This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1541a.PIE
DATE: 2/7/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1541 Government Accountability
SPONSOR(S): Toledo
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Public Integrity & Elections Committee 17 Y, 0 N Rubottom Rubottom
2) State Affairs Committee
SUMMARY ANALYSIS
The bill includes various provisions designed to promote integrity in government and identify and eliminate
fraud, waste, abuse, mismanagement, and misconduct in government. Specifically, the bill:
Requires the Chief Inspector General (CIG) and agency inspectors general to determine whether there
is reasonable probability that fraud, waste, abuse, mismanagement, or misconduct in government has
occurred within six months of initiating an investigation of such activity.
Provides a mechanism for the state to recover funds when the CIG or an agency inspector general
determines a public official, independent contractor, or agency has committed fraud, waste, abuse,
mismanagement, or misconduct in government.
Requires the Chief Financial Officer to regularly forward to the Legislative Auditing Committee copies of
suggestions and information submitted through the state’s “Get Lean” hotline.
Provides a financial incentive for agency employees to file “Whistle-blower’s Act” complaints and
participate in investigations that lead to the recovery of funds.
Requires specified terms be included in all contracts with public agencies.
Broadens the competitive solicitation exemption for broadcasting of public service announcements.
Prohibits state or local tax incentive funds from being used to award or pay a state contractor for
services provided or expenditures incurred pursuant to a state contract.
Prohibits a state employee from lobbying for an appropriation and also participating in awarding any
contract funded by the appropriation with exceptions for agency heads, certain employees of the
Governor, or an employee who is required to register as a lobbyist but whose primary job
responsibilities do not include lobbying.
The fiscal impact of the bill is indeterminate, but likely insignificant, and is expected to be absorbed within
existing agency resources. See Fiscal Comments. STORAGE NAME: h1541a.PIE PAGE: 2
DATE: 2/7/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Auditor General Responsibilities (Section 1)
Current Situation
The United States Government Accountability Office (GAO) is an independent, nonpartisan agency that
works for Congress.
1
Often called the “congressional watchdog,” the GAO examines how taxpayer
dollars are spent and provides Congress and federal agencies with objective, reliable information to
help the government save money and work more efficiently.
2
GAO’s publication, Government Auditing
Standards (known as the “Yellow Book”) provides “a framework for performing high-quality audit work
with competence, integrity, objectivity, and independence to provide accountability and to help improve
government operations and services.”
3
Among other things, the Yellow Book provides a standard
definition for “abuse.”
4
The Florida Department of Management Services (DMS) has promulgated rules that set forth the
minimum standards of conduct that apply to all employees in the State Personnel System, the violation
of which may result in dismissal.
5
Current law requires the Auditor General to conduct operational audits
6
of state agencies, state
universities, state colleges, district school boards, the Florida Clerks of Court Operations Corporation,
water management districts, and the Florida School for the Deaf and the Blind at least every three
years.
7
Current law also requires the Auditor General to conduct a financial audit
8
of all state
universities and state colleges on an annual basis.
9
The Auditor General is required to perform a
financial audit of district school boards in counties that have populations of 150,000 or more at least
once every three years and annually in counties with populations of fewer than 150,000.
10
1
GAO, https://www.gao.gov/about (last visited Mar. 23, 2021).
2
Id.
3
GAO, Government Auditing Standards 1 (July 2018).
4
Id. at 114. The GAO defines “abuse” as behavior that is deficient or improper when compared with behavior that a
prudent person would consider a reasonable and necessary operational practice given the facts and circumstances. The
term includes the misuse of authority or position for personal gain or for the gain of an immediate or close family member
or business associate.
5
R. 60L-36.005, F.A.C., defines “misconduct” as conduct which, though not illegal or inappropriate for a state employee
generally, is inappropriate for a person in the employee’s particular position.
