| 15 | 15 | | An act relating to evidence of vendor financial 2 |
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| 16 | 16 | | stability; amending s. 287.057, F.S.; authorizing an 3 |
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| 17 | 17 | | agency to establish financial stability criteria and 4 |
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| 18 | 18 | | require a vendor to demonstrate financial stability; 5 |
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| 19 | 19 | | providing that an agency that requires a vendor to 6 |
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| 20 | 20 | | demonstrate financial stability during a competitive 7 |
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| 21 | 21 | | solicitation process must accept certain evidence; 8 |
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| 22 | 22 | | defining the term "financial stability"; providing 9 |
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| 23 | 23 | | construction; providing an effective date. 10 |
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| 24 | 24 | | 11 |
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| 25 | 25 | | Be It Enacted by the Legislature of the State of Florida: 12 |
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| 26 | 26 | | 13 |
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| 27 | 27 | | Section 1. Subsection (27) is added to section 287.057, 14 |
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| 28 | 28 | | Florida Statutes, to read: 15 |
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| 29 | 29 | | 287.057 Procurement of commodities or contractual 16 |
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| 30 | 30 | | services.— 17 |
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| 31 | 31 | | (27)(a) In determining whether a vendor is a responsible 18 |
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| 32 | 32 | | vendor, an agency may establish financial stability criteria and 19 |
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| 33 | 33 | | require a vendor to demonstrate its financial stability. If an 20 |
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| 34 | 34 | | agency requires a vendor to demonstrate its financial stability 21 |
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| 35 | 35 | | during the competitive solicitation process, the agency must 22 |
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| 36 | 36 | | accept any of the following as evidence of the vendor's 23 |
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| 37 | 37 | | financial stability: 24 |
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| 38 | 38 | | 1. Audited financial statements that demonstrate the 25 |
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| 46 | 46 | | Page 2 of 3 |
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| 47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 48 | 48 | | |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | vendor's satisfaction of financial stability criteria. 26 |
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| 52 | 52 | | 2. Documentation of an investment grade rating from a 27 |
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| 53 | 53 | | credit rating agency designated as a nationally recognized 28 |
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| 54 | 54 | | statistical rating organization by the Securities and Exchange 29 |
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| 55 | 55 | | Commission. 30 |
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| 56 | 56 | | 3.a. For a vendor with annual revenues exceeding $1 31 |
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| 57 | 57 | | billion, a letter containing a written declaration, pursuant to 32 |
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| 58 | 58 | | s. 92.525, issued by the chief financial officer or controller 33 |
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| 59 | 59 | | attesting that the vendor is financially stable and meets the 34 |
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| 60 | 60 | | definition of financial stability in paragraph (b). 35 |
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| 61 | 61 | | b. For a vendor with annual revenues of $ 1 billion or 36 |
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| 62 | 62 | | less, documentation, based on criteria established by the 37 |
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| 63 | 63 | | agency, evidencing that the vendor is financially stable and 38 |
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| 64 | 64 | | meets the definition of financial stability in paragraph (b). 39 |
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| 65 | 65 | | The criteria established by the agency shall be reasonably 40 |
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| 66 | 66 | | related to the value of the contract and may not include audited 41 |
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| 67 | 67 | | financial statements. 42 |
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| 68 | 68 | | (b) For purposes of this subsection, the term "financial 43 |
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| 69 | 69 | | stability" means, at a minimum, having adequate income and 44 |
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| 70 | 70 | | capital and the capacity to efficiently allocate resou rces, 45 |
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| 71 | 71 | | assess and manage financial risks, and maintain financial 46 |
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| 72 | 72 | | soundness through the term of the contract. 47 |
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| 73 | 73 | | (c) This subsection does not preclude an agency from 48 |
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| 74 | 74 | | requiring a performance bond for the duration of the contract, 49 |
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| 75 | 75 | | when appropriate. 50 |
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