Florida Senate - 2015                      CS for CS for SB 1304
       
       
        
       By the Committees on Fiscal Policy; and Governmental Oversight
       and Accountability; and Senator Latvala
       
       
       
       
       594-04172-15                                          20151304c2
    1                        A bill to be entitled                      
    2         An act relating to inspectors general; amending s.
    3         14.32, F.S.; authorizing the Chief Inspector General
    4         or his or her designee to retain legal counsel and
    5         issue and enforce subpoenas under certain
    6         circumstances; amending s. 20.055, F.S.; revising the
    7         definitions of the terms “agency head” and “state
    8         agency” to include the Office of Early Learning of the
    9         Department of Education; prescribing additional hiring
   10         requirements, employment qualifications, and terms of
   11         employment for inspectors general and staff of the
   12         office of inspector general; establishing the duty of
   13         specified persons and entities with respect to
   14         cooperation with an inspector general’s official
   15         duties; requiring contracts and other specified
   16         documents to contain a statement regarding compliance
   17         with an inspector general’s official duties; providing
   18         an effective date.
   19          
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Subsection (5) is added to section 14.32,
   23  Florida Statutes, to read:
   24         14.32 Office of Chief Inspector General.—
   25         (5) In exercising authority under this section, the Chief
   26  Inspector General or his or her designee may:
   27         (a) Hire or retain legal counsel.
   28         (b) Issue and serve subpoenas and subpoenas duces tecum,
   29  for agencies under the jurisdiction of the Governor, to compel
   30  the attendance of witnesses and the production of documents,
   31  reports, answers, records, accounts, and other data in any
   32  medium.
   33         (c) Require or allow a person to file a statement in
   34  writing, under oath or otherwise, as to all the facts and
   35  circumstances concerning the matter to be audited, examined, or
   36  investigated.
   37  
   38  In the event of noncompliance with a subpoena issued pursuant to
   39  this subsection, the Chief Inspector General may petition the
   40  circuit court of the county in which the person subpoenaed
   41  resides or has his or her principal place of business for an
   42  order requiring the person subpoenaed to appear and testify and
   43  to produce documents, reports, answers, records, accounts, or
   44  other data as specified in the subpoena.
   45         Section 2. Subsections (1) through (4) of section 20.055,
   46  Florida Statutes, are amended, present subsections (5) through
   47  (9) are redesignated as subsections (6) through (10),
   48  respectively, and a new subsection (5) is added to that section,
   49  to read:
   50         20.055 Agency inspectors general.—
   51         (1) As used in this section, the term:
   52         (a) “Agency head” means the Governor, a Cabinet officer, or
   53  a secretary or executive director as those terms are defined in
   54  s. 20.03, the chair of the Public Service Commission, the
   55  Director of the Office of Insurance Regulation of the Financial
   56  Services Commission, the Director of the Office of Financial
   57  Regulation of the Financial Services Commission, the board of
   58  directors of the Florida Housing Finance Corporation, the
   59  Executive Director of the Office of Early Learning, and the
   60  Chief Justice of the State Supreme Court.
   61         (b) “Entities contracting with the state” means for-profit
   62  and not-for-profit organizations or businesses that have a legal
   63  existence, such as corporations or partnerships, as opposed to
   64  natural persons, which have entered into a relationship with a
   65  state agency to provide for consideration certain goods or
   66  services to the state agency or on behalf of the state agency.
   67  The relationship may be evidenced by payment by warrant or
   68  purchasing card, contract, purchase order, provider agreement,
   69  or other such mutually agreed upon relationship. The term does
   70  not apply to entities that are the subject of audits or
   71  investigations conducted pursuant to ss. 112.3187-112.31895 or
   72  s. 409.913 or which are otherwise confidential and exempt under
   73  s. 119.07.
   74         (c) “Individuals substantially affected” means natural
   75  persons who have established a real and sufficiently immediate
   76  injury in fact due to the findings, conclusions, or
   77  recommendations of a final report of a state agency inspector
   78  general, who are the subject of the audit or investigation, and
   79  who do not have or are not currently afforded an existing right
   80  to an independent review process. The term does not apply to
   81  employees of the state, including career service, probationary,
   82  other personal service, Selected Exempt Service, and Senior
   83  Management Service employees; former employees of the state if
   84  the final report of the state agency inspector general relates
   85  to matters arising during a former employee’s term of state
   86  employment; or persons who are the subject of audits or
   87  investigations conducted pursuant to ss. 112.3187-112.31895 or
   88  s. 409.913 or which are otherwise confidential and exempt under
   89  s. 119.07.