6
S. 11.45(1)(g), F.S., defines an “operational audit” as an audit whose purpose is to evaluate management’s performance
in establishing and maintaining internal controls, including controls designed to prevent and detect fraud, waste, and
abuse, and in administering assigned responsibilities in accordance with applicable laws, administrative rules, contracts,
grant agreements, and other guidelines. Operational audits must be conducted in accordance with government auditing
standards. Such audits examine internal controls that are designed and placed in operation to promote and encourage the
achievement of management’s control objectives in the categories of compliance, economic and efficient operations,
reliability of financial records and reports, and safeguarding of assets, and identify weaknesses in those internal controls.
7
S. 11.45(2)(f), F.S.
8
S. 11.45(1)(c), F.S., defines a “financial audit” as an examination of financial statements in order to express an opinion
on the fairness with which they are presented in conformity with generally accepted accounting principles and an
examination to determine whether operations are properly conducted in accordance with legal and regulatory
requirements. Financial audits must be conducted in accordance with auditing standards generally accepted in the United
States and government auditing standards as adopted by the Board of Accountancy. When applicable, the scope of
financial audits must encompass the additional activities necessary to establish compliance with the Single Audit Act
Amendments of 1996, 31 U.S.C. ss. 7501-7507, and other applicable federal law.
9
S. 11.45(2)(c), F.S.
10
S. 11.45(2)(d) and (e), F.S. STORAGE NAME: h1541a.PIE PAGE: 3
DATE: 2/7/2022
The Legislative Auditing Committee is defined in Florida Statutes to be a committee or committees
designated by joint rule of the Legislature or by the presiding officers of the Legislatures acting
separately or by agreement.
11
It is currently organized under Joint Rule Four of the Legislature.
12
It
supports legislative oversight of public audits.
If an operational or financial audit report indicates a district school board, state university, or state
college has failed to take full corrective action in response to a recommendation that was included in
the two preceding operational or financial audit reports, the Auditor General is required to notify the
Legislative Auditing Committee.
13
In such cases, the Legislative Auditing Committee may initiate
actions that require the audited organization to demonstrate the steps it has taken towards corrective
action.
14
This reporting cycle may result in the Legislative Auditing Committee not being notified of one
of the above referenced entity’s failure to take full corrective action for six or more years.
Effect of Proposed Changes
The bill defines the term “abuse” in the audit law to include the misuse of authority or position for the
benefit of another. The definition for “abuse” mirrors the definition used by GAO in the Yellow Book.
The bill also makes a technical change to the definition of “fraud”, substituting “entity’s” for
“organization’s” to better reflect the range of audits conducted.
The bill revises the Auditor General’s notification responsibilities with respect to a district school board,
state university, or state college failing to take full corrective action on an audit finding by shortening the
cycle from three to two successive operational audits.
The bill requires the Auditor General to publish a report consolidating common operational audit
findings for all state agencies, all state universities, all state colleges, and all district school boards at
the conclusion of each three-year cycle.
Inspectors General (Sections 2 and 5)
Current Situation
The Office of Chief Inspector General (CIG) is responsible for promoting accountability, integrity, and
efficiency in agencies under the Governor’s jurisdiction.
15
The CIG monitors the activities of the agency
inspectors general under the Governor’s jurisdiction and is required to do the following:
Initiate, supervise, and coordinate investigations, recommend policies, and carry out other
activities designed to deter, detect, prevent, and eradicate fraud, waste, abuse,
mismanagement, and misconduct in government;
Investigate, upon receipt of a complaint or for cause, any administrative action of any agency
the administration of which is under the direct supervision of the Governor;
Request such assistance and information as may be necessary for the performance of the
CIG’s duties;
Examine the records and reports of any agency the administration of which is under the direct
supervision of the Governor;
Coordinate complaint-handling activities with agencies;
Coordinate the activities of the Whistle-blower’s Act and maintain the whistle-blower’s hotline to
receive complaints and information concerning the possible violation of law or administrative
rules, mismanagement, fraud, waste, abuse of authority, malfeasance, or a substantial or
specific danger to the health, welfare, or safety of the public;
11
S. 1.01(17), F.S.
12
J.R. 4.1 creates the standing joint Legislative Auditing Committee. J.R. 4.5 delegates particular powers to the
committee.
