063, F.S.;
40	prohibiting certain lease or deferred-payment purchases by
41	state agencies unless expressly authorized by the
42	Legislature in the General Appropriations Act or by the
43	Legislative Budget Commission; amending s. 287.064, F.S.;
44	prohibiting certain master equipment financing agreements
45	unless expressly authorized by the Legislature in the
46	General Appropriations Act or by the Legislative Budget
47	Commission; amending ss. 376.3075 and 403.1837, F.S.;
48	conforming cross-references; providing for application;
49	providing an effective date.
50
51	Be It Enacted by the Legislature of the State of Florida:
52
53	Section 1.  Present paragraph (vv) of subsection (1) of
54	section 216.011, Florida Statutes, is redesignated as paragraph
55	(ww), and a new paragraph (vv) is added to that subsection, to
56	read:
57	216.011  Definitions.-
58	(1)  For the purpose of fiscal affairs of the state,
59	appropriations acts, legislative budgets, and approved budgets,
60	each of the following terms has the meaning indicated:
61	(vv)  "Lease or lease-purchase of equipment" means the
62	appropriations category used to fund the lease or lease-purchase
63	of equipment, fixtures, and other tangible personal property.
64	Section 2.  Present subsections (6) through (9) of section
65	216.023, Florida Statutes, are renumbered as subsections (7)
66	through (10), respectively, and a new subsection (6) is added to
67	that section, to read:
68	216.023  Legislative budget requests to be furnished to
69	Legislature by agencies.-
70	(6)  As part of the legislative budget request, each state
71	agency must include the following information for each contract
72	in which the state agency has granted a concession:
73	(a)  The name of the vendor.
74	(b)  A brief description of the services provided by the
75	vendor.
76	(c)  The term of the contract and the years remaining on
77	the contract.
78	(d)  The amount of revenue generated or expected to be
79	generated by the vendor under the contract for the prior fiscal
80	year, the current fiscal year, and the next fiscal year.
81	(e)  The amount of revenue remitted or expected to be
82	remitted to the state agency by the vendor for the prior fiscal
83	year, the current fiscal year, and the next fiscal year.
84	(f)  The value of capital improvements, if any, on state
85	property which have been funded by the vendor over the term of
86	the contract.
87	(g)  The remaining amount of capital improvements, if any,
88	on state property which have not been fully amortized by June 30
89	of the prior fiscal year.
90	(h)  The amount, if any, of state appropriations made to
91	the state agency to pay for services provided by the vendor.
92	Section 3.  Section 216.311, Florida Statutes, is amended
93	to read:
94	216.311  Unauthorized contracts in excess of
95	appropriations; penalty.-
96	(1)  As used in this section and ss. 216.312 and 216.313,
97	the terms "contract" and "agreement" include the initial
98	contract or agreement, any amendment to the contract or
99	agreement, and any extension or renewal of the contract or
100	agreement.
101	(2)(1)  Unless specifically authorized by law, an No agency
102	or branch of state government may not enter into any shall
103	contract to spend, or enter into any agreement:
104	(a)  To spend, any moneys in excess of the amount
105	appropriated to such agency or branch unless specifically
106	authorized by law, and any contract or agreement in violation of
107	this chapter shall be null and void.
108	(b)  That requires the state to pay liquidated damages or
109	early termination fees for a breach or early termination of a
110	contract or agreement by such agency or branch due to an act of
111	the Legislature which provides less than full funding for the
112	contract during the fiscal year.
113	(c)  That requires the state to pay interest, other than
114	interest paid pursuant to s. 215.422, to another party because
115	the agency or branch has insufficient budget authority to pay
116	the underlying obligation of the contract or agreement in the
117	current year.
118	(d)  That binds the state to make future-year payments to
119	offset payments not made in a prior year due to insufficient
120	budget authority.
121	(e)  To grant to any party the right or privilege to
122	collect and retain fees or other revenues from persons who are
123	not a party to the contract which would otherwise be payable to
124	the state and deposited into the State Treasury.
125	(3)  Notwithstanding subsection (2), the following agencies
126	may enter into the following contracts or agreements:
127	(a)  In order to spend funds appropriated for the approved
128	5-year work program, the Department of Transportation may enter
129	into contracts and other agreements that require the state to
130	pay liquidated damages as a result of a breach of those
131	contracts or agreements.