   90         (d) “State agency” means each department created pursuant
   91  to this chapter and the Executive Office of the Governor, the
   92  Department of Military Affairs, the Fish and Wildlife
   93  Conservation Commission, the Office of Insurance Regulation of
   94  the Financial Services Commission, the Office of Financial
   95  Regulation of the Financial Services Commission, the Public
   96  Service Commission, the Board of Governors of the State
   97  University System, the Florida Housing Finance Corporation, the
   98  Agency for State Technology, the Office of Early Learning, and
   99  the state courts system.
  100         (2) An The office of inspector general is established in
  101  each state agency to provide a central point for coordination of
  102  and responsibility for activities that promote accountability,
  103  integrity, and efficiency in government. It is the duty and
  104  responsibility of each inspector general, with respect to the
  105  state agency in which the office is established, to:
  106         (a) Advise in the development of performance measures,
  107  standards, and procedures for the evaluation of state agency
  108  programs.
  109         (b) Assess the reliability and validity of the information
  110  provided by the state agency on performance measures and
  111  standards, and make recommendations for improvement, if
  112  necessary, before submission of such information pursuant to s.
  113  216.1827.
  114         (c) Review the actions taken by the state agency to improve
  115  program performance and meet program standards and make
  116  recommendations for improvement, if necessary.
  117         (d) Provide direction for, supervise, and coordinate
  118  audits, investigations, and management reviews relating to the
  119  programs and operations of the state agency, except that when
  120  the inspector general does not possess the qualifications
  121  specified in subsection (4), the director of auditing shall
  122  conduct such audits.
  123         (e) Conduct, supervise, or coordinate other activities
  124  carried out or financed by that state agency for the purpose of
  125  promoting economy and efficiency in the administration of, or
  126  preventing and detecting fraud and abuse in, its programs and
  127  operations.
  128         (f) Keep the agency head or, for state agencies under the
  129  jurisdiction of the Governor, the Chief Inspector General
  130  informed concerning fraud, abuses, and deficiencies relating to
  131  programs and operations administered or financed by the state
  132  agency, recommend corrective action concerning fraud, abuses,
  133  and deficiencies, and report on the progress made in
  134  implementing corrective action.
  135         (g) Ensure effective coordination and cooperation between
  136  the Auditor General, federal auditors, and other governmental
  137  bodies with a view toward avoiding duplication.
  138         (h) Review, as appropriate, rules relating to the programs
  139  and operations of such state agency and make recommendations
  140  concerning their impact.
  141         (i) Ensure that an appropriate balance is maintained
  142  between audit, investigative, and other accountability
  143  activities.
  144         (j) Comply with the General Principles and Standards for
  145  Offices of Inspector General as published and revised by the
  146  Association of Inspectors General.
  147         (3)(a)1. For state agencies under the jurisdiction of the
  148  Cabinet or the Governor and Cabinet, the inspector general shall
  149  be appointed by the agency head. For state agencies under the
  150  jurisdiction of the Governor, the inspector general shall be
  151  appointed by the Chief Inspector General. The agency head or
  152  Chief Inspector General shall notify the Governor in writing of
  153  his or her intention to hire the inspector general at least 7
  154  days before an offer of employment. The inspector general shall
  155  be appointed without regard to political affiliation.
  156         2. Within 60 days after a vacancy or anticipated vacancy in
  157  the position of inspector general, the agency head or, for
  158  agencies under the jurisdiction of the Governor, the Chief
  159  Inspector General, shall initiate a national search for an
  160  inspector general and shall set the salary of the inspector
  161  general. In the event of a vacancy in the position of inspector
  162  general, the agency head or, for agencies under the jurisdiction
  163  of the Governor, the Chief Inspector General, may appoint other
  164  office of inspector general management personnel as interim
  165  inspector general until such time as a successor inspector
  166  general is appointed.
  167         3. A former or current elected official may not be
  168  appointed inspector general within 5 years after the end of such
  169  individual’s period of service. This restriction does not
  170  prohibit the reappointment of a current inspector general.