13
S. 11.45(7)(j), F.S.
14
Id.
15
S. 14.32(1), F.S. STORAGE NAME: h1541a.PIE PAGE: 4
DATE: 2/7/2022
Report expeditiously to and cooperate fully with the Department of Law Enforcement, the
Department of Legal Affairs, and other law enforcement agencies when there are recognizable
grounds to believe that there has been a violation of criminal law or that a civil action should be
initiated;
Act as liaison with outside agencies and the federal government to promote accountability,
integrity, and efficiency in state government;
Act as liaison and monitor the activities of the inspectors general in the agencies under the
Governor’s jurisdiction;
Review, evaluate, and monitor the policies, practices, and operations of the Executive Office of
the Governor; and
Conduct special investigations and management reviews at the request of the Governor.
16
Authorized under s. 20.055, F.S., an Office of Inspector General (OIG) is established in each state
agency
17
to provide a central point for the coordination and responsibility for activities that promote
accountability, integrity, and efficiency in government. Each agency OIG is responsible for the
following:
Advising in the development of performance measures, standards, and procedures for the
evaluation of state agency programs;
Assessing the reliability and validity of information provided by the agency on performance
measures and standards;
Reviewing the actions taken by the agency to improve agency performance, and making
recommendations, if necessary;
Supervising and coordinating audits, investigations, and reviews relating to the programs and
operations of the state agency;
Conducting, supervising, or coordinating other activities carried out or financed by the agency
for the purpose of promoting economy and efficiency in the administration of, or preventing and
detecting fraud and abuse in, its programs and operations;
Providing central coordination of efforts to identify and remedy waste, abuse, and deficiencies to
the agency head,
18
or the CIG for agencies under the jurisdiction of the Governor;
recommending corrective action concerning fraud, abuses, and deficiencies; and reporting on
the progress made in implementing corrective action;
Coordinating agency-specific audit activities between the Auditor General, federal auditors, and
other governmental bodies to avoid duplication;
Reviewing rules relating to the programs and operations of the agency and making
recommendations concerning their impact;
Ensuring that an appropriate balance is maintained between audit, investigative, and other
accountability activities; and
Complying with the General Principles and Standards for Offices of Inspector General as
published and revised by the Association of Inspectors General.
19
With respect to investigations, each OIG must initiate, conduct, supervise, and coordinate
investigations designed to detect, deter, prevent, and eradicate fraud, waste, mismanagement,
16
S. 14.32(2), F.S.
17
S. 20.055(1)(d), F.S., defines the term “state agency” as each department created pursuant to ch. 20, F.S., and the
Executive Office of the Governor, the Department of Military Affairs, the Fish and Wildlife Conservation Commission, the
Office of Insurance Regulation of the Financial Services Commission, the Office of Financial Regulation of the Financial
Services Commission, the Public Service Commission, the Board of Governors of the State University System, the Florida
Housing Finance Corporation, the Agency for State Technology, the Office of Early Learning, and the state courts system.
18
S. 20.055(1)(a), F.S., defines the term “agency head” as the Governor, a Cabinet officer, a secretary as defined in s.
20.03(5), F.S., or an executive director as defined in s. 20.03(6), F.S. It also includes the chair of the Public Service
Commission, the Director of the Office of Insurance Regulation of the Financial Services Commission, the Director of the
Office of Financial Regulation of the Financial Services Commission, the board of directors of the Florida Housing Finance
Corporation, the executive director of the Office of Early Learning, and the Chief Justice of the State Supreme Court.
19
S. 20.055(2), F.S. STORAGE NAME: h1541a.PIE PAGE: 5
DATE: 2/7/2022
misconduct, and other abuses in state government.
