This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0705.LFS
DATE: 1/17/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 705 Public Works Projects
SPONSOR(S): Shoaf
TIED BILLS: IDEN./SIM. BILLS: SB 594, SB 742
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Local Administration, Federal Affairs & Special
Districts Subcommittee
Roy Darden
2) State Affairs Committee
SUMMARY ANALYSIS
Florida law specifies the procedures to be followed in the procurement of construction services for public
property and public owned buildings.
For the purpose of certain statutory limitations, ‘public works projects’ are defined to mean an activity that is
paid for with any state-appropriated funds and that consists of the construction, maintenance, repair,
renovation, remodeling, or improvement of a building, road, street, sewer, storm drain, water system, site
development, irrigation system, reclamation project, gas or electrical distribution system, gas or electrical
substation, or other facility, project, or portion thereof owned in whole or in part by any political subdivision.
Except as required by federal or state law, the state and political subdivisions that contract for a public works
project are prohibited from:
Preventing a certified, licensed, or registered contractor, subcontractor, or material supplier or carrier,
from participating in the bidding process based on the geographic location of the company
headquarters or offices of the contractor, subcontractor, or material supplier or carrier submitting a bid
on a public works project or the residences of employees of such contractor, subcontractor, or material
supplier or carrier;
Requiring a contractor, subcontractor, or material supplier or carrier engaged in a public works project
to provide specified pay and benefits, being subject to certain staffing controls, or requiring the vendor
to select employees from specific sources; and
Prohibiting any contractor, subcontractor, or material supplier or carrier able to perform the work that is
qualified, licensed, or certified as required by state or local law to perform such work from receiving
information about public works opportunities or from submitting a bid on the public works project,
except for those vendors appearing on the convicted vendor or discriminatory vendor list.
The bill revises the definition of “public works project” to include all projects paid for with local or state funds.
The bill provides an exception from the restriction on the ability of a local government to prevent a vendor from
bidding based on geographic location for projects that are solely financed by a local government.
The bill does not appear to have a fiscal impact on state or local governments.
FULL ANALYSIS STORAGE NAME: h0705.LFS PAGE: 2
DATE: 1/17/2024
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Procurement of Construction Services
Florida law specifies the procedures to be followed in the procurement of construction services for
public property and public owned buildings. The Department of Management Services (DMS) is
responsible for establishing by rule:
1
Procedures for determining the qualifications and responsibility of potential bidders prior to
advertising for and receiving bids for building construction contracts;
Procedures for awarding each state agency construction project to the lowest qualified bidder;
Procedures to govern negotiations for construction contracts and contract modifications when
such negotiations are determined to be in the best interest of the state; and
Procedures for entering into performance-based contracts for the development of public
facilities when those contracts are determined to be in the best interest of the state. These
procedures include prequalification of bidders, criteria for developing requests for proposals,
accelerated scheduling, and evaluation of proposals and award of contracts considering factors
such as price, quality, and concept of the proposal.
State contracts for construction projects that are projected to cost in excess of $200,000 must be
competitively bid.
2
A county, municipality, special district, or other political subdivision seeking to
construct or improve a public building must competitively bid the project if the estimated cost is in
excess of $300,000.
3
Current law requires the solicitation of competitive bids or proposals for any state construction project
that is projected to cost more than $200,000 to be publicly advertised in the Florida Administrative
Register (FAR) at least 21 days prior to the established bid opening. If the cost of the construction
project is predicted to exceed $500,000, the advertisement must be published in the FAR at least 30
days prior to the bid opening, and at least once in a newspaper of general circulation in the county
where the project is located at least 30 days prior to the bid opening.
4
For a competitive solicitation
5
for construction services which will be paid from state-appropriated funds,
a state college, county, municipality, school district, or other political subdivision of the state may not
use a local ordinance or regulation that provides a preference based upon:
The contractor’s maintaining an office or place of business within a particular local jurisdiction;
The contractor’s hiring employees or subcontractors from within a particular local jurisdiction; or
The contractor’s prior payment of local taxes, assessments, or duties within a particular local
jurisdiction.
