Florida Senate - 2021                          SENATOR AMENDMENT
       Bill No. CS for CS for HB 195
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       Senator Garcia moved the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (1) of section 215.971, Florida
    6  Statutes, is amended to read:
    7         215.971 Agreements funded with federal or state
    8  assistance.—
    9         (1)(a) An agency agreement that provides state financial
   10  assistance to a recipient or subrecipient, as those terms are
   11  defined in s. 215.97, or that provides federal financial
   12  assistance to a subrecipient, as defined by applicable United
   13  States Office of Management and Budget circulars, must include
   14  all of the following:
   15         1.(a) A provision specifying a scope of work that clearly
   16  establishes the tasks that the recipient or subrecipient is
   17  required to perform.
   18         2.(b) A provision dividing the agreement into quantifiable
   19  units of deliverables that must be received and accepted in
   20  writing by the agency before payment. Each deliverable must be
   21  directly related to the scope of work and specify the required
   22  minimum level of service to be performed and the criteria for
   23  evaluating the successful completion of each deliverable.
   24         3.(c) A provision specifying the financial consequences
   25  that apply if the recipient or subrecipient fails to perform the
   26  minimum level of service required by the agreement. The
   27  provision can be excluded from the agreement only if financial
   28  consequences are prohibited by the federal agency awarding the
   29  grant. Funds refunded to a state agency from a recipient or
   30  subrecipient for failure to perform as required under the
   31  agreement may be expended only in direct support of the program
   32  from which the agreement originated.
   33         4.(d) A provision specifying that a recipient or
   34  subrecipient of federal or state financial assistance may expend
   35  funds only for allowable costs resulting from obligations
   36  incurred during the specified agreement period.
   37         5.(e) A provision specifying that any balance of
   38  unobligated funds which has been advanced or paid must be
   39  refunded to the state agency.
   40         6.(f) A provision specifying that any funds paid in excess
   41  of the amount to which the recipient or subrecipient is entitled
   42  under the terms and conditions of the agreement must be refunded
   43  to the state agency.
   44         7.(g) Any additional information required pursuant to s.
   45  215.97.
   46         (b)In addition to the requirements contained in paragraph
   47  (a), an agency agreement that provides state financial
   48  assistance to a recipient or subrecipient that is a nonprofit
   49  organization or a for-profit organization, as those terms are
   50  defined in s. 215.97(2), or that provides federal financial
   51  assistance to a subrecipient that is a nonprofit organization or
   52  a for-profit organization, must include all of the following:
   53         1.A provision specifying that funds will only be expended
   54  in accordance with their stated purpose and for the benefit of
   55  the public.
   56         2.A provision prohibiting the funds from being loaned to
   57  another entity for any purpose or donated as charitable or
   58  political contributions.
   59         3.A provision prohibiting the funds from being used for
   60  bonuses, exit bonuses, incentive payments, or severance payments
   61  to employees of a nonprofit organization or a for-profit
   62  organization, except as provided in s. 215.986.
   63         4.A provision prohibiting the funds from being used to
   64  retain a lobbyist to represent the nonprofit organization or
   65  for-profit organization before the legislative or executive
   66  branch. However, a full-time employee of a nonprofit
   67  organization may register as a lobbyist and represent the
   68  organization before the legislative or executive branch. Except
   69  as a full-time employee of a nonprofit organization, a person
   70  may not accept public funds from a nonprofit organization or a
   71  for-profit organization for lobbying.
   72         Section 2. Subsections (2) and (6) of section 215.985,
   73  Florida Statutes, are amended to read:
   74         215.985 Transparency in government spending.—
   75         (2) As used in this section, the term:
   76         (a) “Committee” means the Legislative Auditing Committee.
   77         (b) “Contract” means a written agreement or purchase order
   78  issued for the purchase of goods or services or a written
   79  agreement for the receipt of state or federal financial
   80  assistance.
   81         (c) “Governmental entity” means a state, regional, county,
   82  municipal, special district, or other political subdivision
   83  whether executive, judicial, or legislative, including, but not
   84  limited to, a department, division, bureau, commission,
   85  authority, district, or agency thereof, or public school,
   86  Florida College System institution, state university, or
   87  associated board.
   88         (d) “Nongovernmental entity” means a nonprofit corporation.
   89         (e) “State funds” means funds paid from the General Revenue
   90  Fund or any state trust fund, funds allocated by the Federal
   91  Government and distributed by the state, or funds appropriated
   92  by the state for distribution through any grant program.
   93         (f) “Website” means a site on the Internet which is easily
   94  accessible to the public at no cost and does not require the
   95  user to provide information.
   96         (6)(a) The Department of Management Services shall
   97  establish and maintain a website that provides current
   98  information relating to each employee or officer of a state
   99  agency, a state university, a Florida College System
  100  institution, or the State Board of Administration, regardless of
  101  the appropriation category from which the person is paid.
  102         1.(a) For each employee or officer, the information must
  103  include, at a minimum, his or her:
  104         a.1. Name and salary or hourly rate of pay.
  105         b.2. Position number, class code, and class title.
  106         c.3. Employing agency and budget entity.
  107         2.(b) The information must be searchable by state agency,
  108  state university, Florida College System institution, and the
  109  State Board of Administration, and by employee name, salary
  110  range, or class code and must be downloadable in a format that
  111  allows offline analysis.