132	(b)  In order to administer the state group insurance
133	program as provided in s. 110.123, the Department of Management
134	Services may enter into contracts and other agreements that
135	permit health care providers, health maintenance organizations,
136	preferred provider organizations, and insurers to collect
137	premiums and copayments from participants in the group insurance
138	program.
139	(c)  In order to administer the state Medicaid plan and the
140	Florida Healthy Kids program, the Agency for Health Care
141	Administration may enter into contracts and other agreements
142	that permit health care providers to collect premiums and
143	copayments from participants in the Medicaid plan and the
144	Healthy Kids program.
145	(d)  In order to administer the state parks system, the
146	Department of Environmental Protection may enter into contracts
147	and other agreements that require the state to pay liquidated
148	damages or early termination fees as a result of a breach of
149	those contracts or agreements, but only if the vendor makes
150	significant capital improvements to state property and the costs
151	of such improvements is amortized over no more than 3 years.
152	Such contracts are subject to the notice requirements of s.
153	216.312.
154	(4)  Notwithstanding any law authorizing an agency to enter
155	into a lease, an agency may not enter into a lease or lease-
156	purchase agreement for tangible personal property which requires
157	the state to pay more than $500,000 over the term of the lease
158	or agreement if the term of the lease or agreement exceeds 1
159	fiscal year unless such lease or agreement is expressly
160	authorized by the Legislature or the Legislative Budget
161	Commission has approved a transfer of budget authority from a
162	traditional appropriation category to the appropriation category
163	established for the lease or lease-purchase of equipment.
164	However, in order to administer the real estate and other
165	investment portfolios as provided in s. 215.47, the State Board
166	of Administration may enter into contracts and such other
167	agreements as necessary to carry out the investment duties of
168	the board.
169	(5)  Any contract or agreement in violation of this section
170	is null and void.
171	(6)(2)  Any public officer or employee person who willfully
172	enters into a contract or other agreement in violation of this
173	section commits contracts to spend, or enters into an agreement
174	to spend, any money in excess of the amount appropriated to the
175	agency or branch for whom the contract or agreement is executed
176	is guilty of a misdemeanor of the first degree, punishable as
177	provided in s. 775.082 or s. 775.083.
178	Section 4.  Section 216.312, Florida Statutes, is created
179	to read:
180	216.312  Reporting contract expenditures.-
181	(1)  A state agency must provide written notification of
182	the terms and conditions of the contract to the Governor, the
183	President of the Senate, and the Speaker of the House of
184	Representatives at least 30 days before executing a contract, or
185	a series of contracts between the same parties, for the purchase
186	of services or tangible personal property that:
187	(a)  Requires payments by the state in excess of $10
188	million in any fiscal year;
189	(b)  Requires minimal or no payments by the state during
190	the fiscal year;
191	(c)  Authorizes the other party to make expenditures in
192	anticipation of collecting revenues from a third party,
193	including other state agencies, rather than receiving payments
194	from the state agency executing the contract; or
195	(d)  Requires initial expenditures by the other party and
196	for which the other party will not receive payment from the
197	state within 180 days after the expenditure.
198	(2)  The execution of any contract or agreement described
199	in subsection (1) is an action or proposed action subject to s.
200	216.177(2)(b).
201	Section 5.  Section 287.0582, Florida Statutes, is
202	transferred, renumbered as section 216.313, Florida Statutes,
203	and amended to read:
204	216.313 287.0582  Contract appropriation Contracts which
205	require annual appropriation; contingency statement;
206	requirements; penalty.-
207	(1)  An executive or judicial branch public officer or
208	employee may not enter into any contract or agreement on behalf
209	of the state or judicial branch which binds the state or its
210	executive agencies or the judicial branch for the purchase of
211	services or tangible personal property unless the contract
212	identifies the specific appropriation of state funds from which
213	the state will make payment under the contract in the first year
214	of the contract, or unless the Legislature expressly authorizes
215	the agency or the judicial branch to enter into such contract
216	absent a specific appropriation of funds.
217	(2)  An No executive or judicial branch public officer or
218	employee may not shall enter into any contract or agreement on
219	behalf of the state, which contract binds the state or its
220	executive agencies for the purchase of services or tangible
221	personal property for a period in excess of 1 fiscal year,
222	unless the following statements are statement is included in the
223	contract:
224	(a)  "The State of Florida's performance and obligation to
225	pay under this contract is contingent upon an annual
226	appropriation by the Legislature."
