The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Governmental Oversight and Accountability
BILL: CS/SB 954
INTRODUCER: Governmental Oversight and Accountability Committee and Senator Brodeur
SUBJECT: Energy
DATE: January 14, 2022
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Limones-Borja McVaney GO Fav/CS
2. AEG
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 954 revises the vehicle procurement requirements for the state purchasing plan.
Specifically, the bill requires vehicles of a given use class be selected for procurement based on
the lowest lifetime ownership costs over five years, rather than based on the greatest fuel
efficiency available. The bill requires the Department of Management Services (DMS) to
annually rank vehicles based on the lowest cost of ownership over five years and publish the
rankings on its website. The bill requires a sedan or light truck be ranked in the top five of the
DMS’s rankings, unless an exception is approved by the Secretary of Management Services. The
bill exempts law enforcement vehicles from the top-five ranking requirements.
The bill also removes the current law requirements placed on state agencies to use ethanol and
biodiesel fuel when available and on certain entities to procure biofuels for fleet when possible.
The bill requires the DMS, by July 1, 2023, to make recommendations regarding the
procurement of electric vehicles and the best practices for integrating these vehicles into existing
fleets.
The bill expands the definition of single-trade inspection for purposes of building code
inspection services to include inspections of the installation of electric vehicle charging stations
and solar energy and energy storage installations or alterations.
REVISED: BILL: CS/SB 954 Page 2
The impact on state revenues and expenditures is unknown at this time. The DMS will likely
incur costs in ranking vehicles from the purchasing plan. The bill is not expected to impact local
government revenues or expenditures.
The bill takes effect July 1, 2022.
II. Present Situation:
Procurement of Commodities or Contractual Services
Chapter 287, F.S., specifies the procedures for the procurement of commodities or contractual
services. The Department of Management Services (DMS) oversees state purchasing activity,
including professional and contractual services, as well as commodities needed to support
agency activities.
1
The DMS establishes purchasing agreements and procures state term contracts
for commodities and contractual services, and establishes uniform procurement policies, rules,
and procedures.
2
The DMS negotiates contracts and purchasing agreements that are intended to
leverage the state’s buying power. The DMS is directed to consider the life-cycle cost of
commodities when purchased by the state.
3
Section 287.83, F.S., authorizes the DMS to establish
energy-efficiency standards for major energy-consuming products.
State agencies may use a variety of procurement methods, depending on the cost and
characteristics of the needed good or service, the complexity of the procurement, and the number
of available vendors. These methods include the following:
Single source contracts,
4
used when an agency determines that only one vendor is available
to provide a commodity or service at the time of purchase;
Invitations to bid,
5
used when an agency determines that standard services or goods will meet
needs, wide competition is available and the vendor’s experience will not greatly influence
the agency’s results;
Requests for proposals,
6
used when the procurement requirements allow for consideration of
various solutions and the agency believes more than two or three vendors exist who can
provide the required goods or services; and
Invitations to negotiate,
7
used when negotiations are determined to be necessary to obtain the
best value and involve a request for highly complex, customized, mission-critical services, by
an agency dealing with a limited number of vendors.
For procurement of commodities or contractual services in excess of $35,000, agencies must use
a competitive solicitation process.
8
However, specified contractual services and commodities are
not subject to competitive solicitation requirements.
9
1
Sections 287.032 and 287.042, F.S.
2
Id.; see Fla. Admin. Code, ch. 60A-1002.
3
Section 287.083(1), F.S.
4
Section 287.057(3)(c), F.S.
5
Section 287.057(1)(a), F.S.
6
Section 287.057(1)(b), F.S.
7
Section 287.057(1)(c), F.S.
8
Section 287.057(1), F.S.
9
Section 287.057(3)(e), F.S. BILL: CS/SB 954 Page 3
Climate-friendly Public Business
Section 286.29, F.S., requires state agencies:
To consult with the “Florida Climate-Friendly Preferred Products List,”
10
in procuring
products from state term contracts.
11
If the price is comparable, then they shall procure such
products.
12
To contract only with hotels or conference facilities for meetings and conferences as
recognized by the Green Lodging Program.
13,14
To ensure vehicles meet minimum maintenance schedules shown to reduce fuel consumption
and report such compliance to the DMS.
15
When procuring new vehicles, to define the
intended purpose for such vehicle which will then be chosen based on greatest fuel efficiency
available for a given use class, when fuel economy data is available.
16
To use ethanol and biodiesel blended fuels when available.
17
That administer central fueling operations to procure biofuels for fleet, to the greatest extent
practicable.
18
Florida Building Codes
Part IV of ch. 553, F.S., is known as the “Florida Building Codes Act” (Building Code). The
purpose and intent of the Building Code is to provide a mechanism for the uniform adoption,
updating, interpretation, and enforcement of a single, unified state building code. The Building
Code consists of a single set of documents that apply to the design, construction, erection,
alteration, modification, repair or demolition of public or private buildings, structures, or
facilities in Florida. The Building Code must be applied, administered, and enforced uniformly
and consistently from jurisdiction to jurisdiction.
19
Contractors and property owners are permitted to hire licensed Building Code administrators,
engineers, and architects, referred to as private providers, to review building plans, perform
10
The DMS keeps a Florida Climate-Friendly Preferred Products List at
https://www.dms.myflorida.com/business_operations/state_purchasing/state_contracts_and_agreements/florida_climate_frien
dly_preferred_products_list, (last visited December 8, 2021).
