Florida Senate - 2021 SB 788 By Senator Cruz 18-00195-21 2021788__ 1 A bill to be entitled 2 An act relating to state contracting; creating s. 3 287.1351, F.S.; defining the term “vendor”; 4 prohibiting vendors that default or otherwise fail to 5 fulfill terms and conditions of a state contract from 6 submitting a bid, proposal, or reply, or entering into 7 or renewing a contract, to provide any goods or 8 services to an agency after placement on the suspended 9 vendor list; prohibiting an agency from accepting any 10 bids, proposals, or replies from, or entering into or 11 renewing any contract with, any suspended vendor until 12 certain conditions are met; requiring an agency to 13 notify the Department of Management Services of, and 14 provide certain information regarding, any such 15 vendors; requiring the department to review any vendor 16 reported by an agency; requiring the department to 17 notify any vendor of any intended removal from the 18 vendor list; specifying administrative remedies, and 19 applicable procedures, for an affected vendor; 20 requiring the department to place any such vendor on 21 the suspended vendor list; authorizing a suspended 22 vendor’s removal from the suspended vendor list in 23 accordance with specified procedures; specifying 24 requirements and limitations; providing an effective 25 date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Section 287.1351, Florida Statutes, is created 30 to read: 31 287.1351 Suspended vendors; state contracts.— 32 (1) As used in this section, the term “vendor” means a 33 person or an entity that provides goods or services to an agency 34 under a contract or submits a bid, proposal, or reply to provide 35 goods or services to an agency. 36 (2)(a) A vendor that is in default on any contract with an 37 agency or has otherwise repeatedly demonstrated a recent 38 inability to fulfill the terms and conditions of previous state 39 contracts or to adequately perform its duties under those 40 contracts may not submit a bid, proposal, or reply to an agency 41 or enter into or renew a contract to provide any goods or 42 services to an agency after its placement, pursuant to this 43 section, on the suspended vendor list. 44 (b) An agency may not accept a bid, proposal, or reply 45 from, or enter into or renew any contract with, a vendor on the 46 suspended vendor list until such vendor has been removed from 47 the suspended vendor list and returned to the vendor list 48 maintained by the department pursuant to s. 287.042(1)(a) and 49 (b) and the vendor has reimbursed the agency for any 50 reprocurement costs. 51 (3) An agency shall notify the department of any vendor 52 that has met the grounds for suspension described in paragraph 53 (2)(a). The agency must provide documentation to the department 54 evidencing the vendor’s default or other grounds for suspension. 55 The department shall review the documentation provided and 56 determine whether good cause exists to remove the company from 57 the vendor list and to place it on the suspended vendor list. If 58 good cause exists, the department must notify the vendor in 59 writing of its intent to remove the vendor from the vendor list 60 and of the vendor’s right to an administrative hearing and the 61 applicable procedures and time requirements for any such 62 hearing. If the vendor does not request an administrative 63 hearing, the department must enter a final order removing the 64 vendor from the vendor list. A vendor may not be removed from 65 the vendor list without receiving an individual notice of intent 66 from the department. 67 (4) Within 21 days after receipt of the notice of intent, 68 the vendor may file with the department a petition for a formal 69 hearing pursuant to ss. 120.569 and 120.57 to challenge the 70 department’s decision to remove the vendor from the vendor list. 71 A vendor that fails to timely file a petition in accordance with 72 this subsection is deemed to have waived its right to a hearing, 73 and the department’s decision to remove the vendor from the 74 vendor list becomes final agency action. 75 (5)(a) The department shall place any vendor removed from 76 the vendor list pursuant to this section on the suspended vendor 77 list. One year or more after entry of the final order of its 78 suspension, a suspended vendor may file a petition with the 79 department for removal from the suspended vendor list. The 80 proceeding on the petition must be conducted in accordance with 81 chapter 120. The vendor may be removed from the suspended vendor 82 list if the administrative law judge determines that removal 83 from the list would be in the public interest. In determining 84 whether removal from the list would be in the public interest, 85 the administrative law judge may consider, but is not limited 86 to, whether the suspended vendor has prepared a corrective 87 action plan that addresses the original grounds for default or 88 failure to fulfill the terms and conditions of the contract, 89 reimbursed the agency for any reprocurement costs, or provided 90 additional evidence that the vendor has taken other remedial 91 action. 92 (b) If a petition for removal from the suspended vendor 93 list is denied, the vendor may not petition for another hearing 94 on removal for a period of at least 9 months after the date of 95 the denial. The department may petition for the suspended 96 vendor’s removal before the expiration of such period if, in the 97 department’s discretion, the department determines that removal 98 from the suspended vendor list would be in the public interest. 99 Section 2. This act shall take effect July 1, 2021.