  171         (b) The inspector general shall report to and be under the
  172  general supervision of the agency head and is not subject to
  173  supervision by any other employee of the state agency in which
  174  the office is established. For state agencies under the
  175  jurisdiction of the Governor, the inspector general shall be
  176  under the general supervision of the agency head for
  177  administrative purposes, shall report to the Chief Inspector
  178  General, and may hire and remove staff within the office of the
  179  inspector general in consultation with the Chief Inspector
  180  General but independently of the agency.
  181         (c) For state agencies under the jurisdiction of the
  182  Cabinet or the Governor and Cabinet, the inspector general may
  183  be removed from office by the agency head. For state agencies
  184  under the jurisdiction of the Governor, the inspector general
  185  may only be removed from office by the Chief Inspector General
  186  for cause, including concerns regarding performance,
  187  malfeasance, misfeasance, misconduct, or failure to carry out
  188  his or her duties under this section. The Chief Inspector
  189  General shall notify the Governor in writing of his or her
  190  intention to remove the inspector general at least 21 days
  191  before the removal. For state agencies under the jurisdiction of
  192  the Governor and Cabinet, the agency head shall notify the
  193  Governor and Cabinet in writing of his or her intention to
  194  remove the inspector general at least 21 days before the
  195  removal. If the inspector general disagrees with the removal,
  196  the inspector general may present objections in writing to the
  197  Governor within the 21-day period.
  198         (d) The Governor, the Governor and Cabinet, the agency
  199  head, or agency staff may not prevent or prohibit the inspector
  200  general from initiating, carrying out, or completing any audit
  201  or investigation.
  202         (4)(a) To ensure that state agency audits are performed in
  203  accordance with applicable auditing standards, the inspector
  204  general or the director of auditing within the inspector
  205  general’s office shall possess the following qualifications:
  206         1.(a) A bachelor’s degree from an accredited college or
  207  university with a major in accounting, or with a major in
  208  business which includes five courses in accounting, and 5 years
  209  of experience as an internal auditor or independent postauditor,
  210  electronic data processing auditor, accountant, or any
  211  combination thereof. At a minimum, the experience must shall at
  212  a minimum consist of audits of units of government or private
  213  business enterprises, operating for profit or not for profit; or
  214         2.(b) A master’s degree in accounting, business
  215  administration, or public administration from an accredited
  216  college or university and 4 years of the professional experience
  217  as required under subparagraph 1. in paragraph (a); or
  218         3.(c) A certified public accountant license issued pursuant
  219  to chapter 473 or a certified internal audit certificate issued
  220  by the Institute of Internal Auditors or earned by examination,
  221  and 4 years of the professional experience as required under
  222  subparagraph 1. in paragraph (a).
  223         (b) For agencies under the jurisdiction of the Governor,
  224  the inspector general shall be selected on the basis of
  225  integrity, leadership capability, and experience in accounting,
  226  auditing, financial analysis, law, management analysis, program
  227  evaluation, public administration, investigation, criminal
  228  justice administration, or another closely related field. The
  229  inspector general is subject to level 2 background screening
  230  pursuant to chapter 435. The inspector general shall have a 4
  231  year degree from an accredited institution of higher learning or
  232  at least 5 years of experience in at least one of the following
  233  areas:
  234         1. Inspector general.
  235         2. Supervisory experience in an office of inspector general
  236  or an investigative public agency similar to an office of
  237  inspector general.
  238         3. Local, state, or federal law enforcement officer.
  239         4. Local, state, or federal court judge.
  240         5. Senior-level auditor or comptroller.
  241         6. The administration and management of complex audits and
  242  investigations.
  243         7. Managing programs for prevention, examination,
  244  detection, elimination of fraud, waste, abuse, mismanagement,
  245  malfeasance, or misconduct in government or organizations.
  246  
  247  An advanced degree in law, accounting, public administration, or
  248  another relevant field may substitute for 1 year of required
  249  experience.
  250         (c) The inspector general shall possess at appointment, or
  251  obtain within the first year after appointment, a certification
  252  from the Association of Inspectors General as a certified
  253  inspector general. The inspector general shall have at least one
  254  other related professional certification, such as certified
  255  inspector general investigator, certified inspector general
  256  auditor, certified public accountant, certified internal
  257  auditor, certified governmental financial manager, certified
  258  fraud examiner, or certified financial crimes investigator, or
  259  be a licensed attorney.
  260         (d) The inspector general may not hold, or be a candidate
  261  for, an elective office with the state or any municipality,
  262  county, or other political subdivision of the state while
  263  inspector general, and a current officer or employee of an
  264  office of inspector general may not hold, or be a candidate for,
  265  an elective office with the state or any municipality, county,
  266  or other political subdivision of the state. The inspector
  267  general may not hold office in a political party or political
  268  committee. An employee of an office of inspector general may not
  269  hold office in a political party or political committee while
  270  employed in the office of inspector general.
  271         (5) It is the duty of every state officer, employee,
  272  agency, special district, board, commission, contractor, and
  273  subcontractor to cooperate with the inspector general in any
  274  investigation, audit, inspection, review, or hearing conducted
  275  pursuant to this section. Beginning July 1, 2015, each contract,
  276  bid, proposal, and application or solicitation for a contract
  277  shall contain a statement that the corporation, partnership, or
  278  person understands and will comply with this subsection.
  279         Section 3. This act shall take effect July 1, 2015.