11
Section 286.29(1), F.S.
12
Id.
13
The Florida Department of Environmental Protection designates and recognizes lodging facilities that make a commitment
to conserve and protect Florida's natural resources through the Florida Green Lodging Program. To become designated,
facilities must conduct a thorough property assessment and implement a specified number of environmental practices in five
areas of sustainable operations: (1) waste reduction, reuse and recycling; (2) water conservation; (3) energy efficiency; (4)
indoor air quality; and (5) communication and education with customers, employees, and the public. See Green Lodging,
https://floridadep.gov/osi/green-lodging/content/about-florida-green-lodging-program (Last visited December 10, 2021).
14
Section 286.29(2), F.S.
15
Section 286.29(3), F.S., requires state agencies to report compliance to the DMS through the Equipment Management
Information System database. The DMS is implementing a new Statewide Fleet Management Information System that can be
used to manage cost information and reports to ensure the effective and efficient use, operation, maintenance, repair, and
replacement of motor vehicles, watercraft, and aircraft. See Fleet Management Information System,
https://www.dms.myflorida.com/business_operations/fleet_management_and_federal_property_assistance/fleet_management
/fleet_management_information_system (Last visited December 7, 2021).
16
Id.
17
Section 286.29(5), F.S.
18
Id.
19
Section 553.72(1), F.S. BILL: CS/SB 954 Page 4
building inspections, and prepare certificates of completion.
20
A private provider and any duly
authorized representative may only perform building code inspection services that are set forth in
statute, including single-trade inspections. A “single-trade inspection” is defined:
any inspection focused on a single construction trade, such as plumbing,
mechanical, or electrical. The term includes, but is not limited to,
inspections of door or window replacements; fences and block walls
more than 6 feet high from the top of the wall to the bottom of the
footing; stucco or plastering; reroofing with no structural alteration;
HVAC replacements; ductwork or fan replacements; alteration or
installation of wiring, lighting, and service panels; water heater
changeouts; sink replacements; and repiping.
21
A private provider cannot provide building code inspection services to any building designed or
constructed by the private provider or the private provider’s firm.
22
A fee owner or the fee
owner’s contractor using a private provider to provide building code inspection services must
notify the local building official in writing that a private provider has been contracted to perform
the required inspections of construction, including single-trade inspections.
23
If the fee owner or
the fee owner’s contractor makes any changes to the listed private providers or the services to be
provided by such private providers the fee owner’s contractors must update the notice to reflect
such changes.
24
III. Effect of Proposed Changes:
Section 1 amends s. 286.29, F.S., to require vehicles of a given use class be selected for
procurement based on the lowest lifetime ownership costs over five years, rather than based on
the greatest fuel efficiency available when fuel economy data are available. The bill requires the
Department of Management Services (DMS) to annually rank vehicles based on the lowest cost
of ownership over five years and publish the rankings on its website. A sedan or light truck
purchased under the state’s purchasing plan must be ranked in the top five of the DMS’s
rankings. However, the Secretary of Management Services may approve an exception to this
“top-five ranking” requirement. Law enforcement vehicles are exempt from the “top-five
ranking” requirement.
The section deletes the current law requirements on state agencies to use ethanol and biodiesel
fuel when available and on certain entities to procure biofuels for fleet when possible.
Section 2 requires the Department of Management Services (DMS) to make recommendations
before July 1, 2023, to state agencies regarding the procurement of electric vehicles and the best
practices for integrating those vehicles into existing fleets.
20
Section 553.791, F.S.
21
Id.
22
Id.
23
Section 553.791(4), F.S.
24
Id. BILL: CS/SB 954 Page 5
Section 3 amends s. 553.791, F.S., to expand the definition of “single-trade inspection” to
include the inspection of an installation of electric vehicle charging stations and solar energy and
energy storage installations or alterations.
Section 4 provides that the bill takes effect July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
Not applicable. The bill does not require counties or municipalities to take action
requiring the expenditure of funds, reduce the authority that counties or municipalities
have to raise revenue in the aggregate, nor reduce the percentage of state tax shared with
counties or municipalities.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
None.
C. Government Sector Impact:
The impact on state revenues and expenditures is unknown at this time. The DMS will
likely incur costs in ranking the vehicles in the purchasing plan. The bill is not expected
to impact local government revenues or expenditures. BILL: CS/SB 954 Page 6
VI. Technical Deficiencies:
On lines 59-60, the Legislature should clarify that only the Secretary of Management Services is
authorized to grant the exceptions to the top-five ranking requirements.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 286.29 and 553.791 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Governmental Oversight and Accountability on January 13, 2022:
The amendment does the following:
Specifies that the Department of Management Services (DMS) must procure vehicles
based on the lowest lifetime ownership cost over five years.
Requires the DMS to rank their vehicles annually based on the lowest lifetime
ownership cost of five years, and then publish the rankings on its website.
Requires that any vehicle purchased under the state’s purchasing plan that is a sedan
or light truck be ranked in the top five of the DMS’s rankings.
o Allows for exceptions to be made if approved by the secretary of the DMS and
the secretary states the reason for the exemption.
Exempts law enforcement from the top-five ranking requirement.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.