227	(b)  "This contract may be terminated by the state upon 10
228	days' written notice if funding for this contract is
229	specifically eliminated pursuant to a deficit reduction plan
230	implemented by:
231	1.  The Governor or the Chief Justice or by an act of the
232	Legislature after certification pursuant to section 216.221,
233	Florida Statutes, that a deficit will occur in the General
234	Revenue Fund; or
235	2.  The Governor or Chief Justice pursuant to section
236	216.221(10), Florida Statutes, or by an act of the Legislature,
237	after a determination by the Chief Financial Officer that a
238	deficit will occur with respect to appropriations from a
239	specific trust fund in the current fiscal year."
240	(3)  A contract or other agreement that exceeds:
241	(a)  The CATEGORY TWO threshold amount provided in s.
242	287.017 must be signed by the agency head, executive director,
243	or chief judge, as appropriate, or a designated senior
244	management employee.
245	(b)  A term of 12 months may not be executed by any
246	executive or judicial branch agency unless the agency head,
247	executive director, or chief judge, as appropriate, or a
248	designated senior management employee, determines that the
249	contract is in compliance with the requirements of this chapter
250	and certifies such compliance in writing within the contract or
251	agreement.
252	(c)  The CATEGORY FIVE threshold amount provided in s.
253	287.017 must require the written acceptance or rejection of
254	contract deliverables.
255	(4)  Any contract or other agreement in violation of this
256	section is null and void.
257	(5)  Any public officer or employee who willfully enters
258	into a contract or other agreement in violation of this section
259	commits a misdemeanor of the first degree, punishable as
260	provided in s. 775.082 or s. 775.083.
261	Section 6.  Subsection (4) of section 287.063, Florida
262	Statutes, is amended to read:
263	287.063  Deferred-payment commodity contracts; preaudit
264	review.-
265	(4)  Beginning July 1, 2011, an agency may not enter into a
266	lease or deferred-payment purchase arrangement for the
267	acquisition of equipment which has a total cost greater than
268	$500,000 unless the Legislature has expressly authorized such
269	lease or deferred-payment purchase arrangement in the General
270	Appropriations Act or the Legislative Budget Commission has
271	approved a transfer of budget authority from a traditional
272	appropriation category to the special appropriation category for
273	deferred-payment commodity contracts. For purposes of this
274	section, deferred-payment commodity contracts for replacing the
275	state accounting and cash management systems may include
276	equipment, accounting software, and implementation and project
277	management services.
278	Section 7.  Subsection (9) of section 287.064, Florida
279	Statutes, is amended to read:
280	287.064  Consolidated financing of deferred-payment
281	purchases.-
282	(9)  Beginning July 1, 2011, an agency may not enter into a
283	master equipment financing agreement that has a total cost
284	greater than $500,000 unless the Legislature has expressly
285	authorized such agreement in the General Appropriations Act or
286	the Legislative Budget Commission has approved a transfer of
287	budget authority from a traditional appropriation category to
288	the special appropriation category for deferred-payment
289	commodity contracts. For purposes of this section, deferred-
290	payment commodity contracts for replacing the state accounting
291	and cash management systems may include equipment, accounting
292	software, and implementation and project management services.
293	Section 8.  Subsections (4) and (9) of section 376.3075,
294	Florida Statutes, are amended to read:
295	376.3075  Inland Protection Financing Corporation.-
296	(4)  The corporation may enter into one or more service
297	contracts with the department to provide services to the
298	department in connection with financing the functions and
299	activities provided in ss. 376.30-376.317. The department may
300	enter into one or more such service contracts with the
301	corporation and provide payment for payments under such
302	contracts pursuant to s. 376.3071(4)(o), subject to annual
303	appropriation by the Legislature. The proceeds from such service
304	contracts may be used for the corporation's administrative costs
305	and expenses after payments as set forth in subsection (5). Each
306	service contract may have a term of up to 20 years. Amounts
307	annually appropriated and applied to make payments under such
308	service contracts may not include any funds derived from
309	penalties or other payments received from any property owner or
310	private party, including payments received under s.