20
For these purposes, each inspector general must
do the following:
Receive complaints and coordinate all activities of the agency as required by the Whistle-
blower’s Act;
Receive and consider the complaints that do not meet the criteria for an investigation under the
Whistle-blower’s Act and conduct, supervise, or coordinate such inquiries, investigations, or
reviews as the inspector general deems appropriate;
Report expeditiously to the Department of Law Enforcement or other law enforcement agencies,
as appropriate, when the inspector general has reasonable grounds to believe there has been a
violation of criminal law;
Conduct investigations and other inquiries free of actual or perceived impairment to the
independence of the inspector general or the inspector general’s office. This must include
freedom from any interference with investigations and timely access to records and other
sources of information;
At the conclusion of an investigation, the subject of which is an entity contracting with the state
or an individual substantially affected, submit the findings to the contracting entity or the
individual substantially affected, who must be advised that they may submit a written response
to the findings. The response and the inspector general’s rebuttal to the response, if any, must
be included in the final audit report; and
Submit in a timely fashion final reports on investigations conducted by the inspector general to
the agency head.
21
Effect of Proposed Changes
The bill provides definitions for the terms “fraud,”
22
“waste,”
23
“abuse,”
24
and “misconduct.”
25
The
definitions for “fraud,” “waste,” and “abuse” mirror the definitions used by GAO, as provided in the
Standards for Internal Control in the Federal Government (known as the “Green Book”).
26
The definition
for “misconduct” mirrors the definition promulgated by DMS in r. 60L-36.005, F.A.C.
The bill requires the CIG and agency inspectors general to make a reasonable probability determination
within six months of initiating an investigation of fraud, waste, abuse, mismanagement, or misconduct in
government. Pursuant to the bill’s provisions, if the investigation continues in the absence of
reasonable probability that fraud, waste, abuse, mismanagement, or misconduct has occurred, the CIG
or any agency inspector general must make a new determination every three months until the
investigation is closed or reasonable probability is found.
If the CIG or an agency inspector general determines there is reasonable probability to believe a public
official, independent contractor, or agency has committed fraud, waste, abuse, mismanagement, or
misconduct in government, the bill requires the applicable inspector general to report such
determination to the Legislative Auditing Committee.
20
S. 20.055(7), F.S.
21
Id.
22
The bill defines the term “fraud” as obtaining something of value through willful misrepresentation, including, but not
limited to, the intentional misstatements or intentional omissions of amounts or disclosures in financial statements to
deceive users of financial statements, theft of an entity's assets, bribery, or the use of one's position for personal
enrichment through the deliberate misuse or misapplication of an entity's resources.
23
The bill defines the term “waste” as the act of using or expending resources unreasonably, carelessly, extravagantly, or
for no useful purpose.
24
The bill defines the term “abuse” as behavior that is deficient or improper when compared with behavior that a prudent
person would consider a reasonable and necessary operational practice given the facts and circumstances. The term
includes the misuse of authority or position for personal gain.
25
The bill defines the term “misconduct” as conduct that, though not illegal, is inappropriate for a person in his or her
specified position.
26
GAO, Standards for Internal Control in the Federal Government 40 (September 2014). STORAGE NAME: h1541a.PIE PAGE: 6
DATE: 2/7/2022
Pursuant to the bill, such public official, independent contractor, or agency employee responsible for
the fraud, waste, abuse, mismanagement, or misconduct in government is liable for repayment of the
funds diverted or lost. Such person or contractor must be provided a copy of the findings of the
investigation determining their responsibility. The person or contractor may challenge the finding
through an administrative hearing. If a hearing is held, a final order must be issued determining liability.
The agency may settle the claim if doing so is in the best interests of the state. If the person liable fails
to repay such funds voluntarily and the state does not agree to a settlement, the bill requires the CFO
to bring a civil action to recover the funds.
Chief Financial Officer’s Office of Fiscal Integrity (Section 3)
Current Situation
The Chief Financial Officer (CFO) is an elected constitutional Cabinet member.
27
The CFO serves as
the chief fiscal officer of the state and is responsible for settling and approving accounts against the
state and keeping all state funds and securities.
28
Such responsibilities include, but are not limited to,
examining, auditing, adjusting, and settling accounts of officers and those indebted to the state,
29
paying state employee salaries,
30
and reporting all disbursements of funds administered by the CFO.