6
Several counties and municipalities have adopted ordinances requiring companies bidding on contracts
to pay their employees a “living wage,”
7
while others have adopted ordinances requiring apprenticeship
programs.
8
Preference to State Residents
1
S. 255.29, F.S.
2
See s. 255.0525, F.S.; see also R. 60D-5.002 and 60D-5.0073, F.A.C.
3
S. 255.20(1), F.S. For electrical work, local governments must competitively bid projects estimated to cost over $75,000.
4
For counties, municipalities, and political subdivisions, similar publishing provisions apply. See s. 255.0525(2), F.S.
5
“Competitive solicitation” means an invitation to bid, a request for proposals, or an invitation to negotiate. S. 255.248, F.S.
6
S. 255.0991(2), F.S.
7
See, e.g., Broward County Code of Ordinances s. 26-102, Palm Beach County Code of Ordinances s. 2-147 to 2-250.1, Miami-Dade
County Code of Ordinances s. 2-8.9.
8
See Charlie Frago, Tampa Seeks to Require Apprenticeships on Large City Projects, Tampa Bay Times (December 4, 2020),
https://www.tampabay.com/news/tampa/2020/12/04/tampa-seeks-to-require-apprenticeships-on-large-city-projects/ (last visited Jan. 16,
2024). STORAGE NAME: h0705.LFS PAGE: 3
DATE: 1/17/2024
Current law provides a preference for the employment of state residents in construction contracts
funded with state funds. Such contracts must contain a provision requiring the contractor to give
preference to employing state residents to perform the work if such residents have substantially equal
qualifications
9
to those of non-residents.
10
If a construction contract is funded by local funds, the
contract may, but is not required to, contain such a provision.
11
In addition, a contractor required to
employ state residents must contact the Department of Commerce to post the contractor’s employment
needs in the state’s job bank system.
12
A contract will not be awarded to any person who refuses to execute an agreement that gives
preference to state residents.
13
However, contracts involving the expenditure of federal aid funds do not
have to give preference to employing state residents if that conflicts with federal law.
14
Public Works Projects
Except as required by federal or state law, the state or any political subdivision that contracts for a
public works project may not:
Prevent a certified, licensed, or registered contractor, subcontractor, or material supplier or
carrier, from participating in the bidding process based on the geographic location of the
company headquarters or offices of the contractor, subcontractor, or material supplier or carrier
submitting a bid on a public works project or the residences of employees of such contractor,
subcontractor, or material supplier or carrier;
Require a contractor, subcontractor, or material supplier or carrier engaged in the project to:
o Pay employees a predetermined amount of wages or prescribe any wage rate;
o Provide employees a specified type, amount, or rate of employee benefits;
o Control, limit, or expand staffing; or
o Recruit, train, or hire employees from a designated, restricted, or single source.
Prohibit any contractor, subcontractor, or material supplier or carrier from receiving information
about public works opportunities or submitting a bid on the project if such individual is able to
perform the work described and is qualified, licensed, or certified as required by state law,
unless that vendor has been placed on the state’s convicted vendor or discriminatory vendor
lists.
15
Effect of Proposed Changes
The bill revises the definition of “public works project” to include all projects paid for with local or state
funds.
The bill provides an exception from restriction on the ability of a local government to prevent a vendor
from bidding based on geographic location for projects that are solely financed by a local government.
B. SECTION DIRECTORY:
Section 1: Amends s. 255.0992, F.S., relating to public works projects.
Section 2: Provides an effective date of July 1, 2024.
9
S. 255.099(1)(a), F.S., defines “substantially equal qualifications” as the qualifications of two or more persons among whom the
employer cannot make a reasonable determination that the qualifications held by one person are better suited for the position than the
qualifications held by the other person or persons.
10
S. 255.099(1), F.S.
11
Id.
12
S. 255.099(1)(b), F.S.
13
S. 255.099(2), F.S.
14
Id.
15
S. 255.0992(2), F.S. STORAGE NAME: h0705.LFS PAGE: 4
DATE: 1/17/2024
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
None.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires rulemaking by executive branch agencies.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
Not applicable.