311	376.3071(6)(b). In compliance with s. 216.313 287.0641 and other
312	applicable provisions of law, the obligations of the department
313	under such service contracts do not constitute a general
314	obligation of the state or a pledge of the faith and credit or
315	taxing power of the state nor may such obligations be construed
316	in any manner as an obligation of the State Board of
317	Administration or entities for which it invests funds, other
318	than the department as provided in this section, but are payable
319	solely from amounts available in the Inland Protection Trust
320	Fund, subject to annual appropriation. In compliance with this
321	subsection and s. 287.0582, The service contract must expressly
322	include the statements required under s. 216.313. following
323	statement: "The State of Florida's performance and obligation to
324	pay under this contract is contingent upon an annual
325	appropriation by the Legislature."
326	(9)  The corporation is not a special district for the
327	purposes of chapter 189 or a unit of local government for the
328	purposes of part III of chapter 218. The provisions of chapters
329	120 and 215, except the limitation on interest rates provided by
330	s. 215.84 which applies to obligations of the corporation issued
331	pursuant to this section, and part I of chapter 287, except s.
332	ss. 287.0582 and 287.0641, does do not apply to this section,
333	the corporation, the service contracts entered into pursuant to
334	this section, or debt obligations issued by the corporation as
335	contemplated in this section.
336	Section 9.  Subsections (5) and (10) of section 403.1837,
337	Florida Statutes, are amended to read:
338	403.1837  Florida Water Pollution Control Financing
339	Corporation.-
340	(5)  The corporation may enter into one or more service
341	contracts with the department under which the corporation shall
342	provide services to the department in connection with financing
343	the functions, projects, and activities provided in ss. 403.1835
344	and 403.8532. The department may enter into one or more service
345	contracts with the corporation and provide payment for payments
346	under those contracts pursuant to s. 403.1835(9) or s. 403.8533,
347	subject to annual appropriation by the Legislature.
348	(a)  The service contracts may provide for the transfer of
349	all or a portion of the funds in the Wastewater Treatment and
350	Stormwater Management Revolving Loan Trust Fund and the Drinking
351	Water Revolving Loan Trust Fund to the corporation for use by
352	the corporation for costs incurred by the corporation in its
353	operations, including, but not limited to, payment of debt
354	service, reserves, or other costs in relation to bonds issued by
355	the corporation, for use by the corporation at the request of
356	the department to directly provide the types of local financial
357	assistance provided in ss. 403.1835(3) and 403.8532(3), or for
358	payment of the administrative costs of the corporation.
359	(b)  The department may not transfer funds under any
360	service contract with the corporation without a specific
361	appropriation for such purpose in the General Appropriations
362	Act, except for administrative expenses incurred by the State
363	Board of Administration or other expenses necessary under
364	documents authorizing or securing previously issued bonds of the
365	corporation. The service contracts may also provide for the
366	assignment or transfer to the corporation of any loans made by
367	the department.
368	(c)  The service contracts may establish the operating
369	relationship between the department and the corporation and must
370	require the department to request the corporation to issue bonds
371	before any issuance of bonds by the corporation, to take any
372	actions necessary to enforce the agreements entered into between
373	the corporation and other parties, and to take all other actions
374	necessary to assist the corporation in its operations.
375	(d)  In compliance with s. 287.0641 and other applicable
376	provisions of law, the obligations of the department under the
377	service contracts do not constitute a general obligation of the
378	state or a pledge of the faith and credit or taxing power of the
379	state, nor may the obligations be construed as an obligation of
380	the State Board of Administration or entities for which it
381	invests funds, or of the department except as provided in this
382	section as payable solely from amounts available under any
383	service contract between the corporation and the department,
384	subject to appropriation.
385	(e)  The In compliance with this subsection and s.
386	287.0582, service contracts must expressly include the
387	statements required under s. 216.313. following statement: "The
388	State of Florida's performance and obligation to pay under this
389	contract is contingent upon an annual appropriation by the
390	Legislature."
391	(10)  The corporation is not a special district for
392	purposes of chapter 189 or a unit of local government for
393	purposes of part III of chapter 218. The provisions of chapters
394	120 and 215, except the limitation on interest rates provided by
395	s. 215.84, which applies to obligations of the corporation
396	issued under this section, and part I of chapter 287, except s.
397	ss. 287.0582 and 287.0641, do not apply to this section, the
398	corporation, the service contracts entered into under this
399	section, or debt obligations issued by the corporation as
400	provided in this section.
401	Section 10.  This act shall take effect July 1, 2011, and
402	applies to initial contracts and agreements, amendments to a
403	contract or agreement, and extensions or renewals of a contract
404	or agreement which are executed on or after that date.

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