31
The CFO’s Office of Fiscal Integrity (OFI) is a criminal justice agency
32
with full statutory subpoena
power.
33
OFI’s mission is to detect and investigate the misappropriation or misuse of state assets in a
manner that safeguards the interests of the state and its taxpayers.
34
According to OFI, it conducts criminal investigations into misbehavior by state employees that have
been under review by their respective agency inspector general. Upon receiving the referral on the
state employee, OFI may begin a full criminal investigation. If criminal charges are warranted, OFI will
refer the matter to the proper charging authority.
According to OFI, it does not currently have the authority to commence an investigation based on a
complaint from an employee of a state agency or state contractor.
Effect of Proposed Changes
The bill authorizes the CFO to commence an investigation based on a complaint or referral from any
source, including an employee of a state agency or state contractor. The bill also explicitly authorizes
an employee of a state agency or state contractor who has knowledge of suspected misuse of state
funds to report such information to the CFO.
Chief Financial Officer’s “Get Lean” Program (Section 4)
Current Situation
The CFO is required to operate a 24-hour statewide toll-free hotline to receive information or
suggestions from state residents on how to improve the operation of government, increase
governmental efficiency, and eliminate waste in government.
35
The hotline consists of a telephone
hotline and website. The CFO is required to advertise the hotline by posting notices in conspicuous
places in state agency offices, city halls, county courthouses, and places in which there is exposure to
significant numbers of the general public, including, but not limited to, local convenience stores,
27
Art. IV, s. 4(a), Fla. Const.
28
Art. IV, s. 4(c), Fla. Const.; s. 17.001, F.S.
29
S. 17.04, F.S.
30
S. 17.09, F.S.; see also s. 17.28, F.S.
31
S. 17.11, F.S.
32
S. 20.121(2)(e)3., F.S.
33
S. 17.05(2), F.S.
34
Office of Fiscal Integrity, https://www.myfloridacfo.com/division/difs/office-of-fiscal-integrity (last visited Mar. 23, 2021).
35
S. 17.325(1), F.S. STORAGE NAME: h1541a.PIE PAGE: 7
DATE: 2/7/2022
shopping malls, shopping centers, gas stations, or restaurants.
36
Additionally, the law allows the CFO to
advertise the availability of the hotline in newspapers of general circulation within the state.
37
When
advertising the hotline, the CFO must use the slogan, “Tell us where we can ‘Get Lean.’”
38
Those that provide tips through the hotline may remain anonymous, but if the tipper provides his or her
name, the name is kept confidential.
39
By law, the tipper is immune from liability for any use of the
information and may not be subject to any retaliation by any state employee for providing the tip.
40
When a tip comes in to the hotline, the CFO’s office is required to conduct an evaluation to determine if
the tip is appropriate to be processed.
41
If the tip is appropriate to be processed, the CFO’s office is
required to keep a record of each suggestion or item of information received in the tip.
42
If the tipper discloses that he or she is a state employee, the CFO’s office may refer any information or
suggestion from the tipper to an existing state awards program administered by the impacted agency.
43
If forwarded, the impacted agency must conduct a preliminary evaluation of the efficacy of the
suggestion or information and provide the CFO’s office with a preliminary determination of the amount
of revenue the state might save by implementing the suggestion or making use of the information.
44
Effect of Proposed Changes
The bill requires the CFO’s office to provide a copy of each suggestion or item of information processed
through the “Get Lean” hotline to the Legislative Auditing Committee by the 15th of the month following
receipt of the suggestion or item of information.
Savings Sharing Program (Section 6)
Current Situation
Florida law provides a state “Savings Sharing Program” for the purpose of providing a process by which
state agencies can retain a portion of their budget for implementing internally generated program
efficiencies and cost reductions and then redirect the savings to employees.
45
By law, DMS must adopt
rules that prescribe procedures for the program.
46
Each state agency is eligible to participate in the Savings Sharing Program, and each agency head is
responsible for recommending employees individually or by group to be awarded an amount of money,
which must be directly related to the cost savings realized.