  112         (b)1. A nongovernmental entity that receives at least 50
  113  percent of its annual revenue, calculated using the
  114  nongovernmental entity’s fiscal year, from state funds or that
  115  receives $750,000 or more in state funds in a fiscal year, must
  116  submit to the Department of Management Services by January 15 of
  117  each year a report that includes the name, position, and total
  118  annual compensation of, including bonuses, exit bonuses, accrued
  119  paid time off, severance payments, and incentive payments paid
  120  to, each director, board member, chief executive officer, chief
  121  financial officer, or chief operating officer or any other
  122  person performing equivalent functions. The report must be
  123  verified as provided in s. 92.525 by a director, board member,
  124  chief executive officer, chief financial officer, or chief
  125  operating officer of the nongovernmental entity.
  126         2. Beginning February 1, 2022, and each February 1
  127  thereafter, the Department of Management Services shall include
  128  the information reported in subparagraph 1. on the website
  129  established under paragraph (a).
  130         3. A nongovernmental entity required to submit a report
  131  under subparagraph 1. must post the reported information on its
  132  website if the entity maintains a website.
  133         4. Before receiving funds from a governmental entity, a
  134  nongovernmental entity that:
  135         a. Received funding subject to this paragraph in the
  136  preceding year must submit to the governmental entity an
  137  attestation verified as provided in s. 92.525, that the
  138  nongovernmental entity has submitted the report required in
  139  subparagraph 1.
  140         b. Did not receive funding subject to this paragraph in the
  141  preceding year must submit to the governmental entity an
  142  attestation verified as provided in s. 92.525, that the
  143  nongovernmental entity has not received funding in the preceding
  144  year.
  145         5.a.Beginning January 15, 2022, a governmental entity may
  146  not expend, transfer, or distribute funds to a nongovernmental
  147  entity until the nongovernmental entity has complied with the
  148  requirements of this paragraph.
  149         b. This subparagraph is applicable to payments associated
  150  with contracts executed, amended, extended, or renewed on or
  151  after July 1, 2021, and any transfers or distributions
  152  authorized on or after July 1, 2021.
  153         Section 3. Section 215.986, Florida Statutes, is created to
  154  read:
  155         215.986Reporting of administrative expenses for certain
  156  nongovernmental entities.—
  157         (1)As used in this section, the term:
  158         (a)“Administrative expenses” mean expenditures that are
  159  considered indirect operating costs of a nongovernmental entity,
  160  including, but not limited to:
  161         1.General administration and general expenses including
  162  accounting, support services, and personnel, including all
  163  compensation earned by or awarded to such personnel, whether
  164  paid or accrued, regardless of contingency, unless the
  165  compensation is explicitly included in the General
  166  Appropriations Act or the compensation relates to the employment
  167  of an employee whose services are integral to a project or
  168  activity of the nongovernmental entity. However, compensation
  169  earned by or awarded to a director, board member, chief
  170  executive officer, chief financial officer, chief operating
  171  officer, or other person performing equivalent functions,
  172  whether paid or accrued, regardless of contingency, shall not be
  173  considered integral to a project or activity of a nongovernment
  174  entity.
  175         2.Equipment and capital improvements, depreciation on
  176  buildings, interest on debt associated with such buildings, and
  177  operations and maintenance expenses.
  178         (b)“Nongovernmental entity” means a nonprofit corporation
  179  that receives at least 50 percent of its revenue, in any fiscal
  180  year of the nongovernmental entity, from state-appropriated
  181  funds, including state-appropriated federal funds.
  182         (2)(a)A nongovernmental entity must identify for each
  183  contract, grant, or other disbursement of state-appropriated
  184  funds, the amount of state-appropriated funds received, the
  185  amount of those funds used for administrative costs, and the
  186  percentage of the state-appropriated funds that are used for
  187  administrative costs. A nongovernmental entity must post this
  188  information on its website if the entity maintains a website.
  189         (b) Each state entity, as defined in s. 215.985, that
  190  disburses state-appropriated funds to a nongovernmental entity
  191  must collect the information identified in paragraph (a). The
  192  contract manager for the agency must review the actual
  193  administrative costs funded with state-appropriated funds and
  194  compare the amounts as identified in paragraph (a). The amounts
  195  must be included in the state entity's submissions to the
  196  contract tracking system established and maintained pursuant to
  197  s. 215.985.
  198         Section 4. This act shall take effect July 1, 2021.
  200  ================= T I T L E  A M E N D M E N T ================
  201  And the title is amended as follows:
  202         Delete everything before the enacting clause
  203  and insert:
  204                        A bill to be entitled                      
  205         An act relating to fiscal accountability for
  206         nongovernmental entities; amending s. 215.971, F.S.;
  207         revising the required contents of agency agreements
  208         that provide state financial assistance or federal
  209         financial assistance to certain entities; amending s.
  210         215.985, F.S.; defining terms; requiring
  211         nongovernmental entities that have received a
  212         specified amount of state funds to submit an annual
  213         report detailing certain compensation data to the
  214         Department of Management Services; requiring such
  215         reports to be verified under penalty of perjury;
  216         requiring the department to post the information
  217         received through such reports on a specified website;
  218         requiring a nongovernmental entity to post the
  219         reported compensation information on its website;
  220         requiring a nongovernmental entity to take certain
  221         actions before receiving funds from a governmental
  222         entity; prohibiting a governmental entity from
  223         expending, transferring, or distributing funds to a
  224         nongovernmental entity if compliance with reporting
  225         requirements is not met; specifying applicability;
  226         creating s. 215.986, F.S.; providing definitions;
  227         requiring a nongovernmental entity to identify certain
  228         information and post such information on its website;
  229         requiring a state entity to collect certain
  230         information; requiring a state agency to review
  231         certain costs and to report such costs in the contract
  232         tracking system; providing an effective date.