47
The Legislative Budget Commission must
approve each proposed award before distribution.
48
All employees within the Career Service and
Selected Exempt Service are eligible to receive awards, provided they meet the statutory eligibility
criteria.
49
Additionally, the law allows the Chief Justice of the Florida Supreme Court to establish a savings
sharing program for employees in the judicial branch.
50
36
S. 17.325(2), F.S.
37
Id.
38
Id.
39
S. 17.325(3), F.S.
40
S. 17.325(4), F.S.
41
S. 17.325(3), F.S.
42
Id.
43
Id.
44
Id.
45
S. 110.1245, F.S.
46
S. 110.1245(1)(a), F.S.
47
S. 110.1245(1)(b) and (c), F.S.
48
S. 110.1245(1)(b), F.S.
49
S. 110.1245(1)(c) and (2)(b), F.S.
50
Id. STORAGE NAME: h1541a.PIE PAGE: 8
DATE: 2/7/2022
The “Whistle-blower’s Act”
51
protects government employees from adverse actions from their
employers or an independent contractor for reporting any act (or suspected act) of gross
mismanagement, malfeasance, misfeasance, gross waste of public funds, suspected or actual
Medicaid fraud or abuse, or gross neglect of duty; or any violation (or suspected violation) of any
federal, state, or local law, rule, or regulation committed by an employee or agent of an agency or
independent contractor that creates and presents a substantial and specific danger to the public’s
health, safety, or welfare.
52
The Whistle-blower’s Act governs the complaint filing and resolution
process, provides investigatory procedures upon receipt of a complaint and in response to prohibited
personnel actions, and provides for confidentiality of the complainant’s name or identity.
Effect of Proposed Changes
The bill creates a reward system for state employees whose reports under the Whistle-blower’s Act
result in savings or recovery of public funds in excess of $1,000. The amount of the award will be
determined by the amount saved or recovered, and the employee’s employment classification. When
more than one employee makes a relevant report, they receive a reward proportionate to each
employee’s contribution to the investigation that led to the recovery of such funds. The bill sets the
following award amounts:
Career Service Employees – 10 percent of savings or recovery certified, but not less than $500
and not more than a total of $50,000 in any year.
Selected Exempt Service Employee and Senior Management Service Employees – 5 percent
of savings or recovery certified, but not more than $1,000 in any year.
The agency head must recommend the employee or employees for awards and requires the funds be
paid from the specific appropriation or trust fund from which the savings or recovery resulted. The bill
provides that these awards are not bonuses and do not require approval by the Legislative Budget
Commission.
To protect the identity of the whistle-blower, the bill allows employees to authorize an agent, trustee, or
custodian to collect any award for which the employee is eligible on the employee’s behalf.
Florida Whistle-blower’s Act (Sections 7-10)
Current Situation
The ‘Florida Whistle-blower’s Act’ protects government employees from adverse actions from their
employers or an independent contractor for reporting any act (or suspected act) of gross
mismanagement, malfeasance, misfeasance, gross waste of public funds, suspected or actual
Medicaid fraud or abuse, or gross neglect of duty; or any violation (or suspected violation) of any
federal, state, or local law, rule, or regulation committed by an employee or agent of an agency or
independent contractor that creates and presents a substantial and specific danger to the public’s
health, safety, or welfare.
53
The ‘Florida Whistle-blower’s Act,’ codified in ss. 112.3187 – 112.31895,
F.S., governs the complaint filing and resolution process, provides investigatory procedures upon
receipt of a complaint and in response to prohibited personnel actions, as well as provides for
confidentiality of the complainant’s name or identity.
Effect of Proposed Changes
The bill broadens the category of complaints that may be covered by the ‘Florida Whistle-blower’s Act.’
Specifically, the bill covers complaints alleging ‘mismanagement,’ ‘waste of public funds,’ and ‘neglect
of duty’ as opposed to ‘gross mismanagement,’ ‘gross waste of public funds,’ and ‘gross neglect of
51
Ss. 112.3187–112.31895, F.S.
52
S. 112.3187(4) and (5), F.S.
53
Section 112.3187(4), (5), F.S. STORAGE NAME: h1541a.PIE PAGE: 9
DATE: 2/7/2022
duty’ as under current law. The bill makes conforming changes to other portions of the Whistle-blower’s
Act consistent with the revised definitions and broader category of complaints.
Contracts and the Procurement of Commodities and Services (Section 11)
Current Situation
Chapter 287, F.S., regulates state agency
54
procurement of personal property and services. DMS is
responsible for overseeing state purchasing activity, including professional and construction services,
as well as commodities needed to support agency activities, such as office supplies, vehicles, and
information technology.
55
DMS establishes statewide purchasing rules and negotiates contracts and
purchasing agreements that are intended to leverage the state’s buying power.
56
Depending on the cost and characteristics of the needed goods or services, agencies may utilize a
variety of procurement methods, which include:
Invitations to bid – used when the agency is capable of specifically defining the scope of work
for which a contractual service is required or when the agency is capable of establishing precise
specifications defining the actual commodity or group of commodities required. In such cases,
the contract is awarded to the responsible and responsive vendor who submits the lowest
responsive bid;
Requests for proposal – used when the purposes and uses for which the commodity, group of
commodities, or contractual service being sought can be specifically defined and the agency is
capable of identifying necessary deliverables. Various combinations or versions of commodities
or contractual services may be proposed by a responsive vendor to meet the specifications of
the solicitation document. In such cases, the contract is awarded to the responsible and
responsive vendor whose proposal is determined in writing to be the most advantageous to the
state, taking into consideration the price and other criteria set forth in the request for proposals;
and
Invitations to negotiate – used when the agency intends to determine the best method for
achieving a specific goal or solving a particular problem and identifies one or more responsive
vendors with which the agency may negotiate in order to receive the best value.
57
For contracts for commodities or services in excess of $35,000, agencies must utilize a competitive
solicitation process.
58
However, certain contractual services and commodities are exempt from this
requirement.
59
A contract for commodities or contractual services may be awarded without competition
if state or federal law prescribes with whom the agency must contract,
60
or the rate of payment or the
recipient of the fund may be established during the appropriations process.
61
Current law contains an exemption from the competitive solicitation requirement for statewide public
service announcement programs provided by a Florida statewide nonprofit corporation under
s. 501(c)(6) of the Internal Revenue Code that have a guaranteed documented match of at least $3 to
$1.
62
54
S. 287.012(1), F.S., defines the term “agency” as any of the various state officers, departments, boards, commissions,
divisions, bureaus, and councils and any other unit of organization, however designated, of the executive branch of state
government. The term does not include the university and college boards of trustees or the state universities and colleges.
55
See ss. 287.032 and 287.042, F.S.
56
Id.
57
See ss. 287.012(6) and 287.057, F.S.
58
S. 287.057(1), F.S., requires the procurement of commodities or contractual services that exceed the Category Two
($35,000) threshold in s. 287.017, F.S., to be competitively bid.
59
See s. 287.057(3), F.S.
60
S. 287.057(10), F.S.
61
Id.
62
S. 287.057(3)(e)(13), F.S. STORAGE NAME: h1541a.PIE PAGE: 10
DATE: 2/7/2022
Effect of Proposed Changes
The bill expands the competitive solicitation exemption for statewide public service announcements.
Specifically, the bill removes the provision that required the public service announcement to be
statewide and provided by a 501(c)(6) corporation. This had the effect of a sole source mandate.
The bill also prohibits a state employee from lobbying for funding for a contract and participating in the
awarding of such contract. This provision of the bill does not apply to a state employee who is an
agency head, employed in the Executive Office of the Governor or the Office of Policy and Budget, or
an employee who is required to register as a lobbyist but whose primary job responsibilities do not
include lobbying.
Tax Incentives (Section 12)
Current Situation
Chapter 288, F.S., governs the operation of numerous economic development programs, some of
which provide tax credits, tax refunds, sales tax exemptions, cash grants, and other similar programs.
Effect of Proposed Changes
The bill prohibits a tax incentive, notwithstanding any other law, from being awarded or paid to a state
contractor or any subcontractor for services provided, or expenditures incurred, pursuant to a state
contract.
Department of Education Inspector General Investigations (Section 13)
Current Situation
The Office of Inspector General within the Department of Education (DOE-IG) is responsible for
promoting accountability, efficiency, and effectiveness and detecting fraud and abuse within school
districts, the Florida School for the Deaf and the Blind, and Florida College System institutions.
63
If the Commissioner of Education determines that a district school board, the Board of Trustees for the
Florida School for the Deaf and the Blind, or a Florida College System institution board of trustees is
unwilling or unable to address substantiated allegations made by any person relating to waste, fraud, or
financial mismanagement within the school district, the Florida School for the Deaf and the Blind, or the
Florida College System institution, the DOE-IG must conduct, coordinate, or request investigations into
such substantiated allegations.
64
Additionally, the DOE-IG must investigate allegations or reports of possible fraud or abuse against a
district school board made by any member of the Cabinet; the presiding officer of either house of the
Legislature; a chair of a substantive or appropriations committee with jurisdiction; or a member of the
board for which an investigation is sought.
65
Effect of Proposed Changes
To increase accountability, the bill requires the DOE-IG to also investigate allegations or reports of
possible waste or financial mismanagement, in addition to fraud or abuse against a Florida College
System institution made by any member of the Cabinet; the presiding officer of either house of the
Legislature; a chair of a substantive or appropriations committee with jurisdiction; or a member of the
board for which an investigation is sought. Additionally, the bill requires the DOE-IG to investigate
63
S. 1001.20(4)(e), F.S.
64
Id.
65
Id. STORAGE NAME: h1541a.PIE PAGE: 11
DATE: 2/7/2022
allegations or reports of possible waste or mismanagement against a district school board made by any
of the previously referenced members or officers.
B. SECTION DIRECTORY:
Section 1. Amends s. 11.45, F.S., relating to Auditor General reporting requirements.
Section 2. Amends s. 14.32, F.S., relating to the OIG.
Section 3. Amends s. 17.04, F.S., relating to the CFO’s authority to audit and adjust accounts of officers
and those indebted to the state.
Section 4. Amends s. 17.325, F.S., relating to Florida’s ‘Get Lean’ hotline.
Section 5. Amends s. 20.055, F.S., relating to agency inspectors general.
Section 6. Amends s. 110.1245, F.S., relating to the state ‘Savings Sharing Program.’
Section 7. Amends s. 112.3187, F.S., relating to the ‘Whistle-blower’s Act’
Section 8. Amends s. 112.3188, F.S., to conform provisions to changes made in the act.
Section 9. Amends s. 112.3189, F.S., to conform provisions to changes made in the act.
Section 10. Amends s. 112.31805, F.S., to conform provisions to changes made in the act.
Section 11. Amends s. 287.057, F.S., relating to the procurement of commodities or contractual
services.
Section 12. Creates s. 288.00001, F.S., relating to use of state or local incentive funds.
Section 13. Amends s. 1001.20 F.S., relating to duties of the DOE-IG.
Section 14. Provides an effective date of July 1, 2022.
STORAGE NAME: h1541a.PIE PAGE: 12
DATE: 2/7/2022
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
See Fiscal Comments.
2. Expenditures:
See Fiscal Comments.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The revisions to the state Savings Sharing Program will have an indeterminate positive fiscal impact on
agencies as they provide an incentive for agency employees to file Whistle-blower’s Act complaints and
participate in investigations that lead to savings or the recovery of state or federal funds. Any award
given pursuant to this provision will be paid from the specific appropriation or trust fund from which the
savings or recovery resulted.
Additional reporting and tracking requirements assigned to agencies, as well as investigations of
complaint referrals and processing whistle-blower complaints, can be absorbed within existing agency
resources.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not confer rulemaking authority nor does it appear to require the promulgation of rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h1541a.PIE PAGE: 13
DATE: 2/7/2022